The bottom line is that the Internal Revenue Code includes legal methods that you can use to avoid or minimize tax if you are investing outside the United States. In this regard, it is always best to consult with knowledgeable and competent tax advisors. When determining whether your investment is advantageous, you need to figure out the net operating income (NOI). On a global scale, income and the impact of taxation are intertwined. When you are making an investment in a country that does not tax your income, capital gains, or beneficiaries, you clearly have an advantage over one that does. Your NOI, so far is terrific. But in the context of your U.S. tax obligations, your NOI may not be as advantageous. In addition, if you want to repatriate funds earned in another country in the United States, there may be tax consequences. However, if you’re making your investment with retirement funds, such as an IRA or 401(k), your investment can be tax deferred or even tax free—in the United States, that is. So let’s now look at reducing your current and future tax burden by using retirement funds.