You Should Plan to Internationalize Your Life Now
Why You Should Consider Multiple Residencies in 2024
Happy New Year to everyone. We took a break from posting to spend some time with friends, family, and tax planning. Year end is always the busiest time of the year for us as we lock in last minute adjustments, confirm facts, and ensure that the outcome of the tax year is predictable. If you’re not doing any sort of year end planning, don’t be upset when you’ve missed out on the opportunity to save.
In any event, today’s article is about something that I’ve been a passionate advocate for over the past two years. Let’s dive into the benefits of multiple residencies.
Why Multiple Residencies? I Already Have a Powerful US Passport!
I don’t doubt the power of your US Passport. I have one and I know it’s pretty darn good for traveling the world. Today, having a US Passport is a viable option for exploring the world. Tomorrow, is a different subject, however. If you follow my blogs, you’ll see a constant theme where I reiterate that your decision making should always be done with a long term view, because statistically speaking, the odds of you living a long and full life are very good. Therefore, when we take action, we do so with this perspective instead of a reactionary one where we’re trying to put out a fire. Given the state of uncertainty in the world and the pace of change, having backup options to live and establish alternative home bases is essential in the 21st century.
I remind everyone too that during the pandemic in 2020 and 2021, US passport holders were denied entry to countries that historically were allowed to enter the countries without any issue (Europe and Asia pretty much blocked US passports). Regardless of the justification or reason for prohibiting these passport holders entry, the fact remained that there were few options for US people to go during this time. During a global emergency, having a backup option is like having insurance – it’s useless when you don’t have a problem, but worth all of its weight in gold when you need it. You also get the added benefit of having additional options to keeping your family safe.
As a permanent residency and ultimately future additional passport holder, you will have the legal right to enter these countries should the need arise.
But You Told Me That I Have to Pay US Taxes No Matter Where I Live!
This is very true, and your compliance requirements will certainly ramp up when you internationalize your life, but that doesn’t mean you will be paying the same level of taxes.
As I wrote here, you will be able to significantly chop your effective rate of taxation through the use of international tax strategies if you move to the right countries. Countries like the UAE which have little in the way of taxation make fantastic first choices for implementing this strategy.
America Is the Strongest Economy in the World, Why Move Elsewhere?
Also true - today. But there is a vast array of talent available to work with around the world. As we are able to increase our productivity through remote working, collaboration with international, untapped talent will give you and your business the competitive edge in the coming years. Having a residency in the country will give you access to establish banking, open businesses, and generally operate as a local. These are very huge advantages over your US based competitors.
Don’t forget that we love real estate here. Having access to international markets will give you greater diversification in acquiring real estate at potentially much higher cap rates than here in the US. You also can acquire residences in lower cost countries that would absolutely blow your mind when you see the quality of the building and its amenities.
But I Have to Leave My Life Behind to Get A Residency Elsewhere, Right?
Nope. There are quite a few options for countries around the world where you are not required to move in order to obtain it. Whether it’s as simple as paperwork all the way up to making an investment in a business or real estate, governments around the world promote all sorts of incentives to encourage global citizens to make their country their home (and spend their hard earned cash). The US is easily one of the hardest places in the world to immigrate to, so with that perspective it’s difficult to imagine a country, from our perspective, that is welcoming towards the concept of immigration. In my experience, as a fresh face to the UAE, I received my visa in 9 days after I arrived.
Where do I even begin?
I’m excited to announce that this year, we will be helping our clients implement a tax plan around internationalizing their lives as well as assisting them in obtaining a permanent residency and/or passport to a select few countries. We also will guide clients who have businesses based in the US to establish a subsidiary in the UAE if that becomes their country of choice. You can contact us here if this sounds like enticing!
