RE: So what are the problems with getting out of here?
1) Are you planning on relinquishing US citizenship? It isn’t that simple. You have the IRS to deal with.
2) Are you planning to make money in Panama? ( say, rent out a property )? You will of course have to report that income to the IRS.
American is one of a handful of countries that TAXES citizens on income from ALL POSSIBLE SOURCES.
If you are a German living and working in the US, you are not required to file the income you make in the US to the German tax office. If on the other hand, you are an American living and working in Germany, YOU ARE REQUIRED to report your income in Germany for taxation purposes.
In fact, I know of green card holders who became citizens later who left their country of origin and by some good fortune, inherited property or money from a dead relative from that country. THEY ARE REQUIRED TO INFORM THE IRS OF THAT.
Do you have to relinquish US citizenship to get away from the IRS?
Planning on living on the income from investments - but worried that if the US collapses how much will that income dwindle to? So also thinking about the need to get the principle out of the US.
My brother in law is Dutch and inherited $ from his dad - which apparently will be a problem if he brings it here. I recall my very liberal sister whining about the tax laws here....go figure.
The IRS and German Finanzamt share everything - there’s no escape.