'The Nomad Tax Trap': How to Actually Reduce Your Taxes

What is the "Nomad Tax Trap" and how can you avoid it?

With the growing trend of digital nomads and perpetual travelers all around the world, some of them believe that they are not obliged to pay tax in their home country, or any other for that matter, as they are always on the run.

However, governments and banks don't exactly like those people who claim that they "live nowhere" and they'll try to force you in many ways to pay your tax.

That's why it's important to know your base and your actual "tax home", so you can make a unique holistic offshore plan that will help you reduce your taxes.

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ABOUT NOMAD CAPITALIST

Andrew Henderson is the world's most sought-after consultant on legal offshore tax reduction, investment immigration, and global citizenship. He works exclusively with six- and seven-figure entrepreneurs and investors who want to "go where they're treated best".

Andrew has spent the last 11 years studying and personally implementing the Nomad Capitalist lifestyle, and has started offshore companies, opened offshore bank accounts, obtained multiple second passports, and purchased real estate in a total of 20 countries.

He has also spent years creating a behavior-based system that helps people get the results they want faster and with less resistance. Andrew believes that everyone can use offshore strategies to keep more of their own money, live a life of freedom, and grow their wealth faster.

DISCLAIMER: The information in this video should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Nomad Capitalist can and does not provide advice unless/until engaged by you.

[nomadcapitalist]

What questions do you have about becoming a Nomad Capitalist?
Comment below with your suggestions or ideas for new topics you want us to discuss.

Also, if you enjoyed this video, give it a thumbs up and click on the subscribe button.

[lordsushi]

I have never been so excited to watch a finance video !

[jalapenohiway]

You consistently produce quality content. I'm glad to see your channel & subscribers growing, Ty for everything! ✌🏽

[robstone]

The Australian tests are fairly clear. 183 or less days and must pass the Domicile test: don't maintain a home in Australia and must have a fixed or habitual place of abode overseas. They are quite clear that if you have no fixed place of abode and move from country to country then you are still domiciled in Australia. The superannuation test only really applies to government employees working overseas to ensure their super is paid in Australia and they are still tax residents. 

The tricky part is ensuring you don't fail the Domicile Test. If you are a contractor working overseas earning a tax free income but your family still lives in Australia and you return home once every three months for 2 weeks to visit them, you area tax resident.

A safe bet is to rent out your house when you leave and don't have any property leased in your name (boat mooring is the famous one, but I would include a storage facility for your possessions or keeping a car/boat/caravan registered in your name) and ensure you have a lease in your name or live in a property you own in the other country.

[AparicioTomas]

Conclusion: don't own properties unless you want citizenship if you don't want to get tracked by governments.
You can today use offshore banking solutions and e-banking to cover your day to day life anywhere in the world. I guess the key is to have your assets invisible from governments in countries you may live.

[rubensnogueira]

Residence rules are quite a tricky issue. Examples:

* France: if you have French income and spend more days in France than in any other country (even if it is 2 weeks or less), you are tax resident
* Germany: if you have an empty bedroom at your parents or any other place in Germany, even living 100% abroad, you are tax resident

I consider the "perpetual traveller" concept a fallacy. It's much safer to define a country of residency (in a tax-free place like Dubai, for example) and then keep travelling, being careful about the local laws for each place you generate income from. That's why a consultancy work, like the one from Nomad Capitalist, is so important.

[Sirjohnny]

I am an international speaker and always worrying about some country trying to tax me for generating income in that country, so suggestion on how to handle my speaking business.

[gn]

Is there any tax residency that allow me to not pay social security?

[CesarIzaguirrePaz]

I still have my VoIP Yealink phone in Brazil :) Blessings.

[AparicioTomas]

It would be nice a video about how cryptocurrencies can impact the offshore economy and ways to hide or move capitals without government intervention. I'm fascinated about the power of it, despite the aggressive volatility of prices and inconvenience for reserve value, crypto is still a Swiss army knife.

[hugoboss]

What happens if you are a US Citizen and you fall into another tax net from another country? Do you pay tax in both places or only where you are residing?

[ericeverson]

Where did you get the intro music & who is it?