5 Best Capitalist Countries for Wealthy Tax Nomads (and Why)

The Best Capitalist Countries for Tax Nomad Entrepreneurs (and Why)

The Best Capitalist Countries for Tax Nomad Entrepreneurs (and Why)

For Many US Taxpayers who have an entrepreneurial spirit, nomadic sense of adventure, and are searching for (or already found) financial success, they want to experience all the world has to offer. This usually includes living in several different countries throughout their lifetime. Depending on how much money the Taxpayer earns and the type of income/wealth they generate — the tax implications for where they live can have a significant impact in determining which country(s) to call home. The U.S. is one of the only countries that follows a worldwide income tax model. So, for U.S. persons who want to give up their US citizenship or Permanent Residence (and not be sold on some generic, outdated, and altogether ineffective tax plan) they will want to carefully plan for when they formally expatriate (exit) from the United States. More often than not, nomadic entrepreneurs will want to seek a capitalist country that offers effective Tax, Legal, Financial and ‘Life’ services such as Real Estate, Education, Health, etc.

Let’s take a look at five very popular capitalist countries for tax nomads.

What does it mean to be a Capitalist Economy?

A capitalist economy can take on many definitions, but for Tax Nomads and Entrepreneurs alike, in general, the focus of the definition is that the economy is maintained primarily by private sectors, who have the opportunity to prosper and grow with less government interference. In this type of economy, private individuals and entities have the right to control their own property (as opposed to an economy controlled exclusively by the government).  As provided by the International Monetary Fund (IMF):

• • • “Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society.

    • The essential feature of capitalism is the motive to make a profit. As Adam Smith, the 18th century philosopher and father of modern economics, said: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” Both parties to a voluntary exchange transaction have their own interest in the outcome, but neither can obtain what he or she wants without addressing what the other wants. It is this rational self-interest that can lead to economic prosperity.

    • In a capitalist economy, capital assets—such as factories, mines, and railroads—can be privately owned and controlled, labor is purchased for money wages, capital gains accrue to private owners, and prices allocate capital and labor between competing uses.”

Five Common (Preferred) Capitalist Nations

Let’s take a look at 5 capitalist nations that are common for taxpayer nomads who are seeking to relocate or expand their citizenship slash residence options:

Singapore

Singapore is a major business hub in Southeast Asia and a preferred location for many Taxpayers across the globe. It is a safe location which continues to grow and prosper. While the population in Singapore is primarily people originally from Asian countries, many different people from cultures all across the world immigrate to Singapore due to its prosperity and reputation as a solid business hub. For Taxpayers who only speak English, they would be happy to know that English is one of the main languages spoken — and for their children, classes are generally taught in English as either a primary or secondary language. The Singaporean Passport is one of the strongest passports and consistently ranks in the top 5 Passports for strength and access to upwards of 160 countries.

• • • Stock Market: Singapore Exchange SGX

    • Can Foreigners Own Real Estate: Yes

    • Health Care: Universal

    • Retirement: CPF (Central Provident Fund)

Australia

Australia is also a very common destination for Taxpayers to relocate after formally expatriating from the United States. While some taxpayers prefer a small Caribbean Island or European country, the Australia Residence/Citizenship-by-Investment program has grown over the past years and attracts wealthy taxpayers from across the globe. There are many different cities throughout Australia that attract global nomads, and the country operates as a capitalist society with excellent education, real estate opportunities and healthcare. Unlike some of the other countries, it is a bit more complicated for Taxpayers to obtain citizenship/residency in the country — and may require a very high investment component. But, for wealthy taxpayers seeking A capitalist society, Australia is always a great option as the Passport allow to travel to over 180 countries.

• • • Stock Market: Australian Securities Exchange (ASX)

    • Can Foreigners Own Real Estate: Yes (with restrictions)

    • Health Care: Shares Public and Private

    • Retirement: Superannuation Fund

UK

The United Kingdom is one of the largest countries with a population for nearly 70 million. It is of course a Capitalist country with a burgeoning market and economy. Taxpayers from across the globe immigrate to the UK each year for the strong business and social opportunities that UK has to offer.  When it comes to traveling for taxpayers who become citizens of the United Kingdom, it is good to know that the UK passport ranks as one of the top five global passports across the world. The UK passport is a very versatile passport that provides the ability to travel to many locations. The UK offers various high-ranking universities and other educational opportunities, and entrepreneurial taxpayers can benefit from the pro entrepreneur tax scheme offered in the UK.

• • • Stock Market: London Stock Exchange (LSE)

    • Can Foreigners Own Real Estate: Yes

    • Health Care: Free (some Limitations based on Visa status)

    • Retirement: Pension, ISA, and others

Switzerland

While Switzerland has been a place that taxpayers consider when thinking they want to hide or move money offshore, in fact, Switzerland is one of the top capitalist countries across the globe. It offers many opportunities to taxpayers who either want to reside their full time as a citizen or just be a part time resident/tax nomad that uses Switzerland as one of the locations that they operate. There are wonderful cities and countryside throughout Switzerland. Even though there is some public control over certain aspects of the marketplace in general, Switzerland finds itself as one of the top five capitalist countries across the globe and boasts a top seven Passport.

• • • Stock Market: Swiss Exchange (SIX)

    • Can Foreigners Own Real Estate: Limited

    • Health Care: Universal

    • Retirement: Different Pillars and Insurance Investments

Taiwan

In the past few years, Taiwan has been in the new for issues involving its relationship to China – but it still qualifies as a great capitalist country to entrepreneurs across the globe. Unlike China, Taiwan is a democracy with an emphasis on electronics and technology.  For taxpayers seeking to operate primarily in Asian countries, Taiwan is a great hub and place to consider for either residency or citizenship. Unlike some of the other countries on this list, the passport is not as strong and is limited to about +100 countries.

• • • Stock Market: Taiwan Stock Exchange (TWSE)

    • Can Foreigners Own Real Estate: Limited

    • Health Care: Universal

    • Retirement: Labor Pension System

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