Retiring abroad after the COVID-19 crisis

Going offshore has in recent years become a  mainstream idea.  If you had asked people about going offshore as recently as the 90s they  might have thought you to be a criminal, drug lord, or tax dodger.  These days the offshore world is far from a foreign idea. It has become  an integral part of any investment strategy. In fact, Google’s monthly  searches for “go offshore” have tripled over the last decade. If that is  any indication, it is easy to see that this idea has become popular for  a reason… it works. And by that we mean it works for whatever you goals  might be… Dream of owning an internet business? Go offshore… Wanting to  buy real estate at an affordable price? Go offshore… Looking to  preserve your assets for your children or grandchildren? Go offshore…  The list goes on and on.

The bottom line is this. If you want to save money, avoid political  pressures, minimize your tax burden, not be tied to the whims of a  single market, and have peace of mind that you are protected, both today  and in the future, you need to be going offshore.

When we say “going offshore” what we are really referring to is  the process of educating yourself on the best options available to you  and then acting on them… following this strategy wherever it may take  you… and in whichever country provides the best opportunity… It means  not limiting yourself to one country, one project, one anything… Going  offshore is about taking control of your financial future  and diversifying your life.

Going offshore is not about hiding assets from the IRS, the U.S.  government, or any other government for that matter. We are long past  the days where you could set up accounts in foreign countries and  avoid reporting income to anyone. The offshore world today is not about  hiding but about making the most of opportunities… legally. If you are  looking to skirt the law and hide assets then we strongly recommend you  reconsider your offshore goals before continuing.

Now that you know what it is to go offshore and why it might be  beneficial to you, you’ll need to start the process. This is the part  where theory and practice collide, and where there is no substitute for  educating yourself and doing your own due diligence.

Where to begin depends on what your goals are.  Are you looking to simply educate yourself on the options available to  you? Are you looking to diversify your investment portfolio beyond your  home country? Is your goal to build and preserve wealth that isn’t taxed  too heavily? Or are you looking to protect your assets and while  remaining compliant with the IRS?

Panama  is one of the few lefts in the world that  still values privacy, and is a place you might want to base yourself in  if you plan to build a successful company without annoying government  intervention, piles of paperwork, or a huge back-office staff. 

There are six main investment visas in Panama.

• Macro Investor: US$160,000
• Real Estate Investor: US$300,000
• Time Deposit Investor: US$300,000
• Film Industry: US$150,000
• Free Zones (including call centers and Panamá Pacífico): US$250,000
• Friendly Nations Visa: US$5,000 deposit in a bank account and incorporation of a new company
• Reforestation Investor Visa minimum investment of US$80,000 in a reforestation project certified  by the government including purchasing a minimum of five hectares of  titled land with an additional investment of $2,000 for each dependent 

Anyone over 18 years old with a lifetime pension or annuity  paying minimum $1,000 per month qualify.

 Foreigners working for a Panama company in a “professional” capacity  paying social security taxes and holding a college degree and a  professional license (if required by his or her country) can become a  permanent resident after two years of being a temporary resident .

 The parents of a child born in Panama who is over five years old can  apply for this permanent visa. The parents of future children born in  Panama can apply for this permanent visa after the child’s fifth  birthday. 

 One of the myths about Caribbean passports is that they’re “fake” passports that won’t really get you anywhere. 

Despite what you may have heard, Caribbean citizenship by investment  programs are 100% legit, and the passports they give you are no joke,  either.

In fact, my St. Lucia passport gives me visa-free access to 130 countries, including the UK and the EU Schengen Area.

But when I discussing getting a second passport through citizenship by investment with the people I work with, they often get a bit concerned. 

The idea that this tiny little island will give you a real,  good-quality passport in exchange for a sum of money sounds preposterous  to them – even though these islands are sovereign countries that simply  offer ways to acquire citizenship outside of naturalization.

Many people call passports from places like Dominica or Antigua fake or illegitimate because you can get them rather quickly by making a simple investment in the country.

However, as someone who actually holds a passport that I “bought” from St. Lucia, I can tell you that they’re perfectly legitimate and  that all Nomad Capitalists should consider them as a part of their  diversification strategy.

However, you don’t need to pack your bags and move to St. Vincent and the Grenadines if you want to get a passport there. 

In fact, I generally don’t recommend it.

Planting flags in various countries is an important part of going where you’re treated best, and in many cases, it’s actually beneficial to have a passport from a country that you don’t plan to live in.

A passport through Caribbean citizenship by investment can be a great  way to help you begin planning your global citizen strategy. For  example, you could use this passport to secure an easy residency in a country where you can apply for citizenship in a matter of a few years.

As with most second residencies and citizenships, it’s all a part of  creating a strategy that works for you – not necessarily finding a new  home.

 or the past few years, the Tier B passports that you get from Caribbean citizenship by investment are the wave of the future.