Live in One of These Countries for a Low Key, Tax-Free Life
While everyone is familiar with the more glamorous tax free countries like Monaco and The Cayman Islands there are many other countries that have similar benefits without the high profile.
Having a hideout in another country and a legal residence there is an important component in building your new, tax free life.
With a residence in another country, you have a safe haven to escape to if things go wrong at home. Imagine how many people, even in recent history, wish they had followed this strategy of obtaining legal residence in one of the tax free countries.
In the last decade, people have been forced to flee once-prosperous countries like Venezuela and Syria. A serious financial crisis or war can happen anywhere and often on short notice. Even in a once free country like Australia, its citizens have been banned from leaving for the last 18 months.
It is important to be thoroughly prepared.
What we analyse here at Liberty Mundo is, of course, how you can implement strategies to protect yourself from taxes and creditors. Therefore, you want to have your second residence in a country that does not tax you or impose other burdens on you, such as military service.
You should look for countries that either do not tax you at all, or at least do not tax your income outside their borders. I’ve already talked here about high-tax countries where you can live tax free.
Now let’s look at some countries that operate on a territorial tax basis. That’s to say, countries that only tax you on what you earn in the country. What you earn outside the country is tax free.
Paraguay did not have an income tax at all until recently. For a bank deposit of just $5,000, you can easily get a residency permit in this unassuming, landlocked country. If you stay 6 months a year for three years, you are eligible for a Paraguayan passport.
If you are interested in farming, cheap land is available here. Freedom seekers and anarcho-capitalists will enjoy the lack of regulation and lax enforcement of the laws.
You can get residency in this undervalued southern African country by bringing in $140,000 over 3 years. Namibia has recently announced that it will introduce more opportunities to attract foreign retirees and investors. However, no details have emerged yet.
Panama has a visa for friendly nations that allows you to get residency almost instantly for a $5,000 bank deposit. Technically, you can get citizenship after 5 years, but some of our clients have reported difficulty getting citizenship. It is still a useful option for tax-free living in a Central American country with first world facilities.
Panama has recently changed its friendly nation’s visa scheme but it’s still possible to easily relocate to one of the best tax free countries in Latin America.
The Philippines offers a great, laid-back lifestyle in Asia. They have a special program for retirees. The SRRV Smile program offers several options for people 35 and older. You can make a bank deposit or buy a property. Investments or bank deposits start at just $10,000. This makes The Philippines one of the easiest tax free countries in Asia to relocate to.
The Republic of Georgia
Formerly a Soviet Republic, this is perhaps the easiest country in the world to set up your tax residence. You do not need a visa or an application. Just show up and stay for at least 183 days and you have tax residency. If you do not want to spend 6 months a year in Georgia, there are other options.
Costa Rica abolished its army back in 1946 to focus on education. Costa Rica has 2 beautiful coastlines. You can enjoy an idyllic life free of high taxes on the Pacific and Caribbean coasts.
Costa Rica has several residency programs, including for investors and retirees. The pensionado and rentista programs are the most popular for permanent residence.
Many expatriates who spend the winter months in Costa Rica simply travel to Nicaragua or Panama every 90 days for a 72-hour trip. This way you avoid immigration procedures. However, we prefer to keep a firm grip on things and it’s worth the effort to have a residency card to implement your global tax-free strategy.
Nicaragua is located to the north of Costa Rica. It’s much less developed and cheaper than Costa Rica. You can get permanent residency here with a small investment of about $30,000. This can lead to citizenship within 5 years. Nicaragua is one of the cheapest tax free countries in the world.
In Taiwan, there are a few ways to obtain a residency permit. Under the Plus Blossom program, you can get a residency permit if you have internationally recognized qualifications. You can also invest $200,000 in starting a business to get a temporary residency permit. An investment of $500,000 will give you immediate permanent residency. You will receive citizenship after 5 years if you live in Taiwan for at least 183 days per year.
Macau is a much easier way to get a residency permit and live tax-free than its neighbor Hong Kong. In Macau, you can set up a local company and employ yourself. Macau does not tax foreign income. If you want to live in this Asian Las Vegas it could be a good option.
Macau offers numerous good banking opportunities and could be considered a low-key residence destination. Without a doubt, Macau is one of the top tax free countries for those who seek the thrill of glamorous casinos.
Here at Liberty Mundo, we help high net worth individuals reduce taxes and increase freedom. We help our clients to get second passports, reduce taxes worldwide to close to zero, protect their assets, and relocate overseas. Please get in touch with us here and find out how we can help you