Video Briefing

Nomad Capitalist: The WORST Countries to Escape the USA

Nov 18, 2024Video Briefing19:56Watch on YouTube

Many Americans have started searching for ways to leave the United States after recent elections, but the most popular destinations and the typical “just move there” mindset often overlook the practical hurdles of immigration, taxes, and cost of living. Below is a concise overview of the challenges associated with the most‑searched English‑speaking countries and a range of alternative locations that may better match the goals of remote workers, entrepreneurs, and investors.

Why the Usual English‑Speaking Choices Can Be Problematic

Country Main Draw Key Obstacles
Canada Proximity, universal health care, English‑speaking • Tight immigration caps and reduced targets
• Mandatory medical exams, language tests, and high fees for investor programs
• Tourist visas (up to 6 months) do not permit running a business; violation can lead to denial of entry
• High personal tax rates once resident
United Kingdom Familiar legal system, English language • Expensive housing and rising taxes on property and fuel
• Limited investment‑visa options after the Russia‑Ukraine war; many programs withdrawn
• End of the “non‑dom” tax regime means residents face full UK tax on worldwide income
Australia Stable politics, universal health care • Investment visas start at > 10 million Australian dollars (≈ US $6.5 million)
• Long processing times and limited slots
New Zealand Relatively open immigration compared with the UK • Still requires significant investment or skilled‑worker sponsorship; not a low‑cost entry point

These countries share common drawbacks: high taxes, costly or restrictive residency pathways, and political climates that may not align with every expatriate’s values.

A More Accessible English‑Friendly Option: Ireland

  • Residency – Entrepreneurs can start a company in Ireland without relocating the entire business. A 12.5 % corporate tax rate applies to most activities, and a “non‑dom” tax regime allows foreign‑sourced income to remain untaxed while the individual is resident.
  • Talent Pool – English is the primary language; the country offers a well‑educated workforce.
  • Cost – While Dublin’s housing market is tight, overall living costs are lower than in the UK or Canada, and there is no requirement to invest millions of dollars for residency.
  • Citizenship Path – After five years of residence, individuals may apply for citizenship, providing a solid second passport.

Expanding the Pool: Non‑English‑Speaking Countries with Strong English Support

Country Language Situation Residency Requirements Tax Highlights
Netherlands 95 % speak English; Dutch‑American treaty offers a special track Work permit or self‑employment visa; investment options exist Moderate personal tax rates; corporate tax 15–25 %
Serbia (Belgrade) Wide English proficiency, especially among younger professionals Proof of income (≈ $2,000–$3,000 /month) or bank deposit; low cost of living Flat personal tax 10 %
Malaysia English common in business hubs (Kuala Lumpur, Penang) “Malaysia My Second Home” program: minimum monthly income $2,500 or fixed deposit $150,000 No tax on foreign‑sourced income for residents
Thailand English used in tourism and expat circles Long‑term visa requires proof of income or bank deposit (≈ $40,000) Personal tax on Thai‑sourced income only
Georgia English increasingly spoken in Tbilisi 1 % flat tax on business income; residency via proof of monthly income $800–$1,000 or bank deposit Very low tax burden; easy company registration
United Arab Emirates (Dubai) English is the business lingua franca Investor or freelance visas require bank deposit or business registration; no personal income tax Zero personal income tax; corporate tax limited to certain sectors

Latin America: Low‑Cost Residency with Pathways to Citizenship

  • General Requirement – Many countries accept proof of a steady monthly income (often $800–$3,000) or a bank deposit equivalent to one‑year‑worth of living expenses (e.g., $60,000).
  • Countries & Citizenship Timelines
    • Peru – Residency after 2 years; citizenship possible after 2 additional years.
    • Mexico – Temporary residency with income proof; permanent residency after 4 years; citizenship after 5 years.
    • Argentina – Residency after 2 years of continuous stay; citizenship after 2 more years.
    • Uruguay – Residency after 3 years (or 1 year if married to a Uruguayan); citizenship after 3 years of residency.

These programs keep most of your capital liquid (bank deposits rather than illiquid investments) and maintain the same time zone for North‑American businesses, easing remote‑work logistics.

Practical Steps for a Successful Relocation

  1. Clarify Your Primary Goal – Tax reduction, political climate, cost of living, or lifestyle.
  2. Map Immigration Pathways – Identify whether you qualify for a work visa, investor program, or income‑based residency.
  3. Plan Tax Compliance
    • Determine double‑tax treaty status with the U.S.
    • Assess whether foreign‑sourced income will be taxed locally.
    • Consider establishing a corporate entity in a jurisdiction with favorable tax rules (e.g., Ireland’s 12.5 % rate).
  4. Set a Trial Period – Arrange a short‑term stay (3–6 months) to test the local environment before committing to long‑term residency.
  5. Maintain an Exit Strategy – Keep a financial buffer and a clear timeline for returning to the U.S. if the new location does not meet expectations.

Choosing Beyond the “English‑Only” List

Relying solely on English‑speaking countries limits options and often leads to higher taxes and stricter immigration controls. Expanding the search to nations that welcome foreign residents, offer clear income‑based visas, and have reasonable tax regimes can provide a better match for both personal values and financial goals. Whether you prioritize low taxes (Georgia, Serbia), cultural openness (Portugal, Cyprus), or a conservative social climate (Oman, Uruguay), a broader view increases the likelihood of finding a sustainable, long‑term home.