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Step 1
Make lots of money before you open a Swiss bank account or create a limited-liability company in Monaco. Tax havens are primarily of assistance to the very wealthy, as the private bankers are pretty unlikely to conduct business with you if you don't have a significantly large trust or slush fund. Offshore bank accounts, foreign corporations and asset protection in no-tax or low-tax countries are pretty useless if you don't have any assets to protect.
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Step 2
Become a British citizen, as Britain's laws are pretty lax. As a British subject, you can jet between your tax exile of choice and Britain and still avoid taxes--as long as you don't spend more than 1/2 week at a time in Britain. Not only can you get away without paying taxes on your foreign corporation, but you can also vacation in exotic countries while still enjoying the comfort of home.
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Step 3
Open an offshore asset-protection account if you're unlucky in love or not all that great at your job. While an offshore haven account doesn't have all that many tax benefits if you're just keeping your money in it, it does offer some protection from future legal claims. Claimants in malpractice suits or messy divorces won't be able to attack those funds. Just make sure you open the account before the legal proceedings begin.
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Step 4
Learn a foreign language and find a good real-estate agent, as the only way to truly avoid paying taxes on income or interest earned in a tax haven is to move to a low-tax location for at least 1 year. Section 911 of the Internal Revenue Code allows for upwards of $70,000 to be excluded from your annual taxable income as long as you meet the IRS residency requirements for an entire tax year. You'll have to be able to prove it by visiting IRS.gov and filing Form 673--Foreign Earned Income Exclusion--with your federal taxes, but at least you can file it from your beachside resort in the Virgin Islands (see Resources below).
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Step 5
Kiss your freedom--and your family--goodbye. It's illegal to use offshore havens to evade paying taxes to the United States government. So, if you get caught, you're likely facing some jail time or the prospect of fleeing the country. Either way, it's probably a good idea to get used to small, enclosed spaces.
