The Hidden Gems of High-Class, Low-Tax Living

today i'm going to share with you some of the world's gems for high class low tax living i'm going to talk about one specifically that offers some of the flavor some of the development some of the business savvy of the country you may be used to but at a much lower price tag so we recently got some feedback from someone that said the thing that keeps confusing me is the blanket statements about how you pay less tax offshore than in the u.s aside from the health care system you'd be hard-pressed to find lower tax rates in most places with a similar market to the us i don't know anyone has even paid a 50 tax bill in the u.s outside of new york and california now if it's your first time here my name is andrew henderson i'm not only the one who says i pay less tax overseas i'm also the founder of a bote consultancy called nomad capitalists where we help legally seven and eight-figure entrepreneurs and investors reduce their taxes overseas protect and diversify their assets overseas and expand their freedom and their options with things like second passports i'm also the host of the biggest and best offshore conference called nomad capitalist live and i wanted to comment on this statement because one of the things that i find fascinating when we talk about our five magic words go where you're treated best is that people try and read into that like i live in the us i want to go where i'm treated best i'm going to go to canada or i'm going to go to the uk or i'm going to go to the other countries that i've heard about there was an interesting meme on social media saying here's the international community that you always hear politicians talking about it was basically a map of the us and canada and western europe in australia new zealand and i think japan and the rest of the world was just completely not filled in because they're not really part of this international community and so i think the same thing applies to when people want to move overseas this gentleman is saying i don't understand how you pay less tax outside the united states than inside the united states and i have talked about how i reduced my tax rate from 43 all in to 1 all in thereabouts um and the reason is i don't go to countries that have similar high taxes to the united states right if we're comparing the united states to france then maybe the united states wins people might like the culture of france they might think they're getting more money for their getting more value from their tax dollars others would say hey the us wins you pay less in tax you know it's more entrepreneurial you can decide between those two but yes obviously you're not saving tax by moving to france you're maybe not going to save tax in most cases moving to germany or moving to spain but what you do have first of all is a lot of those high tax countries in europe starting to roll out tax incentives spain has a pretty bad one portugal has one you've got a number of non-dom and and other kind of tax incentive countries you know countries with lump sum taxes like italy and spain and greece you've got a whole different number of ways you can legally reduce your taxes if you are a seven or eight figure earner in western european countries to a single digit tax rate not to zero unless you go to monaco or unless you go all the way to the east in a country like georgia but in western europe you can reduce your taxes so if i'm an american and i want to move to switzerland for example and i make 5 million dollars a year my tax rate is going to be substantially less um depending on how i structure myself certainly if i were to give up my u.s citizenship live in switzerland uh my taxes are going to be substantially less but certainly i know a lot of people paying those kinds of tax rates we always hear about oh you know jeff bezos and this guy paid three percent this guy paid one percent most people that we're working with are coming to us um because they want freedom because they want a better lifestyle but also because they're paying high taxes they're not getting the benefit of these three percent rate that the media keeps saying the billionaire class is paying they're paying a lot even outside of california even outside of new york and so if you want to reduce those tax rates then you have to stop seeking out something that's very similar and i've said if you want something that is similar enough but still tax advantaged go to one of the countries in europe that has a tax incentive program go to italy go to switzerland go to portugal go to malta go to cyprus go to ireland go to the uk go to any of those countries even greece that have those incentive programs obviously there are plenty of other places in the world that are developed and we'll talk about some of those in a moment but let me go through a couple of the points that he makes here number one he talks about healthcare u.s healthcare obviously is the most expensive in the world we did a report about a year and a half ago saying that u.s healthcare according to studies by the medical industry was the 37th highest quality in the world so you pay number one you get 37. the kind of false economy that people like this often put out is well you know it's better than in yemen but that's not the dichotomy that's not the choice that i have the choice is i can go to malaysia i can go to dubai i can go to istanbul i can go to panama city and go to mexico city i can go to prague i can go to you know london i can go to all number of different places get better quality care for a fraction of the price so you don't need to be in the us as he says for healthcare the other question he brings up is why do i need to live in a similar market so if you're thinking okay uh he's mentioning you know malta and cyprus in portugal these are all very small countries switzerland obviously very developed you know italy is a big market obviously not as developed not as wealthy as is the u.s but you know for me i learned at 21 years old that as long as i had a phone i could run my business if you have a virtual business if you have investments that you can make from anywhere if you've got a business that you can run with a management team in place somewhere else why do you need to be in develop a country when my family talked about moving to new zealand in the mid 1990s the idea was let's sell everything let's move there and start a new life that's not really how it works today how it works today is sure let's live in new zealand and as a burgeoning entrepreneur when i was like 12 or 13 years old and my parents were saying this i'm like well no how am i like i'm gonna have four million people to sell to and i didn't understand as kind of an early user of the internet at that point that the internet would revolutionize how we sell things to people and that right now i would be selling to people from 36 different countries and serving them from wherever it is that i live and that people would by and large accept that and so in the same way that you've historically had egyptians that moved to dubai and they're both arabic speaking to some extent and they can sell stuck people back in egypt and they can kind of arbitrage between those two um you now have the opportunity to say hey i'm an american i'm a canadian i'm a whatever i'm going to move to another country let's say i'm gonna live in the uae i'm gonna live in dubai and i can sell stuff through my e-commerce store through my you know consulting firm that operates um you know the same way we did during the pandemic through zoom through google meets whatever i'm going to sell my stuff there so why do i need to be in a similar market i almost would say i want to live in a smaller country which is what i've been saying for years where they're going to give me a better tax rate they're going to give me more incentives to invest they're going to be glad that i'm there maybe they're going to give me citizenship faster maybe the lifestyle is better maybe they're less likely to take away my freedoms because it's a small country and so they have to be nimble so i like the idea of living in a smaller market where the country has to be competitive and then selling into bigger markets and you can do that either without any tax consequences or in some cases very minimal tax consequences so why do i need to live in the united states and pay u.s taxes and deal with all the chaos going on in the united states and just for me what wasn't a good entrepreneurial fit earlier in my life i just didn't feel it was my place why do i have to deal with that when i could just sell to americans from from somewhere also quite frankly where you're living where the similar market to the u.s is is irrelevant because you can continue to do business from anywhere in the world there may be some proper attack structuring especially if you're selling things like physical products um they are looking at you know the global minimum tax which has been slow to roll out i'm not convinced it's going to be entirely rolled out and it's not even going to apply to most of our businesses initially so i think that you don't need to be in a market that is similar to yours you want to be in a place that offers you a good quality of life more freedom and a good financial situation and then sell to somewhere else where there's good business opportunities and i think you can do that now more than ever now uh how do i pay more tax overseas well there's a couple different ways you can go about it number one is you can follow my trifecta method which for me is a lifestyle approach i like to get in a couple months every year in asia i like to get in a couple months in various parts of europe could be western europe could be eastern europe obviously it's broad continent as is asia um and you know to a lesser extent i'd like to get in time in latin america if i had to pick two i would choose europe and asia and just move between the two but hey it's nice to go to my home in colombia we're hosting nomad capitalist live in mexico city it's nice to go and have the food have the vibrant culture i like to get a taste of all that now i also have my tax instruction a place where i pay taxes personally in a place where i really have very little tax liability because i don't trigger the tax requirements in any other country now did i set that up specifically to pay less taxes it certainly is a nice benefit and i'm not going to deny that i would not want to live for six months in colombia and by the way even if i uh did want to live there yeah you know what if millions of dollars are at stake i think people do definitely change their philosophy so whether you're choosing my trifecta method because you want to lower your taxes and you say okay well here's a country where unlike a canada or australia they use a strict days test and there are a number of emerging countries like this listen you spend 183 days you pay if you don't you don't that's their rule one day they'll change it and you make a determination am i willing to follow the new rules or not but for right now i go to a country like colombia i buy a ton of stuff i pay a bunch of money in sales tax and put money in the economy buy property promote the country and don't pay income tax don't pay wealth tax there and so you can have the trifecta approach where you're living in a number of different places and for me by the way it allows me to look at business opportunities i spend time in eastern europe we have employees in eastern europe the tax that we do pay is a lot of money in payroll taxes every year we have a global team now over 50. um a few of those are kind of around the world but most of them are under our own roof and we pay payroll tax and so we're contributing to the economy uh in that way uh more than a lot of companies that are just hiring you know one or two freelancers and so for me to be in that part of the world allows me to expand my business it you know we have kind of started the process of expanding business into latin america and so being in latin america some of the time allows you to kind of facilitate that so i think you know living the trifecta life still helps you grow your business i wouldn't want to run a business that just sells to the u.s to me that's not diversified enough um we love working with folks from the u.s but it's also nice to expand into europe it's also nice to you know have people from the spanish-speaking world we've had people from asia and so by living in different places i get to grow the business whether the countries are developed enough for this commenter i don't know but it's worked for us and we've had great success in understanding more of those cultures and diverse entire business just away from the one culture that 12 or 13 years ago i was the most familiar with and so the trifecta is one way to improve your business opportunities um potentially reduce your tax and also increase your lifestyle which is for me a big reason i like to get a little bit of sampling of everything um the other reason the other thing is if you just want to live in one place every year how do you find an available place to live well some of the countries i mentioned ireland the uk malta and cyprus all have kind of similar tax programs where you more or less pay on the money that you live on and you have more tax flexibility beyond that and so you can structure your companies internationally as a foreigner go there and take advantage of some serious tax benefits i don't think anyone's going to deny that the uk is not a developed market it is certainly a smaller consumer market than the us but there's plenty of business to be had in the uk ireland malta cyprus obviously smaller but you're still within the european union you're still within that that european market and you've got a lot of opportunities there that you can just move between i mean how many people decided during the pandemic to move to kind of a distant suburb but they still have to come into the city occasionally now to do business or they have to go and check on the factory that's in the city or whatever right now they live further out because they wanted to move further up from more space during the pandemic is that really that much different than saying hey once a month i have to fly from malta to some headquarters in frankfurt for example or in some bigger developed market that's within europe i don't necessarily think so portugal another small market they have their nhr tax incentive program that's another great program and you can live in a smaller european country you're next to a bigger one spain not as wealthy certainly as the united states but it's a big consumer market next to that is france next to that is germany three big consumer markets all kind of right there at your doorstep you're living in tax friendly portugal because again portugal has to actually put out some value compared to spain because they're much smaller country they don't have the tourist arrivals necessarily they don't have all the investment coming they don't have the brand name they're building the brand name they've done very well um with that by offering tax incentives by open by operating um you know an open door policy basically switzerland of course is anyone uh going to suggest that switzerland's on a developed market they've got a very friendly tax program depending on where in switzerland you live you might pay three four five percent on a multi-million dollar annual income yes it's going to be more complicated than living other places yes they have a wealth tax which could be infinitesimal in some of the cantons but so there's some complication with switzerland but if your goal is you want a developed market and you're not totally trying to reduce your tax to zero switzerland that's about as developed as it gets i mean you have a much higher percentage of swiss residents who are millionaires than americans so if you want a great market to sell to to me that's interesting and again you're at the doorstep of all of europe i mean you're at the doorstep of certainly um germanic and french-speaking countries and and just all of europe in general very centrally located how is that really any different than saying you know what i want to live in kansas city and i've got business all over the united states or i want to live in calgary and i've got business all over canada monaco obviously tax-free you can do that living in europe obviously a very small consumer economy tens of thousands of people but you're the doorstep of other countries dubai tax-free not in europe but is anyone going to argue that dubai is in a developed market you are at the doorstep of all kinds of emerging markets we've helped a number of folks from egypt for example um you're the mark you know you have middle east north africa all these different areas around there where there's a lot of growth that could be a good place to be if you want a developed market it is i mean go to dubai go to abu dhabi walk around the sidewalks are much more clean they don't have holes in them the roads are pothole free as opposed to many places in the u.s and the western world and then same with singapore again not in europe but very developed small consumer economy but what's in its doorstep indonesia one of the hidden gems that no one talks about no one really thinks about the west one of the largest countries in the world that is emerging right you've got malaysia more developed emerging country to its north you've got southeast asia where you literally have a tiny circle in southeast asia that encompasses part of china and you have more people inside that circle than outside of the circle in the entire world one little circle in asia you have more population than outside of it you want developed you want big consumer markets how about being in singapore and being the hub for all those markets you have people leaving hong kong now coming to singapore you're telling me that's not developed they've got a territorial tax system and so while they flirted with some level of increased taxation it's still going to be a lot tax friendlier than the united states and so you've got a number of places where if you're looking for the gems that have high class of living you're going to live well in switzerland in ireland in the uk in singapore in monaco in dubai you're this is not uh the slumming lifestyle unless you want to i guess but you're going to have high class and low tax and you're at the doorstep if not in very developed markets maybe it's not the us and if you still want to sell the us and north america you can from there but you can move to these countries you can dramatically reduce your taxes even as an american there is going to be some planning for sure in these kinds of countries it's going to be more it's going to be a little bit harder than just moving to dubai right and if you're an american that adds an extra complication but you can even as an american dramatically reduce your taxes live in these places have a better quality of life in many of these countries work towards citizenship including in malta which has a citizenship program and cyprus which used to without paying you can work towards citizenship in those countries and get what other people are paying for to move faster other countries like ireland portugal have citizenship options you can work towards that you can diversify you can see new business opportunities quite frankly the idea that you wouldn't move out of a high-tax country to go to these places just doesn't make sense

Channel: Nomad Capitalist

Views: 72,366

Keywords: go where you're treated best, second passport, dual citizenship, second citizenship, best places to live, life abroad, us citizenship, taxes, life in usa, cbi, leaving usa, leaving america, travel around the world, best places to visit in the world, The Hidden Gems of High-Class, Low-Tax Living, moving to another country, investing, top places, where to move, moving to europe, moving to switzerland, moving to france, moving to spain, avoid taxes, wealth creation, tax advice

Id: HyYzzNi4LB4

Length: 16min 24sec (984 seconds)

Published: Fri May 20 2022