Why it makes sense to have a Plan B in place
Why it makes sense to have a Plan B in place
Optimize your life with the goodies the world has to offer.
Updated 31.3.2024
🇨🇿 For Czech version click here
We are in the year 2023. I think many people living in Europe or the United States feel fine. Everything "works" and they live a normal life. When you start digging a little deeper and start thinking about it, the reality is the opposite of freedom and things are getting worse and worse.
I'll give you a couple of ideas to get you started thinking:
Freedom of speech
Corrupt medias pushing “approved” agenda
Regulations: look around yourself in EU.
Being watched - financial transactions, online behavior
All parties collect personal data about you. And they are already using it or are willing to use/sell it in the future.
Increasing costs of living
Reducing the ratio of income/costs.
Someone may admit that there is nothing to worry about. But look back in history. Hitler against the Jews. Before that nobody thought that anything could go wrong and why would I not reveal information about myself?
Something similar can happen at any time in the future and we can't even imagine what it can be. Just look back 3 years ago when the pandemic occurred. Closing borders, restricting access to certain areas, not being able to move around and losing freedom. Obviously that was not happening to those flying private jets :-).
We could go on, but I think you get the point.
It's not an ideal situation and is there anything we can do about it? I'm sure there is, to some extent. Let's take a step-by-step look at what can be done about it.
The most important section is probably having a second home and being able to keep your freedom no matter what. Keep your family safe in case you need to.
The flag theory is the goal to free oneself as much as possible from a system and to have a free life without obligations.
Permanent residency
It is better to have permanent residence in a country without tariffs, with territorial taxation (or zero taxation). This automatically excludes all European countries without territorial taxation (the local state taxes your worldwide income) and with several obligations linked to permanent residence (health and social security contributions,...).
Territorial taxation countries are still quite numerous, but almost all of them require quite a large expenditure to obtain permanent residency (Panama buying a property worth 200k$, Uruguay $390k and 60 days/year stay), El Salvador (3 bitcoins have changed to $100k according the new legislation), Malta is 150k Euros, etc....
If 5-6 digit annual income is taken into account, Paraguay is the easiest country to obtain permanent residency, as it has territorial taxation (which implies, among other things, 0% tax on income generated outside Paraguay). The conditions for obtaining permanent residence in Paraguay have changed in November 2022 with the new law "Law 6984", so it got more complicated compared to years prior this law. In general, there is a worldwide trend to make it more complicated to achieve other residency or citizenship (another example may be the change in the process of obtaining citizenship by investment in St. Kitts and Nevis, the change in effect as of July 2023).
Tax residency
If you physically live in the EU, your citizenship or permanent residence in another country may not benefit you from tax perspective. It won't help you if you live in the country of origin more than 183 days a year and/or have a point of interest in that country of origin. This has become more acute in the EU, so it is not enough to not reside in the EU most of the time, but it is also necessary not to have a center of interest there.
If you have not actually resided anywhere for more than 183days and have no center of interest anywhere, you are obliged to pay taxes based on your citizenship. That's why you want to be a permanent resident in another country, have a bank account in that country, proof of address, etc. I advise not living in the EU more than 6 month/year. Canceling permanent residence in the EU, being de-registered from the tax office, not using the EU cell phone operator, minimize use of EU bank accounts.
In short, it is not simple NOT to have tax residency at all, but you can choose where to have it when you meet certain conditions mentioned above.
Tax havens in 2023 (No tax on foreign income for foreign residents):
Cayman Islands, Bahamas, United Arab Emirates, Panama, Uruguay, Paraguay, Cyprus, Hong Kong, Singapore
Citizenship
Having a second citizenship is usually a good idea (especially if you are seeking legal protection from another country). If you have the option of obtaining a second passport, take advantage of it.
There are a couple of options.
First option is by descent
It is great to focus on EU citizenship. It's great to have one because EU passports remain strong in the world market and there are almost no obligations arising from citizenship. Also EU countries are based on “jus sanguinis” which means it is not possible to obtain citizenship just by being born in the country. You have to have parent or parents with citizenship in that nation or other relatives such as grandparents.
Most of the obligations in the EU derive from residency. That is why it is very smart not to have residency in EU countries.
Another option is to get citizenship by investment
It is often referred to as economic citizenship. It usually means investing in real estate and the process is simple. It is possible to obtain citizenship in 6 months. Some examples are St. Kitts and Nevis, Dominica, St. Lucia, Antigua and Barbuda, Turkey (very popular option these days), Mexico, Grenada, Malta, Montenegro, Cyprus, and so on.
However, there are other and cheaper ways to obtain citizenship if you are not in a hurry and you have time.
Third option is to get citizenship by marriage.
In most cases it is a guarantee and a fast track to obtain citizenship. You are the lucky one.
Forth option is citizenship by naturalization.
It is one of the cheapest ways to obtain citizenship. This is where you have to put on your boots on the ground and stay in the country. It is closely related to the previous sections about residency and tax residency because in this case residency and tax residency play an important role in the process and are preliminary steps to getting citizenship by naturalization. Basically, you move to the new country to live a new life. Step by step, you acquire residency, live there and naturalize later. The time frame varies and can last from 2 years to decades. It all depends on the country where you want to apply for citizenship. One of the examples can be Paraguay, where you can apply for nationality after living 3 years in the country with permanent residence permit which in total makes it 5-ish years.
Other similar options might offer Uruguay with 3 years to citizenship or Dominican Republic with 2 years to citizenship.
There are many aspects that you need to evaluate when applying for citizenship by naturalization such as whether there are history, language, culture tests. Some countries require renouncing other citizen ships, etc....
In summary, it is important to know where you want to move to and select the country that brings benefits to your life and has no or minimal inconveniences.
Fifth option is citizenship by birth of your child
This is very specific. There are a couple of countries in the world where citizenship can be obtained based on the country where the child was born. It immediately eliminates all countries that have the law based on "jus sanguinis" (The right to citizenship in a nation acquired by being born to a parent or parents with citizenship in that nation).
Hack: Brazil. Brazil has the "jus soli" law (The right of nationality or citizenship acquired by being born in that place). When your baby is born in that country, he or she immediately receives Brazilian citizenship. You as parents can apply for Brazilian citizenship (by naturalization) after 1 year living in the country. This is the fast track "hack" to obtain a second passport. Otherwise, without having a child born in Brazil you would have to live in Brazil for at least 4 years and apply later.
Summary: As you can see, there are many options to apply for another citizenship. It all depends on the individual and there is no one correct way to do it. Anyone who is thinking about obtaining another citizenship should evaluate his or her own life situation and choose the option that suits him or her best. I understand that this article is only an introduction to the problematic, but it should be enough to have a basic orientation on the options.
Company/companies
It is crucial to ask yourself a couple of questions first. There will not be a simple answer for many of you, because it depends on multiple factors:
where is your customer?
Where is the place of conducting your business?
Let’s look into that a bit closer, shall we?
The place of conduct of the business is in the EU:
If your company carries out its business in the EU, it does not make much sense to set up a company outside the EU. This is due to the fact that you must pay taxes in the nation where your business is conducted. If you have a company and want to reinvest all your profits, then it makes sense to set up an Estonian company. The Estonian company has a 20% profit tax, but it only applies to the profits you want to withdraw. That means that the money you keep in the company you can use to reduce your taxable base. Another option is to set up a company in Cyprus, where taxes are 12-13%. This one if very good option.
The business are services or digital services and the place of conduct is not in the EU
Customers are from EU:
In this case it makes sense to incorporate a company in the country where territorial taxation can be applied. In addition, the country has a signed double tax treaty. One of the options is the disregarded US LLC corporation (e.g. in Delaware or Wyoming). You, as a non-US citizen, can benefit from this. Incorporation is simple, quick and straightforward.
Caveat: When the value of your services exceeds a specific threshold (which depends on the country where your clients are located), you must register with the tax agency of the country where your clients are located. If your company is small, this is probably not a concern. However, it is important to study the local laws and know the requirements. Ask your CPA or law office to brief you on local laws that you should comply with.
From 1.1.2024 all newly created LLC companies will be requested to report beneficiaries with FINCEN
Customers are from EU and from USA:
The same applies even if you have US customers. There are many misconceptions about this. You can still effectively run U.S. LLC disregarded company and not pay U.S. taxes. You just have to comply with the rules that you do not have ETBUS (engaged in trade or business within the United States) and ECI (effectively connected income).
To be considered ETBUS: The entrepreneur has at least one "dependent agent" in the U.S. or/and the dependent agent does something substantial to further the entrepreneur's business in the U.S., as opposed to just something administrative or ministerial.
An example of when you don’t fall under ECI: there is no relationship between your company and any U.S. suppliers. You are soliciting, receiving and fulfilling orders from another country. You have no offices or personnel in the United States. You do not work with any suppliers or use any vendors. This scenario, for example, can work when you sell digital products.
If you fall under ECI, such as using third-party vendors (Amazon and others), you can still get tax relief from the U.S. IRS, but you have to fill out specific reporting forms (1040NR, 8833).
Caveat: In this case of falling under ECI, you already have to report your US business activities to the IRS, even though your business won’t be liable for income taxes in the US.
Note: Please note that this is only a general overview. Laws change often and it is not certain that this will work in the future. It is also strongly recommended to check your specific case, as there are many caveats. Always check your options with the IRS or a CPA. If you want to be sure you won’t under fall under ECI and not fulfulling ETBUS the best option is to not having US customers and having no warehouses and personnel in USA.
US citizens
Requires different approach. One of the best options on a personal level is to relocate to Puerto Rico and become “bona fide” resident which gives you tax benefits under the 22nd and 60th Act.
Bank accounts
Let’s divide this section into personal bank accounts and company bank accounts.
Company bank accounts:
If you don't need a business bank account, you and your business will have a much simpler life. However, I understand that most people are not ready to operate without bank accounts and cannot move to full crypto.
US Bank Account: When you open your business in the US you can also open a bank account with the EIN number. Again, it's simple and not that big pain. But keep in mind that opening a US bank account (as a non-US resident beneficiary of a US company) requires mostly physical presence. But there are quite a few banks that will open the bank account for you ( Chase, Bank of America…)
Bank account in other countries: You can open a bank account in other countries. It depends on other settings throughout the plan, but some good examples are Paraguay, Uruguay, Georgia, Gibraltar.
There are some countries where opening a bank account can be painful. For example, Panama. It is very complicated to open a bank account in Panama and can take ages. You have to ask a question, how many bank accounts do you need? Diversification is good but it should not over complicate things. Huge diversification in terms of banks might jeopardize the simplicity of the set-up.
Personal bank accounts:
US Bank: As a non-US resident it is a very good idea to open a bank account in the US. With the ITIN number you can get a personal bank account in a couple of days with debit card or you can apply for a funded credit card so you can start building your credit score. When your score is enough high you can apply for credit card with pre-approved limit. Your goal is to get to over 750 credit score.
The good thing about US banks is that they have never signed the CRS (common reporting standard) and you as a non-US resident have very good privacy with the US bank relative to all European countries.
Another option is to have a Paraguayan bank account if you are a Paraguayan resident. Paraguay also did not sign the CRS. That means that they do not inform other countries about financial transactions of their residents. Paraguayan banks are not the best, but it works. You can use Paraguayan fintech bank UENO that received banking licence from Praguayan central bank during October 2023.
Sometimes it is difficult when all your income is outside the country or there may be certain limits (or internal controls) to use foreign currency such as USD or EUR. Another complication for some may be the problem of having a credit card, but debit cards (VISA, Mastercard) are not a problem to be issued. It all depends on the bank, volume of business, currencies, etc.... But in general it works and it is not a bad option to have an account in Paraguay where you have pretty good privacy relative to EU.
Third interesting option that is not so popular is the bank account in Georgia. Georgia has not signed CRS yet (probably it will be from fall 2024). Anyway, bank accounts in Georgia work well. I have friends having bank accounts in Bank of Georgia and all works great. Bank of Georgia also have another private banking branch called SOLO where you have personal approach, higher limits, great customer support, etc.. You can open multiple currencies (USD, EUR, georgian Lari) and easily operate with various cards (VISA, Mastercard).
Forth “niche” option is to open XAPO bank account in Gibraltar. You can open the bank account only as a non-EU resident and non-US citizen. There are some news that it should be able to open an account as EU resident too, but payment cards are not available for EU residents. Anyway this bank works and the best case scenario is to open it with tax residency outside EU. You can have an account in USD and Bitcoin for a small annual fee of $150. It is good to mention that XAPO bank integrated lightning network. You can receive EUR and GBP too that is being converted to USD.
Anyway, from my experience it is very good idea to diversify and have more options. On the other hand many options add complexity which might mean theoretical headaches. It is up to you to decide how much diversified you have to be and what is the sweet spot for you.
Homes
Where is your home? That is a very good question and everyone needs to answer this question on individual level. This is very subjective, and it is your decision where you want to spend most of the time.
You can view this topic as couple of following options:
You have residencies in multiple countries as a backup plan - You live in a country where you want to live. It can be anywhere where you like it and it makes sense to you. The criteria of where is good depends on you. Someone likes to live in the EU, someone in the USA, someone prefers to live in Asia, etc.... For me it is Latin America. It is very close to me, because of my long experience in Latin American countries and because I have family there. I also have the feeling that in Latin America there is much more freedom. Fewer regulations, fewer obligations, a cheaper lifestyle, etc. Anyway, this setup is based on living in a country where you want to live and all the residences you have are just in case something happens and you have the option to move (relocate) without problems to another country. It has its pros and cons. If you live in the EU and have other residences as a backup, then you have to count on paying all taxes, costs, social security, etc. in the country where you physically live. Your easy to get residences (Paraguay, Uruguay, Panama, Honduras, Palau, etc..) are just a plan B, just in case something happens you have open borders. Note: I will focus on Latin American life and benefits in another article because there are many differences between all LATAM countries.
I will try to make an comparing article on huge differences living in Brazil, Paraguay, Puerto Rico, El Salvador, Cuba, Dominican Republic. The differences are huge even though it might appear it has to be the same life in all of those countries.
You have physically relocated to new country - You have decided to relocate. Let's take an example again.
PY or UY- You have been admitted in a new country like Paraguay. You physically live there, pay taxes (as mentioned above PY has territorial taxation), organize your life in a new territory. Very safe cities for Latin American scale. Very cheap and good life. You can live 2-3 times cheaper in Asuncion, in Montevideo for similar prices like in Europe. You pay local income tax (in case of PY 10% corporate or personal tax, 0% on income outside Paraguay). VAT in Paraguay is also 10% (5% in some specific cases). UY has territorial taxation too with first 11years of tax holiday. After this period there is flat 12% tax on dividends and interest.
You live very well with your family, in a totally self-sufficient country (electricity, water, food...). And you can't miss the best steaks :-)
Puerto Rico - San Juan a bit more expensive compared to EU. As bona fide resident in Puerto Rico you have 4% tax under the 22nd and 60th Act. Downsides in PR are - not territorial taxation, island (a bit small to my liking), issues with electrical grid, expensive real estate. Positives can be one of the best beaches in the world, nice people, close to the US mainland, 4% tax. More on live in PR in another article.
You are perpetual traveler - You live in a "backpack", kind of. That means that you spend no more than 183 days per year in any one country. Most countries in the world apply the rule that you become a tax resident of that country when you spend more than 183 days/year in that country. Let's take an example: You are a Paraguayan resident and also a tax resident. In case you do not live in any country more than 183 days/year and also do not have a center of interest in some other country (which usually can be family, a property owned but not rented, etc.) you become a tax resident of the country of your residence. In this case - Paraguay. It is important to mention that it is good to have a residence somewhere (ideally in a country with territorial or no taxation). Reason for this is because you can exist without any residence, but in case you do not have any permanent residence you will pay taxes based on your citizenship. That also works well when you have your income outside Paraguay and so you legally pay 0% tax and do not pay any social security and other contributions. I want to reiterate a bit about the confusion that normally comes from living in the EU as an EU citizen, but not having a residence in the EU. It is possible and I would say it is even better. By holding an EU passport, you can live in the EU territory without having EU residency. That means you can freely do whatever you want without obligations (pay health insurance, which is not really insurance but a tax, pay social security, which is another tax and not insurance, etc.).
Caveat: The downside for some is that you can't easily get a mortgage without residency or you can't be employed or self-employed running business physically in the country. In case of being employed or being self-employed you would become a tax resident of that particular country no matter what.
Real Estate
No matter where you live or want to live this is a big question how to organize your physical life. There are many approaches and I do not want to create a clash between two groups where one will be saying that owning a real estate is a huge upside and another group will be saying that owning a real estate is a liability. To put it into perspective both options might have own upsides in different scenarios. Because we talk about Plan B in this article I will only break it down via this approach and this perspective for the sake of simplicity.
Owning a property:
Pros: You live in the Plan B country full time. It may make sense to buy a property if you don't plan to be a "slow traveler". It is always important to check what the relationship is between property value and rents on the market. Sometimes it can be smarter to rent than to buy.
Even in a life where you travel most of the time, you can still rent the apartment and get some rental income.
If you have enough money and don't know where to invest it, buying a property for your Plan B in the Plan B country can make a lot of sense.
Cons: Real estate is always a liability in the sense that you have to take care of it or have someone to take care of it (when you don't live in the property). You can rent it out, but you need someone (especially for short-term rentals) to organize it, clean it and take care of it. Another drawback is that you have to be aware of the local real estate market and know the prices (real value vs. market value) to buy in the right time. One of the examples of stupidly high real estate prices can be San Juan, Rio de Janeiro, Medellin (if you want to have a flat/apartment in a nice area).
Renting a property:
Advantages: If you live in or move to a country where there is an imbalance between supply and demand (higher supply, lower demand) in the rental market, it can make a lot of sense to rent a property. One such country is Paraguay.
Another point to consider is how much of each year you live in the country. If it is only part of the year then it does not make sense and it is much more convenient to rent something when you need it. Your monthly expenses could be around $500 for a nice apartment in a good area of the city with lots of amenities in case of Asuncion. Next time you come back to the city you can rent something similar, change your environment, explore and gain more knowledge and experience from the real estate market.
Another big benefit is not having a stress owning it and taking care of it when you are not present in the country. Clear mind, no liabilities.
Cons: There are not many cons in case you live in the country part of the year and in the country where the supply is greater than the demand. The only drawback may be that you can't equip your house with personal belongings. Another drawback for some might be the feeling of not having all of Plan B in place (because you might feel like you're not fully settled without having a home you can come to whenever you want).
As you can see there are many approaches and a lot to evaluate. There is no right path. It can be very individual and all of you who is reading this might think through what works the best for your set-up. I am sure it will differ a lot based on lifestyle, financial health and what threats you want to eliminate or “insure” against.
Assets
With more assets, more responsibility and more headaches. Imagine having several properties in several countries, yes it is possible, but it will cost you time, money or nerves. You have to take care of those physical properties even if they are rented. If you don't want to take care of that, you will have to hire someone to do it for you, and that costs money. Again, it's a very individual thing and everyone has a different appetite. However, more assets you own just add complexity.
Another possibility is to move into the digital space and store your value in bitcoin. It's very easy to move with your assets around the world and deploy capital anywhere you need. It's liquid and you can use that liquidity immediately anywhere, anytime. Maybe this is not for everyone to have all the wealth in bitcoin, but at least you can diversify your portfolio into bitcoin and stocks (yes there are other caveats to that, but let's look at it another time). It is much easier to manage “digital” portfolio compared to real estate, especially if you are living in multiple jurisdictions. I don't want to jump to conclusions about what is good or bad. Those are very personal preferences that might change with whole life set-up and approach. I'm just saying think it through what you can do to minimize your headaches, problems, sleepless nights, etc... In the end it's your life and your decisions. Not everyone has the same goal (someone wants to be free, someone else wants to multiply wealth). Everything is fine. The most important thing is to be clear about it and not to lie to yourself. When you know what you want go ahead and try to achieve it. If it doesn't make you happy and feel comfortable there is no point in doing it.
As we solve Plan B in this article here is the tab below that is comparing different assets from the perspective of an adverse environment.
Note that this is not a tab on the best investment assets, but what can protect you when "the shit hits the fan". Also, this is my opinion on the subject and not everyone will agree with me.
Health care
When you have successfully relocated your residence and are not obliged to pay for health insurance in your EU country (please read the health tax), you can find and select your health insurance on the free market. There are many health insurance providers all over the world. The nice thing about marketplace insurance is that you pay for real insurance for you related to your physical health. It is not a tax based on your income. It is fair because it motivates each individual to take care of their own health and motivates you to have a healthier life (nutrition, physical training) because it directly influences your insurance payout.
Some of the examples can be these companies where you can ask for quotations:
William Russell, Foyer Global , IMG Global , Allianz , Cigna, Vumi, Safety Wing
The good thing about this is that when you need assistance from a doctor, hospital, specialist you just go and as you pay in cash you get a totally different treatment. Most of the healthcare system works badly because of the healthcare oligopoly that exists in all EU countries. The result is that doctor/hospital can have a certain number of procedures per month. (Note: In the United States it works a bit different. I will write my life experience with health insurance in the USA in the next article and try to compare EU vs USA health system). However, when you pay cash, the treatment is different. You don't need to fit into the "centralized planned excel sheet" and you are taken care of. Later you only need to claim the bill for the procedure from your health insurance and they will pay you back.
My tip: If you are healthy human being the “best bang for your buck” is to have basic health plan. Your monthly payments are low but some treatments like regular yearly overall body health checks are not included and you pay extra. It is still much cheaper in total. Especially when you regularly train, do physical workouts, eat well you will be just fine with basic plans. You can always upscale to another insurance level.
Global cellphone data providers
There are multiple options in the market. If you are a Paraguayan resident, the best choice was have Claro international data plan.
This option is not available anymore in sense to use all data in roaming. Explanation here:
Many Paraguayan residents had the option to get international mobile data postpaid plan from Claro operator. Great price, 50GB monthly, use in US and most of the countries in EU, etc… In other words... No-brainer... I guess Claro company did not expect to have most of those allocated data spent in roaming every single month. It was convenient for residents not living long term in Paraguay. Great deal is off the table, now. Newly signed contracts won’t be able to use data in roaming unless the number comes back to territory every 60 days… There are other work arounds but it just shows that most “no-brainer” deals have limited time on the market. Moral of the story: It’s good to act sooner than later when trying to make the most of various services. Great opportunities, loopholes, hacks work only when they are used by minority that won't even trigger the alarm...
Another option is to get anon esim card from Silent.link and top-up as you go with bitcoin. You have to check the data prices in each country because they vary quite a bit. This is not a one-size-fits-all solution for global data. But it certainly has a place in your overall setup.
Another option that works well is to get esim card from Keepgo and ideally pay with bitcoin. They offer plans for different regions - EU, US, Asia, Latam, etc. You will find the package that fits your needs. Excellent service.
Last but not least is Google Fi . I have no experience with this one, but I've heard it could be a great solution for some. I cannot say how good it is, but I heard it works. Do your due diligence on this one.
I hope I will be able to write more about this topic and how to make your communication more private.
Payment options
There are multiple payment options. I have to say that in Latin America, cash is king. Everything is settled in cash. The best thing to do is to carry US dollars and exchange them when you need them for local currency. US dollar is still the king.
The second great option is to have bitcoin. Even if you can't pay with bitcoin, it is easy to exchange bitcoin for local currencies or US dollars. In some countries in Latam you might have a bigger success with stablecoins. You can think about that anything you want, but that is the reality. For example in Argentina and Brazil you probably will have more success with stablecoins. Having said that I don’t like the counterparty risk in stablecoins (issuer) and I rather seek for bitcoin p2p exchange. With bit of work you can create and establish your own p2p network that will work and step by step create local parallel economy.
If you want to pay with a card in Latin America, it may not work everywhere, especially with small vendors. But in big shopping malls, restaurants and hotels it is possible. So if your goal is to live off credit cards then I suggest to stay in bigger cities, totally eliminate local farmers markets and vendors and you can do it. Using payment cards will have own limitations where to use them.
I would say it is best to have a Paraguayan bank account and card and use it outside Paraguay - it has lots of benefits. Locally in Latin America your life will be simpler with cash in general. At least that is my experience.
Tip: If your goal is to have well functioning bank then Uruguay banking is on higher level. All you have to evaluate is if that worth doing it for you. Generally speaking UY is more developed and more business oriented compared to PY.
However if you come to Latin America from USA, EU with income from these countries you will benefit extremely from your purchasing power. Some tricks to use it to your advantage I will discuss in another article.
Personal security
Okay, last paragraph, I promise :-) When looking for a country for a Plan B, you will have to answer yourself a couple of questions. One of them will be: Is it safe for me and my family to live there? I think this is very important. Now, what to do, how to select the right Plan B country where I can have personal security similar to what I am used to or even better.
When you live in several countries in Latin America you realize that for many people it sounds the same and they see it as USA (USA is one country), but there are big differences between all the states. The same thing happens in Latin America. Same language (except Brazil) and many differences. When you start to dig deeper, you will realize that there are even big differences between cities in the same country and between neighborhoods in the same city.
From my own experience of 15 years in many countries I can say that one of the safest places is Paraguay, Argentina, Uruguay, Salvador, Puerto Rico. These countries are free and safe (of course Cuba is also safe but not free).
When I take into account all the issues we have been talking about in this article, add security, add freedom, and make an intersection of all the aggregate then Paraguay best fits all needs for a good price.
If you have deep pockets, then there are better options and I would probably go through citizenship by way of investment and "relocate" to one of the Caribbean islands.
Note: Paraguay is a very gun friendly country. This could be very interesting and attractive for Czech, Swiss, Estonian and US citizens. In Paraguay you can possess a permit (license) and a firearm. The minimum age is 22 years and permit has to be renewed every three years. It is very straight forward process similar to Czech Republic.
Why put up with all this and go through all these processes?
It gives options. You have plan B when you need it.
It offers you to optimize your life, obtain more freedom and get the most out of it (especially when you have family).
It offers you to start a new life in a new country with better overall set-up or to become “solo or family traveler”. I can underline this one when you become “slow traveler”.
Phew, we're done. I know, quite a long read. But the basics are explained in a full article. I wanted to put the basic approaches all together so you can grab your notebook now and start deciphering and answering each paragraph for yourself. When you have your answers you can start taking action. Keep in mind that there is no miracle solution. You will probably have to find a sweet spot based on your needs, threats, priorities and tastes.
Feel free to comment, write questions and share. See you next time...
Note: The article is written from the perspective of a non-US citizen. For US citizens it is increasingly complicated in terms of taxation and corporate taxes. It is possible to optimize the whole setup, but because of the citizenship based taxes (which are effectively US and Eritrea) there should be a different setup in place. One of the simplest options for US citizens is to move to sunny Puerto Rico, where you live more than 183 days a year (become a bona fide resident) which gives you tax benefits under the 22nd and 60th Act. More on this in another article.
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