Destinations, Tax Havens, and Countries to "Escape" To

[Vigilante]

France just is in the process of imposing a 75% income tax on top wage earners. The United States seemingly might not be that far behind.

What if you wanted to leave the United States? Where would you move to and why?

I have read with interest some stories on this forum about Singapore, Bali, Panama, the Philipines, and other places.

If you could choose a cool place to live anywhere in the world, where would you go? Please support your post with the core reasons that country would be the coolest place in the world to live. For purposes of my own education, assume you were already near what most people might consider "early retirement..."

Thanks. I am very interested in learning your perspectives.

 

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[Mike39]

I have always looked at the Cayman Islands as a great place to "retire" to, there is literally no income tax, corporate tax, sales tax, capital gains tax, wealth tax, inheritance tax, property tax, gift tax or any other kind of direct taxation. You are close enough to the US to fly in if you need, still not to far from Europe and South America, and the beaches are beautiful.

Cons: Housing is a bit pricey though and hurricanes would suck.

 

[Vigilante]

How do they support their infrastructure? What is their government and how are they funded?

 

[theag]

I want to live in Monaco one day (my goal is to move there in the next 5 years). Right in the middle of Europe, great weather, mediterrean sea (I love sailing), no income tax (there is business tax, not sure about the other personal ones).

 

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[Kak]

With an average income of around KYD$47,000, Caymanians have the highest standard of living in the Caribbean. According to the CIA World Factbook, the Cayman Islands GDP per capita is the 14th highest in the world. [22] The islands print their own currency, the Cayman Islands Dollar (KYD), which is pegged to the U.S. dollar at a fixed rate of 1 KYD = 1.25 USD. [23]

The government's primary source of income is indirect taxation: there is no income tax, capital gains tax, or corporation tax. An import duty of 5% to 22% (automobiles 29.5% to 100%) is levied against goods imported into the islands. Few goods are exempt; notable exemptions include books, cameras, and infant formula. [citation needed]

Cayman Islands Premier McKeeva Bush announced on July 15, 2012, the implementation of a "community enhancement fee" in the form of a payroll tax to be paid solely by expatriate workers. Caymanians will remain exempt from this tax. This is the first direct tax on income in the Cayman Islands history. [24] Bush also announced a five percent fee on "certain categories of employment" to be payable by businesses.

 

[splok]

I haven't lived in the US in a few years, but imo, make the move based on quality of life, not the tax structure. I'm as tax averse as anyone, but really, having 50% more money isn't exactly going to transform your life. However, living in a place that you actually love to be can.

More importantly, unless you're going to renounce citizenship, you're still going to owe the US their taxes, so the important question is where do you base your business while you travel the world, living whereever you want.

 

[MakeItHappen]

Yep it's the same with me.
I think it's a nice place to be... and you will have a ton of people around you with fastlane attitude.
There are obv many other nice places but Monaco is a good choice for an European who doesn't want to live in exotic new culture.

I want to live in Monaco one day (my goal is to move there in the next 5 years). Right in the middle of Europe, great weather, mediterrean sea (I love sailing), no income tax (there is business tax, not sure about the other personal ones).

 

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[Kak]

I haven't lived in the US in a few years, but imo, make the move based on quality of life, not the tax structure. I'm as tax averse as anyone, but really, having 50% more money isn't exactly going to transform your life. However, living in a place that you actually love to be can.

More importantly, unless you're going to renounce citizenship, you're still going to owe the US their taxes, so the important question is where do you base your business while you travel the world, living whereever you want.

Renouncing is the plan. Who wouldnt like a caribbean island with internet???

 

[FastNAwesome]

I want to live in Monaco one day (my goal is to move there in the next 5 years). Right in the middle of Europe, great weather, mediterrean sea (I love sailing), no income tax (there is business tax, not sure about the other personal ones).

Same here, for all the same reasons.

Also it's probably a nice place for making new business contacts.

And they have the highest life expectancy in the world.

And Formula 1...how extremely cool is that?

 

[jljtech]

My choice would for sure be the Caribbean. Not necessarily the caymans but several islands have extremely favorable tax structures. Not to mention that the islands are incredibly beautiful. Real estate is affordable and there are some good deals to be had.

Proximity to the states is good and really the only drawback would be the weather at times.

Monaco would be nice but the cost per square foot of real estate is absolutely astronomical. It is easily in the top 5 most expensive real estate options on the planet. Demand is crazy for housing in Monaco. Much of the demand centers around its tax structure. Mainly known as a tax haven for the wealthy.

 

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[andviv]

And Formula 1...how extremely cool is that?

That one is in my bucket list.

I already attended 3 races at Indy. One in Montreal.

Small chance I will attend the U.S. Grand Prix this year but I probably won't be able to....

But Monaco is *the* place to be for a Formula 1 race.

 

[Runum]

I keep thinking about Darwin, Australia. Been doing some research on it. Don't know why but it keeps sticking in my head.

 

[Kak]

My choice would for sure be the Caribbean. Not necessarily the caymans but several islands have extremely favorable tax structures. Not to mention that the islands are incredibly beautiful. Real estate is affordable and there are some good deals to be had.

Proximity to the states is good and really the only drawback would be the weather at times.

Monaco would be nice but the cost per square foot of real estate is absolutely astronomical. It is easily in the top 5 most expensive real estate options on the planet. Demand is crazy for housing in Monaco. Much of the demand centers around its tax structure. Mainly known as a tax haven for the wealthy.

A great place to have a private plane and yacht.

 

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[PatrickP]

Monaco has high social insurance taxes payable by both employer and employee. The employer's contribution is between 28%–40% (averaging 35%) of gross salary including benefits and the employee pays a further 10%–14% (averaging 13%).

wiki

 

[GlobalWealth]

This is a very difficult question since it is very personal. There are a lot of questions you need to ask yourself before making the move.

For me, I don't like the Caribbean. I don't like hot humid weather and don't like being trapped on an island.

I was just in Panama. I would need to explore a bit, but my first impression is that I would not want to call it home. Again, too hot and humid for me and lots of poverty.

I am currently in Ecuador (as I type, only visiting). Quito is a cool city, but crime is very high. It is a bit scary. The weather is perfect, cost of living very low, good transportation (although traffic is nuts), good services (ie internet, cell phone, etc). You can become a citizen in 3 years or less. I would check out Cuenca for living or maybe a coastal city.

Western Europe is off the table. Very high unemployment (50% for 18-30 year olds in Spain, almost as high in Italy). This causes significant social problems and increases in crime. Cost of living is very high relative to other places that are much nicer. Italy has great food, but that's about it.

I am a big fan of Eastern Europe. My favorite countries are Estonia, Latvia, Lithuania, Poland and Hungary. English is widely spoken, cost of living low, quality of life high, interesting culture, great history, great architecture. But weather is cold in the winters. Personally I like that, but certainly not for everyone.

 

[GuestUser8117]

France just is in the process of imposing a 75% income tax on top wage earners. The United States seemingly might not be that far behind.

What if you wanted to leave the United States? Where would you move to and why?

I have read with interest some stories on this forum about Singapore, Bali, Panama, the Philipines, and other places.

If you could choose a cool place to live anywhere in the world, where would you go? Please support your post with the core reasons that country would be the coolest place in the world to live. For purposes of my own education, assume you were already near what most people
might consider "early retirement..."

Thanks. I am very interested in learning your perspectives.

Italy.

Why?

Strong healthcare system,excellent food,reasonable cost of living,lamborghinis,great wine,nice weather,affordable housing cost.

 

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[Kak]

This is a very difficult question since it is very personal. There are a lot of questions you need to ask yourself before making the move.

For me, I don't like the Caribbean. I don't like hot humid weather and don't like being trapped on an island.

I was just in Panama. I would need to explore a bit, but my first impression is that I would not want to call it home. Again, too hot and humid for me and lots of poverty.

I am currently in Ecuador (as I type, only visiting). Quito is a cool city, but crime is very high. It is a bit scary. The weather is perfect, cost of living very low, good transportation (although traffic is nuts), good services (ie internet, cell phone, etc). You can become a citizen in 3 years or less. I would check out Cuenca for living or maybe a coastal city.

Western Europe is off the table. Very high unemployment (50% for 18-30 year olds in Spain, almost as high in Italy). This causes significant social problems and increases in crime. Cost of living is very high relative to other places that are much nicer. Italy has great food, but that's about it.

I am a big fan of Eastern Europe. My favorite countries are Estonia, Latvia, Lithuania, Poland and Hungary. English is widely spoken, cost of living low, quality of life high, interesting culture, great history, great architecture. But weather is cold in the winters. Personally I like that, but certainly not for everyone.

I get what you are saying about the caribbean islands. I do feel a little trapped on trips and such. I think most of this comes from the fact that I normally do not rent a car. I need the freedom to drive around. I also think if I really rooted myself and brought my things I would be able to enjoy it more. Also the ability to just jump on a plane and shoot to Houston for a week would keep me sane. I would DEFINITELY travel more though.

 

[Brander]

But weather is cold in the winters.

The cold is a long-term no no for me. So much more relaxed and chilled in sunny and hot weather.

For an entrepreneur it is important to be somewhere where a healthy business climate and a general entrepreneurial spirit exists.

Live somewhere where you enjoy, you can always live the smart (short trips) PT (less then 180 days) lifestyle.

 

[theag]

Monaco has high social insurance taxes payable by both employer and employee. The employer's contribution is between 28%–40% (averaging 35%) of gross salary including benefits and the employee pays a further 10%–14% (averaging 13%).

wiki

Well, you wouldn't actually run your business there. Incorporate in Ireland, Switzerland etc and have your personal residence in Monaco (obviously works best for internet businesses or if you're (semi-)retired). At least if I'm thinking through this right.

 

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[St.Alpine]

I keep thinking about Darwin, Australia. Been doing some research on it. Don't know why but it keeps sticking in my head.

I visited Darwin and it is an awesome city to party
in every day.
In summer it's humid and hot, in winter
relatively hot but dry.
I moved down to the Margret River region, because you couldn't surf in Darwin.

Darwin has one of the highest shark and jelly fish population
in Australia. So, although I enjoyed the highlife there
I wanted to go surfing really badly.
But I definitely will go back there to visit the bars and nighclubs

Around Darwin is desert and aboriginy territory.
Keep in mind that they
have serious problems with aboriginies there, caused
by alcohol abuse. On my first day, two aboriginies beat up a
aboriginy women in the middle of the street.

I want to live in Monaco one day (my goal is to move there in the next 5 years). Right in the middle of Europe, great weather, mediterrean sea (I love sailing), no income tax (there is business tax, not sure about the other personal ones).

That would be awesome! The south of france is the nicest region
to live in in europe.
I was traveling there with a friend for 1,5 weeks. We visited the
awesome provence enjoying Merlots and Shirazes .
Not speaking about the great food.
I applied for a semester break job in St.Tropez this year, to take a look
at the region and met interesting people.

I love watching "Die Geissens" when they are at their villa
near St.Tropez.
The taxes would be a great thing, also you have the medditerean sea
and the alps at your toes.
Go windsurfing, mountaineering and watching Formula 1
on the same day

 

[GlobalWealth]

The cold is a long-term no no for me. So much more relaxed and chilled in sunny and hot weather.

I agree it is not for everyone. Personally I don't do well in hot weather. I was in Panama a couple of weeks ago and hated it. Too hot and humid for me. I like seasons - all 4 of them.

For an entrepreneur it is important to be somewhere where a healthy business climate and a general entrepreneurial spirit exists.

100% agree. Where I live is very entrepreneurial.

Live somewhere where you enjoy, you can always live the smart (short trips) PT (less then 180 days) lifestyle.

I tell people this all the time. You need to pick a place where you actually enjoy spending time. Visit the other places as your 'playground'.

 

[theag]

I love watching "Die Geissens" when they are at their villa
near St.Tropez.
The taxes would be a great thing, also you have the medditerean sea
and the alps at your toes.
Go windsurfing, mountaineering and watching Formula 1
on the same day

Yea, the geissens are pretty cool, love to watch that from time to time.
Replace windsurfing with sailing and its perfect

 

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[Jake]

My "home base" is currently Thailand. It's also home to my Wife(Thai) and Daughter(Thaimerican). I love it there but it's really a place you would need to visit to see if it suites you. It CAN be cheap if you want it to be but it can also get expensive if you like nice things. Import taxes are ridiculous so if you like imported cars and motorcycles you need to be prepared to pay..as well as other goods. Exotics are a good 4x as much and credit isn't forced down peoples throats like in the U.S so if you own one..you can afford it.

Great weather(IMO) but I hate being cold. I grew up in Rochester, NY and had my fill of cold and snow. The people are friendly and great hosts, service driven well..services are cheap. Local foods, fresh fruit, hot women, nice beaches, a very lenient police force as long as you don't do anything stupid. Medical and Dental work costs a fraction of what it costs in the States.

if you're looking to start a business that isn't completely online it's tough and rules are not exactly friendly. Minimum Thai staff and other rules drive people to circumvent the system.

Overall great place..The Land of Smiles

 

[St.Alpine]

Too hot and humid for me. I like seasons - all 4 of them.

When I lived in Dunsborough (southwest of Australia), the seasons vanished
into another. Frontiers didn't exist.
I couldn't live in a place where there is ONE season throughout the year.

You need to pick a place where you actually enjoy spending time. Visit the other places as your 'playground'.

Exactly. Choose a homebase. From there, explore the world.

 

[Vigilante]

Few Places to Hide as Taxes Trend Higher Worldwide - NYTimes.com

 

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[Warchild]

If i didnt like England so much i would look at Jersey or Gibralter. Strangely I dont mind paying tax, in high tax nations there tends to be a much smaller chance of being murdered. I could live in Afganistan and not pay any tax, but I would probably get murdered, plus there would only be horses, guns and opium to spend my money on. Its supposed to be warm though.

 

[GlobalWealth]

Strangely I dont mind paying tax, in high tax nations there tends to be a much smaller chance of being murdered.

You've got to travel to better places. Singapore has no tax on foreign earnings and it is considered the safest most orderly country in the world.

Most of Eastern Europe have very low flat taxes and are very safe and clean.

Maybe you need to get out more and stop watching war movies and propaganda films.

 

[Warchild]

Like Hong Kong, another ex-colony of ours. Foreign income generally depends on the double tax treaty of the country that the income derives, so to fully not pay any tax, corporation tax, income tax etc in any jurisdiction is very difficult.

Eastern Europe I probably need a bit more convincing. Probably no warmer than here.

 

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[theag]

Singapore has no tax on foreign earnings and it is considered the safest most orderly country in the world.

They are also pretty serious about strikes.. Singapore to deport striking Chinese bus drivers | The Jakarta Post

 

[GlobalWealth]

Foreign income generally depends on the double tax treaty of the country that the income derives, so to fully not pay any tax, corporation tax, income tax etc in any jurisdiction is very difficult.

Not true. It is quite easy to set up your business in a no/low tax jurisdiction then live in a place like Singapore, Hong Kong or Panama that has not tax on foreign income.

Eastern Europe I probably need a bit more convincing. Probably no warmer than here.

I cannot even think of one good reason to pick the UK over nearly any place in Eastern Europe for living. Agreed the winters are not warm, but there is more to life than just this.