Comments by "Matthew Nirenberg" (@matthewnirenberg) on "Nomad Capitalist"
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I'm trying to leave Australiastan as soon as possible so I can live somewhere I can work and thrive and where taxes are ideally 0% PIT so I can use crypto and not lose it all to the ATO as 'taxes'.
Sadly the place is making it harder to leave - basically ALL 'assets' are subject to unrealized gains so you have to liquidate everything, pay the insane taxes, then pay the taxes on the money you take out of the country - leaving you with very little to survive on abroad.
'Assets' also now includes things that have never otherwise been 'assets' such as boats, planes, RV's, etc. (things that are normally considered liabilities / expenses) which are now being reported by insurance companies to the ATO if valued over $60k (approx. - I don't remember the exact amount) so they can do "Lifestyle Data Matching" and so they can interrogate you on where and how you got it (even though they already know due to their huge data mining), and demand unrealized gains tax if you leave.
Oh, and that's assuming they let you leave, many people are being hit with regular jury duty to keep them stuck in the country and with licence related issues (incl. audits) to keep them stuck in the country. Combine that with the near infinite elections (at least 1 every year) and you can't change your electoral roll details (i.e. leave the country and get removed) because they freeze the rolls for elections, and they also freeze your individual entry whilst subject to jury duty.
Australiastan is broke, thinks that all your hard earned money belongs to them, intentionally stops you investing and benefiting (the taxes make it not worthwhile) and then goes out of its way to stop you leaving after having regulated many of us out of work with insane BS professional registration schemes that are designed to force locals out of work (due to unworkable CPD and experience requirements) but makes the world of exceptions for 'skilled migrant workers'.
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In the place you're legally tax resident and where your centre of life is. Simple!
Like with everything, that's why if you want to live flag theory you have to:
1. Establish tax residency in a 0% PIT country - you have to move your centre of life there and have a home that you return to
2. LEGALLY leave the high tax, tax system that you were in, thus leaving you only in the tax system you entered in point 1
3. Get a bank account in the 0% PIT country, live there for 8+ months and get a local tax file number. 0% PIT countries still issue tax file numbers so you can fill in the space on forms and as part of proving that you're legally tax resident there, even though PIT is 0%
4. Once you've achieved all of that LEGALLY, now you can look at holidaying to several places for a month or two at a time (be careful to not become tax resident due to physical presence in those places), returning to the 0% PIT country you live in after each trip.
5. Congrats you're living the modern LEGAL version of flag theory
Its no longer possible to be perpetually traveling and tax resident nowhere, countries will declare you tax resident automatically unless you have LEGAL tax residency somewhere. This is literally a case of "you have to know how to play their game and beat them at their own game whilst complying with all the rules they made".
Its intentionally hard because the high-tax countries are desperate for taxes because they're broke welfare states that care more about being dystopian, all encompassing and because they let themselves become welfare states.
Remember, when the largest employer in a country is the government, the only outcome is always going to be larger, more bloated government and thus more over regulation (nanny state) and the only way to fund that is higher taxes. Becoming welfare states lets the govt exert more control over the people as they need the money to survive, it also makes it easier to justify increasing taxes "you don't want the poor to starve do you?".
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To a certain extent its possible if you're a person of modest means however its gonna be a lot harder, unless you're a multinational from birth (2-3+ citizenship's from birth - ideally one of those would be an OECS or EU (Schengen) country). You'll have a harder time getting visas and establishing residence, you'll need to also afford to rent (1yr +) or buy a home and prove that you have enough left over and/or consistent income to support yourself.
The six figure+ clients that get mentioned have things much easier as they can easily buy or rent property, they can easily prove their ability to support themselves and can easily show large income; more importantly, they can easily afford to do CBI which will always be easier than residence/visas.
Speaking conservatively, it'll cost $300,000-$550,000 for most people to completely move abroad and support themselves for a year - yes this is assuming a residence is purchased (usually a requirement for residence - not everywhere permits 1yr + rental contracts) and one's possessions are shipped. All shipped possessions have import duty that will have to be paid on them unless you're moving to a handful of countries that permit citizens to return with all their possessions once in their lifetime without having to pay import duty on those possessions (Poland, Hungary; there's two others but I can't remember which two others). This is why some people get a secondhand catamaran and live aboard, such vessels can be found for $300,000; just make sure you're into sailing and know how to sail if you want to live aboard a boat.
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@jeremyleonbarlow Whilst I encourage everyone to not break the law, there will always be ways to hide money. Consider the following: Art, bullion, luxury homes, land, luxury vehicles and boats. These are all ways of hiding money as they can be owned through living trusts, shell companies, etc. The most corrupt industry in the world which is also responsible for the most money laundering in the world is the Art industry. If you're wondering why art, its because the value of art is subjective. To me it might be worthless but to Joe Bloggs to the right of me, it might be worth billions. Bullion is the next most common option as its a tangible that can be purchased without registration and taken wherever the owner wants it.
As for why hiding money or assets is critical - privacy and safety. Public knowledge of who has what money and assets simply puts the individual in danger or kidnap and ransom or extortion. Not having privacy makes people targets. If you're not a US citizen, there are plenty of ways to legally have privacy however it will involve lawyers and govt's vouching that they know the legal owner but are not making it public for the safety of the individual and through the use of complex legal structures. Live full-time in a tax haven and its easy, live anywhere else and you're basically screwed.
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Travelling visa-free and being equipped is something that most agencies have sorted ahead of time. Hollywood never shows things in detail and always over-simplifies everything. Without going into detail, in the real world it'd be more like:
* Source pre-arranges travel (either legal entry or illegal entry (i.e. sneaking in))
* Travel
* Asset goes to in-country safe house to get equipped with documents, money, firearm, phone with contacts, etc.
* Does whatever is needed
* Returns everything to another safe house
* Leaves similarly to how they entered the country
Driving without a licence whilst illegal isn't as hard as it seems. Most people don't get licence checked and who's to say they don't have an International Driver Permit? Also, in most countries you only need to carry a National ID card, as long as you're only driving a car or riding a motorbike you usually have 24hrs in which to present your licence at a police station to prove you're licenced. Also the new type National ID cards in the EU have a chip which links it to all your licences so its able to be checked on the spot. How many people who work don't actually have licences?
Also, most agencies have people inside the appropriate offices to be able to issue licences as required.
As for knowing the area well, its simple. Get a paper map and study the area, remember things by key landmarks and by turns. Names overly complicate the process of memorising regions. Plus I would guarantee they've spent 2 days driving around to get to know the area - yet again Hollywood leaves this out.
As has been public knowledge for over 50yrs thanks to books written by former spies and even from the early Bond books by Ian Fleming, the best agents/spies are the ones who have perfectly clean records, from countries with strong passports and who don't attract attention from others (they look ordinary).
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@tux407 As an Australian, it's not worth it for being geographically remote. There are better locations such as the Caribbean, parts of South America or SE Asia. Australia has stupidly high taxes (they're still increasing), houses are completely unaffordable for the average person thanks to the govt letting foreign corporations and investors overpay. Most average houses are $1 million+, units can be $500,000-800,000 depending on location.
The "huge number of millionaires" comes from the fact that the population is mostly older people who owned houses from before prices went insane and thus now have houses worth millions if they sold tomorrow, Australia looks at wealth for statistical purposes based on "if you liquidated everything tomorrow".
The only place you'll find houses that are affordable is in the countryside - well out of town where there aren't any jobs. Cars are essential to get around, delivery of purchases is stupidly expensive.
The health system is actually falling apart here because most politicians haven't bothered to do anything to improve it since the 90's, only construction projects get priority.
Eating out is not really an option given that a burger with chips and a soft drink from a "non-fastfood" place is basically $30 - $35 per person. If you're very rich this obviously isn't a problem.
Oh and there are mandatory qualifications and permits and licences for literally everything in Australia so if you're looking for a good business environment, you're not gonna find it in Australia.
At the end of the day, that's just the opinion of an Aussie who's heading overseas to go "where [I'm] treated best" as Andrew says. Your mileage may vary. Just remember, just because a place is nice to visit as a tourist, doesn't mean its the same when you're living there day-to-day. If you still think its where you want to be, try it, see how it suits you.
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