Get second residency and pay no tax in these 18 tax-free countries

Facts

Hi, I'm Andrew Henderson. I've spent almost a decade learning the right way (and the wrong way) to "plant flags" for greater freedom and prosperity. If you're tired of paying high taxes and being stuck in one place, this blog will show you to how go where you're treated best. We discuss legal ways to pay less in taxes, create wealth faster, and live a life of total freedom. If that sounds good to you, keep reading or get some help.

Having a second citizenship is an important part of international diversification, but having a backup passport alone doesn’t end your tax obligations, if that is your goal.

US citizens can have as many passports as they want (one friend of mine is working on his fifth, while a client of a colleague has eight), but they will be liable to the IRS so long as they carry an American passport.

Citizens of countries like Australia, the UK, Canada, Norway, and others may similarly have a lot of hoops to jump through if they want to stop paying taxes in their home country, even after leaving.

While only US citizens must surrender their passport to escape the tax net, there are other countries where becoming tax non-resident is hardly a walk in the park.

No matter what your situation, having residence in a low or zero-tax country gives you a lot of freedom. For example, you may notice that every government agency you deal with wants to know which country you’re a resident of. And being a resident of a high-tax country could cause problems.

For that reason, flag theory suggests having residency in a zero-tax country that won’t try to get its hands on the money you earn anywhere else. It’s all about “going where you’re treated best” in a world where being a resident of a country often puts you on the hook for taxes on your worldwide income.
There are two strategies to pay zero tax based on your country of residence:

1. Become a resident of a zero-tax country that does not impose income taxes or capital gains taxes, or
2. Become a resident of a territorial tax country that only imposes income taxes and other taxes on income you earn within their borders… then make sure you don’t have local source income.

1.The Bahamas.

The Bahamas has no income tax, choosing to earn its money from tourism. Residents of the Bahamas pay zero tax on money they earn anywhere in the world. The government application fee for temporary residence, which is renewable annually, is a mere $1,000. If you plan to settle in and stay a while, purchasing $250,000 in real estate will get you longer term or permanent residence. In case you thought The Bahamas was some banana republic, its passport is actually one of the 25 best in the world.

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