The PT Pack: Your Perfect Package as a Perpetual Tourist

Since our foundation, we at Denationalize.me have not only offered comprehensive advice, but have always cooperated with external partners who are able to put the solutions we recommend to you into practice.

In addition to our network of partners in almost every attractive destination in the world, we have been expanding our own range of services in various areas.

We have long been one of the leading providers of American LLCs for non-residents, and the fastest growing insurance broker in Europe (in cooperation with Grenzenlos sicher, especially for health insurance). Other offerings we have added to our portfolio, such as company formation in Dubai or Nevis, have also proven to be in high demand. We will continue to try to establish our own solutions in high demand jurisdictions to maintain our quality standards. Although our partners are reliable and very competent, we have little influence on the way they work.

In today’s article we would like to present a premade solution for Perpetual Travellers and long-term migrants that is fully coordinated by us. In this case, we have a much higher degree of control and can offer you packages tailored to your particular needs. For most online entrepreneurs and freelancers who value their mobility and flexibility, the package described here is perfect for the long term.

The LLC, which can be used perfectly without residence, is combined with a residence permit in Paraguay and, optionally, you can also take advantage of the additional asset protection for your own investments through a holding company in Nevis. Of course, if you wish, you can also add international health insurance to this.

Tax exemption, protection against legal action and a fictitious or even a tax domicile in accordance with international guidelines not only make it easier for you to reach your first million, but will help you secure it and make it grow in the long term.

The first piece of the construction: the US LLC.

It is important to clarify that you can interchange each piece of your construction with many other jurisdictions. The flag of residence (or address on paper), more specifically, is very flexible and by no means has to be limited to a single country. Although we are rather against blanket solutions, the fact is that there is currently no simpler and cheaper way to operate than the US LLC. Whether you are a service provider, sell digital products, have an e-commerce business with sales outside the EU (with a little effort even inside) or are a trader of stocks and cryptos; you will be well provided for with an LLC  —as long as you are willing to live as a Perpetual Traveller. This involves deregistering, leaving your home country and spending less than half a year in most countries you visit. Depending on your home country, you may have to give up a home at your disposal in your home country, but in many other countries you will be able to have homes that you can use as a base or investment without negative tax consequences. Those who do not want to have a real residence or base may also choose to use a fictitious residence in Paraguay with its corresponding RUC number and tax certificate.

Of course, there are also certain business purposes that cannot be achieved with a US LLC – or sometimes can, but only in a suboptimal way. Although there are no fixed turnover or profit thresholds, the tax-exempt LLC only works if it does not trigger a permanent establishment in other countries. Since it does not offer shielding through double taxation agreements. As soon as you have any employees (we are not talking about self-employed or freelancers) in countries where taxes are paid, you could be attributed a permanent establishment there. LLCs operate without restrictions only to the extent that you can run the company with employees who are themselves perpetual travellers or reside in tax havens such as Paraguay. Naturally you are free to use freelancers of any kind if they do not become false self-employed. In the end, it is also possible to have permanent employees, but you will probably need to set up a local limited company as a cost centre, which would finance the permanent establishment and the employees through invoices to the LLC and would have to pay taxes on at least part of the profit.

US non-tax LLCs do not serve as holding companies for tax optimisation (although they do serve as holding companies to maintain anonymity) in contexts relevant to withholding tax – US intellectual property, for example – or in situations where an EU company is required for data protection reasons.

The choice of the right US state for your business will depend on your personal situation. Service providers, for example, tend to choose Florida, because they appear transparently on the business register there, which ensures greater reputation and transparency with clients and banks. If transparency is not something you need (or if you are more concerned about anonymity), many often opt for a fully anonymous LLC in New Mexico. Delaware and Wyoming offer a mixed alternative, but do not have the same good reputation as Florida LLCs. It is also possible to form your LLC in other states, but they often require additional fees or involve bureaucratic complications for non-residents. Do not forget Native American territories: the Catawba Digital Economic Zone in South Carolina is a special economic zone with particularly attractive regulations for crypto and fintech entrepreneurs, although really any industry can benefit from it. This destination offers complete anonymity and, with a standard one-day procedure, has the fastest incorporation time in the United States. We at Denationalize.me can also register your company here  —in fact, we will probably publish an article dedicated exclusively to this special economic zone at some point.

No matter where exactly you incorporate your company, Denationalize.me will take care of you before and after with our characteristic comprehensive approach. Yes, we are more expensive than many competing low-cost service providers, but our fast and efficient solutions cannot be free. With our PT package you will save more than $500 over the base price of $2,000 on each configuration. This includes expedited issuance of your Employer Identification Number (EIN), which we will deliver to you within a few business days – where most providers take several months – a reliable service with multiple mailing addresses to choose from, and full legal compliance support so you can operate in a lawful and sustainable manner. You will hear from us regularly about new banking options or relevant changes in legislation, such as the upcoming Corporate Transparency Act, which will be introduced in 2024 and will make life very difficult for most low-cost LLCs.

The end of low-cost LLCs: the registered agent address will no longer be valid as your company address.

If this problem affects you, you can always transfer your LLC to Denationalize.me (in fact, you can also do so if you are indifferent to the change of regulations) beyond the annual fee of €1,200 every 12 months after the change with us, this migration of your LLC will be completely free and will not involve any work or hassle for you. Also, did you know that for every new client you refer to us, we will deduct $250 from your fees PERMANENTLY? If you successfully refer 6 people to us, your LLC will be completely free (and from the 7th onwards, you will even receive money from us).

You can find more information about the LLC registration and maintenance service with us in numerous articles on our blog, as well as via this link.

The second piece of the construction: holding company in Nevis for asset protection (optional)

Although for many entrepreneurs it is sufficient to simply establish an LLC, above a certain level of profit or assets, we believe it is worthwhile to take care of asset protection. Starting from a maximum monthly income of €10,000 (or even less), we recommend securing your construction with an additional holding company to protect your assets. Our star candidate for this function is Nevis, the last really attractive tax haven on the planet. In 40 years, no creditor has been able to seize the assets of a company located on this island. It is virtually impossible to get a lawsuit to succeed because of the numerous laws protecting the defendant, such as the requirement of a $500,000 deposit in a local court.

Although they are tax-exempt, do not have to file accounts and enjoy complete anonymity, Nevis’ companies have several corporate accounts in the Caribbean at their disposal. In fact, Nevis has never been blacklisted.

All this makes it the ideal vehicle for managing your wealth, as it also allows you to open broker accounts (with Interactive Brokers, for example), access the crypto market (accounts on exchanges) and benefit from many other offers from financial institutions in the name of this legal entity. In this way, your money can multiply tax-free without any fear of being taken away from you. As we have already mentioned, not even the US authorities have ever breached the asset protection of an entity in Nevis.

If you combine it with a US LLC, you can get an additional $750 rebate as part of the package. An IBC or LLC in Nevis, including a business account and all the necessary certified original documents, typically costs around $4,250. If you form the US LLC together with the Nevis holding company, the total price with Denationalize.me will be only $5,500. The annual costs, including the US LLC, will be just under $3,400. You can use the Nevis holding company as a member of a manager-managed LLC (in this case we would recommend that the Nevis holding company be an IBC) or manage it separately in your own name as an individual.  As a general rule, we do not recommend that the US company should officially be the Nevis company (i.e. we do not recommend that the Nevis company should be the holding company), except in exceptional cases (such as dividend distributions in Cyprus, for example). This enhances asset protection and saves you a lot of hassle in KYC processes.

After all, as a Perpetual Traveller with no accounting obligations, you can distribute your money as you wish. You can have a salary flow from the LLC business account to any private account to cover your living expenses. Everything else that you do not need to cover business expenses goes into the Nevis holding company’s business account, either through invoices, gifts or loans, and from there to your investments. For additional protection, you can set up a Nevis trust or foundation – either as an alternative to the holding company or in addition to it – for an additional fee. We recommend this option for those with monthly earnings of more than $20,000, as well as for older perpetual travellers who are already planning their estate: with a foundation or trust you can not only avoid inheritance tax, but also decide for yourself who will inherit the fruit of your life’s efforts. In this case, however, you will definitely need good advice  —the costs for this service are always flexible, as the articles of association may require more or less effort depending on the case. Our Nevis company incorporation package always includes a consultation in this respect with our Nevis expert. Naturally, we also offer discounts for those who combine a Nevis trust or foundation with its construction.

Our offer:

• Standard price for an LLC: $2,000
• Standard price for a partnership in Nevis: 4,250 $.
• US LLC + Nevis partnership package price: $5,500
• Discount: 750 $.

The third piece of the construction: Paraguay residence permit.

We offer an additional discount to those who wish to add our Paraguay residency offer to their pack. This discount is also valid if combined with the US LLC or Nevis holding company only. Normally, the processing of temporary residency through Denationalize.me costs $2,600. This means that for the low total price of $7,300 you get the ideal residence, the perfect operating company and the best vehicle for asset protection worldwide, with all accounts included. The annual costs are less than half: $3,400.

If you compare this option with Dubai or other popular solutions, you will find that any other construction comes out well behind. This is not to discourage those who really want to live there, but as a fictitious place of residence, there are much better solutions than the Gulf country – which, let us not forget, is blacklisted for money laundering.

We recently wrote this article, in which we explain in detail the process of obtaining a Paraguayan residency permit. Acquiring a Paraguayan cedula takes between 5 and 6 weeks if you use the accelerated procedure (which carries a surcharge of $300 per document). You will only need to be in the country for 2 or 3 days on two occasions, and between stays you can take the opportunity to explore South America or return home. Paraguay has no formal financial criteria for immigration, as its immigration requirements were changed in 2021. You only need a clean criminal record certificate and an apostilled birth certificate for Paraguay.

Our offer:

• Standard price for an LLC: 2,000 $.
• Standard price for a company in Nevis: 4,250 $.
• Standard price for a residence in Paraguay: 2,600 $.
• Price for a US LLC + Nevis company + Paraguay residence: 7,300 $.
• Discount: $1,550

The fourth piece of the construction: tax identification number and certificate of residence in Paraguay.

If you wish, we can also add a tax residence certificate to the Paraguay configuration. Paraguay is the easiest destination for you, as it does not require a minimum stay and does not levy high flat-rate taxes. You only need to apply once for a Paraguayan tax identification number, which requires an already issued cedula. If you have a Paraguayan cedula, you only have to travel to Asunción for 1 to 3 days to apply for the so-called RUC. Otherwise, the process takes 2 to 3 weeks for the temporary residency and another 2 to 3 weeks for the cedula. You do not have to be in Paraguay during this time, and you could take advantage of this time to travel around South America, for example.

Once you have your tax identification number, you will need to keep it active for tax certification through monthly VAT declarations. These are no real burden and will only cost you $50 per month. You do not necessarily have to make these VAT declarations, but then you will only get residence certificates for a minimum stay of 4 months. If you plan to live there permanently, you can save the costs.

If you decide to start this process in Paraguay from scratch with us, you will have to calculate a minimum of 2 months and 3 visits in between until you receive your tax residence certificate. Of course, you can also stay in Paraguay for the whole of this time if you do not intend to explore other countries.

Applying for a tax identification number and a tax certificate costs $300 per document, and monthly VAT declarations cost a total of $600 per year. Therefore, $1,200 would be added to the paper residency in Paraguay to get permanent tax residency. In total, we are talking about $8,500 for the complete package that frees you from all worries through Denationalize.me. The annual fee is only half of that: $ 4,300.

With the tax residence certificate, you can sleep easy: you will no longer have to declare in other countries as long as you comply with the particular rules of the place where your centre of vital interests is located. Although such a certificate is not always necessary for deregistration, it will not do you any harm to have it. Crucially, it allows you to return at any time without any problems or additional fees. In this sense, $900 a year of living expenses is money well spent, and a fraction of the sums paid in tax regimes with reduced minimum residency requirements, such as Cyprus’ non-dom, Malta’s HNWI, Antigua’s Global Residency or similar. In all these cases, amounts of more than $20,000 are usually paid for the same items.

However, simply having a tax identification number, identity card and proof of residency will be enough to get you through the KYC procedures of most banks around the world. You will be able to open accounts and deposits without any problems and rest assured that there will be no exchange of information —as Paraguay does not participate in this. If you need a rental contract, we can get you one for $250 in Paraguay. If it is housing or a utility bill you need, renting a room in a shared flat will cost about the same. In general, however, the documents we have mentioned will be enough to keep you in compliance with financial institutions around the world.

With your US LLC you can continue to operate almost any business imaginable tax and accounting free, and with reasonable business accounts in both Europe and the US and access to payment services such as Stripe. In addition, your LLC allows your clients to deduct the invoices you issue without fear of ruining their business with a bad reputation… and all this at a much lower cost than in almost any other jurisdiction.

If you opt for our package, you will practically save the first year’s LLC formation costs!

Although the US LLC with a fictitious or tax domicile in Paraguay already offers you excellent protection, you will only get the best protection for your assets if you add an asset management company in Nevis – so that neither the State nor any creditor can get their hands on the fruits of your efforts. Above certain amounts, it may make sense to add a foundation or trust to the structure. With the Nevis company you will also have secure bank accounts and will be able to open international deposits (at InteractiveBrokers.com, for example) and Paraguay offers no problems as a verification residence.

Comparison with other popular set-ups

In the following, we will make an approximate balance of costs with other popular setups that do not compare with our Denationalize.me package in terms of quality. Naturally, in certain cases these alternatives may make more sense than the package we have explained here. Cyprus, for example, has numerous double taxation agreements that Paraguay sadly does not have. However, for the typical European businessman who is no longer dependent on companies in their country of residence, there is little reason to opt for this configuration within the EU. Take the average Denationalize.me customer, for example, with an annual profit of $200,000; who can afford to distribute $150,000 after deducting possible costs. This is what many IT freelancers, for example, achieve. The calculations below are simplified:

Cyprus: In Cyprus you pay 12.5% corporate tax after deduction of operating expenses, and 2.6% compulsory health insurance in the standard configuration with a maximum of €300 for proportionally high amounts. You pay 8.3% social security on each of the standard salaries of €19,500 tax-free (i.e. about €3,200). Based on typical operating costs, we can expect around €20,000 in corporate tax, €2,000 in health insurance and €3,200 in social security contributions. To this must be added the flexible costs of the necessary 12-month rental contract. Even if we opt for a shared room at €4000 per year, this would put us at almost €30,000 in costs. And we still have to spend 2 months in Cyprus to fulfil the conditions of non-dom status.

By comparison, tax residency in Paraguay would not cost you €5,000 even in the first year, and while the Cyprus costs remain the same in the long run, the annual cost for our setup is only USD 2,300: 1,400 for the annual LLC fees + 600 + 300 for the Paraguay tax certificate  —all this without Nevis. Our solution is more than 10 times cheaper even for Cyprus. By the way, all this with no minimum stay and no tedious bureaucracy.

Dubai: The United Arab Emirates is also highly publicised as a great destination for obtaining a residence permit, but compared to Paraguay it cannot even compete with an LLC. This is because an internationally recognised tax certificate would require a minimum stay of 183 days. Costs in the UAE depend very much on the chosen method of immigration, but the typical option of a free zone company with a residence visa in Dubai itself amounts to a minimum of USD 7,000 per year. To this should be added the costs of the application process and, of course, the optional domiciles (much more expensive than in Paraguay). Even without a domicile and without a tax certificate, the costs amount to almost $10,000, and to qualify you would also need a company, which would not be completely tax-free (with €200,000 profit you would still fall under the tax-free turnover threshold of AED 3 million), with accounting (the costs of which we are not taking into account), and with only a few options for opening business accounts. On top of that, you would also have to enter the country every 180 days to maintain your visa – whereas in Paraguay you only have to return every 3 years.

In total, you would be paying twice as much and getting half the benefits. If not to live there, a mere UAE residence permit is of little use to you, except perhaps to open a private account in the country.

Typical countries with territorial taxation: If we compare it with other typical countries with territorial taxation such as Panama, Costa Rica, Thailand, Georgia, etc. we also find that the establishment costs are much lower. There is simply no other good country in the world that can offer all the advantages of Paraguay. Other countries where it is just as easy to immigrate without higher financial conditions usually require a longer minimum stay to be able to extend the temporary residence. In addition, the residence certificate is usually only issued after a stay of 183 days. This applies, for example, to many other Latin American countries such as Guatemala, Uruguay, or Belize, which require a stay of several months in the country.

In Thailand, Georgia, and Panama, for example, the minimum stay can be avoided, but the requirements for obtaining a long-term residence permit are much higher and the processing costs remain similar —or even higher. It may be worth opting for one of these countries if they seem more attractive than Paraguay as a real residence, but unfortunately these countries are no longer interesting as purely fictitious residences.

For actual immigration and long-term residence, Paraguay is certainly not very attractive compared to other destinations. However, if you plan to immigrate to Paraguay anyway, you will have no problem obtaining the tax certificate through the usual channels (since you will be staying in the country). Our solution for residency in Paraguay is a mere simulacrum, a residency on paper and, if you wish, also a tax residency… it is up to you to stay the whole year in Paraguay. For those who do not want to actually reside in the country, it is enough to return briefly every 3 years and enjoy legal compliance worldwide. Of course, that residency on paper will not protect you if you spend 183 days or more in other countries.

Overview of pack prices

Again, for the sake of clarity, we show you our individual prices and our PT pack prices:

Formation of a US LLC: $2,000

Nevis holding company formation with bank account: 4,250 $.

Paraguayan identity card: 2,600 $.

Optional Tax Identification Number: + $300

Optional acceleration of the issuance process (2-3 weeks instead of months): +$300 per document (temporary residence and cedula)

Optional tax certificate: + $600 for VAT returns for the whole year + $300 for the residence certificate

US LLC + Paraguayan cedula pack: 4,000 $ (600 $ discount)

US LLC + Nevis holding company pack: $5,500 ($750 discount)

Nevis holding company + Paraguayan cedula pack: $6,000 ($850 discount)

US LLC + Paraguayan cedula + holding in Nevis pack: 7,300 $ (1,550 $ discount)

We also offer you the prices of these packs if you already have a company set up with us or if you are transferring it to our services. If you have set up a US LLC with another provider, you can switch your company to us at any time free of charge. Your old provider cannot do anything about it, and you will only have to pay our usual annual fee of $1,400 every 12 months from the date of the switch. Just contact usa@staatenlos.ch. More and more entrepreneurs are choosing to have their LLC competently managed with us… what about you?

If you already have an LLC with us and want to add the Nevis holding company piece to your construction, you will get a $250 discount. If you own a non-resident LLC and want to shield yourself with a Paraguayan cedula, we will do it for you at a discount of $300. It pays to be a Denationalize.me client. Also, if you are not sure which PT pack is right for your personal situation (or if you are better off with another construction) you can contact us to help you decide. Our free initial consultation by email allows us to assess your situation and recommend suitable alternatives. And if you need further clarification, simply arrange a personal consultation with our team!