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Ask HN: Does legal tax evasion work for regular people?

8 points o1o1o1 | 2 comments | 15 Mar 25 06:16 UTC | HN request time: 2.726s | source

Hello fellow HN readers,

For some time now I've been researching how to become a digital nomad and legally optimise my taxes.

There are numerous services that claim to be able to help with this, here are just two examples that I found:

https://taxhackers.io

https://denationalize.me

Does anyone have any experience of this and can tell me if it really works and is legal?

Also, why do they charge so much when there are other services that can do this for much less (e.g. Stripe Atlas: https://stripe.com/atlas)?

I am thinking of moving to Thailand, but I do not want to be a perpetual traveller. Can setting up a US LLC as a non-resident (or a UAE free zone company) be considered "foreign sourced income" without being taxed even if I am a tax resident of Thailand (>180 days living there) and what experience can you possibly share if you have tried something like this before?

What additional advice can you give me and others to make this a great trip instead of a nightmare?

Thanks for all your input and a healthy discussion on this topic!

Show context
carlosjobim ◴[15 Mar 25 10:41 UTC] No.43371588[source]▶
Your life should be split like this:

One country for citizenship, one country for residence, one country for your money.

This arrangement earns you a lifetime of peace of mind.

replies(2): >>43372555 #>>43375092 #
scarface_74 ◴[15 Mar 25 13:57 UTC] No.43372555[source]▶
Why is that optimal?

I understand at least having a dual residency as a back up plan and that’s our plan with establishing residency in Costa Rica before retirement and keeping our by then paid off condo in the US.

replies(1): >>43373432 #
carlosjobim ◴[15 Mar 25 16:12 UTC] No.43373432[source]▶
It's optimal because you get left the hell alone. Governments do not know what they citizens do if they are neither living in the country nor having their money in the country. Governments do not know what their residents do, if they are neither citizens nor have their money in the country. Governments do not care what foreigners do with their money in their country if they are neither citizens nor residents.
replies(1): >>43374480 #
scarface_74 ◴[15 Mar 25 18:59 UTC] No.43374480[source]▶
Can you explain a real world scenario based on ease of applying for residence, tax situation, etc?

I haven’t researched anything aside from the US && (Costa Rica || Panama) scenario. There are really no tax advantages or disadvantages that way.

replies(2): >>43375120 #>>43375711 #
carlosjobim ◴[15 Mar 25 22:59 UTC] No.43375711[source]▶
If you're thinking in these terms, then the advice isn't really for you. You are probably better served by staying where you are, paying the tributes you duly owe and obeying the commands of your government.

The real world application of this advice is that you don't ask for permission, and involve governments as little as possible in your life. This of course means that your source of income has to be adapted to this, usually meaning having your own LLC.

replies(2): >>43375739 #>>43377243 #
scarface_74 ◴[15 Mar 25 23:04 UTC] No.43375739[source]▶
Right because the government doesn’t do anything for its citizens and no one should pay taxes anywhere.

Unless you can provid all of the infrastructure for yourself and insure your property rights are secured from people just taking them.

You realize you are going to have to “obey the laws” of whatever country you live in?

The only way you don’t involve some government in your life is to either live in on a boat or to live off the land in the woods somewhere

You know that LLC is also a legal construct you need a government to enforce. Do you plan to get a passport? Do you plan to be “stateless”? Plan on registering for the countries health care system?

replies(1): >>43376210 #
carlosjobim ◴[16 Mar 25 00:59 UTC] No.43376210[source]▶
Did you read the title of the thread?
replies(1): >>43376225 #
scarface_74 ◴[16 Mar 25 01:03 UTC] No.43376225[source]▶
So does the title of thread automagically mean there is some method to avoid being ruled by some government except living in the woods or the middle of the ocean?
replies(1): >>43382447 #
carlosjobim ◴[16 Mar 25 21:22 UTC] No.43382447[source]▶
Or on a beautiful beach surrounded by lovely people.
replies(1): >>43383161 #
1. scarface_74 ◴[16 Mar 25 22:32 UTC] No.43383161[source]▶
That beach is not under the jurisdiction of a government? Could I just run around naked without getting arrested?
replies(1): >>43389301 #
2. carlosjobim ◴[17 Mar 25 15:02 UTC] No.43389301[source]▶
You will need to learn some different evasion techniques for that.