There have been a lot of stories and rumors about it lately and now it's here: the US Senator Elizabeth Warren has proposed a new wealth tax that would affect people with more than $50 million dollars on their bank accounts, regardless of how much they're earning and where's that money coming from.
What is interesting is that this proposal is going to turn the existing income tax system upside down and this is probably just the start, as the numbers and tax percentages are likely to go up over the years.
So this is the time when you should ask yourself: "Where is my country going?" And, if you don't like it anymore and you feel exposed and not secure enough there, you should maybe start making plans and strategies on how to go where you're treated best.
Are you familiar with the Blue Ocean Strategy?
It is a marketing theory based on market competition and it's a result of an experiment done with numerous companies.
The main point is - you shouldn't thrive for the "red ocean" and markets flooding with competitors but try to be the number one in your own industry, master of your own domain.
Be the pioneer and discover the "blue ocean". There is a whole wide open sea of opportunities waiting for you.
Before you start searching for the cheapest citizenship option, you should ask yourself: "What's my final goal? What are the benefits I want to gain from this?"
If you are just looking for a "safe haven", a place to retire and live peacefully, or a country where you want to work and study, the cheapest options are definitely citizenship by descent (through your parents and ancestors), as well as citizenship by naturalization.
However, if you are a six- and seven-figure entrepreneur and you want a second passport because of financial reasons, you know very well that "time is money".
In that case, citizenship by investment may be your best choice, as those processes in some countries are pretty straightforward, fast and can be cheap, too.
There are a few things you should know when opening an offshore bank account, even though today, according to their characteristics, they can be considered as "normal" bank accounts.
A lot of "regular" countries, also known as being "offshore havens", as well as their banks, usually accept foreigners.
What you need to remember is to always look professional when you go to the bank, to be prepared to tell details about yourself and your business, as well as the reasons why you want to open a bank account there.
Finally, apart from the traditional offshore bank account opening, where you have to be physically present, there are some other options, such as remote bank account opening and app-based banks.
But be careful, as they can be less reliable and efficient, as well as time-consuming.
At Nomad Capitalist, we like to say that there are three ways of setting off and leaving your home country - for tourism, traveling or living.
Whether you're still just a tourist or you decided to dive in and move your whole life to another place, it's important to have a certain routine, as it's really hard to run a multimillionaire business while dragging your suitcase all the time.
Another misconception about the Nomad Capitalist lifestyle is that being in a country or city completely different from your home doesn't necessarily mean that you have to do everything "local" - it's perfectly fine to live in the "Nomad Bubble" and keep that little piece of home all to yourself.
People love the idea of cheap, even six- and seven-figure entrepreneurs who are looking to open a company offshore in order to save their money on tax.
However, choosing the cheapest option, in this case, is not necessarily the best option because you may pay a high cost in the end for doing things cheaply and receive a low-quality service.
Therefore, it's important to take into consideration the reputation of the jurisdiction when opening an offshore company. Lower the jurisdiction - fewer and less reliable banking options.
Our advice is to invest more in your offshore company strategy and save time AND money in the long run.
Being a dual citizen and having more than one passport is still considered exotic in the eyes of many people. One of the things they are concerned about is how they are going to travel with more passports, which one to use and when.
However, there is nothing complicated about it, you just have to keep in mind certain things before you travel, e.g. if one of your passports is American or European, make sure you use it when you enter and exit these countries.
Long story short, make sure you understand the rules of a country you wish to visit and choose the most favorable option for yourself.
Are you familiar with Controlled Foreign Corporation (CFC) laws?
In most cases, they are an obstacle that stands in the way between your offshore company and legal tax reduction.
So if you think you can have an offshore company and remain living in your high-tax home country, like the US or Australia - you are wrong.
CFC law is exactly a tool governments are using to prevent that from happening and the only solution is to move your private life offshore, together with your business and wealth.
On a rational level, we know that every country, its people and culture are different, but somewhere deep inside we want them to be the same as us, to act and work in the same way.
This is especially the case when we are doing business, investing or banking on the international level. That necessarily means that we will have to communicate and collaborate with all those people of different nationalities and backgrounds and come to agreements, sometimes about really serious matters.
That's why it's best to get acquainted with those countries, their customs and way of life, as well as the extent to which they're open to foreigners and other cultures, in order to have the best results.
The region of Southeast Asia is one of the most popular places on earth for nomads and perpetual travelers, because of its good combination of affordability and quality of life.
Here at Nomad Capitalist, we made a list of the five most livable cities in this Asian region, including Manila, Bangkok, Ho Chi Minh, Singapore, and Kuala Lumpur.
Each one has its own advantages and disadvantages, as well as different lifestyles, so watch our video and find out which of these cities could be the right fit for you.
Renouncing US citizenship is always a sensitive subject, followed by lots of myths and misconceptions.
There are certainly many advantages to it, but also some downsides, depending on individual cases.
The biggest and most obvious benefits of renouncing citizenship of the United States are tax-related. Also, you would have more freedom to go and do business offshore, but you would still be able to bank in the US, even if you're not their citizen anymore.
On the other hand, you will no longer have access to the US job market and you'll most probably need a visa to travel to the States, so think about your options carefully and be prepared for this change.
One of the easiest ways to get second residency which can eventually lead to actual citizenship is investing in real estate.
Depending on your needs, final goals and financial situation, you can choose from a variety of different countries that have easy second residency procedures.
Some of them, like Serbia, Montenegro or Turkey, don't have special requirements regarding properties. Also, there are countries like Georgia and Thailand with pretty straightforward programs.
Finally, some of the Latin American countries, such as Nicaragua, Panama or Colombia offer excellent real estate investment programs, that can easily lead to permanent residency or even citizenship.
What is Grant Cardone's missing piece?
Andrew analyzes the video of the legendary sales trainer and his strategy for storing money. From Nomad Capitalist point of view, saving 40 percent of your income is not enough, since you are paying another 40 percent in various taxes to the US government.
The point is, if you are willing to move from California to Miami in order to save money on tax, why wouldn't you go even further and take your wealth overseas while saving up to 80 percent?
The idea of living nowhere and being a nomad may sound appealing and exotic, but it became more difficult to achieve lately, as more and more people are starting to follow this lifestyle.
Consequently, various governments started closing some exit paths in order to make you pay your taxes to them and not somewhere else.
Simply saying: "I don't live anywhere" is going to raise a lot of questions and so the good idea would be to eventually set up a place which will be your "home" and a solid plan to help you achieve what you wish for.
Some people believe that only living in a country with high taxes can make us happy, because of the feeling of responsibility and contribution to society.
But the question is: How does that make you feel? Are you comfortable with that?
At Nomad Capitalist, we believe that we should all take care of ourselves and not rely upon the government to do that. That way, we also have more freedom - to move, travel, invest...
In the end, the human factor and happiness are always the most important thing. So, you just need to define your own formula.
Citizenships by investment or the so-called "passports for sale" are the quickest way to gain second citizenship.
You may be surprised, but the cheapest options to consider this year may as well be the best ones. Both of these countries are in the Caribbean - Saint Lucia and Dominica and both of them offer citizenships by investment in the amount of $100,000.
By holding a passport of either of these countries you will have access to EU, UK, Hong Kong, Singapore, and other places, while Dominica is increasingly paving its way to Russia and China as well.
There are some common misconceptions about offshore bank accounts, based on information given by politicians and media of certain countries.
The reality is that offshore banking is not about "hide and seek", but could be a way to more stability, more wealth, higher interest rates, as well as more investment opportunities.
Simply put, it allows you to diversify your options and take control of your own money.
Should you become a dual citizen? What are the benefits?
The way we see it at Nomad Capitalist is that it could be a great backup plan, even if you are not planning on moving or working somewhere else because it's always important to have numerous options to choose from.
Having dual citizenship is a great financial strategy for tax reduction and offshore investments, as well as for taking advantage of social services in, e.g. Europe or Canada.
Also, holding a second passport may give you more freedom to travel and an opportunity to live in some other place, occasionally or full-time.
So, start building your global citizenship portfolio and enjoy all the benefits of being a dual citizen.
There are a lot of misconceptions about offshore companies and what they represent, mostly thanks to the image created by the media.
Therefore, many entrepreneurs are reluctant to open an offshore company, because they think it sounds scammy or weird.
The truth is, an offshore company is just a company based in another country and because of that it gives you more power and control over the things that are important to you: lower tax rates, more privacy, less paperwork, etc.
Like any other sandwich, even the "Global Citizen Sandwich" has three separate parts, representing three segments of this specific lifestyle.
At the top of the sandwich, there is a place where you keep your wealth - financial hubs like Singapore, Switzerland, Hong Kong, etc.
In the middle is a place where you live and where you enjoy full freedom and happiness.
Finally, there is a place at the bottom of the sandwich where you grow your money, where you invest. Those are mainly upcoming countries with underrated prices.
The most interesting part is - they are all mutually exclusive, so you can make a unique combination for your own "Global Citizen Sandwich".
Even though the idea of opening an offshore bank account from your living room may sound appealing, things are not as easy as they seem and they are becoming even harder.
Given that the bank employees don't see you in person, you will have to file a significant amount of documentation, which can take more time and effort than actually traveling to the place where you want to open the account.
It also has to do a lot with the banks' quality and level of the jurisdiction of the countries which are open to remote bank account opening, so think wisely.
One of the most commonly asked questions we receive here at Nomad Capitalist is: What is the fastest way to get the second passport and become a dual citizen?
There are four different ways to do it, depending on your needs - some more, some less quick:
- citizenship by investment, which may be the fastest option, in cases of St Kitts and Nevis or Vanuatu; - citizenship by descent, mostly connected with European countries and Canada, with UK and Ireland being the quickest options; - citizenship by naturalization, where the "best" countries, in this case, are Dominica, Peru, Armenia, etc. - citizenship by marriage, that could be tricky, but also worth considering.
The bottom line is - know your end goal and what you want to achieve by gaining that second citizenship and choose wisely.
How can you reduce your taxes on poker winnings? What are the best offshore strategies for poker players, depending on where you're from?
Jack Sinclair, a professional poker player from London, will give his side of the story and some advice coming from his own, or his colleagues' experience.
How do you make sure that you are legitimately a Bona Fide resident when qualifying for the US foreign income tax exclusion?
Some of the people who came to us were convinced that it is enough to spend only one day a year in Panama, for example, and all your US tax will go away.
However, it's not that easy, so make sure you understand the tax law and all the other laws that apply to you before going offshore.
Nowadays, the concept of being location independent, having more flexible working hours and not being tied to one office is becoming more and more appealing, as a lot of people are starting to follow this lifestyle.
Are you one of them? Do you want a nomadic lifestyle and to travel the world while working as a freelancer?
Or you want to have one, two or more bases where you live and work and from there travel to different places for vacation?
The most important thing is to know what YOU want and not just replicate other people's lives.
Everyone's path is different - follow your own.