Bitcoin Plan B
Exploring the Top 14 Destinations for Bitcoiners
As Bitcoin adoption grows and “game theory” plays out, jurisdictions can and will compete for desirable residents (this theory is discussed in more detail in the book The Sovereign Individual). The ease with which you can move and use your Bitcoin wealth globally and the concept of a "Bitcoin Plan B" has led individuals to explore diverse international destinations. This post includes a very high level assessment of the top 14 places for Bitcoiners, examining factors such as residence permits, citizenship, taxes, cost of living, political stability, and quality of life. Each location is evaluated for its Bitcoin-friendliness, and insights into the relocation considerations and resources are provided.
Switzerland:
Residency Process: B permit (temporary residence) and C permit (permanent residence) options.
Citizenship: Complex process requiring years of residency.
Taxation: Cantonal tax rates vary, with favorable treatment in areas like Zug.
Quality of Life: High standard of living, political stability, low crime rates, and excellent healthcare.
Singapore:
Residency Process: Employment Pass and S Pass available with employment sponsorship.
Citizenship: Attainable after several years of permanent residency.
Taxation: Territorial tax system, no capital gains tax.
Quality of Life: Cosmopolitan lifestyle, high-quality healthcare, and low crime rates.
Portugal:
Residency Process: Golden Visa program for residency through investment.
Citizenship: Attainable after six years of residency.
Taxation: Non-Habitual Resident regime with exemptions for certain foreign income.
Quality of Life: Pleasant climate, low cost of living, and rich cultural experiences.
Estonia:
Residency Process: E-residency program for an online business, separate process for physical residency.
Citizenship: Distinct process from e-residency, requiring integration.
Taxation: Competitive tax system, favorable for businesses.
Quality of Life: High-level digital infrastructure, political stability, and a growing tech sector.
Malta:
Residency Process: Individual Investor Program for citizenship through investment.
Citizenship: Granted following a thorough due diligence process.
Taxation: Favorable tax regime for residents.
Quality of Life: Mediterranean lifestyle, historical sites, and a growing tech community.
Georgia:
Residency Process: Visa-free regime, with proof of accommodation and financial means.
Citizenship: Requires extended stay and integration.
Taxation: Flat tax rate of 20%.
Quality of Life: Diverse cultural experience, low cost of living, and a scenic landscape.
Hong Kong:
Residency Process: Quality Migrant Admission Scheme and Employment Visa available.
Citizenship: Challenging, with permanent residency as the primary long-term option.
Taxation: Simple and low-tax system.
Quality of Life: Vibrant city life, robust financial sector, and excellent healthcare.
Dubai, UAE:
Residency Process: Golden Visa for long-term residency.
Citizenship: Typically not available, but stable residency provided.
Taxation: No personal income tax or capital gains tax.
Quality of Life: Luxurious lifestyle, modern infrastructure, and a diverse expatriate community.
Panama:
Residency Process: Friendly Nations Visa for citizens of specified countries.
Citizenship: Attainable after five years of legal residence.
Taxation: Territorial tax system.
Quality of Life: Tropical climate, low cost of living, and a variety of outdoor activities.
Cayman Islands:
Residency Process: Informal process through work permits or business-related visas.
Citizenship: Generally not available, but long-term residency possible.
Taxation: No direct taxes, including income tax and capital gains tax.
Quality of Life: Tropical paradise, beautiful beaches, stable political environment, and a high standard of living.
El Salvador:
Residency Process: Temporary residence available for investors.
Citizenship: Attainable after several years of legal residence.
Taxation: No tax on foreign-source income for residents; Bitcoin is legal tender and is not taxed!
Quality of Life: Tropical climate, lower cost of living.
Antigua and Barbuda:
Residency Process: Citizenship by Investment Program.
Citizenship: Attainable through qualifying investment.
Taxation: No personal income tax, capital gains tax, or inheritance tax.
Quality of Life: Caribbean lifestyle, beautiful beaches.
Costa Rica:
Residency Process: Various options, including Rentista and Investor programs.
Citizenship: Available after several years of legal residency.
Taxation: Territorial tax system, taxing income generated within the country.
Quality of Life: Biodiversity, stable political environment, and healthcare system.
For more details on Costa Rica (and El Salvador) residence permits and other thoughts on the Plan “B,” check out this post from last summer:
Plan "B" With Bitcoin
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Last year I put together an offshore plan and was rather shocked at not only the upfront cost, but also the ongoing costs to maintain. For example, the traditional approach of setting up offshore trusts, companies and bank accounts, while providing privacy and geographic diversification, can cost thousands of dollars to maintain annually and even more …
Madeira, Portugal:
Residency Process: Golden Visa program, benefiting from Portugal's regulations.
Citizenship: Attainable after several years of legal residency.
Taxation: Favorable tax treatment, including the Non-Habitual Resident regime.
Quality of Life: Subtropical climate, natural beauty, and a peaceful lifestyle.
Considerations for Moving:
Tax Considerations:
Research the tax implications of both the home country and the destination to ensure compliance and optimize tax liabilities; most countries only tax income earned in that country (know as a “territorial tax”), which allows citizens to move and pay tax (if any) in the jurisdiction they reside in, while retaining their home country citizenship. The United States and the East African nation of Eritrea are the only countries in the world that tax the worldwide income of all citizens and permanent residents, regardless of where they live or where they earn money. For US citizens who are dual citizens and hold another passport, it is possible to renounce your US citizenship, but you’ll have to pay an “exit tax.” and you’ll need to have another passport to avoid becoming “stateless.”
Utilize resources such as tax advisors and online platforms to understand tax laws and obligations.
Legal and Regulatory Compliance:
Be aware of legal requirements related to residency and citizenship in both the home country and the chosen destination. For example, there are typically a minimum number of days you need to be present in a jurisdiction to establish tax residency.
Engage legal professionals who specialize in immigration and citizenship laws.
Financial Planning:
Plan for financial stability during the transition, considering the cost of living, potential investment opportunities, and currency fluctuations.
Quality of Life Metrics:
Consider factors such as healthcare quality, safety, environmental conditions, and cultural fit when evaluating potential destinations. Another important consideration is the level of freedom in a country. Freedom House rates people’s access to political rights and civil liberties in 210 countries and territories through its annual Freedom in the World report. Individual freedoms—ranging from the right to vote to freedom of expression and equality before the law—can be affected by state or nonstate actors.
Here’s a list of list of companies and resources for assisting individuals with obtaining second citizenships, residence permits, and other services related to international relocation:
Henley & Partners:
Website: Henley & Partners
Known for its Global Residence and Citizenship Programs (GRCP) and providing comprehensive advisory services for residence and citizenship planning.
Arton Capital:
Website: Arton Capital
Specializes in residency and citizenship solutions, offering a range of programs for investors and individuals seeking international opportunities.
CS Global Partners:
Website: CS Global Partners
A government advisory firm specializing in citizenship, residence, and investor immigration programs globally.
Passport Legacy:
Website: Passport Legacy
Offers services related to citizenship and residence planning, with a focus on providing tailored solutions for high-net-worth individuals.
Discus Holdings:
Website: Discus Holdings
Specializes in citizenship-by-investment programs, residency planning, and financial services for international clients.
Blevins Franks:
Website: Blevins Franks
Provides financial planning, tax, and wealth management services for individuals considering relocation to countries with favorable tax environments.
Citizenship Invest:
Website: Citizenship Invest
Offers expertise in citizenship-by-investment programs, guiding clients through the process of obtaining second citizenship.
Global Citizen Solutions:
Website: Global Citizen Solutions
Specializes in residency and citizenship planning, providing advice and services to individuals seeking global mobility.
Residencies.io:
Website: Residencies.io
An online platform that provides information on residency and citizenship programs worldwide, offering a valuable resource for research.
Nomad Capitalist:
Website: Nomad Capitalist
Run by Andrew Henderson, this platform offers insights into offshore strategies, second passports, and global citizenship.
Expat Focus:
Website: Expat Focus
An online community and information portal for expatriates, offering advice on living and working abroad.
Flag Theory:
Website: Flag Theory
Provides information on offshore strategies, internationalization, and global citizenship, helping individuals diversify their lives and assets.
International Living:
Website: International Living
A resource for those seeking to live or retire overseas, offering guides, articles, and information on expatriate life.
The Sovereign Man:
Website: Sovereign Man
Provides information and resources on internationalization, offshore banking, and obtaining second citizenship.
In this era of global mobility, Bitcoiners can navigate the complexities of international relocation with a well-informed and strategic approach, ensuring a seamless transition to a jurisdiction that aligns with their financial and lifestyle goals.
Not financial or legal advice, for entertainment only, do your own homework. I hope you find this post useful as you chart your personal financial course and Build a Bitcoin Fortress in 2023.
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Lightning tips appreciated here.
The groups that you list are all commission driven citizenship or residence by investment salespeople. None provide the crucial tax advice necessary, especially if leaving a complex system like the US with citizenship based taxation.
This is very informative, thanks.