"In this world nothing can be said to be certain,
except death and taxes.”
–
Benjamin Franklin
In most cases, Mr. Franklin's statement would be
correct. However, as you will see below, there are some countries in the
world where you can be certain you won't pay taxes.
With the year 2013 marking the 100th
anniversary of the income tax and the Federal Reserve in the US (two of the
most powerful tools the government uses to extract wealth), I thought it
would be useful to look at when Tax Freedom Day occurs across the world to
gain some perspective.
Tax Freedom Day (TFD) is the day of the year that the
average person has in theory earned enough money to pay his or her annual tax
bill.
If TFD falls on January 1, that means you are a milk
cow for ZERO days out of the year for the government. If it falls on June 30,
it means you are working 181 days each year to pay off your taxes.
Unfortunately, most of us will spend some time during
the year acting as a milk cow in some fashion for a government.
Below is a table showing when TFD hits in the countries
within the EU.
The government of Hungary, Belgium, and France are the
worst offenders in the EU, keeping their citizens in tax servitude
astoundingly until around August each year.
If you are unlucky enough to be in the suffocating
grasp of a high-tax jurisdiction, you will likely have only a couple of
months of salary (if even that) out of the year that can be potentially
utilized as savings after essential living expenses are met.
In the US, TFD comes around April 17. Of course,
individual circumstances will vary, and TFD in the US can come a lot later
than April 17 for many Americans.
Whether you are American, European, or any other
nationality, it doesn't have to be this way. You do not need to be working
for the government for a good portion of the year.
It is possible to take steps to internationalize and
legally reduce the number of days the government milks you of the fruits of
your labor.
Some countries do not have an income tax or essentially
any other type of tax that could hit the average individual.
TFD could come on January 1 for you if you have no
external obligations and fall under the jurisdiction in any of the countries
in the table below.
Countries With No Personal
Income Tax
|
Andorra
|
Anguilla
|
Bahamas
|
Bahrain
|
Bermuda
|
British Virgin Islands
|
Brunei Darussalam
|
Cayman Islands
|
Kuwait
|
Maldives
|
Monaco
|
Oman
|
Qatar
|
Saudi Arabia
|
St. Kitts & Nevis
|
Turks and Caicos
|
United Arab Emirates
|
Vanuatu
|
There are many ways to internationalize and legally
structure yourself and your business around these and other low-tax
countries.
One possibility could involve an American citizen
obtaining a second citizenship, then becoming a resident of one of the countries
above, and finally renouncing US citizenship in order to obtain a tax-free
existence. Of course, this is but one possibility. There are many options
with varying degrees of protection.
You could prove Benjamin Franklin wrong – taxes
are not necessarily a certainty.
It is still legal and practical to take steps to
internationalize, but if history is any guide, it won't be so forever...
especially as governments (particularly in the West) become more desperate.
Moving your assets abroad is the most effective way to
protect what's rightfully yours from your home government… but most
people have no idea where to begin. That's why Casey Research has put
together a special web event, Internationalizing Your Assets. Featuring
New York Times best-selling author Doug Casey and other experts on
international diversification, it premiers April 30 at 2 p.m. EDT and is
must-viewing for anyone looking for ways to legally shield wealth from greedy
politicians. Get
more information and register today.
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