Presentation by Jes Black on Nomad Talks on Mar 14, 2016 - CODINO - Community of Digital Nomads Barcelona www.codino.co Most startup entrepreneurs and digital nomads are quite confused by the rules and regulations and unsure if they can legally reduce or eliminate certain reporting requirements. Integrating legal and tax strategy into your business plan from the beginning can save you a lot of time, money and hassle. We will discuss the pros and cons of incorporation in various jurisdictions and compare the two heavyweights for nomads - Hong Kong vs. Panama. This is mission critical for startup ventures as well. We will follow with a “how-to” review of digital banking options, invoicing and accounting firms that can make your life a little bit easier (and tax compliant!).

1. Offshore Theory
Virtual Economies & Nomad Millionaires
Virtual PlacesDigital Autonomo

2. Introduction
Part 1 - Why Go Offshore?
Part 2 - Offshore is Onshore :)
Part 3 - Legal Jurisdictions
Part 4 - Best Practices
Part 5 - Practical Steps

3. You THINK You Know Offshore?
Those who know don't talk ... &
Those who talk a lot don't know.

4. PART 1 - Why Go Offshore?
Simon Sinek

5. The New GLOBAL Citizen
Going offshore allows you to
have personal liberty, company
freedom & capital mobility
Doing so in a transparent, legal
way to gain freedom from
national laws ~ global citizen

6. Global Constitutionalism
Ronen Palan
(2003)
Global constitutionalism. Every
society adopts an organizing
myth, consituting itself in the
name of some absent
presence: God, the nation,
working classes.

7. The New GLOBAL Citizen
Global Citizens have Private
Health Insurance, Private
Pensions, Pay Tax Where their
PC resides
Doing so gains freedom from
national laws ~ global citizen

8. But PROFESSORS Talk & Know

9. Let's Start with Some THEORY
offshore ... globalization ... imagined ...

10. OFFSHORE aides Globalization
Nation (Welfare) State (1945-
75) vs. Market (Neoliberal)
State
Capitalism → Shareholders →
Profit Maximization → OFFSHORE
London & NYC State Sponsors
of Offshore JURIDICAL Finance

11. NEOLIBERAL Pyramid
60%
30%
5%
4%
1% Neo Lib, NWO, Media
Silent Majority
Trade, TPP, NAFTA
One World Gov, EU
State Government

12. Trump is ANTI - Establishment

13. PART 2 - Offshore is Onshore

14. OffShore Is Very IMAGINARY
The offshore world completely
integrated with onshore world
It increases profits for major
banks and corporations (and
individuals) ~ virtual economies

15. Virtual Money & Volatility
Ficticious Capital Moves
Offshore

16. Who Pays & Who BENEFITS?
Former Fed President Fisher:
"We Injected Cocaine And
Heroin Into The System To
Create A Wealth Effect" ... But it
did not work .... virtual money
It's ALL About Productivity!

17. Off Shore Globalization IMAGINED
If No Productivity, Need Pop+$

18. Who Pays & Who BENEFITS?
The only way the Nation
(Welfare) State can coexist with
the Market State (NeoLiberal) is
if the economy is in constant
expansion. Since 2008 we have
debt $ system now at peak debt

19. Off Shore Globalization Imagined
So We Need MORE Credit, But....

20. Is FIAT FINANCING Legal Fiction?
Why Does this Matter to Me?
If Monetary System Fails to
Stimulate Demand You Will
Pay!
Private Bank Credit→Central
Bank Fiat→Government power

21. But This is Your Situation
It's a Prisoner's Dillema

22. Offshore Under PRESSURE
To maintain the current financial
system, the fiscal gap to health
& pensioners ~$127 T Unfunded
Must have rising productivity,
population increase and
increased credit as money ....

23. Paper PROMISES > GDP

24. Peak DEBT Low Productivity
Peak Debt and Low Productivity
To Pay for Welfare State Must:
Debase Currency
Allow Increased Immigration
Reduce Benefits
Raise Taxes
Or Just Forgive Debt (Jubilee?)

25. Is FINANCE Legal Fiction?
Taxes are a misguided tool in a
pure fiat money economy
If you can imagine money into
existence, why do you need to
tax any of it to pay for services?

26. Who Will Blink FIRST ?
Summary: Something Will Give!
But don't expect any favors...
First comes higher taxes, then
common sense to solve the
demographic/productivity "gap"

27. PART 3 - Legal Jurisdictions

28. Legal FICTION
Just because a corporation is a
“person” does not mean that it
can be arrested ...
False factual suppositions that
serve as the grounds for law.
LEGAL FICTION ~Ronen Palan

29. Is FINANCE Legal Fiction?
Central banks can print money
digitally & give it out but they
can't "print" productivity
Social contracts should reward
productivity over taxes, doing so
could afford to "print" a deficit

30. What is YOUR Legal Fiction?
Ok, Won't Happen, So Who
Pays?
Can you be used as collateral
for the government to pay debt?

31. What is YOUR Legal Fiction?
ID Acts "Like" or "Deems" your
Person to be like a Company
For Tax
Purposes

32. What is YOUR Legal Fiction?
Your Personal Corporation (PC)
has Benefits AND Liabilities
Financial assets can be bought
and sold. Social Benefits cannot
be bought and sold. But your
liablity is an asset to the State.

33. What is YOUR Legal Fiction?
In the USA, you have Federal
PC & State PC obligations
(Army, Schools, Roads, etc)
It is possible to be "double
taxed" for being in various
states more than 30 days

34. What is YOUR Legal Fiction?
Domicile is determining factor
requiring physical presence
Taxpayer cannot establish a
new domicile unless he or she
proves intent to abandon his or
her original domicile

35. Off Shore Globalization Imagined
Change your PC Jurisdiction?

36. We All Have Friends Like This

37. Capital
Savings
Capital
Savings
PC
Residency
PC
Residency
Corporate
Income
Corporate
Income
Try to Fit YOUR SITUATION Best
PC Tax
Residency
Offshore
Company
Jurisdiction
Capital & Savings

38. PART 4 - Best Practices
WARNING - Most people
want results without the
sacrifice.
In tax issues this leads to
trouble (circle or square?)

39. Warning ~ Its Not That EASY
Tax Factorial Formula (x!)
(x) citizen living in (x) jurisdiction
paid by company (x) with capital
gains from (x) investment (4!)
4 x 3 x 2 x 1 = know 24 tax laws

40. ACCOUNTANTS Are Not Fans
Local accountants will not help

41. Johan Sjögren
As well, AEOI, is an agreement
from OECD that all bank
information in the countries will
be shared automatically.
Spain will join 2017.
Hong Kong 2018.
Panama has not yet signed.

42. LEARN Your Personal Situation

43. Self Employed Nomads ~ EASY
Self-employed digital nomads
can still be free but must decide
Give up tax residency in one
jurisdiction for another one
Offshore = Tax Deferment

44. You Want to DEFER Taxes
Reinvest your capital in tax-
defered programs (like an IRA)
Tax-free combined with the
power of compound interest

45. Offshore and Online is Best
Offshore online business builds
streams of income outside of
your home country. Coupled
with an offshore bank account, is
the perfect solution
** You might need to move! **

46. Part 5 - Practical First Steps
1. Know Why You Want To
- Hopefully its not just about taxes. Is personal freedom important?
2. Know Your Tax Factorial
(x!)
- Your situation is similar but MUCH different than the guy next to you :)
3. Find an Accountant
- Its not that is hard (per se) Its just got a steep learning curve
4. Put Offshore into Your Life
- Go there. Don't listen to "experts" who suffer from "group-think"
5. No Apologies ~ Enjoy It !

47. Top Offshore LIVEABLE Destinations
Uses the US Dollar ~ USAPanama
Close to China ~ BritainHong Kong
AKA Dubai ~ BritainUAE
City State ~ BritainSingapore

48. Why Even Bother to Do It ?
1
2
3
4
5
Cheaper to Set Up
Less Compliance
Zero Corporate Tax
Rate
No Personal Tax Rate
Strong Legal Systems

49. Payment Service Providers PSP
1
2
3
4
5
Paypal, Braintree,
Bitcoin
WorldPay, Wirecard
HSBC for Panama, HK
Credicorp Bank,
Panama
Crèdit Andorrà

50. If you Don't Move, Consider ...
Spain has DTC for both Hong
Kong and Panama, so no info
exchange today about
ownership. But Spain also has a
rule that says you must tell the
spanish government about
everything you own in the world.

51. If you Don't Move, Consider ...
Spain and Italian banks are
(technically) bankrupt.
Work with the government to
report on you if money is sent
to Panama or Hong Kong.

52. If you Don't Move, Consider ...
Chose jurisdiction(s) carefully
Put ownership of assets in a
trust or foundation in one
jurisdiction that owns the assets
located in another jurisdiction

53. If you Don't Move, Consider ...
If you earn more then 30,000
Euro/month or if you love
study taxes, its worth to set up
your own structure. If you earn
less then 30,000 Euro/month,
use a global tax planning
company

54. Sign Up For
Beta Testing
:)
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