‘’Don’t Move to South America’’

should you move to south america for more freedom lower taxes and a second passport some say it's a terrible idea and i'm going to walk you through the pros and cons [Music] so we see a lot of especially americans and canadians but also some europeans moving to south america for a number of reasons we're going to talk about that today but i wanted to share a comment with you from a gentleman named wolf who thinks no south america is not the place to go and he says i just moved in 2020 from south america to europe to improve quality of life security health care education everything is so much superior to the americas good government institutions need to be paid hence taxes go to a place where you pay little taxes well let's say paraguay or chile both of which i know very well i know paraguay probably better than anyone 30 years of 30 years of residence get seriously sick or get robbed and shot and then we'll see generally a huge flaw of mr henderson's videos so one-dimensional and so much obsession of getting a collection of passports personally i would very much support a worldwide ban of country selling passports it's just immoral i am if it's your first time here the aforementioned mr henderson and the founder of nomad capitalist where a boutique consulting firm that helps seven and eight-figure entrepreneurs and investors legally reduce their taxes overseas protect their assets build options with second passports life overseas and also host the biggest and best offshore conference called nomad capitalist live and obviously this person has sort of an issue with the idea of paying low taxes they have an issue with the idea of having multiple citizenships we'll set that aside and maybe cover that in a future episode what i would suggest is just to start in the context of if you're a seven or eight figure entrepreneur investor if you have a high income if you have a high net worth if you have capital gains coming up taxes become more of a consideration for you sure if you're going to pay 10 000 in taxes living in europe you may very well want to do that if taxes are your big consideration if you're going to pay 10 million dollars of taxes now it's worth considering because when you can afford to pay 10 million dollars in taxes or even 1 million dollars in taxes or heck even somewhere in the six figures in taxes you can start afford affording to get away from the issues that he's talking about now here's the good news you can live in europe and you can still pay low taxes okay south america is not particularly a low tax area you've got countries like uruguay and chile which have certain tax exemptions for foreigners for a certain period of time you've got countries like paraguay which are relatively tax friendly uruguay which is also generally tax friendly even after the exemption period you've got countries in central america which are relatively tax friendly but for the most part if you're going to live in south america you either need to be paying some taxes somewhere else which will help you let's say in a country like ecuador or you're going to spend not the entire year that's going to be one of your international basis so that you're not going to become a taxpayer there you'll pay tax somewhere else that tax rate may be as low as zero and you're going to live in colombia three or four months a year you're going to contribute to their economy you're going to buy property you're going to do the things they want you to do to be a legal resident but you're not going to spend all your time there and pay tax so if you're going to live somewhere full time and it comes down to south america versus europe there are places in europe look at italy look at greece look at you know jersey look at gibraltar you have potentially the ability in some of those places to pay zero you have for most people the ability to pay some fixed amount of money which depending how much you're making could be a very small tax rate it could be one two three five seven percent depending on your income depending on your capital gains you just pay a flat amount switzerland has long had some version of that system you have all kinds of countries that offer various tax exemptions that you know don't tax your foreign income all around europe including in western europe and these countries often have high what we call headline tax rates you can move to the uk you can move to portugal you can move to ireland you can move to plenty of places you won't be paying the full tax rate that everyone else is at least on all of your income so if the idea is i want to live somewhere full time and my concerns are security healthcare education and i believe that that superior in europe will then pick one of the numerous tax-friendly countries in europe where you can go and get that now let's go through his issues piece by piece security obviously in south america there are places that have security i would argue if you're watching this as the seven or eight or nine or ten figure entrepreneur investor you can find a way to deal with security i spend part of my time in bogota colombia um i spend part of my time in mexico city where no man capitalist live will be held in 2022 i have not gotten into problems where i have got into problems is in capital cities in central america and perhaps was on the verge of getting to some problems in johannesburg south africa everywhere else in the world i've been around at midnight i've been around one in the morning you will you know with my own little neighborhood see me walking around in parts of latin america um at night and when you take precautions when you live in the right area when you go to the right places um you know when you drive the right car when you just follow best practices it can be safe now some people will say hey listen why do i want to have to go through all that well sure some of the safest places in the world are in dubai like dubai the middle east georgia's been one of the safest countries people complain about those as well they say oh i want the adventure of south america it is more of an adventure no doubt you have a certain culture there's a certain cultural proximity in some ways to what you might find in the united states or canada you certainly got a wide number of countries that speak a common language that you can use and it's a relatively straightforward language to learn and so you have access to a lot of places um you have a social scene that many people prefer over other parts of the world you have a certain climate you have just a certain vibe and if you like that that's great i think you can deal with security element if you want more of the european culture if you want that then by all means go to europe and you can still pay low taxes i know that wolf maybe doesn't like to hear that there are places in europe where i could go and pay one or two or three percent in western europe but that's what some of these countries are offering um so if that's what you want to do by all means do it health care i think that there is decent health care in the americas i think mexico is probably one of the best and people do travel to mexico from around the world for care panama has some good facilities we've talked about brazil before certainly if i'm looking for the absolute best in critical care i'm not going to seek out most places in south america i'm going to seek out perhaps western europe but probably where i would be is either in istanbul dubai or southeast asia whether it's thailand whether it's malaysia whether it's singapore those are the places that i personally would go and by the way those are places that are wide open everybody really even if you don't have the world's best passport um so am i going to seek out care there no but i've been to the doctor in bogota i've you know had particular issues i've had it solved i've been to doctors in mexico city i've been relatively impressed much of the time i've had family members who've been sick in you know various places in mexico and so i don't think that the issue of health care just in terms of day-to-day health care and things that pop up is in problem in latin america but you're probably not going to seek it out and so listen if you're living the nomadic capitalist lifestyle you can live in south america and you can go do a check-up somewhere else once a year do a full regimen take a trip to you know kuala lumpur take a trip to dubai um that could play into parts of your tax strategy resident strategy citizenship strategy depending on where you're going you know go where you're treated best and if you want to live in latin america then maybe you get health care somewhere else but i think on a day-to-day basis you're you're likely to be fine you know unless you're living somewhere off the beaten track in nicaragua or bolivia yeah obviously that's gonna be worse i think you know what you're getting into uh he mentions education obviously uh sure europe may have better education there's also people who are leaving the western world right now because they're tired of what is being taught at schools and i see a lot of people moving to homeschooling moving to what i've talked about for years which is the idea of hiring a tutor you can bring that tutor with you wherever you go get your tutor a residence permit latin america one of the easier parts of the world to get a residence permit you hire a tutor on some kind of contract you pay them a salary they can use that salary and then after a certain number of months they can qualify for residence and they can come with you to wherever it is that you want to go most countries in latin america will let them in or you can get them a proper job you know set up there so in terms of education i think that you know you want to create your own infrastructure if you want to go to europe right don't explain it i i had an old friend in the united states he'd say you know why is it so many people when they move to las vegas they make so many excuses oh the weather's great and the schools and the roads are very well you know when you move from los angeles to what texas i got a new job when you move from los angeles to vegas it's uh well the um uh the climate is good for my it's listen we get it you don't want everyone to think you've got a giant gambling addiction you've got to have 11 different reasons if you want to live in europe just live in europe and again you can do that in a tax friendly way it may involve a bit more planning um but just live in europe good now let's get to the core point because this is what it all comes down to with so many folks who i think don't agree with with the philosophy oh there's not great health care great if you can afford to do what we're talking about you can afford to you know go up to the united states if you think that's where the health care is so great go to london if that's where you think the health care is so great go there for your care he says good government institutions need to be paid and that assumes this idea that in europe all the institutions are good do you think that politicians in europe are really so much superior to politicians in other parts of the world no listen no doubt there are parts of the world where corruption is more endemic no doubt there are also countries in europe where corruption is endemic and by and large corruption in europe corruption in the united states is higher than you think i'm not talking about scandinavia or a couple of other countries but corruption is higher now maybe you can't participate in that corruption maybe it's only corruption at the highest levels but good government institutions to say that because you're paying them that they're necessarily good is quite unfair and so the idea that hence paying taxes means you're going to do better well how do you explain the fact that i can go and live in any handful of western european countries and my tax rate will be less than one percent living there it will take me more effort to set it up i will have to jump through a few more hoops but why is it that i could does that mean that those countries aren't effective does that mean that those those countries don't match the criteria am i going to get robbed and shot as he says oh you'll be robbed and shot i've been all over south uh in central america with very very few issues and again the places where i had issues i've never recommended i wouldn't go there's no reason to go to a capital city in central america outside of panama city and if you call it mexico city central america than that too there's no reason to go to managua there's no reason to go to gold singapore there's no reason to go to any of these places and so yeah if you're if you are a successful person if you're paying so much in taxes you should go where you're treated best and so when we're comparing south america and europe again colombia not a great place to live year round you could live in portugal year round sure um but if you're going if you're open to moving around if you're open to living in different places why not do a little bit of both want to spend time in south america why not spend time in europe maybe europe's the base you go to south america maybe you flip it right but there are plenty of places uruguay for example it's extremely safe down there chile safe in many areas although the government has very much been moving the wrong direction in recent years and more so recently and so i know that south america is the perfect place to compare to if you want again adventure if you want to track to a second passport it's going to be a lot easier to get second passports with lesser amounts of presence with easier conditions to get in the door with perhaps more flexibility and easier language to learn uh potentially a couple years faster in south america than it would be in europe so that's a benefit and by the way south american passports are pretty good and here's what i would also say by the way having a bolt hole in south america not the worst thing to have at a time when the world is at war i would no doubt imagine that the kind of person who would write this comment the same person would say why do you talk about europe why do you talk about eastern europe don't you know there's a war coming don't you know there's like world war iii is coming where would you want to be when world war iii coming out yeah i would say that uruguay might not be the worst place to go and having a residence or having worked towards citizenship there having a home there that might be a nice thing to have in there so no doubt south america perhaps offers more on the ground freedom on an everyday basis it offers a certain quality of life that certain people like or food or dating opportunities or whatever but when it comes to south america versus europe they both need to be structured properly for tax and so you get to make a decision the good news is there are lots of countries that you think aren't tax friendly that actually are perhaps that's the biggest takeaway and so if you're choosing south america because you think oh these emerging countries are better for tax there are plenty of countries that are better for tax and that's the good news you get to choose where you feel comfortable whether you're living one place all year round as wolf does or whether you're splitting your time up as i do you get a little bit of taste of everywhere

Channel: Nomad Capitalist

Views: 106,994

Keywords: nomad capitalist, go where you're treated best, second passport, dual citizenship, second citizenship, Don’t Move to South America, financial news, Low Tax Countries in South America, living in south america, south america, cost of living, 10 cities in south america, latin america, living in latin america, investing, taxes, leaving usa, is it safe to live in south america, south america cities, What Makes Latin America Attractive, safe places, taxes explained

Id: qw9O6f7yPNE

Length: 13min 23sec (803 seconds)

Published: Sat May 07 2022