Emigration
The ultimate report 2021
How to set the right course for your emigration to enjoy your new life at your dream destination without stress and worries!
Auswandern
Der ultimative Report 2021
Wie Du von Anfang an die richtigen Weichen für Deine Auswanderung setzt, um ohne Stress und Sorgen Dein neues Leben an Deiner Traumdestination zu genießen!
Auswandern
Der ultimative Report 2021
Wie Du von Anfang an die richtigen Weichen für Deine Auswanderung setzt, um ohne Stress und Sorgen Dein neues Leben an Deiner Traumdestination zu genießen!
Let me show you the most important factors for your successful emigration
Lass mich Dir die wichtigsten Faktoren für Deine erfolgreiche Auswanderung aufzeigen
In this article, I will tell you why your migration should be well thought out and how you can maximize your tax, entrepreneurial and personal freedom.
take the right steps from the start!
In diesem Artikel verrate ich Dir warum Deine Auswanderung wohl überlegt sein sollte und wie Du durch die richtigen Gestaltungsmaßnahmen von Anfang an Deine steuerliche & unternehmerische Freiheit sowie persönliche Handlungsfreiheit maximierst!
Freiheit durch Auswandern ist möglich, wenn Du es richtig machst!
Since 2016 we have been successfully helping entrepreneurs and investors to set up and emigrate worldwide. This enabled us to acquire a great deal of practical knowledge, which we would like to pass on to you in this report.
With the right choice of your new home, you can draw a lot more freedom into your life and become enormously flexible.
Many Germans emigrate because of the locally prevailing rigid structures that rob them of their time and energy.
Maybe you also want to free yourself from extreme taxes and bureaucratic tasks.
In this detailed and very comprehensive article I will show you how you can set the right course for your emigration from the beginning!
First of all, take a close look at the table of contents. This way you will find out which topics we have covered.
With a click on the respective heading you jump immediately to the chapter.
In this article I tell you why your emigration should be well thought out and how you can maximize your tax & entrepreneurial freedom and your personal freedom! Freedom through emigration is possible, if you do it right!
Two thirds of the emigrants are highly qualified
Zwei Drittel der Auswanderer sind Hoch-qualifizierte
According to the Federal Statistical Office, around one million people have left Germany since the turn of the millennium. A good two-thirds of them are well-trained specialists and managers.
They rarely look for the romance of sun, palm trees and beaches. An important argument is the chance of a better, well-paid job. Almost 40% leave Germany because of the high tax burden, and just under a third want to escape the bureaucracy.
It is no wonder that the OECD concludes that nowhere else do so many academics emigrate as from Germany. The country loses young doctors, scientists, technicians and service providers every year. The emigrants are 32 years old on average.
Column chart. Data table with 2 rows and 7 columns follows.
| 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 |
|---|---|---|---|---|---|---|
| 711,991 | 797,886 | 914,241 | 997,552 | 1,365,178 | 1,134,641 | 1,185,432 |

Emigration means development
For many emigrants, the step of leaving Germany means breaking free of Shackles.
Even if the earnings abroad are only equivalent to those in Germany, there is still more net from the gross in the USA or Switzerland. Tax havens like the Emirates offer a completely different scope for development, and not just economically.
Many academics turn their backs on their homeland because they can realize their potential more freely abroad. Many young scientists perceive the state funding of universities and institutes and the associated state restrictions as an obstacle to free research.
Anyone who wants to realize their own potential will at some point be confronted with a frenzy of regulations and ordinances from whose chains they would like to break free. Free development outside the constraints of German bureaucracy is one of the most important arguments for emigrating.
Emigrate of theyoung saves bureaucracy & taxes
Those who emigrate young have advantages. Emigrants who have already been active in business in Germany are pursued by the old home country.
You should also take care of the disclosure and taxation of hidden reserves of your existing domestic companies. It can be part of the exit taxation in several high-tax jurisdictions like Germany.
In this way, the state secures its share of unrealized capital gains. For the state it is clear: Anyone who leaves Germany also sells their German company.
Whether you are affected by one of the two taxations mentioned depends on the individual case. We can help you, you just have to arrange a non-binding conversation. Whether you are affected by one of the two taxations mentioned depends on the individual case. We can help you, you just have to arrange a free conversation.
If you want to emigrate and only found your Company in your New Home country, you save yourself a lot of bureaucracy, taxes and money. There are no shares that need to be sold. There are no bureaucratic hurdles when your company is founded abroad.
By the way, this is exactly what we specialize in and we can help you with our team of experts such as lawyers and tax consultants to emigrate legally secure and to set up an intelligent international structure for your business abroad!
Where to emigrate? Not only warm climes popular
According to the Federal Statistical Office, Switzerland is the country to which Germans prefer to emigrate. This is certainly also due to the lack of a language barrier and a simple tax system.
Other top destinations are the USA and Austria. At least before Brexit, the liberal financial metropolis of London attracted many well-educated professionals.
In addition to some EU countries, such as Spain, France or even Poland, the list of the most popular countries also includes this destinations.
Australia, the very liberal Canada, New Zealand or Thailand are emigration countries for Germans.
However, not all countries are suitable for tax purposes. Canada, like Germany, is considered a high-tax country.
But if you do not live there and set your new home flag in a tax-friendly country, or if you are a Perpetual Traveler and do not have a new tax residence at all, Canada can entice you with a tax-free company. The Canada LLP, which we have already established for many of our clients.
As you can see, planning your emigration can be very exciting. There are many options worldwide, which can be skilfully combined with each other.
And the tax aspect is a crucial point for the realization of your dream of a free life without constraints. Therefore, you should consider the location of your residence well.
Of course, you have to follow rules in every country. By answering the question "where to emigrate" correctly, you can make the rules work for you.
Those emigrants who carefully plan their life and work abroad will be happy.
The most popular emigration countries for Germans within Europe:
Bar chart. Data table with 2 rows and 30 columns follows.
| Belgien | Bulgarien | Tschechien | Dänemark | Estland | Irland | Griechenland | Spanien | Frankreich | Kroatien | Italien | Lettland | Litauen | Luxemburg | Ungarn | Niederlande | Österreich | Polen | Portugal | Rumänien | Slowenien | Slowakei | Finnland | Schweden | Vereinigtes Königreich | Island | Liechtenstein | Norwegen | Schweiz | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2019 | 39,477 | 1,406 | 21,278 | 25,541 | 1,757 | 17,157 | 11,529 | 138,321 | 85,234 | 3,815 | 37,144 | 483 | 691 | 13,015 | 16,537 | 77,092 | 192,426 | 6,382 | 12,817 | 6,571 | 933 | 4,195 | 4,102 | 29,213 | 142,368 | 1,291 | 1,657 | 24,835 | 306,188 |
Interestingly, figures for Cyprus and Malta are missing from the Eurostat data sets. An enormously large German business emigrant community has formed in Cyprus in recent years.
This is mainly due to the fact that Cyprus is extremely interesting for entrepreneurs and can be described as one of the last European tax havens. The same applies to Malta.
Our GoodbyeMatrix tax consultant is based in Cyprus and can set up a limited company with you and register your place of residence so that you can emigrate to Cyprus with legal certainty. If you are interested, please contact us or take a look at our extensive information event.
The Flag Theory
The guarantor for your successfully planned emigration!
The Flag Theory helps you to use the laws of the countries in such a way that you legally achieve enormous freedom. Go where you are welcomed, that is, where you have few taxes and regulations.
Not every emigrant can optimize their tax burden. After all, the next dream job could be waiting for you abroad, so that you work locally and have to pay your taxes there as usual.
Maybe you are lucky and the tax rates are not as high as in Germany but the Flag Theory does not only help you with tax options.
Rather, I see the Flag Theory as the basis of a successfully planned Emigration!
In the further chapters I will go into detail about the individual flags and by applying this strategy you will only expose yourself to your new home to a certain degree and on the other hand you will also benefit from more options!
Your personal freedom depends on many factors.
Citizenship
Even your citizenship has a big influence on it. Where can you travel without problems? How easy is it to immigrate to a new country with your passport? Does your home country enact laws that are executed at the citizenship level?
Residency
Choose the Residence where you do not have to pay any or low taxes and where your presence is appreciated.
Establish company
Living freely and realizing yourself also means realizing yourself as an entrepreneur. Start your company where corporate taxes are lowest. Working abroad does not have to mean that you live where your company is registered.
Asset Protection
Your assets belong to you! In digital times you don't need a bank in the neighborhood, but where your assets are safe from the access of others. Manage your assets in jurisdictions that offer you more security.
Investments
Make your investments in countries that still give you high returns or where banks still pay you interest on your balance!
As you can see, there are already a few points that you can consider when emigrating. If you are already moving your personal place of residence abroad, then you can distribute other aspects of your life directly to other jurisdictions.
This gives you full freedom of action and protects your assets from a total loss.

The First Flag of Emigration
Consider upcoming changes in the future - here using your citizenship as an example
There are Countries that track their citizens Around the World. No matter where you are: if you have the passport of one of these countries, this country wants to share part of your income.
Taxation based on Citizenship exists in Eritrea, Burma, Hungary and also in the USA. A US passport is therefore not a good idea, even if many people believe it.
Why is it so important to get another passport?
The German passport allows you to move freely almost anywhere in the World. No other Passport allows visa-free entry into as many countries as the German passport.
Tax law can change.
This is true, and if you move from Germany, you will be safe from the tax authorities after a certain amount of time.
But will this remain so forever?
Tax systems can change, which makes a second citizenship quite reasonable.
For tax reasons, the above-mentioned countries are excluded from the choice. If you do not want to spend your life in one place and enjoy the unlimited freedom, your passport should also allow this freedom.
These Passport offer you Great Freedom of travel:
The German passport grants visa-free entry to 189 states and territories. This is almost a world record. Only Japanese (191) and Singaporean citizens (190) are even less restricted. South Korea (189), Italy, Spain, Luxembourg and Finland (188) follow in the places.
So far Passport from Austria, Switzerland and Germany are very good for Travel. However, you should think about whether you would like to take on another or different citizenship in the future.
Of course, this can also be done through Naturalization (long-term planning) or with us through Citizenship by Investment programs (short-term change of citizenship).
Especially if you are permanently emigrating to a new Country, you can apply for Naturalization after a few years! However, you never lose your German citizenship directly by simply Emigrating!
You can give up your residence in Germany, but this does not mean that you lose your citizenship.
High Hurdles to Citizenship
We know it from Germany: there are often high hurdles to be overcome in order to become a citizen of another country. You often have to live in a country for years before you can obtain citizenship. Marrying a local shortens the waiting time, but doesn't eliminate it.
You must also apply to retain your German Сitizenship in order not to lose your German passport! If you want to get a passport from another EU country, then you do not need to apply to retain German citizenship.
Austrians are very strict and have to give up their Сitizenship if they want to take another one, Swiss have no Restrictions!
The countries that grant citizenship the fastest are Argentina and the Dominican Republic. Both countries require two years of permanent Residence in the country.
The Argentine passport grants visa-free entry into 150 countries. Many EU countries are among them.
But who wants to live voluntarily two years in a country that is economically completely down?
In addition, there is a political crisis, which also affects security. And as a result, this passport could also become worthless in the future.
The Dominican Republic passport does not have a particularly good reputation. There are many fakes out there. As a result, there are hardly any countries that allow citizens of the Dom. Rep. to enter the country without a visa.
The citizenship of Paraguay would be interesting. In order to obtain it, you need a permanent residence permit of three years and should establish certain connections to the country. It is enough to have invested in Paraguay or to be there from time to time.
This point would be fulfilled with the establishment of a company. After all, 129 countries grant visa-free entry. But there is a catch: Paraguay only tolerates dual citizenship to a limited extent. The German one is not allowed.
Purchase Citizenship
Staatsbürger-schaft kaufen
Some small Caribbean Сountries offer exchange citizenship for donations, the price starts at $100,000. These countries include Antigua & Barbuda, St. Kitts & Navis and Dominica. Citizens of these islands are also granted visa-free entry by many countries around the world.
Obligations
So it is very crucial to plan this issue carefully. You should also keep in mind that citizenship can also include obligations. For example, you should deal with conscription in the country concerned.
Does a second citizenship make sense?
As early as 2013, the Greens in the Bundestag called for tax liability to be linked to citizenship. The goal: to prevent "tax evasion through departure.
Canada also called for citizenship taxation in 2020 and France launched an investigation back in 2019.
The different tax systems
There are mainly four different Tax Systems in the World.
- Residence taxation
- Territorial taxation
- the Non-Dom System
- no Direct Taxes
Germans enjoy residence taxation. Anyone who leaves Germany no longer has to pay taxes there. It is sufficient not to be registered in Germany and to be in Germany for less than 183 days a Year. In addition, it must be clearly recognizable that the Center of Life is not in Germany.
So far you can legally escape Taxation in Germany if you follow the right Rules and do not have to Give up your Citizenship for it!
Wohin Auswandern?
Where to Emigrate?
Wohin Auswandern?
The Second Flag
Best Countries for Emigration
An important aspect of your Emigration is that you get More Freedom through emigration! One point that you should focus more on is tax. Even if taxes are not everything, this is the biggest lever for your personal and financial freedom!
By the way, Residence Taxation applies in most countries of the world. All income is taxed, regardless of whether it is generated at home or abroad.
Countries without foreign tax laws, such as Switzerland, can still offer themselves as a residence.
Unlike in Germany, these states do not require any trade or corporation taxes. Only the dividends are taxable as income.
If you want to Emigrate to Switzerland, you have to pay attention to the Overlapping taxation! Normally the country of residence has the right of taxation, in this case the source country for income originating from Germany. If you have been subject to unlimited Taxation in Germany for 5 years, all German Income will be taxed in Germany for the next 5 years.
Even though two thirds of the Countries with Residence Taxation have no external tax laws, it is worth considering a third category: Territorial taxation, as is the case in Malaysia, Georgia, Panama, Paraguay, Nicaragua, Thailand, and Singapore, for example. Only domestic income is taxed. You can find more information on tax systems worldwide here.
The most Tax-Efficient choice of residence depends on many aspects. If you work as a Freelancer, there is no point in making sure that you do not have to pay taxes on company profits in your place of residence.
Then it is crucial how high the country of your choice taxes domestic income. Here, for example, Georgia could be interesting with its 1% Income Tax for Sole Proprietors.
As you can see, it is not so easy to find out the best Emigration Country. Everyone has their own preferences and it must be Individually tailored to your Setup.´
By choosing the right place of residence, however, you can change a lot in your life in terms of taxation.
Tax Free Countries
Some Countries do not charge Direct taxes at all. They are financed by Sales Tax or customs duties, for example, or have many Natural Resources. Not all of them are suitable as Emigration Countries.
Freedom by Emigrating to the United Arab Emirates could be great. The country does not levy Individual Income Tax on its residents and the standard of living is very high.
Obtaining citizenship of the Emirates is hardly possible, which brings another problem: If you keep your residence in Germany, you will not enjoy tax exemption.
Thanks to a Double Taxation Agreement, you must then pay tax on your income in Germany. You can only achieve freedom by Emigrating to the Emirates if you give up your Residence in Germany completely.
You should also keep in mind that it is very hot in this country and there is also a Muslim culture locally.
If this does not suit you, you can also just take up residence in the Emirates and enter every 6 months for at least one day. This would only trigger the tax residence in the UAE and could live in other countries without triggering the tax liability there!
Among the Countries without Direct taxes are the Gulf states and Brunei, which is very rich but interprets Islam more strictly than almost any other country in the world. If you want to express your opinion freely, you'd better give this small country a wide berth.
In addition, it is almost impossible to immigrate there (as in many other Tax-Free states), so in our opinion the best Tax System for tax optimization is that of Territorial Taxation!
List of tax-free countries:
Non-Dom Tax system
If one wants to award the title "Best Emigration Country", Cyprus is certainly one of the candidates. The country practices a mixed form of Residence and Territorial taxation.
While the island taxes locals under the residence system, foreigners are classified as Non Dom for 17 years and thus receive certain Tax Benefits!
Dividends are not Taxed and the location is ideal for Traders looking to make capital gains. Many capital gains are completely tax-free.
This system is based on the British tax system and is also known in other former British colonies. In the Mediterranean, Malta also uses it.
In the Caribbean, these tax havens also exist. Freedom through Emigration is great in the Bahamas, for example. No taxes on income and the proximity to the USA are plus points of the archipelago in addition to the weather.

Consider Residence well
The right choice of Residence is not only decisive in terms of taxes; the Culture of a Country should also be compatible with one's own ideas. Language skills are an advantage when emigrating. Crime statistics and political stability are also things that play a role.
Malaysia is a very interesting country for emigration.
It has a wonderful nature, is politically stable and offers culturally very diverse facets. Although more than half of the population professes Islam, many Christians, Buddhists and Hindus also live here. They can live out their Culture Freely.
Malaysia is even courting people from Europe who want to spend the rest of their lives in this Asian paradise.
Malaysia has a High standard of Living and hardly any crime. Incomes are relatively low, resulting in a relatively low cost of living. People are very open-minded towards strangers. Many speak English.
The country was once a British colony and preserves many traditions to this day, including the political system.
In Terms of Taxation, Malaysia operates according to the Territorial Principle. The tax authorities are only interested in the income generated in the country. If you have a company abroad, you do not have to pay tax on profits in Malaysia.
With so many advantages, there is of course a Catch: The Country has a tropical Climate. Humidity is extremely high and temperatures rarely drop below 20 °C, even at night.
With this one example you can already see how important different Aspects are when Emigrating. Not only few Taxes are crucial so that your Freedom can increase by Emigrating.
So research your Favorite Countries very carefully in Advance!
Important aspects for your emigration Country:
Wild, rural idyll in the South of Africa
Let's look at another Example:
If you don't want to miss out on the Culture of your Home Country and Tax Advantages in equal measure, Namibia is worth considering.
The country still has a large ethnic German community. German is the lingua franca there, which makes dealing with authorities easier. The country has the most stable political system in the region. It offers a climate that is more compatible with that of Europe than that of Malaysia.
However, if you need a modern infrastructure, Namibia is not the right place. The country is rural. The capital Windhoek is very tranquil, but also one of the cleanest and safest capitals in Africa.
Less exotic are Switzerland and Luxembourg. However, because they have no external tax laws, they are not uninteresting for emigration.
Less exotic are Switzerland and Luxembourg. However, because they have no external tax laws, they are not uninteresting for emigration.
Countries are only interested in the dividends you receive from your foreign holdings. If you like the sea, in Europe you only have to go to the Netherlands or Belgium on the North Sea.
The advantage of Emigrating within the EU is that you enjoy an unrestricted right of residence in these countries. On the other hand, the EU Countries diligently exchange data of their residents.
Die Business Flagge
The Business Flag
Die Business Flagge
The Third Flag of Emigration:
The location of your Company needs to be Well Thought out
Your Company does not necessarily have to be located in the country where you live. Register your company in a country that has little or no corporate taxes.
You should not ignore the purpose of the company. If your business is selling digital products, the most important thing is to have a favorable tax environment.
However, this is different if you have corporate customers in high-tax countries such as Germany. They may not be able to fully deduct the cost of your products from their taxes.
In these cases, you should look for a location that is attractive from a tax perspective and that is fully recognized by your customers' tax authorities. In Europe, The Czech Republic, Cyprus or Bulgaria are good examples. Outside Europe, Georgia is a good choice.
But the USA with its US LLCs or Canada with its LLPs can also be interesting!
You have to prepare well before founding a Company. Even if you leave Germany, the Tax Authorities can still demand a good portion of taxes from you. This is especially true if you have already been doing business in Germany.
The state also wants a share of your assets if you look for another place to live. If you have a corporation, the state assumes that you will sell it when you move to another country.
Theoretically, you could sell your company shares from your new domicile and save a lot of taxes. The state wants to prevent this and invented the Exit Taxation.
When you leave Germany, the state assumes that you will sell your shares in the company sooner or later. It therefore taxes a fictitious capital gain.
You should therefore consider before you move whether it makes sense to sell your shares. Relatively simple and perhaps the best option is to transfer the shares to a family member. However, it must be subject to unlimited tax liability in Germany.
Another alternative we can implement with our cooperative expert with you. Cooperatives are a very good way to save taxes in Germany and to Optimize the Exit Taxation!
Although gifts are subject to tax, there are ways to avoid this tax liability via Inheritance Tax law. It is best to discuss this with a tax advisor.
Emigrate First
If you are planning a Business and want to Emigrate, it makes sense not to start the business in Germany. In addition to the Exit Tax, there are other traps waiting for you that can cost you money.
If you transfer assets of your German company to your foreign company, a de-taxation must be carried out in Germany. If you set up a company abroad that administers licenses which it then transfers to the German company for use, withholding tax may be incurred.
Therefore, think carefully about where you are founding your Offshore Company!
You should also consider these pitfalls when choosing your Emigration Country. Even in your new home country, the state may try to make Tax Optimization more difficult.
Nobody can predict the future. That's why it makes sense not to relocate your entire life to one place.
Move only as much to one place as you need to live or run your business. That way, there are fewer problems when the laws change in one place.
We saw earlier how useful it can be to have an alternative citizenship. Tax law can change at any time. This also applies to Corporate Taxation.
So it can be helpful to found companies abroad in order to position the business as Tax-Optimally as possible. However, the interdependence of the companies can hold similar tax traps as we know them from Germany.
Decision criteria for the Establishment of the Company
Entscheidungs-kriterien für die Firmengründung
There are good locations for Offshore Companies all over the world. In the end, it depends on the business you want to implement with your Company.
Georgia is an interesting country for Emigration and for founding a Сompany. The country, of course, is not ideal for everyone, but there are pluses that should influence the choice of the headquarters of your company.
The Right Location for the foundation of your company abroad must be considered Individually in any case!
Georgia offers many advantages for setting up a company. Incorporation is Quick and Taxes are Low. Georgia offers many advantages for setting up a company.
The corporate income tax is only 15 per cent deferred. This means that the tax is only due when you have the profit distributed to you. IT companies do not pay any corporation tax at all.
Currently, Georgia has no Foreign Tax Law, which makes the establishment of foreign companies interesting from a tax point of view. Sole Proprietors pay just one percent Income tax.
The Bureaucracy is simple. Sole proprietors only have to keep a revenue journal and submit a monthly tax return online.
Georgia is ideal for Freelancers or Digital Nomads as a place of Residence or just to set up a sole proprietorship there.
If you want to form a Corporation, you should think about a Georgian LLC (Limited Liability Company) or JSC (Joint Stock Company).
We have already discussed the advantages of the deferred corporate income tax of 15 percent. The withholding tax on distributed dividends is also low at five per cent.
The good thing about Georgia: Although you enjoy many tax benefits, Georgian invoices are deductible as operating expenses in Germany and other high-tax countries. This is important if, for example, you have many customers in German-speaking countries.
When choosing your company's location, reputation should of course play an important role! Besides solutions in Georgia, there are a lot of possibilities. Companies from the following countries can be interesting: Estonia, Cyprus, Bulgaria, Romania, Montenegro, USA, Canada, Singapore, Hong Kong, UAE, etc.
As you can see, you have to look at the company location from different perspectives and each country offers you different advantages and disadvantages.
Best Emigration country for IT people
Bestes Auswanderungsland für deutsche ITler
Are you an IT specialist?
Software developers, IT freelancers, online entrepreneurs or IT service providers especially benefit by Emigrating or relocating their Company to Georgia.
The formation of an IT LLC has tremendous tax advantages. Georgia does not require these companies to pay Corporate Income Tax or Sales Tax.
You receive a lifetime IT license for your LLC, for which there are no annual license fees. You only have to pay 5% Withholding Tax if you have Dividends distributed to you.
But it is even cheaper: Establish your Manufacturing company as a Free Zone company and save the Withholding Tax as well! By the way, although you do not have to pay taxes, it is an Offshore Company.
In addition, Georgia grants you Duty-Free Imports and Exports.
By the way, we are the founding law firm in Tbilisi and will support you in founding your company. Registration usually only takes a few days. The costs are manageable. Let us advise you.
If a Corporation is too much overhead for you, then so would a Sole Proprietorship in Georgia with 1% Taxation.
If you want to travel around the world as a Perpetual traveler without a New Tax Residence, the formation of a US LLC or Canada LLP can also be highly exciting for IT professionals.
Otherwise, Cyprus is still interesting with its low 12.5% Corporate Income Tax!
Best Emigration Country for Traders - Where to live your Capital Gains Tax Free!
Do you Trade Stocks or other Financial Instruments?
The following changes will be made to the Income Tax Act in Germany from 2021 and the following sentences will be added to the fourth sentence of Section 20(6):
"Losses from capital assets within the meaning of paragraph 2, sentence 1, number 3 may only be offset against profits within the meaning of paragraph 2, sentence 1, number 3 and against income within the meaning of section 20, paragraph 1, number 11 up to an amount of 10,000 euros; sentences 2 and 3 shall apply mutatis mutandis with the proviso that losses not offset may only be offset against profits within the meaning of paragraph 2, sentence 1, number 3 and against income within the meaning of section 20, paragraph 1, number 11 up to an amount of 10,000 euros per subsequent year."
This change in the law has catastrophic effects on all traders in Germany. Finally, from 2021 onwards, losses up to a maximum of EUR 10,000 can only be recognized for tax purposes.
You can completely forget about this Law change when you move abroad. Many countries with Territorial Taxation are highly exciting for traders.
Otherwise, Cyprus is still waiting for you as a trader's paradise. Many capital gains are Tax-Free here, everything else can be taxed at 12.5% by the Limited!
Alternatively, we can also implement the Thailand Elite Visa with you. If you live permanently in Thailand and do not generate your capital gains through a Thai broker and do not transfer them to Thailand in the same tax year, then these profits are legally tax-free!
It is best to let us advise you so that we can find the best country for you as a trader.
Different Ways to Live in Emigration
Verschiedene Wege Deine Auswanderung zu leben
The Fourth Flag - How to live abroad?
1. Perpetual Traveler - constantly Traveling the World
The idea is not to have a Permanent Residence or to only register pro forma residences. This may sound unusual at first, but it offers a number of advantages.
Once you have de-registered, your civil duties will decrease. Your Tax Liability decreases drastically or even ceases to exist.
This is where the Flag Theory comes into play again. Live where you don't have to pay much or any Income Tax. Build your Business in a place where your Business is welcome and therefore not subject to High Taxes. Manage your Assets where the Government is not interested.
Especially at the beginning of the New, Free life, it is useful to look at many things in order to make the Fight Decisions.
As you've probably noticed, there are many ways to live your Life Free from many constraints. In the end, it is you who must find the perfect combination of Flags for Yourself.
When you are traveling, you don't necessarily need a Permanent Residence. Before you give it up, you should renew your passport. This is Faster and Cheaper in your own country than while traveling.
It is also useful if you have a Postal Address, for example with your parents.
As a Perpetual Traveler, you enjoy the freedom of never being fully exposed to a country. You live out of your backpack and are not really accessible to countries.

Of course, there are also disadvantages, for example, as a consumer. For many contracts you need an address. Life as a Permanent Tourist is more expensive, which is why you want to have a home base again sooner or later.
Of course, there are also disadvantages, for example, as a consumer. For many contracts you need an address. Life as a Permanent Tourist is more expensive, which is why you want to have a home base again sooner or later.
Traveling does not have to be unproductive. As a Digital Nomad, you can build up a Business during your Travels, from which you can finance your life and your travels.
It is Important that you structure your day well. A nice side effect: Compared to working in a western country, you don't have to worry about excessive Bureaucracy.
One of the Disadvantages is that it is difficult to build a social environment or friendships. You also lack the level of Security that gives you a firm foundation.
Three more Ways to live Abroad
At some point you will find spots on earth where you want to build a base. Then it is up to you again how you distribute your life, your business and your assets. The following three ways are possible.
Reside in the dream country as an Expat
Many people wish to spend their retirement in warmer climes. Often, you can save on living expenses by moving to another country.
So you move to another country, take an apartment and build a New Life. Your travels are limited to occasional visits to your old home and a vacation trip.
This lifestyle is well suited for Expatriation as a Retiree. Even if you take a permanent job abroad, you will live as an Expat.
You should reconsider some things for your New Life. You don't have to register everything in the new country. Internationalize as many Aspects of your life as possible. That means diversifying your life into Several Countries, even if you only live in one.
Even when Emigrating as a Pensioner, where you only have the wish to live in a dream destination, you don't have to organize everything there. In addition to an apartment, you need an account to pay the current bills.
Your Securities Account, Companies, another Residence, you can distribute to the countries that offer the Best Conditions for it. Do not expose yourself more to a country than is absolutely necessary.
Always keep in mind that even in the biggest paradise the conditions can change. In that case, those who have made appropriate provisions have an advantage.
Expats find it easier to create a social environment. Life is generally cheaper than that of a Permanent Tourist. It is also easier to set up Bank Accounts or companies as a resident.
Tax Optimization and International Strategies are harder to implement. You are exposed to the laws of your new home country. This also applies to the Tax Laws.
The Regional starting Base
In this variant, there is a base where you stay for a longer time. This can be Several months. The rest of the time you Travel through the Country or the Region.
On site you rent an apartment for the long term. A social environment is growing and you have a Place where you can devote yourself to your Business in peace.
To satisfy your wanderlust, you Travel regularly. This can be sightseeing in places of tourist Interest. Maybe you have a Dream Destination that you like to visit, because a Permanent Stay is too expensive for you.
This way you can build up a solid social environment, but you travel through the Region and get to know new things again and again. Long distance flights are rare, because your life takes Place in one area.
You have a home, which means social security for many. Your costs are lower compared to Permanent Tourists. However, you have to pay more for your trips because you live there as a tourist.
If you choose your base Intelligently, you can benefit Tax-Wise. At least in the Region, an International Business can be established.
Multiple bases - life as a cosmopolitan
The disadvantage of being a Perpetual Traveler is not having a home. Living out of a Backpack is usually only interesting for a While.
At some point you find places where you want to be more often. There you set up your bases.
You have something again that you didn't have as a Permanent Tourist: You Can come Home.
If you install your Bases intelligently on Different Continents, you can build a Life and a Business as a Cosmopolitan.
You buy or rent apartments, live in each place for a few months and use your bases as a starting point for travel. Of course, you make sure that your bases are located in Tax-Optimized countries.
Territorial Taxation is best, because then you don't have to pay taxes on your foreign transactions. One advantage is that you can build up a business from different locations.
This way is also advantageous if the Laws in a country change in such a way that you want to give up the base. There are other bases that are your home. From there you can search for a new home in the abandoned region.
However, several bases also mean higher Fixed Costs. You have to manage the different Bases. That could limit your sense of Freedom.
It is also important to be careful not to fall into Tax Traps. On the other hand, you can even Optimize your life for Tax purposes with Several Bases.
Secure your wealth independently of your emigration
Dein Geld unabhängig von Deiner Auswanderung sichern
The Fifth Flag of Emigration
Secure your Money Internationally with Offshore Accounts
We have already discussed that you need some money for the bills at your base. But you should also Internationalize your Cash.
Generally, accounts abroad are legal. Of course, you must not use them for illegal actions.
Due to international money laundering regulations, it is hardly possible to keep money Anonymously in an Account today anyway.
Nevertheless, opening an Account Abroad can make sense.
Opening an account abroad is credit neutral, at least if you do not open your Account in Austria.
Offshore accounts in particular, i.e. accounts at banks in offshore financial centers such as Belize, Antigua or the British Virgin Islands, offer discretion. In addition, there are low taxes on assets.
However, many countries now participate in automatic data reconciliation. In this process, the banks send data to the responsible Tax Office once a year.
Some countries have not yet applied the so-called CRS agreement. These include Georgia, the Philippines, Cambodia, Thailand, but also the USA.
A good argument for a foreign account is the diversification of risk. Everyone can still remember the Banking Crisis of 2008. If a Bank goes Bankrupt, it's good if the risk is well diversified.
The Frankfurter Allgemeine Zeitung wrote about the financial crisis in 2015. In order for the Bank guarantee fund in Germany to secure the Credit Balances of savers, it had to borrow 6.7 billion euros on the capital market. Without a Government Guarantee, this would not have been possible.
There has been a legal Feform in the meantime, but as was the case then, no one knows exactly how much Money has been paid into this Security Fund.
You also have to take into Account that only 100,000 Euros are "safe" in Germany. If you have more, you have to divide it up or look for an Account Abroad that is safe from confiscation.
The low Interest Rates in the euro zone also speak in favor of a foreign account, where penalties are increasingly being charged on deposits. Here the search for alternatives can be interesting.
Account Garnishments can be avoided if the Country in which the Account is opened does not have an agreement with your country of residence that allows garnishment. Offshore Accounts in particular, but also British accounts could be advantageous here.
To open a foreign account, you usually have to travel there in person. There are a few exceptions where remote opening is still possible today. One country is Georgia.
A possible expropriation of credit balances or other assets is no longer so far-fetched at all.
Another possibility for you in addition to offshore accounts is to have offshore gold, i.e. gold stored abroad. This gives you excellent asset protection and you will receive it.
Weitere Absicherung
beim Auswandern
Further Protection
when Emigrating
Weitere Absicherung beim Auswandern
The sixth Flag of Emigration
The Health Insurance
An important topic, because nobody knows if and when he will get a health problem and need a doctor. Your Health Insurance obligation ends when you deregister in Germany.
But what now? If you are Registered in another country, you usually have to take out health or social Insurance there.
However, there are some countries that do not require such insurance. These include popular Emigration countries like a Thailand.
The Philippines, Georgia, Paraguay or Panama, which are well suited for Emigration, do not have this obligation either. Even those who live as a perpetual traveler without a place of Residence and are not required to have Health Insurance may still need health Insurance.
Using your own savings is only an option if you currently live in a country where costs are low. You should always keep in mind the occurrence of chronic diseases! There are two different types of international health insurance.
Travel health insurance
It is not suitable for The Emigrants, because it is valid for a Limited time. It becomes invalid no later than five years after it is taken out.
In addition, the Foreign Travel health Insurance is intended as a supplement to an existing health insurance at home. Since you no longer have health insurance in Germany, it is not suitable.
International health insurance
This Private Health Insurance has an unlimited term. You should make sure that the insurer has no unilateral right of cancellation and that the Insurance is valid in the Countries that are important to you.
Particularly cost-intensive countries are often excluded from the basic tariff and can be added if necessary.
German Private Insurance companies often calculate their rates according to the age of entry. The earlier you take out the Insurance contract, the lower the monthly Price.
Foreign offers often start very cheaply, but become significantly more expensive with increasing age and risk.
When choosing your insurance, you should make sure that certain diseases are not excluded. This is the case with SafetyWing, for example. There, expensive cancer therapies are not paid for.
Where to emigrate with little Money?
The question that arises is this: How much is little money? What is little money in Central Europe is a lot in other regions.
If you have 1,000 euros, what matters is what you get for it. In Germany, Austria or Switzerland that is significantly less than in Indonesia or Cambodia.
The reason is the currency differential. Using Geo-Arbitrage, you can take advantage of the differences between strong Currencies such as the Euro, US dollar or Franc and weak currencies.
This is interesting for you if you earn your money through a Digital Business, such as ebook sales in euros or other strong currencies. If you live in a country with a low cost of living, you can save a lot of money.
Where to emigrate with little money?
Very cheap, but also very beautiful are the countries in Southeast Asia, such as Malaysia, Cambodia or Vietnam. But also in southern Africa or South America you can start your life as a Digital Nomad with Low Cost of living.
Emigrate where the Easiest
Not everywhere where you can spend your vacation without a visa, you are allowed to stay for a longer period of time. Some countries have special rules that must be observed if you want to work there.
Starting a business can also be difficult for Foreigners. So there are a few things to consider when choosing your Future Home.
Perhaps not the country most people think of first is Georgia. We have already discussed the benefits above. The country facilitates immigration with many lucrative offers. Political proximity to the EU is also an argument for emigrating to the country.
And it is not a problem at all to live in the country with the pure tourist visa at the beginning. Georgia gives many citizens of the world directly a One-Year Visa, so you can get to know your new home first without any problems!
Interesting are also countries that offer so-called "Golden Visas". You get a permanent residence permit there if you invest in real estate or companies.
The amount of the required investment varies. Whether the Golden Visa is worthwhile for you depends on the individual case. In some countries you can speed up the process of obtaining citizenship by investing.
However, you should be aware from the start whether you really want to live in this country, whether you see it purely as an investment in order to set up a plan B, or whether it may not be necessary at all.
If you want to emigrate and set up a business in your new homeland, a country with a low cost of living and Territorial Taxation is a good choice.
If you want to work locally, you should pay attention to little Bureaucracy and low taxes in the Emigration country!
Malaysia or the Philippines could be suitable under this aspect, if you do not necessarily want to run your business locally. If you like mild climate and also want to use local companies directly, Malta and Cyprus are interesting countries.
Both countries have liberal CFC rules, i.e. no foreign tax laws. In addition, they belong to the European Union. This means that you can legally settle there permanently as an EU citizen.
Cyprus also has a reasonable cost of living and a very high standard of living. That is why it is very popular among expats.
The cost of living is also very reasonable in South Africa and Indonesia.
The entry requirements for Paraguay and Panama are fairly Unbureaucratic. Panama offers good conditions for retirees to Emigrate. Anyone who draws a pension of at least $1,000 a month is Welcome. Malaysia also offers attractive options for retirees.
There are also special Immigration Programs for young people. For this purpose Panama offers the "Panama Friendly Nations Visa".
From a tax point of view, Belize, Bulgaria, Georgia, Thailand, Dubai, Great Britain, Ireland, Malaysia, Panama and Paraguay are worthwhile. Cyprus and Singapore also have low income tax rates. However, Singapore has a high cost of living and does not make it easy to immigrate.
A low Crime Rate in Switzerland or New Zealand. However, these countries are among the most difficult to obtain a legal Residence Permit, along with Australia, the USA and Canada.
There are many criteria by which you can choose country where you want to Emigrate. The perfect Emigration country depends on what Preferences you set.
And it's probably best if you just emigrate from your home country and don't really immigrate anywhere else and position yourself internationally!
Finally, no one forces us to immigrate to another country, we can also spend us there first legally for a long time as a tourist!
This saves us a lot of bureaucracy and preserves our personal freedom. You travel from country to country until you find the right one(s) for you and build local bases!
This is how we combine all points to get the greatest possible freedom!
Where is the easiest place to emigrate? The list:
That was our Guide about Emigration!
Do you still have Questions? Please Leave us a Comment!

