Path To Sovereignty Series: Foreign diversification

Why look abroad for sovereignty and building wealth, getting started on this path, and more

Intro

As part of the Path To Sovereignty Series, I will provide more actionable and tangible methods to achieve increased sovereignty in the lives of readers and clients.

In this installment, I’ll focus on international diversification as a key way to achieve this. This will look at the ‘why’ in terms of tax incentives, business opportunities, and how it enables less technocratic intrusion in one’s life. It will also discuss general differences by region and how to get started.

Why do it?

I get it: If you’ve never diversified or even traveled much internationally, it can seem like an impossible task. The world seems huge and you (be honest) might be a bit too comfortable in your hometown.

But not only are there myriad benefits to doing so, it can also help you prepare for the chaos approaching. Of course there are negatives as well, as there are with everything in life. For myself and most that read this, however, the positives clearly outweigh the negatives.

Flexibility

I’ve repeatedly said that in the coming years of unprecedented uncertainty, those that are the most diversified across all aspects of life will come out the other side less scathed. Being nimble, flexible, and adaptable is the name of the game.

Now, in practice this can mean a lot of things.

It can mean someone that’s relatively locked down with a farm and property, but is diversified via localized food production and solid neighbors - this can be done domestically as well, or internationally. But nonetheless they’ve broken out of ‘the matrix’ to a large extent, despite not being able to get up and go in an instant. They picked that given country based on long-term potential for freedoms / what they value most and decided to settle down there.

It can also mean someone that is a bit nomadic that may own a few properties around the world, along with a few passports in said countries. If some new ‘crisis’ is brewing in the media, they can quickly become mobile and head to a country that they believe will fare better off.

Having a few passports, or even visas for residency, offer a lot of flexibility to pick up and move as the world goes more insane.

In the face of mass attempts to centralize power such as moves by the WHO, WEF, and others, as well as governments ruling their little fiefdom, I’d rather have the options to not be dependent on one president / governor / etc. I’d rather have the flexibility to say “You know what, this place isn’t treating me so well, so I’ll head over to one of the other countries I’ve already established the prerequisite connections with.”

I would’ve lost my mind if I was stuck in Canada or Australia during COVID times, especially as one of the unvaccinated (aka the control group for that massive experiment).

Tax incentives

Up and coming countries want, and many times need, foreign capital to grow. Maybe it’s a certain industry they want to grow. Maybe they offer various incentives to deal with demographic crises. Either way, more capital comes into the country.

By situating oneself properly in terms of assets, income, and business structure, it’s very possible to pay single digit percent tax, or essentially zero (many still have VAT and other misc. taxes but income tax can largely be negated).

One example is that if someone spends 330 days of the year outside the US, they’re probably eligible to defer ~$120,000 USD of federal income tax – and possible all of it if they domicile in a zero income tax state. That’s one easy hack for the Americans reading this.

Another example I’ll use as a proxy is to open a microenterprise in Romania. This is an attempt by the Romanian government to bring in small businesses to the country. Start a non-consultancy related business that earns less than 500,000 Euros and income is taxed at a measly 1%. From Northstar Alliance,

Many western business owners and entrepreneurs struggle with increasing costs and an in many times unreasonable tax pressure from their home country and are seeking legal and secure ways to both lower operating costs and benefit from preferential corporate and owners tax in other jurisdictions.

What few may realize, Romania is actually a hidden “tax haven” within the European Union, as well as offering exciting investment and business development opportunities and of course in many sectors a highly qualified work force with a service offer that often means same or higher quality and lower cost than what one would pay in Western Europe.

Romania is highly underrated for those wanting access to the EU market, and even those in greater Eurasia. English is widely spoken, cost of living in low, it’s very safe, among many other benefits. This microenterprise path also grants a Romanian residency visa.

Dubai and many others have tax incentives to lure in those wanting to diversify internationally, or just fed up with western taxation.

Special economic zones are great places to start looking.