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Jokes about the right wing German tendency to flee to Argentina aside, I think it's entirely for economic reasons.
California has proposed a wealth tax recently, and I wouldn't be surprised if it went through.
Unless he gives up his US citizenship he's still getting taxed on his income and such. He doesn't gain any more protection from IRS taxes by moving to Argentina vs Texas or Puerto Rico.
As another poster pointed out, moving to Argentina might help with state and local taxes in the US. Although if you are leaving a high tax state like California, New York, or New Jersey, from what I understand you have to sell your house and really cut ties. And even then, you can expect an aggressive residency audit.
But I mainly responded to your post that unlike anywhere else in the world, moving to Puerto Rico does have the potential to help a US citizen avoid federal taxes. You have to jump through a lot of hoops and the stars must align, but from what I understand you can bring your tax rate from 37% all the way down to 4%.
You don't have to sell your house, but if you keep it you do have to spend less than ~180 days in the state. I think this is similar in low-tax states but they aren't as aggressive about enforcing it as New York.
I am pretty sure you are wrong here. From what I understand, there are two ways New Jersey can consider you a resident for purposes of taxes: (1) if you are domiciled in New Jersey; or (2) if you maintain a residence in New Jersey and spend more than 183 days. In theory, a person who spends 7 days a year in New Jersey can be considered a domiciliary if he leaves the state without intending to cut ties.
Avoiding having NJ as your domicile is easy; you just establish one somewhere else. You can do that without selling your house. What bites people is when they're domiciled somewhere else but have both residential property and business reasons to come to NJ (keeping in mind going through Newark Airport is sufficient)
While in theory it's just a matter of establishing a domicile somewhere else, in practice I don't think it's that easy.
Here's an article which claims that for purposes of domicile, a past domiciliary must NOT maintain a permanent home in New Jersey:
https://www.domicile365.com/Articles/New-Jersey-State-Tax-Residency.html
I'm not sure how accurate the article is, but it's important to keep in mind that in high tax jurisdictions like New York, California, and New Jersey, the authorities are very hostile to claims that a person has moved out of the state, particularly if they have gone somewhere like Florida or Texas. If there is an indication that you are trying to move "on paper," it's going to be a challenge to avoid the taxes.
No, it says that IF New Jersey is your domicile, you can avoid being a resident for tax purposes by not maintaining a permanent home in New Jersey, maintaining a permanent home somewhere else, and spending less than 30 days in New Jersey. This would apply mostly to students and military, I think, though possibly some people on temporary job assignments -- e.g. if you take a 1-year assignment in Dubai where you rent a place to live, but intend to return to New Jersey, you might be still domiciled in New Jersey, but not a resident for tax purposes.
Since you only have one domicile at a time, it's easy to satisfy the domicile test by setting up a domicile elsewhere.
In theory this is correct, but in practice -- as I mentioned above -- you are dealing with hostile and aggressive tax authorities. Here is an excerpt from one article:
https://www.njcpa.org/article/2024/12/03/moving-to-florida--tax-considerations-and-pitfalls
https://summitfinancial.com/wp-content/uploads/2023/06/NJ-to-FL-Domicile-Change-6.20.23.pdf
And here is an article regarding the burden of proof:
https://www.hodgsonruss.com/assets/htmldocuments/Residency%20Audit%20Booklet%20-%201.6.23.pdf
So in practice, if you hold on to your New Jersey residence and set up a domicile somewhere like Florida or Texas, you can expect a very aggressive and hostile audit. There's a real risk that an auditor (and an administrative law judge) will simply decide not to believe you when you swear up and down that you really truly intended to leave the state and set up a domicile elsewhere.
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