I read an article today from a blog and website I follow called Nomad Capitalist. If you don’t know them but like this content, please check them out. Please Note I have no affiliation or relationship with this group, and I do not provide legal or financial advice. It’s my blog, so I write about topics I find interesting! Here is the article – credit Nomad Capitalist. At the end I will add my thoughts. Enjoy!
Many of us have been raised to believe that, to live in a safe country with a stable economy, you’ll have to hand over considerable amounts of money in taxes to the government.
But that’s simply not true.
At Nomad Capitalist, we’ve examined which countries offer both security and low taxes. After all, why should you compromise when you don’t have to?
That’s pretty much the overriding theme of what we do at Nomad Capitalist. So, if you’re looking for ways to keep you and your family secure while safeguarding your wealth, talk to our team today about creating a holistic, offshore Action Plan to ensure you’re fully prepared for whatever life throws at you.
High-net-worth individuals need to understand the tax laws of the country they wish to move to and plan accordingly. Ultimately, if you’re not careful, you could end up paying taxes at home and abroad.
The best way to ensure that this doesn’t happen to you is by moving to one of the safest low-tax countries in the world. Here are some of the top, and most obvious, reasons for moving abroad:
1. Your Country Probably Isn’t as Safe as You Thought it was
If you’re from the United States, United Kingdom or Australia, you probably think that your country is very safe. You’ve likely been told that people are just linking up to move to your country because it’s one of the safest countries in the world.
While that may have been true once, unfortunately, it isn’t anymore. In particular, if you look at these countries from a global perspective, they’re just not as safe as many other nations.
The data doesn’t support what we’ve been taught. The US, the UK and Australia are all outside the top 20 of theglobal peace index. So, it makes total sense to move abroad.
2. Better Lifestyle as a High-Net-Worth Individual
Don’t you want a better lifestyle? Many countries have a better standard of living than the United States, so, if you’re a US citizen, you should take advantage of them.
Why would you live in a boring city when you could be living in a tropical paradise? Or trying out the famed Michelin-starred food stalls in Singapore?
It just doesn’t make sense to stay. To increase your wealth, you should also look for a country that doesn’t make it difficult for you to move your money. You need to look for a low-tax country with a high standard of living.
You can enjoy the most luxurious lifestyle in the majority of the countries listed below. Do note that for this list, we’ve included countries with the lowest percentage of violent crimes such as murder. In some nations, violent crimes are even nonexistent.
Generally speaking, other crimes are also lower in these countries, making them some of the safest low-tax nations in the world. Prepare to be surprised because even we didn’t expect some of the countries on this list – be careful, you might find yourself wanting to move to one of them immediately.
Monaco – If you’re willing to put half a million euros in the bank for investment purposes (real estate or otherwise), then you can easily move to Monaco. It has a 0% personal income tax rate and one of the highest GDPs per household in the world. You’re likely to run into quite a few millionaires and billionaires in Monaco which is regarded as one of the safest low-tax countries in Europe. On the downside, it can feel a bit restrictive, considering its total area is a mere 2.1 km sq. But in terms of personal security, you can’t be in a safer place than Monaco.
Andorra – Like Monaco, you will have to invest some amount of money to get residency in Andorra. But its safety record and the peace of mind it will give you will more than compensate for any initial outlat. Residents report leaving their cars and homes unlocked – that’s how safe it is.
Andorra’s a beautiful country to live in, though obtaining citizenship there can be challenging. Nevertheless, if you’re searching for a safe haven with a very low tax rate ranging from 0 to 10%, then this country is an ideal destination for you.
Apart from that, the government has plenty of tax incentives for foreigners, which you can get quite a bit from.
Switzerland – The third country on this list is Switzerland.
Already well known for being a safe location, what most people don’t realise is that Switzerland has a flat lump sum tax system for high-net-worth individuals. Basically, all you have to do is pay a certain amount to the government and, then, you can make as much money as you want.
Of course, we understand that Switzerland isn’t for everyone. This is why we recommend that those starting their business ventures should opt for countries with a low to zero tax rate, while those who are already well-established should consider Switzerland.
Portugal – Portugal is a popular destination among nomads and entrepreneurs and is known for its financial, cultural and lifestyle benefits. It’s long been a preferred location for many due to its low tax rates and relatively low crime rate when compared to the rest of Europe.
Until recently, expats were able to take advantage of a ten-year Non-Habitual Resident (NHR) program that exempted up to 100% of their income from Portuguese tax. However, for political reasons, namely a housing crisis and rising inflation, Portugal changed the NHR tax regime and removed incentives for investors to buy real estate through Portugal’s Golden Visa program.
The changes mean that Portugal is no longer accepting NHR applications and those who become tax residents in Portugal in 2024 will no longer be eligible to register.
However, a new tax incentive for research and innovation has been created for 2024: the Tax Incentive Scheme for Scientific Research and Innovation (IFICI).
This new regime, sometimes referred to as NHR 2.0, aims to attract individuals involved in specific professions such as teaching, scientific research and other high-tech or innovation-led fields.
Key features include a flat rate tax of 20% on professional income generated in Portugal and a wide-ranging example on most foreign-sourced income. Like the original NHR scheme, it’s designed for a 10-year duration and to qualify, applicants must not have been tax residents in Portugal for the preceding five years, can’t have benefited from the former NHR scheme and must be involved in one of the specified eligible activities.
This strategic pivot reflects Portugal’s focus on developing a more innovation-led economy and leveraging its capacity in science and technology to attract foreign talent and investment.
At this point I will pause with the article from Nomad Capitalist and dive into my two cents!
I have been to many of these locations, as well as tens of other countries around the world. At the end of the day, there is nothing like coming home to the good ole USA where we have amenities, efficiencies, and freedoms that most people take for granted until they travel abroad. That being said, I also compiled this list of the 10 safest countries in the world, with the idea of cross referencing safety and quality of life. What did I find?
As of 2024, the top ten safest countries in the world are often ranked based on the Global Peace Index (GPI), which considers factors such as crime rates, political stability, and the absence of conflict. The following countries typically rank highly for safety:
- Iceland
Iceland consistently ranks as the safest country in the world due to its low crime rate, strong social safety net, and lack of military forces. - New Zealand
New Zealand is known for its peaceful society, low crime rate, and strong law enforcement. - Ireland
Ireland ranks highly due to its low levels of violence, political stability, and effective government institutions. - Denmark
Denmark benefits from a high level of social welfare, a well-functioning government, and low levels of crime. - Austria
Austria is safe due to its strong economy, low crime rate, and stable government. - Portugal
Portugal has been climbing in safety rankings due to its low crime rates, stable political environment, and community cohesion. - Slovenia
Slovenia is known for its peaceful society, low levels of violent crime, and good relations with neighboring countries. - Czech Republic
The Czech Republic has a low crime rate, political stability, and a robust legal system. - Switzerland
Switzerland is safe due to its strong economy, high quality of life, and neutrality in international conflicts. - Singapore
Singapore is known for its strict laws, low crime rate, and highly efficient police force.
These rankings are largely consistent across sources like the Global Peace Index, although there might be slight variations depending on specific metrics or recent events.
If you like this article and want to hear more, please reach out and let me know! – Dan