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dreaming of, live like a rock star, and still keep more of your
hard earned money.
How?
To make things even better, you will likely have tons of money left
over after creating your dream life… just by saving on taxes.
Just picture yourself reinvesting all the money you have had to set
aside for taxes in the last two to three years. Imagine the possibilities.
I understand where you’re coming from and I know that giving away
your hard-earned money to the taxman isn’t anyone’s dream.
I get that you’re expecting more out of your business and your life.
You want to be able to use your savings to improve your business and
the quality of your life, instead of being forced to practically give them
away.
The most common way to lower your income tax is to move to a state
with a lower state income tax.
There are seven states that do not apply an income tax, including
Alaska, Florida, Nevada, South Dakota, Texas, Washington and
Wyoming.
By complying with all regulations set forth by the United States, you
can become an eligible candidate for the Foreign Earned Income
Exclusion.
What this means is that you will be able to exclude the earnings you’ve
made in a foreign country. As of 2017, an individual can exclude up to
$102,100 of their foreign earnings.
In order to qualify for the exclusion, you must spend at least 330 days
outside of the U.S. within a twelve month period.
The United States and the African country of Eritrea are the only two
countries that have citizenship-based taxation.
This kind of taxation system requires you to pay income tax even when
you permanently live abroad.
That’s why the most effective way to lower your tax bill is to obtain a
second citizenship and then renounce your U.S. citizenship.
Born and raised in the U.S., I understand this concern.
The U.S. government doesn’t makes things easy for you. That’s what
motivated me to start my journey eight years ago.
Even better, after putting together my perfect business setup, the only
government institutions I have to deal with are foreign — and they are
both helpful and respectful.
In all my years, the IRS has only requested a clarification from me
once, which I provided. That was the end of my communication with
them.
I wouldn’t advise taking any chances and going for the quick fixes. You
want a permanent solution that may take some time, but it will all pay
off in the end.
Real results can only be achieved if you’re willing to invest your time,
patience, and money.
But rest assured, there are ways you can definitely turn the tables
around and profit greatly.
If that doesn’t motivate you to reduce your tax burden, I don’t know
what will. But let’s start with the basics.
The most effective way to lower your tax bill in Australia is to set up an
offshore company AND become tax non-resident.
You want to make sure that the jurisdiction you choose will have low
(or zero) corporate tax.
You should choose one that is safe and that will enable you to set up
an efficient corporate bank account.
The second step, becoming tax non-resident, means that you are not
considered a resident for tax purposes, therefore you are not required
to pay income tax in Australia.
The most important one is that you have to permanently live outside of
Australia.
You are welcome to come back to visit, but you have to spend most of
your time outside of your home country. To be precise, the law says
not more than 183 days in a calendar year.
One tip I picked up from my Aussie clients’ experiences who have
“been there, done that’’ is to make sure that you stay around 150 days.
It makes things far more simple.
You can either choose to stay in Australia and leave aside abnormal
sums of money to please the government, or you can pack that
suitcase and set your sails to a more pleasant location and keep more
of your money.
Waiting for a change to happen while you’re standing still won’t get
you anywhere. Besides, there’s a great big world out there waiting to
be explored. Isn’t it convenient that you can keep more of your hard-
earned money by leaving home and going out to explore it?
Let’s start with the most important part — you need a plan of action.
This plan should include your business structure and the steps to
achieving Goal #1: Obtain tax non-residency status in Canada.
This plan should also match your lifestyle goals. It’s not just about
ensuring that you will pay less (or zero) tax but also that you will have
the lifestyle you have always dreamed about — Goal #2.
There are a few things that work to your advantage in order to achieve
those goals. To begin with, you are an entrepreneur, your business is
location independent and you are willing to leave Canada. Because of
this, you are in a position to cut your tax bill significantly, and to do it
now.
First things first, you should start with the most important and,
unfortunately, most challenging aspect: You have to set up a good
offshore company (or two, depending on the business) and at least
one bank account for each company.
The most basic thing you should know about becoming a tax non-
resident is that the term “tax-nonresidency” and the process to achieve
it was created for people who had the intention of moving from Canada
permanently. Therefore, all the requirements are supposed to show
this intention.
You should spend the majority of your time living abroad. You can be a
perpetual traveler always visiting new places or, if you prefer more
stability, you can move at a slower pace between your favorite
countries.
Either way, it is time to start crossing the destinations you have always
dreamed about visiting from your bucket list. Relax on a warm island,
get that tan you have always wanted, enjoy the mountain scenery, or
go tracking somewhere in the north, or all of the above.
But let's start with the basics that can apply to every European citizen.
European countries are always ranking in the top 10 of the highest tax
countries, so I understand that you are highly motivated to make a
change.
The most important change you can make is to move your business
and yourself out of the country. This is the first step to achieving the
freedom and lifestyle you desire.
But, I have to break it to you: If you have a location-dependent
business, there is really not much you can do.
After this, you will need to become a tax non-resident of your home
country, which is Priority #3.
This can be done in different ways depending on the rules of the exact
country you are from and the lifestyle you will choose, but the basic
premise is to live outside of your home country for the majority of the
year.
You could also adopt the more nomadic way of living by changing your
locations frequently. This is perfect for the wanderlusts and explorers.
Or, you can follow my personal method and have several home bases
in different countries and just divide your time between them.
They jumped through all the hoops to be in compliance with every law,
every rule, and a whole lot of bureaucracy just to get the needed
permits to start and maintain their business. Perhaps they have even
come to terms with all the requirements.
But once they have built a business that they are truly proud of and are
ready to finally sit back, relax, and enjoy everything they’ve created
thanks to their hard work and determination, here comes the taxman
yelling, “Not that fast!”
The hard-working entrepreneur has jumped through every hoop and
tirelessly built their business, but only now are they about to face the
toughest requirement of them all: taxes.
Your taxation obligations are chains holding you back no matter where
you go until you decide that enough is enough. The only way to truly
set yourself free is to become a world traveler and embrace the
nomadic lifestyle.
Once you’ve made the decision of your life, everything else will be
easier.
Having your priorities in place, it will be easier to select the country (or
countries) that will give you a much more affordable, secure, and
simple life.
A better tax structure is quite possibly one of the biggest reasons why
certain companies are able to offer lower prices and successfully take
the lead in the market.
In simple terms, the more money you have in your bank account, the
more money you’ll be able to invest in your business and beat out the
competition.
If your competitors made the decision way before you did to set up or
restructure their offshore companies properly, they saved money and
time. If they did, chances are they are beating you heavily in the
market.
There are countries that will make you feel at home in every way,
except for the one little fact that you’re being taxed heavily. It doesn’t
have to be this way. There are countries that can fulfill the criteria of
your dream lifestyle without taxing you into oblivion.
Do you have a family? If so, how do they feel about your adventurous
plans?
What are the things that make your life simpler that are easily
accessible in your home country?
What determines a good city to live in for you? Size, pollution, traffic,
international accessibility, safety, nightlife, expat community?
As mentioned, you may find one country that meets all your needs, or
you could find several countries and split your time between them.
Either way, you have a very good chance of discovering a place that
will improve your quality of life immensely and in a way that you did not
expect.
Shift your mindset. Be open to new places and new ideas. You will not
regret it.
As long as you’re working with professionals, you’re in good hands.
Everything will be done correctly and legally so that your business and
integrity are protected.
• Trust - If anyone ever advises you to do one small thing “off the
books”, don’t trust them. It’s all fine until the consequences catch up
with you and you are left to deal with them. As long as you’re living
with or in fear of the consequences, you will not have total freedom.
Select advisors who are sincerely interested in your long-term well-
being and won’t compromise it by cutting corners.
• Follow It - When you start working with a professional and they help
you design a strategy, you can’t just decide that you don’t really want
to do one part of it. In this kind of work, all the pieces — all the
companies, residencies, bank accounts — work together to ensure
that your tax structure is the most efficient. If you pick and choose
from the strategy you are given as if it were a menu, you will lose out
on some serious benefits and may even make some very expensive
mistakes.
You don’t want to sit around and wait for these huge changes to
happen overnight and affect your entire life.
You can prevent the surprise factor by starting to work on your future
right now. Those with a plan will always feel safer.
And you’re not the only one concerned about the trend toward greater
government control. There are many people who are looking to protect
themselves and their businesses from the uncertainty of the systems
in many countries.
It is frustrating depending on the decisions and rules of politicians. I
struggled with accepting this fact of life until I realized that I don’t have
to accept it. I just have to ACT to take back the control.
The very first thing I’d advise you to do is to start your journey into
obtaining a second passport.
So act.
There are many families that have embraced the nomadic lifestyle and
are absolutely enjoying it!
However, just because it isn’t the easiest thing doesn’t mean it isn’t the
RIGHT thing to do.
If you think about it, isn’t stepping out of your comfort zone something
that you would like to teach your kids in the first place?
If you’re ready to break out of your shell and create a better life for
yourself, the right time to start is NOW. How many times have you
postponed things and never got them done?
As you did in Step #8, start with a list of the main requirements you
and your wife have regarding your lifestyle.
Are things like organic food, a healthy lifestyle, proximity to your home,
etc. important for you?
By listing your priorities and goals, you’ll be able to narrow down the
list to a few places that really suit your preferred lifestyle. Or perhaps
you’ll even choose to be a nomadic family and join the world schooling
movement of families that educate their children through travel.
Let us ask you: Is that the best use of your precious time?
However, you should know that no matter how much information you
collect, there will always be a piece missing.
The other problem with researching too much is that many blogs out
there fail to offer unbiased information.
But Peter didn’t feel that he had that anymore. For Peter, today’s
America is not the same ‘’land of the free’’ that his parents moved to all
those years ago.
And he certainly did not think his or his parent’s money was secure
there anymore.
He felt that he was finally ‘’on the ball’’, calm and secure.
It came to the point that Peter was paying close to 40% in taxes!
A substantial chunk of his money was taken away every year by the
U.S. government, even though he had spent less than two weeks total
in the United States since 2015.
It didn’t feel smart to keep his money in any US dollar system, bank,
401k or IRA.
We listened to Peter.
After eight months, Peter did the math. He estimated that in three
years he would save over $1 million.
The thing that really drives him is the power of compound interest.
He told us that the fact that he is able to save so much every year and
invest it either in stock or in his business will have an enormous impact
after a few years.
He estimated that in two months he will get profits from his new
business venture… but this time tax-free.
“Hello, Josh.’’
‘’Andrew, I’m on it! I want to take action right away. I want to live my life
without limitations. I want to go where I want, when I want, and stay
however long I want.”
“That’s good to hear Josh,” I chuckled, “But let’s go over your situation
first.”
When I actually met Josh for the first time, a little over two months
after that call, I had to admit that he was the only client who had ever
caught me completely off guard with his immediate burst of
enthusiasm.
Three and a half years later, he had his own cloud-based software
company, which was growing rapidly.
His revenue was increasing and he got to the point where he could
relax and run his business from wherever he wanted.
Everything was going well. He was starting to look for those beach
house websites. It was time for his next move.
How could he have worked this hard to lose 50% of his annual income
just like that?
But Josh is not a person who would waste time on regretting his past
actions.
The ‘’experts’’ were really just “guestimating” because they did not
know where to point him.
Josh was fed up with their maybe’s and ‘’options’’.
He finally had his own personal, complete solution of full business and
lifestyle design.
Everything was planned out, from the life he wants to the business
setup he wants.
Having a clear layout and ongoing support when issues and questions
arose made him what he hadn’t been in a while: relaxed about his
present and excited about his future.
And I can promise you that he is now living his life without limitations
and doing it with an abundance-driven mindset rather than a cost-
cutting one.
He had started working there with the thought that he would be at the
company a year or two maximum — just so he could pay the bills while
he was building the business of his dreams.
Every day, Mark woke up at 6:30 am, put on his tie, and listened to a
Tim Ferries podcast while occasionally swearing out loud against
morning traffic jams on 11th.
He entered the big grey building that he is still repelled by, said good
morning exactly seven times to pale-faced coworkers, and started
going over his pile of files.
His family did not get it, his friends thought he was having a mid-life
crisis. They all advised the same: stick to your job for a couple of years
more, get that promotion, have a steady income and security and start
planning your own family.
That was an okay plan, but it wasn’t for him. That is not Mark.
That is when all nine years of suppressed frustration and hopes came
tumbling out.
His first step was to buy an online business. Mark decided that buying
an existing business would speed up his transition to location
independence. This way, he could finally live the life he dreamed about
while using the financial foundation he had created before.
Mark’s second step was to set up two offshore companies and get two
corporate bank accounts. He wanted to set up his business structure
correctly from the beginning. He was aware how much money he
could save doing so.
They met in a pub one Thursday night, quickly started dating, and
were happily married four years later.
Thomas and Luca — now three and five years old — came soon after.
Both of them always wanted more and strived for a more fulfilling life.
That is what brought them together in the first place.
But Simon and Mila were waiting to reach a certain revenue level to
embark on their nomadic adventures.
They did not want their kids to be raised in a society that would teach
them to be entitled.
They wanted to empower their children with real skills and values.
No more research.
They were looking for someone they could put their trust in. Someone
who could make a functional and efficient plan for their entire family.
Simple as that.
Thirty pages of step-by-step processes and details about their new life
and business design.
Simon and Mila finally got what they were waiting for.
More importantly, Thomas and Luca got the best education possible in
a private school for a reasonable budget.
And they were given the opportunity to learn from experiences in the
real world and not by staring at a screen.
I've helped hundreds of guys like you move your business overseas,
pay less in tax, get a second passport, invest and bank offshore,
and create a lifestyle of greater freedom...