The world is changing and it's changing fast. Do you have a backup plan for the growing entrepreneur economy? People from places like India are being forced to become entrepreneurs and are willing to work for low hourly fees. How can you keep up? Andrew announces his members-only workshop on how to grow an online business, build capital, and secure your future. Feel free to contact him for more information on the event.
Vincenzo Villamena runs an online tax business out of Colombia. He believes Colombia is the new nomad city in Latin America. He talks on how he made the switch from corporate life to moving to a completely different country. Medellin has become an excellent and safe city to live in and Vincenzo had no problem acquiring a visa within the first few weeks of living there.
[3:05] Before you go offshore, you need to have some sort of wealth or income.
[4:55] If you do not make a change to your income now, you will be thrown off the boat.
[7:00] In Taylor Pearson's book, The End of Jobs, Taylor says entrepreneurship is becoming the new normal.
[9:35] Andrew's mistake was not leaving the United States sooner when he had an established income.
[12:00] Do you have a plan when you aren't able to run your location-based business anymore?
[13:25] People in places like India are forced to become entrepreneurs.
[15:35] Don't listen to the politicians who say they can bring back 'more American jobs'. It's not possible.
[17:10] There will be a small members-only workshop hosted in Kuala Lumpur on Aug 27th..
[18:25] At the workshop, Andrew will teach you how to grow an online business.
[19:50] Email Andrew (at) NomadCapitalist.com for more info on the workshop.
[20:55] Not sure how to start? This workshop is for you.
[21:30] The ultimate safe heaven is knowing you're in control of your destiny.
[23:00] Why did Vincenzo decide to become a tax entrepreneur?
[24:30] Vincenzo is glad he got the hands-on experience at a corporate company.
[26:20] Would working in the corporate world help your business?
[27:55] How did Vincenzo go from New York to starting his business in Colombia?
[33:00] Medellin is the new nomad city in Latin America.
[35:00] How is Vincenzo diversifying his business?
[38:00] Vincenzo was able to get his visa in a couple of weeks.
[40:55] There's Uber in Colombia.
The Lighting Round:
[42:30] One business – Something service-oriented targeting the expat community.
[43:05] One country – Italy.
[43:55] One book – The Four Hour Workweek by Tim Ferriss
[44:55] One tool – Solve360 and Asana
[47:05] Rodrigo has a lawyer problem in Panama, what should he do?
[48:30] Lawyers can be slow to respond, especially in Latin America.
[49:55] Tips for finding a good lawyer in Latin America? Nomad Capitalist vets a lot of their lawyers. Contact Andrew or his team.
[51:35] Be patient. The government will be slow.
[51:55] Get help before you get started.
Mentioned In This Episode:
The End of Jobs - Taylor Pearson
The Four Hour Workweek by Tim Ferriss
Young couples have been asking Andrew about starting a family overseas and what the best options are for them. Andrew has written a comprehensive guide on 29 countries that will give citizenship by birth. He also talks on why having children in a foreign hospital will not only be cheaper, but the medical care will be just as good or better than what you will receive in the US. Michael Cobb is a successful business man and a global entrepreneur. He talks to Andrew on why he loves living in Nicaragua and why he believes Belize is a great option for offshore strategies.
[2:00] How can we give our children the best opportunities?
[4:55] Have additional citizenships to pass on to your children.
[7:45] Medical tourism is a valid option and it can save you thousands of dollars.
[9:15] Why not have a baby overseas? Get great care for your child and save on medical bills.
[11:45] There are 30 countries that give citizenships by birth.
[15:40] It's possible to give 2-3-4 citizenships to your children.
[18:10] The Norman Guide to Foreign Real Estate is coming out this Friday.
[21:15] How did Mike Cobb become a global entrepreneur?
[27:35] Is Belize a good option for investing and living?
[32:30] The quality of life in Nicaragua far exceeds the quality of life in the US.
[34:25] The things that cost more in Latin America are electronics, cars, and imported goods.
[35:40] How do you get your partner to move to a foreign country with you?
[37:30] Countries like Panama, Costa Rica, and Nicaragua are only two hours away from Miami.
[39:05] Mike recommends an English language jurisdiction for offshore accounts.
[44:25] Having a good mindset is key when traveling around the world.
[45:45] Is Georgia a good place to be a resident?
[46:45] Georgia has made residency easy. You can spend 360 days in the country visa free.
[49:00] Andrew recommends Malaysia and Georgia as great places to be a resident.
[50:00] Georgia passport isn't great right now, but having a residency there is a good thing.
Mentioned In This Episode:
There are two types of asset classes that are exempt from the IRS - precious metals and foreign real estate. There are great foreign real estate opportunities all across South America, Europe, and Asia where you can keep your life away from prying eyes. What makes foreign real estate so appealing is the ability to defer your capital gains tax as well as have a passive income.
Jeremy Levine, owner of La Escuela del Sol, talks Costa Rica and certain challenges with the locals. Costa Rica is an excellent place to live, but foreigners may find the laid back Costa Rican lifestyle challenging when it's time to get things done.
[1:40] Let's talk foreign real estate.
[2:10] Look out for the new Nomad Guide on offshore real estate.
[2:40] When people move offshore they're looking for privacy.
[3:20] People also want currency diversification.
[3:45] There are only two types of asset classes that are exempt from reporting to the IRS.
[4:35] You can buy gold at Nomadgold.com.
[5:30] As long as your precious metals aren't stored in a bank, you don't have to report it.
[5:50] You also don't need to report foreign real estate.
[6:20] If you have a rental property, you do have to report the income.
[6:38] In the new Nomad Guide, it will explore 15 countries and the different foreign real estate options.
[6:55] Why should foreign real estate be of interest to you?
[8:25] It doesn't matter how low the taxes are when you're from a country that taxes worldwide income.
[11:18] US citizens have to pay taxes on their income no matter where they live.
[12:55] You can do a 1031 exchange on foreign real estate.
[14:10] Andrew believes there are some big problems in US real estate.
[15:10] Yields in Panama City can be as high as 10%.
[17:05] The Nomad Guide on foreign real estate will be out next week.
[17:20] Foreign real estate is an excellent way to have property kept from prying eyes, have passive income, and defer your capital gains tax.
[18:10] The jurisdiction you live in and the jurisdiction you're a citizen of is what you should consider.
[19:00] Many of the tax breaks you have at home are also applicable overseas.
[20:10] Lots of great real estate opportunities in Belize and further down south, Central and Eastern Europe, and some places in Asia.
[22:30] Why did Jeremy move to Costa Rica?
[27:35] How did La Escuela Del Sol get started?
[29:40] How do you market fire dancing classes?
[32:25] Having good accountants is key to making sure you stay legal with the US and the country you live in.
[33:20] You get a $90,000 foreign income tax exclusion.
[34:10] You have 90 days to visit Costa Rica on a tourist visa.
[35:35] Jeremy had a friend who over stayed on his tourist visa and is now banned from the country.
[39:10] What kind of challenges is Jeremy currently facing?
[41:35] Follow your bliss. If you can work from anywhere, then why not work on a beach?
The Lightning Round:
[43:05] One business – Jeremy loves what he's currently doing.
[43:45] One country – Costa Rica.
[43:55] One book – Jeremy can't remember the name of the book.
[44:20] One tool – Microsoft Excel.
[46:44] Alex asks about unreported offshore bank accounts.
[49:35] Remember, Andrew is not a tax professional.
[49:48] If you have unreported accounts, you need to get it in compliance. Talk to a tax lawyer.
[51:00] Ignorance to the law is no defense.
Mentioned In This Episode:
There are so many new service based business ideas that will produce quick and easy revenue in the emerging markets of Southeast Asia. If you are considering starting your own business you need the advice of someone who looks at personalized, unbiased opportunities and can offer insight to the business and residency requirements in these markets. And if you are looking for tax exempt opportunities, Puerto Rico may not be your best option due to its controlling entity, the U.S. Government. Guest David Feldsott, talks of networking in Colombia and how his competitors aren’t the big travel companies.
[1:46] Mastermind event in July
[3:08] Upcoming E-Commerce boom in Asia
[3:30] Add value to the local market to really be successful
[5:34] There is a wide gap in serving local markets
[7:50] Emerging economies are looking for ease of service
[10:41] It’s a bad idea to try and start a new business in the U.S.
[11:30] Reduce your business tax through Labuan
[12:06] How do you bring in quick and easy revenue
[13:40] Target niche ecommerce opportunities
[13:50] Uber, a logistical fix for inefficiencies
[16:05] Western leaning locals with cash
[16:45] The Nomad Society is developing businesses
[17:27] 3 day workshop for 10 people to help build your online business
[22:26] No low cost air carriers in Latin America
[23:25] From DC but I wanted to be an entrepreneur
[24:38] I put money away for travel and to start my business
[25:49] Relationship based business in Latin America
[26:46] Responsive Service requires a 5x’s the upcharge
[28:06] Colombia is central to the America’s and has a tech community
[31:06] Integrating Airlines in the future
[32:52] My competitors are not the companies you would think
[34:45] Legally incorporated in the United States
[36:30] Tech startup money still comes out of the U.S.
[37:56] A big fish in a little pond in Colombia
[40:31] I’m really not a pickup artist!
[40:56] FB and Meetup groups helped me find people
[41:52] The Nomad Society loves Medellin. Private members have an event in November
The Lightning Round:
[42:22] One business - Apartment Rental Service
[43:05] One country - Australia
[43:40] One book - Never Eat Alone, The Hard Thing About Hard Things
[44:25] One tool - Rescue Time
[46:40] Mannie wants to know Andrew’s thoughts on moving to Puerto Rico for tax advantages.
[46:58] For Peter Schiff it may be a good option. For average people, Andrew doesn’t like it.
[48:55] Moving to Puerto Rico is not cheap
[50:00] The U.S. maintains control over Puerto Rico
[51:33] 183 days a year is the “stay” requirement
[52:44] Foreign Earned Income Exclusion outside of the US
[53:35] It may be a stepping stone but not a final solution
Never Eat Alone - Keith Ferrazzi
The Hard Thing About Hard Things - Ben Horowitz