How to leave your country and save on taxes despite having strong roots

We all have that special place we call home. It’s a place full of memories, marked by familiarity and strong family ties.

Is it possible to leave all that behind just like that? Does it really make sense to emigrate to save on taxes?

For many the idea of leaving their native country and family seems crazy, even impossible. But at the same time, they are attracted by the idea of gaining financial freedom (and sometimes freedom in other areas as well) by establishing a new life abroad.

At denationalize.me, our goal is to help our readers and clients free themselves from the burden of the state.

The first step in this process is often pure anger, indignation, and a feeling of overwhelm by everything the state subjects us to. Without a doubt, politics has pushed many people to take this step.

From there, the next step is to think about whether things could be different and even to desire change.

However, it is not until some time has passed that all these feelings give way to logical thinking and rational reflection.

If I am being mistreated here, if I don’t have what I want, why should I continue to put up with it?

It is not a snub, it is not a sudden or irrational reaction, it is the only logical consequence after a cold analysis.

The denationalize.me client goes through this whole process: from pain, indignation, and a sense of injustice to rational reflection and the decision to take advantage of the opportunities that exist out there.

In today’s article, we’re going to discuss how you can take the plunge: emigrate, save on taxes, and do it all despite having strong ties to your country of origin. We’ll also address the issue of what to do when you still have real estate, family ties, or income from your country of origin.

If you want to plan a change of residence, you’ve come to the right place.

Is saving on taxes by emigrating worth it?

If you really want to save on taxes, you have to emigrate.

Perhaps you have already felt this internal conflict: on the one hand, you are rooted, you value stability and relationships in your life. On the other hand, there is a little voice that says, “What if…?” What if you could find a way to reduce your tax burden by living abroad without having to break away from everything you had?

The desire for a more financially free life is often the driving force behind these reflections. In places like the European countries, the tax burden on the self-employed and entrepreneurs is high. In the end, between social security and income tax (not to mention VAT and other taxes), you can easily end up paying 40 or 50%, especially if you are a successful entrepreneur.

Even if we ignore all the regulatory and bureaucratic burdens, it is difficult to achieve your goals when a large part of your income goes to the state.

You often feel that, despite being your own boss, you are more trapped than ever. It is a constant struggle to maintain the balance between the pursuit of freedom and the obligations that come with it. That’s why moving abroad and enjoying a more peaceful life with fewer worries can quickly become an attractive option.

How would you like to have lower tax rates, more net income, and the possibility of living in places that are vacation destinations for many? You can live in the place of your dreams, whether it’s in the city, the countryside, or the beach, while saving a lot on taxes.

However, in some ways, this dream seems to have a dark side for many. Of course, not everything is rosy, that’s life, but when it comes to clarifying questions such as: How can I emigrate and save on taxes? What does it mean to leave your home behind? What is left when family and friends are no longer nearby? etc., we can help you overcome your fears.

Saving taxes abroad: “Mom, Dad, I’m leaving.”

“I want to go abroad to save taxes.” This confession is sure to come as a shock to many parents, family members, and friends at first. However, emigrating for tax reasons reflects a reality that affects more and more people. Our world has changed dramatically in recent decades, and with it, our idea of a fulfilling life. What was once taken for granted now seems almost like a relic of another era.

Finding a secure job after training or studying, staying in it until retirement, building a house next to your parents’ and leading a modest but satisfying life with your family: for a long time, this was the norm for millions of people.

Emigrating to save on taxes? Unthinkable!

One or two vacations a year, with a little luck, maybe even more. This model offered stability, security, and routine. We both know that this is no longer the case, but your parents, grandparents, aunts, and uncles may not yet be aware of this.

Today, it is easier than ever to discover the world safely as a digital nomad, take advantage of new opportunities, and design your own life according to your own ideas, and with it the possibility of benefiting from tax advantages abroad. Those who have the courage to break out of their routine and strike out on their own often discover a new sense of freedom.

What does all this mean for your family?

It’s not just a financial question, but also an emotional one.

Emigrating and saving on taxes means more money in the family budget, more opportunities, a better quality of life, and more security for your loved ones. Instead of transferring a large part of your income to the tax office, you could use that money to make your dreams come true, whether it’s a better education for your children, a more comfortable home, or unforgettable experiences with your loved ones.

Make it clear to your family from the outset: emigrating and saving on taxes is not a selfish idea, but a very pragmatic one. It makes sense to use your own resources where they are most valued. What doesn’t make sense is to let them steal a third or half of what you earn when you, your family, or those close to you would appreciate being able to use that money.

Emigrating and saving on taxes: the key questions

Is it really that easy to make the decision to emigrate and save on taxes?

I have discussed this with many people on many occasions. The answer is that it depends on your personality and your stage of life.

For those with strong roots, it is not. The decision to leave your country and start a new life abroad to save on taxes requires a great deal of effort. However, it is one of the most important decisions you can make in your life. This decision has many advantages, yes, but also challenges, which can be overcome with the help of denationalize.me.

There is probably no question that someone else hasn’t asked before you. These key questions need to be considered and, of course, answered.

“If I emigrate and save on taxes, what does that mean in terms of more money for my family?”

First of all, a question for you: instead of emigrating and saving on taxes, would you rather invest your hard-earned money in your family’s future, or do you consider the current tax rates in your home country to be justified?

Financial resources are not only important for everyday life, but also have a considerable influence on your family’s quality of life and future prospects.

Having more money in your pocket means:

• Better education for your children: abroad, you can save on taxes and invest in what really matters. With a larger budget, you can invest in your children’s future, whether it’s high-quality schooling, international schools, or prestigious universities abroad. Extracurricular activities such as music, sports, or language courses are also easier to finance and can promote your children’s development.
• Higher quality of life: With more income, you can afford a more comfortable home, better food, and a more relaxed everyday life. You have the freedom to live more consciously and focus on the things that matter to you.
• Financial security: Instead of leaving your hard-earned money in the hands of the tax authorities, you can start investing, saving, or using it specifically for emergencies and major purchases. A solid financial foundation gives you and your family security in times of uncertainty.
• Support for parents: Are your parents going to receive a meager pension? Make their old age easier with your savings. Instead of paying taxes, you can ease your parents’ financial burden and allow them to enjoy a pleasant and worry-free retirement.

“I can choose to live abroad and save a lot of money on taxes, or stay in my home country and pay the highest rates in exchange for… enjoying what exactly?”

Let’s put aside the issue of tax savings if we move abroad for the moment. Even if we forget about taxes, what is it about our home country that ties us down so much?

Many people feel insecure about social, economic, and political developments, about increasing tensions and conflicts. They wonder whether the direction the country is taking still matches their personal values.

At the same time, they may feel the pressure of the high cost of living, endless bureaucracy, surveillance, pressure, constant uncertainty in everyday life, and, ultimately, the weight of the state. Especially as an entrepreneur or self-employed person, the economic situation can quickly become a real burden.

Abroad, in addition to tax advantages, the opportunities offered by less strict regulations and, often, a more open and relaxed lifestyle are attractive. Even in countries where the culture and customs are foreign to you, the life of tourists, expats, or foreigners living there is generally quite free and relaxed.

Hence the question. Does the life you lead in your home country still match the life you want to live? Or could your personal happiness lie elsewhere, where new opportunities and fewer limitations await you?

“What will become of my family and friends?”

Emigrating, saving on taxes, family… We have already addressed the issue of family. Of course, close ties to family and friends play a major role in not daring to take the step of moving abroad for tax reasons. But what if you include your family in your plans?

Emigrating together can change many things. Starting a new chapter in life together makes moving abroad less drastic and can even bring the family closer together.

Children often benefit especially from learning other languages and cultures. International experiences and contact with new cultures not only open up new perspectives for them, but also promote their linguistic and social skills. These experiences are an invaluable gift that can have a lasting impact on their future.

But what about your parents?

They can support you and enrich their own lives at the same time. Perhaps they can take care of the children and thus make your daily life with them easier. At the same time, they can enjoy a tax-free life abroad, discover new places, and spend a relaxing time in a different environment. This support not only strengthens family ties, but also gives you the freedom to focus on new challenges and opportunities. This type of arrangement offers advantages for everyone involved and creates valuable shared experiences.

Of course, they can also stay where they are and visit you and your family whenever they feel like it.

And if they are your dependents, they may be able to receive better and cheaper care in other countries than in their country of origin.

As for contact with people in your home country, modern technology makes it easier than ever to stay in regular touch. FaceTime and other similar apps allow you to be close to your loved ones almost anytime, and cheap flights make visits easier in both directions. The physical distance may be greater, but emotional closeness does not have to be affected. In fact, it can even deepen if you consciously work to maintain it.

“What is the 183-day rule?”

Is your family opposed to you moving abroad, and do you occasionally miss something familiar? Then the 183-day rule is a good solution for you. It offers you the possibility to spend time in your home country without having to fear tax disadvantages.

Just be smart and don’t stay in your home country for more than 183 days:

The 183-day rule states that you are subject to tax in a country if you stay there for more than 183 days a year. You can therefore easily reach the 183-day mark in your home country within a year without being registered there for tax purposes.

Of course, depending on your country of origin, there may be other factors to consider that could make you a tax resident, such as having a home at your disposal, economic ties, or even social ties.

Distribute your time strategically:

Beyond the 183 days in your country of origin, you have the rest of the year to spend abroad. You have complete freedom to choose your destination country or countries for the second half of the year.

Make the most of your time

Don’t like cold winters? How about a visit to the Caribbean, where you can enjoy good weather? Already feeling nostalgic and missing the gray skies and cold weather? Then spend some time in Paris, Brussels, Amsterdam, or London.

The world is at your fingertips, and you can find the perfect city for you, one that suits your desires.

The advantages of transferring your residence:

The 183-day rule allows you to strategically divide your time between your country of origin and abroad and save on taxes. This strategy also gives you the opportunity to benefit from special residency programs for expatriates. Countries such as Ireland and Malta, for example, offer attractive programs for so-called “non-habitual residents,” which can be particularly advantageous if you register for tax purposes there.

You do not need to stay in one of these countries for 183 days to benefit from the programs. It is often sufficient to transfer your tax residence to the country in question and meet the applicable conditions.

This way, you can enjoy the tax advantages without having to leave your friends and family in your home country behind for a long time. At the same time, you retain your flexibility and can optimally divide your time between your home country and other countries.

“What happens if someone gets sick?”

In addition to tax breaks, healthcare is a key consideration when emigrating, as it directly affects both you and your family. What happens if you get sick? What about your partner, children, or other family members? And what if someone in your home country becomes seriously ill while you are abroad?

The quality and affordability of medical care in countries around the world often varies considerably. It is therefore essential to find out in advance about the different options for health insurance abroad, whether you need worldwide health insurance or public health insurance. Good planning is essential in this case.

At the same time, it is advisable to have a plan in place in case someone becomes seriously ill. In such cases, it may be advisable to consider whether it makes sense to return to your home country or to move to a country with better medical care for treatment. These options give you the security of knowing that you will be well cared for even in difficult situations. In the end, you must not forget one thing: you have complete freedom to decide and can return at any time. Find the solution that is best for you and those affected.

Of course, this whole issue is linked to a big “if”. Be prepared, but don’t rack your brains thinking about things that will most likely never happen.

“Okay, so I’m leaving to save on taxes, but what about my real estate at home?”

Emigrating and saving on taxes is your priority, but you want to keep your properties, whether it’s an apartment or a house, in your country of origin. In this case, there are some important steps to consider. First, you must change your tax residence, i.e., deregister from your country of origin and register in your new country of residence.

You will need to ensure that you create a stronger vital link with your new country of residence and, ideally, obtain a tax certificate. If your center of vital interest is abroad (the place where you spend most of your time and have family or professional ties), you won’t normally be considered a tax resident at your origin country, even if you own property there.

To optimize your tax burden, you should check whether there is a double taxation agreement between your country of origin and your new country of residence that offers possible tax advantages. It may also be advisable to hire a local property management company to take care of the rental and maintenance while you are living abroad. This will save you time and reduce the amount of organizational work you have to do.

As a landlord, you will of course still have certain obligations, such as filing a tax return in your country of origin, which you can also do from abroad, preferably with the help of a tax advisor who is familiar with international matters. This allows you to maintain an overview of your property while moving your residence abroad and benefit from possible tax advantages.

In summary: if you decide to emigrate abroad to save on taxes, you can normally keep your real estate properties in your country of origin. You will have to actually move your residence, correctly declare rental income, and review double taxation agreements.

“What about joint custody if I emigrate for tax reasons?”

Are you planning to emigrate, but you have children? In this case, there are certain points you should take into account. Your child may move with you or stay with the other parent. If they stay with the other parent, you will generally be entitled to a concentrated visitation arrangement (usually during vacations).

On the other hand, parental authority or parental responsibility (rights and duties of the parents with regard to the child and their property) is generally only lost in the event of repeated non-payment of child support, combined with serious breach of the visitation regime and material and emotional abandonment.

If one parent plans to move abroad with the child permanently, they can only do so with the consent of the other parent or following a court decision. This applies especially if the move would have a significant impact on the relationship and visitation rights of the other parent.

Moving abroad can make it difficult for the child to maintain regular contact with the parent who remains behind. Therefore, communication options such as regular visits, video calls, and vacation arrangements should also be discussed.

If no agreement can be reached with the other parent, it is recommended to consult a lawyer or family court before moving abroad in order to avoid potential conflicts and reach clear agreements. The court must assess the extent to which the move benefits the child’s well-being, and it is important that all legal grounds and agreements are taken into account to avoid subsequent litigation. The jurisdiction of the courts must also be clarified. Whether the courts in the country of origin are competent, or the court of the new country of residence. This is especially relevant if one of the parents opposes the move and wishes to take legal action.

You should also bear in mind that the move and changes in custody arrangements can have long-term consequences, especially if the move is only temporary and you plan to return to your country of origin at a later date, for example. In this case, steps should be taken in advance to avoid legal problems in the future.

“What happens to my pension rights in my country of origin if I move abroad to save on taxes?”

If you move abroad to save on taxes, you will generally retain your pension rights in your country of origin. This is the case in virtually all of Europe and America, where you do not lose your rights, but you may lose your pension if you do not meet the requirements for years of contributions. Many Latin American countries have contribution totalization agreements with Spain, as do the EU/EEA/Switzerland countries.

Beyond whether or not you will be paid a pension, another thing to keep in mind is that your pension will be taxed differently depending on the country you move to.

Many countries have double taxation agreements. This means that you must pay taxes on your pension abroad or in your country of origin, but not twice. If you move to a country outside the EU, you should check whether such an agreement exists. It is advisable to review your situation thoroughly to ensure that you pay your taxes correctly and do not suffer any loss of your pension rights.

“Am I too old to emigrate and save on taxes?”

No, you are never too old to emigrate and save on taxes. As long as you feel strong and willing. Of course, you will need to clarify all the legal and financial aspects.

Many older people have decided to move abroad in their old age to benefit from a lower cost of living or better tax conditions. However, you should consider the impact this will have on your pension and health insurance and seek expert advice.

What tax havens are there for retirees?

There are also many treasures to be discovered outside your own four walls for pensioners. Tax havens offer low or no taxes on pensions and therefore a better quality of life.

How about:

• Costa Rica: no taxes on foreign income.
• Dominican Republic: no taxes on foreign income.
• Greece: low tax rates on foreign income, especially for retirees.
• Malaysia: no income tax on foreign pensions.
• Panama: no taxes on foreign pension income.
• UAE (Dubai): no income tax on foreign pensions.

Emigrate and save on taxes: your smoothest path to freedom

Emigrate and save on taxes!

Do you want to free yourself from the burden of the state in a completely legal way? Then talk to us!

A smooth transition when moving abroad is essential to avoid later problems with the authorities, taxes, or financial obligations. Here are some of the most important steps to keep in mind:

1. Deregister correctly in your country of origin and inform the tax authorities

In order to save on taxes, you must report your departure. Without this deregistration, you could still be liable for taxes and receive unpleasant correspondence from the authorities. Each country has its own tricks and particular ways of doing things, and at denationalize.me we can help you with this.

If you continue to earn income in your country of origin, for example from rentals, be aware of the tax regulations for non-residents. This income is usually subject to tax and requires precise coordination with the tax authorities.

2. Cancel everything you don’t need

Cancel unnecessary contracts in time to save costs and check which bank accounts and insurance policies you will continue to use and which you will not. Life insurance or any other type of international insurance can also be useful abroad, while contracts such as home insurance are usually unnecessary.

Of course, you will need to stop having utility bills in your name.

3. Take care of social security and health insurance

Find out about health insurance options in your new place of residence and cancel your health insurance in your country of origin. Check what general benefits are covered and whether they meet your needs. Generally, you will cancel your social security in your country of origin.

4. Your pension rights

Find out about your pension payments abroad and how they are taxed in your new place of residence. There are often double taxation agreements that can offer you tax advantages.

5. Legal advice: the key to success

denationalize.me has extensive expertise in international tax law and helps you manage all legal and financial matters professionally and correctly. With our experience, you can take full advantage of double taxation agreements and ensure that your move abroad is efficient and advantageous from a tax perspective.

Hire our consulting service here.

Conclusion: “Is emigrating to save on taxes the right decision for me?”

Do you want to emigrate and save on taxes? At first glance, it may seem like a purely financial consideration, but it goes much deeper than that. It is a question of priorities, values, and life goals. While some take the leap and never look back, others prefer the stability of their home country. The important thing is to carefully weigh all aspects and make an informed decision.

If your list of pros is longer than your list of cons, moving abroad could, in fact, be one of the best decisions of your life. Think about which countries best suit your lifestyle and needs, and what opportunities a life in the sun or with more financial freedom offers you. Perhaps the life where you hardly have to pay any taxes and are simply happy abroad is closer than you think.

Even if you have strong ties to your family and your home country, you don’t have to give up everything. Often, you have opportunities close to home to optimize your financial situation and create new opportunities, or at least you can move your business abroad.

The whole world is at your fingertips: contact us, and we’ll help you take the plunge!