Don’t Let Bad Info Wreck Your Escape Plan

Don’t Let Bad Info Wreck Your Escape Plan
iStock/BrianAJackson

Does Portugal still a special tax break under its Non-Habitual Resident (NHR) program?

Is Dubai a great place to retire?

Can American retirees save taxes by moving abroad?

Many AI models say yes to all these questions. So do many immigration websites.

They’re all wrong… or misleading. I know, because keeping tabs on this stuff is my job.

Portugal once offered a break that exempted much foreign income from local taxation and set a low flat rate for the rest. But it ended in 2023… at least for most people. Now the NHR is only available to big-pocketed investors and highly skilled immigrants. Retirees and digital nomads don’t qualify.

Dubai is fine if you’re very wealthy, like to shop and party, don’t mind living in air conditioning, and can afford a high cost of living. Oh, and you need to be careful about how you dress and what you say. Otherwise, you can end up in jail.

If you’re an American, it doesn’t matter if your foreign home has lower taxes. You’ll pay the same to the IRS as if you stayed home.

Bottom line: don’t believe everything you read on the internet… especially if you’re planning a move abroad.

The “migration industry” was once reserved for ultra-high net worth individuals, particularly those from places like China and Russia, whose passports don’t open many doors.

That’s changing slowly, but the most popular agencies still aren't interested in ordinary folks like us. But they're the places reporters go for ideas when they're writing articles about moving abroad. So, chances are if you Google “move abroad,” you’ll get a distorted picture, suggesting it’s reserved for the über-wealthy.

On the other hand, recently there's been an explosion of new players marketing to Americans concerned about the country's future. Sometimes their information is more relevant… but it's usually spun in such a way that things appear easier and more straightforward than they really are. Just finding out whether you have a good prospect of going abroad can cost you thousands of dollars in fees.

Maybe it's because I learned how to educate myself before the Internet existed. Perhaps it's my education in economics, which has taught me that profit is often more important than truth. Whatever the reason, I really hate when people are misled about creating a new life in another country.

As part of my special consultation service at International Living, I've helped hundreds of Americans and Canadians achieve develop and execute concrete plans to move to a new home abroad. Often those interactions start by dispelling myths about the process. People are often surprised to learn that:

There are many ways to achieve the right to live in a foreign country other than a second passport. They're usually cheaper and easier than a second citizenship.

There are many pitfalls along the way. There's no need to find that out the hard way. You just need to talk to somebody who knows the ropes… and cares about your personal situation.

That, in a nutshell, is what I do at International Living . People sign up to consult with me and answer a few simple questions. We have an initial Zoom meeting to review those answers so I’m not missing or misunderstanding anything. Once I’m clear about their core goal I generate as many options as I can. Sometimes There are more pads abroad than people thought. Sometimes there are fewer.

Whatever the result, it’ll be as closely tailored to their situation as possible… and practically achievable within their means. I have no incentive to mislead, embellish, or impose my preferences. I'm keenly aware of the challenges ordinary people face when undertaking a life decision like this. I've done it myself several times.

So if you want to cut to the chase and avoid getting sucked down rabbit holes that won't produce the results you want, give me a call.

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