Many countries in the world have faced economic collapses before. Yugoslavia in the 1990’s, Zimbabwe in 2000’s, and Venezuela most recently have all faced economic collapses. All of those countries faced shortages of food and essential items. There were looting and riots witnessed as well.

An economic collapse, if it were to happen, would happen unpredictably. No one would be able to predict that a collapse would happen on a particular day. The devastating effect of an economic collapse comes from its surprise arrival. In fact, the surprise factor is what causes a major collapse.

Even though there are a lot of systems and checks in place to prevent economic collapses through financial or military reasons, you never know. Even rising sea levels from climate change, something which is not in our control, can cause more economic devastation than the Great Depression.

With so much uncertainty regarding economic collapses, the key is to learn about such situations beforehand and prepare yourself accordingly. That way, even if an economic collapse does hit you, you can hit the ground running right away and not let the surprise factor harm you. Some things that you can do in advance to prepare for an economic collapse are:

Keep your assets in a liquid form. The assets should be such that you can withdraw or liquidate them in the form of money within a week.

Cash tends to lose value quite quickly during an economic collapse. There might be hyperinflation to contend with as well. The best option would then be to keep your wealth in the form of gold. You do not have to exchange all your money for gold. You can keep some part of your wealth as currency (bills of different denominations) and some part as gold. Gold coins can prove to be quite handy during an economic collapse. They are equivalent to small denominations and are not too cumbersome to carry around.

Stockpile essential items. These include food, water, and medicines. It is almost like preparing before a storm or a hurricane. Think that if you won’t have the chance to buy any essential items for a few months, then what would you need to store for the long term. You should probably look at having about 3-4 months of supplies stocked up.

Learn skills that are different from your current job and that can be used in a traditional “less-developed” economic environment. Farming, cooking, and repairing cars or basic machines can be learned while you still have the chance to learn them. You can try and learn how to make things like candles, rope, rocket stoves, and shoes from old tires. Such items can then be used as barter for trading.

During an economic collapse, the black market takes over the formal one. People will not have enough money to even buy a full tube of toothpaste. At that time, if you have a stockpile of essential items like toothpaste, then you can make some money. Any items which can be used as barter will be very handy during an economic collapse. Regular fiat money becomes worthless in a severe economic collapse. Think about items that can be used as hard currency like matches, fuel, and food.

Have an up-to-date passport so that you can leave the country at the drop of a hat. Go one step further and research countries that you can migrate to if you ever had to leave your home country. Take a vacation to some potential countries and check out how they are. During an economic collapse, there is literally no time to do research.

Maintain good health. You will need to be physically fit if you have to live off the land. You will need to know hunting, fishing, and foraging. Learn how to start a fire without using matchsticks. Go on camping trips and live amidst nature, in an area that is not very populated. Learn how to find clean water and how to build a wilderness shelter. Think about winter survival and how you can stay warm even when being outdoors or in a wilderness camp/shelter. That sort of experience would be a good simulation of a potential situation which you may have to face during an economic collapse.

It is also important to learn a little bit of self-defense. Whether it is karate or other martial arts, do a basic course if you can. Law and order tend to get diluted during economic collapses and you should be able to defend yourself and your family if the need arises.

Practice living in a self-sufficient and self-sustaining way. That would mean growing vegetables in your own garden, or perhaps setting up a poultry farm at your place of residence. You can also use water which is from natural sources like a borewell rather than use water that your city or town council supplies. Use solar power rather than electricity. All essential items and services may not be accessible during an economic collapse. Hence, you need to make arrangements for all such services and essentials beforehand.

Try to assemble a community or group of people who can all learn a different skill. That way, if an economic collapse occurs, your group can band together and help each other out. Someone can hunt, someone can fish, someone can cook, someone can do construction, someone can sew clothes, and so on. The people who know defense and fighting can work towards the security of the group and its resources. Teamwork is important when you have to get through difficult times.

The post Surviving the Coming Economic Collapse in 2020 appeared first on Offshore Citizen.

Georgia is quite an interesting place. Even though it might not be the most refined country in the world, there are lots of advantages for doing business here. 

This a business–friendly environment, banking is very good and sophisticated and forming a company is not complicated. You only pay tax on distributions, not on profit. Also, you can form a free zone company and pay zero tax.  

There is no CRS (common reporting standards) here, which makes it appealing to lots of people.   

Salaries are quite low, so it might be a good place to hire employees. Lots of people can speak English and Russian which can be a huge advantage, especially if you want to penetrate to the Russian market. 

Georgia positions itself as a hub of the region. It can be a good place to operate from if you want to access Russia, Azerbaijan, Turkey, Iran, etc. 

The gambling industry is huge in this country, which makes perfect sense since it’s prohibited in some of the surrounding countries. Lots of tourists come for this reason. 

It’s quite easy to set up a residency in Georgia. It’s also possible to get a second passport here, citizenship by investment is still unofficial but possible.  

Their passport is not the best in the world, but it’s not red flagged as lots of other second passports. You will be able to get more things done with Georgian passport, than with some of the most common passports which can be obtained by more known citizenship by investment programs. 

Overall, it’s a competitive market for the right person. 

We help clients legally reduce their tax through international tax planning, as well as help with company formations, bank account openings, residency, citizenship, and payment processing.  Have a question you want answered?  Book a consultation now! 

The post Opportunities in Georgia (country)  appeared first on Offshore Citizen.

Having a successful online business gives you lots of flexibility. You don’t depend physically on a place where you’re at and you can spend a lot of your time traveling around. In my opinion, this is one of the biggest advantages of doing online business. 

There is another annoying thing most of us have to endure, this is taxes.

At the end of the year your beloved country takes 10,20,30 and some cases even more than 50% of your income. Seems unfair, right?

Well, the good news is that you can just leave. You can choose a place that suits your needs better than your home country and simply relocate there.

Since we are in a similar situation like you, we did extensive research about places that welcome online entrepreneurs. 

Here is our list of top 10 countries that you should consider if you are an online business owner:

10. Bulgaria

The place that we have chosen for ourselves. Bulgaria is a country in Eastern Europe, it’s EU member and country that is developing rapidly. Corporate tax is very favorable and lots of our clients and friends have chosen Bulgaria for their residency. Corporate tax rates are only 10%, the country is quite cheap and your money will go very far.

For example, 1000 EUR per month will get you an amazing apartment. With 10k per month, you will live like a king here. 

Sofia, which is the capital is very well connected with the rest of Europe and further. They have great flight connection, which is a big advantage for us since we travel a lot.

9. Montenegro

Montenegro is my country of origin. This is a tiny country at the Adriatic sea, with a population of 650 000 people. Even though it is not part of the EU yet it introduced the EURO as its official currency in 2002.

This country has very low tax rates of only 9%. 

It is geographically beautiful and has lots to offer, especially during the summertime. 

The main industry in the country is tourism and everything related to it. It also relies on foreign investments. 

Montenegro is a very welcoming country for online entrepreneurs.

Life is quite cheap and a couple thousand euros a month will provide you with an outstanding lifestyle in this tiny country.

8. Portugal

Portugal is an interesting country. It offers something that’s called non-habitual resident tax regime. This program was introduced by the government in 2009. to attract profitable industries and high earning individuals. If structured properly it gives you tax exemption for the first 10 years of living in Portugal.

Under this program, most income from a foreign source is exempt from Portuguese taxation for ten consecutive years, as is income that is taxable in another country.

Not to mention that this is a beautiful place to live since it offers sunshine and great weather for most of the year.

7. Georgia

Georgia is a perfect blend of old and modern. This country was a Soviet member in the past and is currently in transition. You will see lots of new modern glass buildings right next to old communist style architecture. 

They are very open for foreign business owners, and you will be able to set up a residency (even citizenship) quite easily.

It is super cheap to operate here, and you will be able to get employees for very appealing rates. Corporate tax rates are 15%.

Banking is developing fast and they have some interesting packages and opportunities for foreign business owners. This is a place that we often recommend for online business owners due to its openness and plenty of opportunities.

6. Singapore

Very famous and popular among online business owners. Singapore is my most favorite place in the entire world. This is the city that I visited multiple times, and I am always happy to come back.

This is the modern, first world, English speaking country. You can feel it on every single step and see it on every corner. This is the country for the 22nd century. 

If you make less than 300k per year, you will pay 8.5% in taxes. If you make more than you will have to give up 17% of your income due to taxes. Also, it’s important to note that Singapore does not impose any dividend or capital gains taxes

Singapore is one of the most appealing places in the world for doing business. Its unique location is giving you easy access to most of Asia. It is a very stable country with a very strong labor force. 

However, costs of living in Singapore are extremely high. This is certainly one of the most expensive cities in the world. 

In order to have a good lifestyle, you will need to spend way more than in any other country form our list. If you are not worried about money, then you might consider Singapore for setting up your residency. 

5. Hong Kong

Another popular place among online entrepreneurs. Hong Kong’s economy has been growing steadily for the past few decades.

For the first 300k that you earn, you will pay 8.5% taxes, similarly to Singapore. 

Above this amount, you will pay 16.5%. 

Hong Kong has something that’s called territorial tax system. This means that all the income that has been made outside of HK will not be taxable. However, what do they consider as income made outside of the country can be tricky sometimes.

In HK you will have access to the good labor force, however, expect to pay quite a lot for good talent.

There are no import duties in HK. People speak Chinese as well as English, so it can give you an edge of conquering the Chinese market. This place offers quite good banking, and tax write-offs are a no brainer (you could go as extreme as writing off clothes that you purchase as a business expense). 

4. UAE

If you decide to get a residency in this Gulf country expect to pay NO TAXES. This is a massive advantage and a big reason for choosing the UAE. 

It is quite easy to get a residency, and there is no audited financial requirement for companies. 

Dubai and Abu Dhabi are modern cosmopolitan cities that offer a lot, however, it is not quite cheap to set up there. You can end up paying in excess of 10k, depending on which free zone are you in.

When it comes to costs of living, I would say that the UAE is somewhere in between. It is not as expensive as Singapore, but definitely not as cheap as Montenegro or Bulgaria.

3. Malaysia

Malaysia is a country that has multiple advantages if you are a business owner. First of all, this a modern English speaking (as well as Chinese) country. Kuala Lumpur is one of the most impressive cities in the world, that has outstanding architecture, great weather and lots of talent to choose from. 

In Malaysia, you can potentially get away with 3% total tax if you are structured properly. 

It is pretty easy to set up a residency in Malaysia. This country is a great gateway to China which is a massive market. Infrastructure is great, and wages are not very high. Overall, your costs of living, as well as business expenses in Malaysia, can be quite low

  2. Thailand

Have you ever met someone that doesn’t want to visit Thailand? This country is considered to be a paradise on Earth by many. I visited Thailand a couple of times and I definitely understand why. 

This country offers a very appealing elite residency program. 

You can end up with potentially zero tax in Thailand. I have lots of friends and clients that have chosen this country as their new home. Your costs of living can be quite low, but on the other hand, they can be quite high as well since this is a country of extremes.  

1. c

If you can qualify for Panama’s Friendly Nations Visa program then setting up your residency can be quite easy and inexpensive.

This is a beautiful tropical country with a great location. It gives you good access to North and South America as well as Europe. 

Panama offers territorial tax system, which means that all the income made outside of Panama is tax-free. This makes Panama great for online business owners. Another interesting advantage is that Panama doesn’t have a minimum stay requirement to maintain your residency (just like UAE), however, be careful about this. If you don’t spend enough time in Panama, your country of origin might not recognize you as a resident and you might still have to pay taxes to your home country. 

The post Top 10 places to set up a residency if you are online business owner appeared first on Offshore Citizen.

We all know that buying second citizenship is not an easy decision to make. You probably did lots and lots of research before taking any action.

There is lots of data out there about this topic, however, some of it is outdated and not valid anymore. Some of it is straight lies or scam. That’s why you have to be super careful and thoughtful when considering such an investment.

There is so much to cover when speaking about this topic.

Here are some of the most important things to keep in mind when buying a second passport.

Beware of potential overcharge

There are tons of agencies, companies, lawyers, etc. out there that are involved in citizenship by investment programs. 

For lots of them, this is quick and easy money to make. 

Basically, lots of these people don’t add any value to the whole process. They only act as the middle man and they get their share (more than generous share). Lots of these people don’t even know what they’re doing that well.

They will refer you to someone, who will then refer you to someone, and so on. It will take you a lifetime to get what you really want, and you will pay lots of unnecessary fees in the process.

We are not saying that you shouldn’t use an agency- you only have to be aware that there are lots of bad ones out there. Right one will get you what you want/need in a reasonable amount of time, for reasonable fees.

Make sure that what you are offered is the best for you

This leads us to my next point. Lot’s of agencies out there promote their own stuff, which is not necessarily the best solution for you. For example, if someone is promoting only citizenship by investment in Malta you might want to look into more options before making a decision. Remember, in this situation, there is not ‘’one size fits all’’. It’s simply impossible. You need somebody that will look at your situation from all angles and then make a decision based on what’s best for you. 

Some people are very excited about certain offers that seem appealing to them, but the thing is those offers might not be what’s best for their situation. What worked for someone else, might not work for you. Make sure to think about all the possible options, look at your situation and then make a decision. 

Lots of banks are aware of such programs, and will not open you bank accounts

Imagine this situation: You purchased Vanuatu passport and you proceed to open a bank account in Switzerland. Chances are that they will turn you down and ask you about your original passport. Why is this the case? Banks are extremely concerned about tax evasion and money laundering. Some of these passports that you can buy in citizenship by investment program are in their ‘’beware list’’ and they don’t want to take any chances. 

However, some of these passports are still fine and you will be able to bank normally. 

Lesser known citizenship by investment programs will generally mean less trouble when it comes to banking. 

Visa-free access, costs, bureaucracy

You must have a reason for wanting to get a second passport. If it’s for travel purposes then probably the most important thing to consider is how many countries will you be able to travel visa-free with your new passport. 

Currently, the best ones for visa-free travel would be Cyprus and Malta. However, those are members of the EU and therefore the most expensive ones. Bulgarian passport also gives you some decent traveling options.

Besides this, you will want to consider the costs of getting a new passport. How much does this program cost? What are other fees included? Depending on the country these prices vary drastically. In our articles where we wrote about each country that offers this program, we mention prices for each country.

Also, you need to know what is involved in getting your new passport besides investing money. Do you need to pass the language test? Do you have to learn about the history of a country? Which documents do you need to provide? What is bureaucracy like? All those are covered in our articles.

Family-friendly options

Is the program that you were considering offering passports to your entire family or only to you? If you are single this doesn’t matter that much, but if you are married and if you have a family this is something that you will have to consider. 

Some countries will offer passports to the entire family, some will not. I mean, they will if you make an investment for each family member which can be super expensive. You have to check what is involved and covered until the main applicant’s investment. 

What is life like in a country where you are buying a second passport

If you are planning to actually relocate to the country where you’re buying a passport you need to make sure you do your research about life in that country.

Visiting it and spending some time there before buying citizenship might be a good idea. Some of these countries might have different life and culture from your country of origin. In order to avoid the cultural shock, you need to prepare yourself.

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