Living abroad can be a hedge against political, economic, or regulatory shifts in any one nation. When planning a “plan B” lifestyle, the choice of residence and citizenship should be based on concrete factors such as tax treatment, ease of obtaining and maintaining a passport, freedom of movement, and the stability of the host country’s institutions.
Countries that were considered in the 1990s
| Country | Main advantages (if moved in the mid‑1990s) | Main drawbacks that emerged later |
|---|---|---|
| New Zealand | • Strong rule of law and political stability • Relatively low personal and corporate taxes compared with the U.S., Canada, and Australia • Citizenship grants one of the world’s most powerful passports (visa‑free travel to many countries) • No worldwide income tax for residents |
• Residence‑permit costs have risen sharply • Recent trends toward more authoritarian policies, reducing some civil freedoms |
| Australia | • Similar tax advantages to New Zealand (better than the U.S.) • High‑quality passport and the ability to travel freely between Australia and New Zealand for citizens • Robust economy that avoided many recessions |
• Increasingly restrictive exit and re‑entry rules, limiting the freedom that citizenship traditionally provides |
| Argentina | • Relatively easy path to citizenship after a few years of residence • Passport allows travel to most countries (though not as strong as NZ/AU) |
• High inflation, capital controls, and volatile tax enforcement • A culture of low tax compliance that can create legal risk for investors used to strict reporting standards • One‑time “mega‑tax” events (e.g., during COVID‑19) that squeezed residents |
| Chile | • Strong passport, comparable to Australia/New Zealand • Historically low taxes and a business‑friendly environment • Membership in Mercosur provides broader South‑American access |
• Recent political shift to the left, raising concerns about future tax and regulatory changes • Geographic distance from major markets can affect time‑zone coordination for global businesses |
Key criteria for selecting a “best‑treated” jurisdiction
- Tax regime – Look for low or territorial personal and corporate tax rates, no worldwide income tax, and clear rules for foreign‑sourced income.
- Citizenship quality – Visa‑free access to major economies (U.S., EU, Canada, Australia) and the ability to travel without excessive bureaucratic hurdles.
- Freedom of movement – Ability to leave and re‑enter the country at will; avoid nations that impose exit taxes or residency restrictions.
- Political and legal stability – Consistent respect for property rights, transparent legal processes, and limited authoritarian drift.
- Cost of entry – Residency or investment‑based visas should be affordable relative to the long‑term benefits; rising permit fees can erode the advantage.
- Economic resilience – Diversified economies that can weather global downturns without severe capital controls or hyperinflation.
Practical diversification strategy
- Obtain multiple citizenships – Holding two or three passports spreads risk. If one jurisdiction tightens exit rules or imposes heavy taxes, you can relocate without losing the ability to travel or conduct business.
- Separate assets geographically – Keep personal wealth (bank accounts, investments, real estate) in jurisdictions with strong legal protection and favorable tax treatment. Offshore structures can provide an extra layer of insulation.
- Maintain a base business in a stable economy – Even if you reside elsewhere, a corporate entity in a country with reliable banking and contract enforcement (e.g., New Zealand or Singapore) can safeguard operations.
- Plan for generational continuity – Consider the needs of future generations (education, employment opportunities, ease of obtaining work visas). Countries like Australia still rank highly for job markets, while New Zealand offers a slower‑paced lifestyle that may suit families.
- Monitor geopolitical trends – No nation remains static. Review political shifts, tax reforms, and immigration policy changes at least every few years to decide whether a new “plan B” is required.
Decision framework
- Step 1: List personal priorities (tax minimization, travel freedom, lifestyle, job market).
- Step 2: Score each candidate country against the criteria above (e.g., 1–5 scale).
- Step 3: Identify the top two to three jurisdictions that together meet the majority of your priorities.
- Step 4: Develop a timeline for acquiring residency, then citizenship, while simultaneously establishing offshore asset structures.
- Step 5: Re‑evaluate every 5–10 years or after major global events (e.g., wars, pandemics, major regulatory changes).
By treating citizenship and residency as components of a diversified portfolio rather than a single relocation, you can maintain flexibility, protect wealth, and preserve the ability to move when circumstances change. This multi‑citizenship, multi‑jurisdiction approach is the core of a resilient “global citizen” lifestyle.
