Moving Your Business to a Tax Haven and Paying Zero Tax (E122)

Andrew HendersonManaging Partner of Nomad Capitalist Bio: Andrew Henderson is the managing partner of Nomad Capitalist and the most sought-after expert on global citizenship. Andrew Henderson lives by five magic words: "go where you're treated best". Nomad Capitalist helps people to find the best places to live, bank, invest, incorporate, start a business, hire, date, and more. After nearly a dozen years visiting and living in 100+ countries, Mr. Henderson has become an expert on the growing field of global citizenship. He is the author of "Nomad Capitalist", a book discussing the concepts of global citizenship that anyone can apply. Mr. Henderson is unique in that unlike other consultants who merely sell products, he lives the lifestyle he preaches, having multiple passports, homes on three continents, and international business. Sponsors: Drip – Get a free demo of Drip using this coupon code!Spark Shipping – eCommerce Automation Links: Nomad CapitalistNomad Capitalist InstagramNomad Capitalist FacebookNomad Capitalist Twitter Transcript: Charles (00:00): In this episode of the Business of eCommerce. I talk with Andrew Henderson about how to move to a tax Haven and pay zero taxes. This is the Business of eCommerce, episode 122. Welcome to the Business of eCommerce. They show that helps eCommerce retailers start, launch and grow their eCommerce business. I'm your host, Charles Palleschi and I'm here today with Andrew Henderson. Andrew is the managing partner at nomad capitalist where he helps people find the best places to live, bank invest, incorporate, start a business higher and days. I asked Andrew on the show today to chat about how you can move to a tax Haven and pay zero taxes. Charles (00:43): Hey Andrew, how are you doing today? Andrew (00:44): Great. Great to be with you. Charles (00:46): Yeah. Awesome. I have you on, I'm super interested in the topic on kind of moving to a tax Haven. There's somebody I have not actually talked to someone about before and it's one of those things you hear but you don't even know or at least I don't know sometimes what it means. You hear of tax havens and you hear, you know, large companies doing this thing where they just move somewhere and pay less taxes. But I never really know, like, is that something we can do as, you know, smaller businesses or like how does this even work? So this is something you, so we're not actually offering tax advice here. [inaudible] State that, but so what exactly, when you start talking about moving a business to a tax Haven, what does that mean? Andrew (01:35): Well, there's actually four parts to it. I call it the, the tax friendly quadrant, right? So what people think is, Oh, you just put your company somewhere else. And you can pay less tax by just moving your company that the Cayman islands did. You sit around in Boston or Los Angeles or Sydney or whatever. It's not quite that easy if you're not Google or Amazon or Starbucks. But the reality is, I mean, what they, those companies have done is they have basically planted a flag of convenience in places around the world that allow them to keep more of their own money. And so what my five magic words are, are go where you're treated best. You know, in the United States I paid North of 40% in taxes as an entrepreneur. I ran several businesses there before selling a couple and, and letting a couple go and moving overseas full time. And so now, you know, I'm able to establish my company in a place that charges basically zero tax or, or very close to it. I'm able to live overseas personally in places that don't demand tax from me personally. And so by matching those two things up, I'm able to pay a very, very low rate of tax. And you know, people can do this, including Americans. Charles (02:52): So the two parts are you can put the business in one country and you physically live in another country, right?