Nomad Capitalist is all about going where you’re treated best. We are dedicated to providing services such as legal tax reduction, second citizenship, and offshore banking. So, if you want to pay no taxes, we can help with that as well.
Most of the services we have to offer are geared towards achieving economic independence. We want our clients to be able to travel anywhere in the world, whenever they want to. Often, our second citizenship and residency programs require individuals to travel or settle somewhere for a while.
But what if you don’t want to live somewhere else? What if you are someone who does not like to travel? How do you ensure that you are making the most out of your situation if you want to remain in one place?
These are questions you obviously have if you want to remain in one location for a while. We will admit that as global nomads, we would much prefer the diversification of assets overseas. However, everyone’s case is different.
If you want to learn how you can pay no taxes living in one place, you should be able to do so. Nomad Capitalist has financial solutions for everyone who is interested in growing their wealth.
Things to Understand when Looking for Ways to Pay No Taxes
Now before we move to talk about ways you can pay no taxes, there are several things you need to understand. The easiest way to pay no taxes is by moving to a country with no income tax.
However, while most people don’t mind moving to these countries, at the end of the day, it is your decision. Some people don’t want to move, and so they have to miss out on the opportunity to benefit from a tax-free country.
But it does not have to be this way. If you truly want to pay no taxes, then there are several methods you can employ. Please note that all of the strategies we will discuss are 100% legal.
You can, of course, illegally try to pay no taxes but chances of you getting away with it are slim. Besides, people usually get away with paying no taxes for only a few months. When they get caught, their government cracks down on them, and they end up paying for it in the form of jail time or fines.
Illegally avoiding taxes is simply not worth the consequences. So, it is essential that whatever strategy you choose to utilize is completely legal.
Is There Anywhere You Can Live and Not Pay Taxes?
If you are a westerner who wants to move, then we would strongly recommend tax-free countries to you. The reason behind this is that tax-free countries usually want you to invest in their economy. So, if you are an entrepreneur or an investor who wants to grow your capital, these countries are a great option.
Additionally, you can even get tax residence in countries where they do not have foreign-sourced income taxes. The possibilities are endless; what matters is what you are willing to do.
How to Pay Zero Tax While Living in One Place
1. Know Your Tax Budget
Before you even begin looking for strategies to pay no taxes, it is necessary to understand what your tax budget is.
This is the amount you should be willing to pay in taxes. It is impossible for someone to have a zero tax budget because even if you don’t pay business tax, you are going to pay some taxes. It could be VAT or GST; taxes are everywhere.
Our goal is to ensure that you pay the least possible tax or, where applicable, no tax at all. After all, there are several benefits of not paying taxes. For one thing, you have more personal liberty. Not everyone wants a government they do not like to take upwards of 20% of their income.
For another, you have more capital remaining for you to invest with. Think of what you can do by paying no taxes for several years. Are you comfortable with paying lump-sum tax in the beginning and then forgetting about it for years?
Or would you rather pay a fixed amount everywhere regardless of how much you’re paying?
These are questions you need to ask yourself when you begin to develop your strategy to pay no taxes. Keep in mind that it is easier to go from 40% tax to 0%. But with a zero tax rate, you have the ability to grow your wealth more quickly and substantially as well.
So, when you go from 0 to 15%, which is inevitable if you grow your wealth, it will not benefit you at all.
2. Consider Moving to Territorial Tax Countries
When we think of the far east, we think of countries like Singapore and Malaysia where the tax policies are not the best. But this rule only applies to local taxes or territorial taxes.
Countries with a territorial tax system only tax income, property, and financial capital gains within that country only. So, if you decide to move to Singapore and set up a business there, you will have to pay taxes.
However, if you decide to keep your business in its present location and move to Singapore yourself, you don’t have to pay any taxes. It is as simple as that.
But there are many things you need to consider before doing this. The territorial tax system varies from one country to the other. You will need to know the local tax laws. Some countries will consider you, the business owner, to be a salaried individual because you are getting paid by your business and the money is being spent in the country you’ve moved to.
In these cases, you will have to make things very clear. You need to establish connections with your business. If you want to invest in real estate overseas, you may have to show the source of your income.
3. Tax Planning Can Go a Long Way
Again, as we have stated, there are ways to go about this. You can’t just move to Thailand one day and expect to pay no tax because you have businesses abroad.
It does not work like that. You will have to get in touch with local authorities or a team that can help you with your tax planning.
If done correctly, this is the best way to ensure that you have to pay no taxes. Just ensure that the country or countries you plan on setting your business in have a good tax system as well. You may not have to pay taxes there because you don’t have tax residency there.
These are minor things that are easy to overlook. However, if you pay attention to the fine details, then you will surely go far.
4. Tax Schemes to Consider
Going back to our point about tax budgets, it is highly recommended that you look at investor visa options. Countries with special investor visas, such as the European Golden Visas, offer plenty of tax incentives for you.
For instance, in Italy, if you become a resident, you only have to pay €100,000 annually as a substitute tax for your total income that was earned abroad. There are many other countries with such plans as well.
In fact, it is very common in Europe to do so for people who have just become residents or hold an investor visa.
5. Lump-Sum Taxation
Another great alternative for those who want to pay no taxes is to move to a country or establish your business somewhere you can simply pay an upfront lump-sum tax and be exempted from taxes for a number of years after that.
Now, these programs are great for established investors and entrepreneurs. For example, you may have a business that makes €10 million a year. With the lump-sum taxes in Greece, if you haven’t been a tax resident in Greece for the last seven years, you are exempt from all foreign-sourced taxes if you pay a lump-sum of €100,000.
If you think about it, that is about 1% of what your business is making. What’s more, this tax is applicable for seven years. If you find this program to be interesting, then you should look into the Greece Golden Visa program.
Even Italy and many other EU countries have similar tax regimes in place as well. If you want to live in the European Union and are worried about the tax policies, this is the way out of those taxes.
Remember, all you have to do is do your research when you’re looking into the countries you want to move to. That’s it. If you have this sorted, then you won’t have to worry about living somewhere and then traveling a few times a year to ensure that you do not become a tax resident.
Why do People Prefer Living in One Place?
As you can see from these strategies, it will take quite a bit of tax planning to ensure that you pay no taxes, or the minimum amount possible, by staying in one place. To many people, this might seem to be an unnecessary trade-off.
After all, once you remove the obligation to stay in one location, you significantly increase your options. It is realistically possible to pay no taxes anywhere if you travel frequently. However, not everyone wants that.
1. Second Citizenship
One of the major reasons why someone would choose to remain in one location is because they are working towards stronger second citizenship. Most European countries require you to live there for several years before you receive your EU passport.
The Netherlands, for example, requires you to live there for five consecutive years before you can apply for citizenship by naturalization.
2. Family Links
Sometimes you can’t physically move to another country or even move around often due to family restrictions. After all, if you have children, it is not possible for you to move around every six to seven months.
Their education will be affected. Perhaps you want your children to study in a prestigious school so you can’t move often. While some private schools are very accommodating, do note that some of the world’s most elite educational institutions are quite strict about things like attendance and parental involvement.
3. Personal Preference
As you know, everyone has their preferences. While most of us would jump at the chance to travel between countries easily thanks to our second residency or passports, others just don’t like traveling. There is little that can be done about that.
You may also have a medical condition or fear of flight. It depends on you.
We don’t believe that in order to make the most of the opportunities available to you, you have to put yourself in a situation where you are uncomfortable. At Nomad Capitalist, we’re all about doing what is best for you.
Nomad Capitalist Can Help You Pay No Taxes Legally
If you seriously want to lower your taxes and find ways to grow your wealth, you should consider working with Nomad Capitalist.
With an experienced team of over three dozen professionals from all across the globe, Nomad Capitalist guarantees genuine results and better tax planning. Expect to go where you’re treated best.
We have over 70 citizenship and second residency programs available to help reduce your taxes. This makes us very confident that we can help you achieve the economic and personal freedom you desire.
There are other ways in which you can pay no taxes, and they involve the use of offshore banking services.
To learn more about this, you will have to get in touch with us. We’re dedicated to ensuring that you receive the best guidance possible to embark on your very own journey as a global nomad.