In 99% of the counties in this world your taxes are based on your place of residency. So if you want to cut taxes, the easiest thing is to… wait for it…
…become a resident of a country where there are no taxes!
For example Dubai.
It is simple. If you move to Dubai, you stop paying taxes. 0%. No sales tax, no income tax, no capital gain tax. Nothing of what your local chapter of overpaid bureaucrats government came up with to make you contribute your fair share to their fraternity friends society.
And there are other low and now tax options. Qatar, Hong Kong, Singapore, Monaco, Switzerland.
But Julius, those places are only for the rich and famous!
Don’t fear, my brave tax avoiding knight.
If you complete this quest you can conquer a tax free estate in places like Malaysia, Philippines, Panama, Costa Rica, Nicaragua, Seychelles, the Bahamas and much more.
If you set up a business or generate an income online you are home-free, because these countries don’t have taxes on income generated outside of their own jurisdiction .
Note that you only have to have to be considered resident in these countries. You don’t necessarily have to live there (with a few exceptions). For example in Dubai, when you own a business that sponsors your residence permit, you are only required to visit one time every six months to remain resident.
You have to be considered resident …for tax reasons… (whispering conspiring)
Is it really that easy?
It really depends on where you currently are resident and your financial situation. Some governments are stricter then others when becoming a non resident.
In my case it was simple. I went to the local government in a sleepy town in the Netherlands and 15 minutes later I was struck out of the residency register. I received a few automated tax forms. A few final settlements.
And then it stopped…
Other governments might not be so lenient and you might need to proof that you have become a resident in a new jurisdiction.
It will also becomes much more complicated when you currently own a business or other assets like real estate, or have been saving for a pension. Even if you own immaterial assets like intellectual property you have to pay attention. If this is applicable to you enquire with a local expert on valuations and exit taxes BEFORE moving you or your business offshore.
But bottom-line is that every citizen of the known world (except the US and Eritrea) can get out dodge and cut taxes immensely.
When after your epic battle the hideous bloodsucking beast slides screaming into the abyss, desperately sweeping its tentacles, trying to get a hold on you…
…you know your done filing your tax reports.
Now you might be asking, where will you need to spend your time once you have safely established residency in a new jurisdiction?
Well, you are free to decide. You are a global citizen now.
And you can do whatever you want.