Why More People Should Consider Moving Abroad For Financial and Personal Freedom
By Joel Stott-Jess
Moving abroad to live, work, and invest is not for everyone. But for a lot of professionals, entrepreneurs, tech workers, investors, and crypto investors you might be better off establishing residency abroad.
You should be able to do whatever you want with your body, your life and your resources. As long as you’re not harming anyone else. Same for your choice of where you live and how you spend your money.
The most developed countries had the worst lockdowns. Developing and emerging nations were not able to shut down everything. The US, Canada, Europe etc were able to keep people at home because they can just print money and still mostly holds its value.
As long as the US is the dominant superpower they can print greenbacks with fairly minimal consequences. At least for now.
Although supply chain issues and the highest inflation rates in decades are already taking effect. That inflation is a hidden regressive tax hitting normal people the most.
As always the richest corporations and billionaires utilized their regulatory capture of government institutions to ensure they profit.
Restrictions on freedoms and day to day life may be changed for the foreseeable future in rich countries. Covid and its ubiquitous variants are here to stay. They will be part of our disease pantheon for a long time if not permanently. Governments will be loathe to relinquish their powers.
Economic, personal and health freedoms will continue to be eroded in developed countries. The cost of government programs will be increasingly borne by high tax rates. At least if you’re living there. Social safety nets people took for granted will not offer them the financial security they were promised.
Those intertwined issues are why I think a lot more people should consider moving abroad.
If you were living in a developing and generally warm location, with minimal restrictions, life was a lot more pleasant than being locked down in recent years.
The tectonic shift in how people work is only going to continue. Knowledge workers don’t need to go to the office any more. If the work gets done it doesn’t matter where it takes place. That means geographic freedom. Especially if you can move somewhere and be connected during office hours.
For citizens of most developed countries except the United States you can stop paying most or all of those taxes if you move abroad and meet certain requirements. Americans have the $107k per person per year foreign earned income tax credit. If they move somewhere and spend 330 days out of the States. Depending on your line of business it can be a little more complicated but its there.
Then if you’re moving to a less developed location they often don’t charge tax on income you earn abroad. Between the decreased cost of living and massive tax cut it can mean the difference between normal and early retirement. Maybe really early.
We were not born to work until we die. Or until age has stripped us of the ability to enjoy the free time that work has bought. We all get one shot at life. We should not live with ever-changing and nonsensical restrictions and higher taxes while receiving decreasing benefits in return.
To that end there are some financial and incorporation strategies that can be extremely useful for people looking to make the move abroad. Setting up foreign corporations, bank accounts, and cryptocurrency trading can allow you to increase your net income substantially and protect your assets.
Yo do not need ti live in country in which your business and bank account are located. Often living in one with a business set up in another is the most advantageous tax strategy, There are many jurisdictions that offer an array of corporate and banking benefits to expats moving abroad and doing business.
Belize is a popular option for expats in Central America, though its banking system is underdeveloped. Hong Kong is an option but regulations are more stringent and it is Chinese territory. Singapore and Malta have their attractions, and for Asian and European especially The British Virgin islands are popular but the banking leaves something to be desired.
All of these countries provide their respective pluses and minuses. I encourage you to check them out and determine if they meet your needs best and provide the most beneficial tax rate.
However for many expats Panama has the best combination of all of the resources they need. It’s also one of the few counties where you can set up a corporation, bank account, and corporate linked crypto trading account without having to set foot in the country. Plus a number of other distinct advantages if you’re looking at Latin America as a destination.
No matter which country you choose the corporate structure in Panama connects well with your needs. I operate in Nicaragua and there are a flood of clients getting residency here and running their business operations through Panama.
If you work remotely you can stay in those same work and banking hours. The stable banking system with developed financial tools allow access to your resources. If want to trade crypto it’s the best option in my opinion. Combined with the 5% dividend tax for foreign sourced income it’s my personal choice.
You can check out the article on Panama structures for more. Or contact me directly any of the ways below.
Joel Stott-Jess
Cell / WhatsApp / Telegram: +505 8176 8624
Skype: joelstottjess
Facebook: The Central Investor
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Joel Stott-Jess is a New York Times featured speaker, writer and real estate broker based in Central America.
Originally from Alberta, Canada he has been doing business in Central America since 2014.
A serial entrepreneur, investor, and outdoor enthusiast he is an expert on the real estate and investment markets in the region.
