Moving Out of the Country – My Current Five Flags Plan as of January 2017
Today, I’ll give you where I currently stand as to which countries I’m going to choose for my five flags model when I move out of the country in or around 2025. To be clear, this is only my current, rough draft plan. Everything you’re about to read is subject to change if/when I uncover more information or if conditions in the US or around the world change. This plan is not set in stone yet, is a constantly changing and updating thing, and likely it will remain so for the next few years.
In 2017, I’ll be going to China and likely to Dubai and Australia. Starting in 2018, my “Country A” tour will begin, and I will be visiting various new countries with the intent of evaluating them as possible future places to live, to base a business in, and/or invest.
To quickly review the five flags model that I described here, I’m looking at four or five different countries to provide these functions:
Country A – Where I will live, a place that doesn’t tax non-citizen residents.
Country B – Where I will get my second passport, to supplement (or even replace) my current American passport.
Country C – Where I will base my legal business structure(s), a place that has zero or low corporate taxes for non-citizens.
Country D – Where I will have my investments, a place with low or zero taxes on investment income to non-citizens. I will have multiple Country D’s for diversification reasons.
Country E – Where I buy most of my stuff beyond groceries and other basics (things like electronics, clothing, etc), a place with low or zero sales tax or VAT taxes for non-citizens.
The objective of having these five countries is:
1. Taxes; to pay the absolute minimum legal amount of tax. Because I have an Alpha Male 2.0 business structure, I already pay a very low tax rate for someone at my income level. I pay well less than 20% in total taxes, legally, despite having a six figure income.
Regardless, this is still way too high. I work way to hard to pay one-fifth of my income to a corrupt, warmongering, corporatist government run by people like Donald Trump and Hillary Clinton, who mostly take my money and give it to millionaire bankers, poor people who don’t want to work, or use it to bomb innocent civilians in the Middle East. Uh yeah, no thanks.
My goal is to get my total annual tax down to 4% or less, and do so legally. I’m going to try to get it to 0%, since I personally know international nomads who legally pay 0% tax, but I won’t necessarily be a nomad, since at my age (mid-40s) I desire an actual home base (Country A). Therefore, I’ll go for 0%, but if I end up with 4% or less, I will consider that a win.
2. Security; to be protected against any one country doing something stupid, suddenly changing their laws, hitting a huge recession, or collapsing. I sure as hell don’t want to attach my long-term future to the collapsing USA, suicidal Europe, or any other individual country or region. Via five flags, I’m spreading my risk across multiple countries, all over the world. Adding this to an already existing Alpha 2.0 business and financial structure, I will be, quite literally, one of the most secure people on planet Earth when I’m all done. I will be protected even if any one country or region encounters a major problem or changes in some way.
3. Freedom and fun. With multiple passports and flags all over the world, I’ll be able to travel with much more ease, both by taking advantage of more business opportunities, and for fun.
My Current Choices of Countries
Here are my current choices for the country functions listed above. Again, this list is subject to change, and only represents my current thinking and research at this point. For more details on my thought processes about where to live or not to live and why, read this.
Country A – Where I will live: It’s currently a tie between Argentina and New Zealand, with Chile as a third option if those two don’t pan out. I will be spending significant time in both Auckland and Buenos Aries in 2018 in order to get a feel for both areas.
Both Argentina and New Zealand are located far away from the collapsing West, their cost of living is lower than in the US, and their climates are tolerable. Argentina is extremely inexpensive and a very cool place, making it super attractive. New Zealand isn’t nearly as cheap or as fun as Argentina, and in some cases is even more expensive than the US, which is a problem. However, it’s populated by English speakers and is much closer to Asia, which is where most of the money and business opportunities will be over the next 100 years.
Country B – My second passport: It’s currently a tie between Argentina, New Zealand and Comoros.
Both Argentina and New Zealand require you to live in their countries for five years before getting citizenship, which is fine, since they’re both under consideration for my Country A.
However, to adhere to the five flags model, I can’t live in Argentina if my passport is also there, so Argentina would only work if I chose New Zealand for my Country A. The reverse is also true. If I chose to get an Argentinean passport (for example), I would move out of the US, live in Argentina for five years, apply for citizenship, wait for the bureaucracy, and then get it. As soon as I got my new passport, I would then move permanently to New Zealand. Having to move twice like that would be a hassle to say the least, but living in two places might be fun.
The other option is Comoros, a tiny African island nation that essentially sells passports to anyone who wants them. The passport isn’t very good in terms of offering visa-free travel, which means that if I used my Comorosan passport to go to the US (for example), I’d actually need a visa to do so. Not a big deal, but it would be a hassle.
On the flip side, the passport is 100% legal and valid. Comoros will give me one for just $45,000, without me ever having to live there, put any money in there, have any kind of interview, or ever pay taxes there. Nice. $45,000 is a lot of money, but it’s within my means, and it would save me from living in Argentina for 5+ years. I would also try to find a way to make money off the fact that I have a Comorosan passport and/or the fact that I would have to possibly visit Comoros, to help offset that cost.
I looked into getting a passport from Italy, because it looks like I’m eligible for one due to my Italian heritage. The problem is that, based on many stories from other people who have done this, the process of getting your Italian citizenship is absolutely horrible, stressful, difficult, frustrating, and takes many years. Screw that. Both Argentina and Comoros would be easier.
Country C – Where to base my business: This is a tough one. I have not yet narrowed down the options to just two or three. There are so many different variables that this will be the most complicated decision I’ll have to make. I’m currently looking at many countries, including Montenegro, the UAE, Bahrain, Macedonia, Hong Kong, Georgia, Malaysia, the Philippines, Singapore, Estonia, Bulgaria, and maybe even Ireland. I have no idea which one of these I will choose. Yet.
You might be asking why I might choose a European country for Country C when I think Europe is going to collapse. Remember that I’m not going store any money in these countries (other than maybe $1000 for day-to-day operations). I’m just going to base my legal business structure there. If the country collapses or changes their laws, no prob. I’ll have a backup business already set up in another country that I’ll just shift to. Worst case scenario, it would be a hassle for about a month as I switched things over, and then I’d be fine.
Country D – Where I will have my investments: This one is easy. It will be (and to a degree already is) Singapore, Australia, and a few other places. Singapore and Australia are both comparatively safe, solid countries as compared to the chaos of the rest of the world, and they’re both in or close to Asia, which is exactly where I want my money to be. Post 2025, I will also own international real estate in a few other places, but haven’t decided on where yet.
Country E – Where I will buy my stuff: As for my groceries and basic stuff, I’ll buy these in my Country A. For electronics only, I will use Singapore, which is perhaps the cheapest place in the world to buy that kind of thing. For everything else (clothing, toys, etc), I will use my home state of Oregon in the United States, since there is no sales or VAT tax of any kind there. I may have to pay shipping costs sometimes, but I’ll evaluate that on a purchase-by-purchase basis. I have lots of friends and family there who can help me with logistics, and of course I will be visiting there often.
That’s it so far. An example of where I might end up when I’m all done would be living in New Zealand, with a US and Argentinian passport, with my business based in Georgia, and have investments in Singapore, Australia, and various other places. My income is already location independent so that part is covered.