Plan "B" With Bitcoin

A rational, low cost approach to an offshore strategy

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 to setup. It occurred to me that all you really need financially is Bitcoin in cold storage and an account at a Bitcoin-friendly bank with an OTC trading desk, if you need to buy fiat currency (add a linked secured credit card and you are all set).

If you’re interested, I wrote a post about a year ago on becoming a Sovereign Individual and having an international plan:

Having geographic optionality is important, especially in today’s clown world, and a second citizenship is generally considered best. Although they don’t require you to move (which is great), the typical citizenship by investment program is very expensive - both the fees charged by the government as well as the professional fees needed to prepare and submit the application, not to mention the amount of your time needed to pull all the documents, get notaries/apostille, criminal background checks, etc.

Citizenship by descent programs may be less costly but might not work for everyone depending on your country of ancestry, which may not have a desirable passport or may not apply if you are too far removed generationally. Also this type of citizenship will still take time and generally require you to live in the country (possibly for several years), which may not be practical if you’re not ready to move yet.

It occurred to me that there are less costly options such as residence permits that give you the right to stay for an extended period of time and would allow you to eventually work toward permanent residency and even citizenship in Bitcoin friendly places like El Salvador or Costa Rica. We all know about El Salvador because Bitcoin is legal tender there and a lot of Bitcoiners are moving there, but why Costa Rica? Costa Rica has a large expatriate community, it ranks pretty high on economic freedom (see recent infographic below from Visual Capitalist) and has a thriving Bitcoin community (Bitcoin Jungle), not to mention the natural beauty and amazing culture. Went there on vacation last year and I can confirm it’s an amazing and beautiful place, with a very affordable cost of living.

As an aside, it’s funny to see that Canada and Chile outrank the United States in economic freedom.

Financial

At its core, Bitcoin offers several key features that differentiate it from traditional financial systems. These features include:

1. Absolute Scarcity. With a maximum supply of 21 million coins, Bitcoin embodies scarcity, much like gold only better. This scarcity ensures that Bitcoin cannot be devalued or diluted, providing a hedge against fiat currency debasement.

2. Peer-to-Peer Transfers. Bitcoin enables seamless and secure peer-to-peer transactions worldwide. Whether you're sending value to your neighbor or someone on the other side of the globe, all you need is a computer and an internet connection.

3. Independence from Legacy Systems. Unlike traditional financial infrastructure, the Bitcoin network operates independently. It serves as the first global digital payments infrastructure, free from the control of any person or group.

4. Trustlessness and Security. Bitcoin's decentralized and immutable ledger, coupled with its "proof of work" consensus mechanism, ensures that the system remains trustworthy and immune to manipulation. This integrity is lacking in our current financial system.

5. Simplicity and Accessibility. Bitcoin's digital nature simplifies the validation, storage, transfer, and security of assets. Unlike gold, it doesn't face the same challenges when handling large amounts, making it more accessible to everyone.

With all these features, you really don’t need anything more complex than a Bitcoin hardware wallet. Other than the upfront cost of purchasing the wallet, there are no recurring fees for storing your Bitcoin in self-custody. You may have to pay small network fees to move your coins, but that’s about it. If you live somewhere where you can use Bitcoin to pay directly like El Salvador, a lightning wallet is all you need for day to day use. If you need fiat currency, you can open an account with a Bitcoin friendly bank that has an OTC desk so you can sell Bitcoin as needed for fiat and you may also want to have a local bank account as well, just in case.

Here are a few Bitcoin friendly banks located in Central America / Caribbean:

1. Belize Bank International (Belize):

   • Belize Bank International, based in Belize, is known to be open to cryptocurrency-related activities.

   • They offer banking services to individuals and businesses involved in the cryptocurrency space, including the ability to hold Bitcoin and other cryptocurrencies within their accounts.

2. Caye International Bank (Belize):

   • Caye International Bank, located in Belize, has shown a positive attitude towards cryptocurrency-related activities.

   • They offer banking services to clients engaged in cryptocurrency investments, including the ability to open accounts for holding Bitcoin and other cryptocurrencies.

3. Nevis International Bank (Nevis):

   • Nevis International Bank, located in Nevis, is considered to be Bitcoin-friendly.

   • They provide banking services to clients involved in cryptocurrency-related activities, including the ability to hold Bitcoin and other cryptocurrencies within their accounts.

4. Fidelity Bank (Barbados):

   • Fidelity Bank, based in Barbados, has been known to be supportive of cryptocurrency-related activities.

   • They offer banking services to clients engaged in cryptocurrency investments, including facilitating transactions and providing accounts for holding cryptocurrencies.

I have an account with Eqibank (based in Dominica) which was pretty easy to setup. I also used their OTC desk to buy some Bitcoin and it worked out well. I can always sell Bitcoin in the future if I need to fund the account with dollars. They also have a global secured credit card that you can preload with fiat and use like an ordinary credit card, but I haven’t signed up for that since I don’t really need it (yet).

Residence Permit - Costa Rica

Here are some details on the residence permit options and the process in Costa Rica:

1. Pensionado (Retirement) Residence Permit:

   • This option is available to individuals who can demonstrate a stable pension or retirement income.

   • The minimum monthly income requirement is typically around $1,000-$2,500, depending on the applicant's age.

   • Documents required may include proof of income, such as pension statements or retirement account statements, along with other supporting documents like a criminal record check, medical certificate, and proof of health insurance.

2. Rentista (Income Earner) Residence Permit:

   • The Rentista program is suitable for individuals who can demonstrate a stable income from sources other than retirement or employment.

   • The minimum monthly income requirement for this option is generally higher, ranging from $2,500 to $5,000.

   • Required documents may include proof of income, such as bank statements or investment statements, along with other supporting documents like a criminal record check, medical certificate, and proof of health insurance.

3. Inversionista (Investor) Residence Permit:

   • The Inversionista program allows individuals to obtain residency by making a significant investment in Costa Rica.

   • The minimum investment requirement is typically around $200,000-$300,000 in an approved investment, such as a real estate property, a business, or government bonds.

   • Documents required may include proof of the investment, such as property deeds, business registration documents, or investment certificates, in addition to other supporting documents like a criminal record check, medical certificate, and proof of health insurance.

Process for Obtaining a Residence Permit in Costa Rica:

1. Consultation with an Immigration Lawyer:

   • It is advisable to consult with an immigration lawyer in Costa Rica who specializes in residency matters. They can guide you through the process, assess your eligibility, and provide personalized advice based on your specific circumstances.

2. Document Preparation:

   • Gather all necessary documents as per the requirements of your chosen residence permit category. This may include proof of income, investment documents, criminal record checks, medical certificates, and proof of health insurance, among others.

3. Submission of Application:

   • Submit your completed application, along with the supporting documents, to the Costa Rican immigration authorities. The application can be submitted either in person or through an authorized representative.

4. Review and Approval Process:

   • The immigration authorities will review your application and supporting documents. They may request additional documentation or schedule an interview if needed.

5. Residence Permit Issuance:

   • If your application is approved, you will receive a temporary residence permit initially, which is typically valid for one year. After the temporary period, you can apply for a permanent residence permit, which is usually valid for three years.

Residence Permit - El Salvador

Here are some details on obtaining a residence permit in El Salvador:

1. Investor Residence Permit:

   • El Salvador offers an Investor Residence Permit for individuals who make a significant investment in the country.

   • The minimum investment required may vary, but it typically ranges from $30,000 to $50,000 in an approved investment, such as real estate, a business venture, or government bonds.

2. Independent Residence Permit:

   • The Independent Residence Permit is suitable for individuals who can demonstrate sufficient financial means to support themselves without engaging in formal employment in El Salvador.

   • The specific financial requirements may vary, but generally, applicants need to show proof of a stable monthly income or sufficient savings.

3. Pensioner Residence Permit:

   • El Salvador offers a Pensioner Residence Permit for individuals who receive a stable pension or retirement income.

   • The minimum monthly income requirement for this permit is typically around $1,500 to $2,500, depending on the applicant's age.

Process for Obtaining a Residence Permit in El Salvador:

1. Consultation with an Immigration Lawyer:

   • It is advisable to consult with an immigration lawyer in El Salvador who specializes in residency matters. They can guide you through the process, assess your eligibility, and provide personalized advice based on your specific circumstances.

2. Document Preparation:

   • Gather the necessary documents as per the requirements of your chosen residence permit category. This may include investment documentation, proof of income, pension statements, criminal record checks, medical certificates, and other supporting documents.

3. Submission of Application:

   • Submit your completed application, along with the supporting documents, to the Salvadoran immigration authorities. The application can be submitted either in person or through an authorized representative.

4. Review and Approval Process:

   • The immigration authorities will review your application and supporting documents. They may request additional documentation or schedule an interview if needed.

5. Residence Permit Issuance:

   • If your application is approved, you will receive a residence permit. The validity and duration of the residence permit may vary depending on the type of permit obtained. It's important to follow any additional requirements or procedures outlined by the authorities, such as obtaining a local identification card.

If you’re interested, there’s a company called “Escape to El Salvador” that supports both personal and business relocation for a relatively low cost. Here’s link to video on John Vallis’ podcast that has a great overview of not only this service but also goes pretty deep into what living in El Salvador is like.

Summary

Last year, I embarked on an offshore plan and was surprised by the high upfront and ongoing costs associated with traditional approaches like offshore trusts, companies, and bank accounts. However, I realized that a more affordable and flexible "Plan B" can be achieved by relying on Bitcoin as the main financial asset and having an account at a Bitcoin-friendly bank with an over-the-counter (OTC) trading desk for converting Bitcoin to fiat currency, if needed. By using Bitcoin, you benefit from its scarcity, peer-to-peer transfer capabilities, independence from legacy systems, trustlessness, security, and simplicity. With a Bitcoin hardware wallet, there are no recurring fees for self-custody storage, and using a lightning wallet for day-to-day transactions in Bitcoin-friendly countries like El Salvador is sufficient. For fiat currency needs, opening an account at a Bitcoin-friendly bank with an OTC desk, such as Eqibank, allows for seamless conversion. Additionally, considering residence permits in Bitcoin-friendly locations like El Salvador and Costa Rica can provide a pathway to eventual permanent residency and even citizenship at a more affordable cost compared to traditional citizenship by investment programs. Costa Rica, known for its expatriate community, economic freedom, thriving Bitcoin community, natural beauty, and rich culture, presents an attractive option. Overall, this more affordable "Plan B" leverages Bitcoin's unique features and explores residence options in Bitcoin-friendly countries, providing a low-cost and flexible alternative.

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.  To see all my books on investing and leadership, click here.  

Always remember: freedom, health and positivity!  

Please also check out my Building a Financial Fortress Podcast on YouTube here and on all your favorite streaming platforms. I do a weekly Bitcoin news update every week on current items of interest to the Bitcoin community, usually 30 to 60 minutes depending on the number of topics to cover. Please check it out if you haven’t already. Also now on Fountain, where you can earn Bitcoin just for listening to your favorite podcasts.

If you’re looking for more great Bitcoin signal, check out friend of the show Pleb Underground here.

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