How Digital Nomads Can Earn $107,600

Pay $0 Income Taxes

 

Tax Advisor to the Uber Wealthy shares the most powerful tax reduction strategies for US citizens living abroad

Discover How Digital Nomads Can Stop Paying Social Security and Medicare… Legally!

Dear Friend: 

Surveys show that 70% of Americans want to be self-employed. 

But they have delusional fantasies of lounging around in their underwear all day, streaming their favorite movies and shows as the money magically flows into their bank account. 

Only 7% of Americans actually are self-employed. 

You know the obvious reason for this massive disparity… being self-employed or a small business owner is NOT easy.

At the end of the day, you’re responsible for making ends meet… there’s no blaming anyone else – most people can’t handle that.

You knew that most businesses fail but still faced your fears and chased your dreams. 

On the fly, you learned about web design, sales software, merchant accounts, marketing, email campaigns, social media, etc.

You interact with partners, suppliers, vendors, franchisors / franchisees, affiliates, etc. You need to make sure that everyone does what they say they will do, at the agreed price, and on time… it’s a full-time job but you do much more.

You learned about accounting and how to create a P&L. Blog articles make them sound easy but you live in the real world and deal with chargebacks, various forms of theft, and dishonest people looking for freebies.

You put in the hard work, sacrifice, calculated risk, a unique vision, dedication, dealing with fear, overcoming setbacks and failures, etc…

You fight for every single penny of revenue… and what do you get as a reward?

You are forced to deal with Uncle Sam.

Not only does the IRS demand 30%+ of your income, it’s a nightmare just to figure out the exact amount due.

Heaven forbid you need some help.

Have you ever called the IRS?

You’ll wait on hold for at least an hour. If you can actually get someone on the phone, you’ll never get a straight answer. In fact, studies have shown that nearly 50% of the advice offered by the IRS is wrong!

There’s no shame in hiring a tax professional… people go to school for years to study the US tax system. After extensive studies, most tax professionals specialize in one area of law because the entire tax system is too big and complex for one single person to understand. 

Even asking professionals for help can be risky… 

Multiple tax professionals will give you different answers to the exact same questions.

All you want to do is keep more of what you’ve earned but the whole tax filing experience is painful.

Can you just leave and escape taxes?

No. The US taxes based on citizenship, not where you live. 

Even if you live abroad you’re still forced to fund government services like the roads that you don’t even use

Unfortunately, taxes are only going to get worse.

Every time you turn on the news, people are demanding free this and free that but you’ve already paid more than your fair share to the taxman. 

You work incredibly hard for your money and the government might as well light your tax dollars on fire.

Did you know that the government sent $1.4 billion of Covid-stimulus checks to DEAD people?

Researchers estimate that 10% of the ANNUAL Medicare and Medicaid spending goes to fraudsters.

That’s about $98 billion every single year.

It’s no wonder the published national debt is over $26 trillion.

Did you know this figure does NOT include unfunded liabilities such as Social Security and Medicaid?

The government’s own accounting shows that…

 … Social Security has $44 trillion worth of outstanding liabilities…

… Medicare has $57 trillion worth of outstanding liabilities.

Including these and other “unfunded” programs, the real size of the US government debt is about $132 trillion!

…about $860,000 per person.

But the government cooks the books. Private sector economists estimate the true debt to exceed $200 trillion! 

I don’t think it’s possible for the US government to repay its debts.

But that won’t stop them from trying.

US politicians will be forced to take action soon – many programs are already crumbling.

Social Security is made up of two major funds – the Old Age Survivors Insurance (OASI) and the Disability Insurance (DI).

In 2016, the government’s official report authored by the Social Security Board of Trustees admitted that the DI fund ran out of money and started borrowing from OASI.

They estimated that a smaller third fund will run out of cash by 2028.

Social Security Trustees calculated that all of the funds within the Social Security program will be exhausted by 2034 and estimated that benefits will need to be cut 21% to sustain payments through 2090.

Here’s the kicker…

Your Social Security payments can be cut by 100%!

… meaning you get $0. 

Yes, $0.

The Supreme Court ruled in Flemming v. Nestor that Americans have no legally binding contractual rights to Social Security payments.

 The Supreme Court reasoned:

To engraft upon the Social Security system a concept of “accrued property rights” would deprive it of the flexibility and boldness in adjustment to ever-changing conditions which it demands.

In plain English, the Supreme Court stated that economic pressures, like enormous debt, allow the US government to cut or eliminate your benefits.

You can be forced to pay hundreds of thousands into the Social Security system and get $0 back in return.

Look, ranting about the government’s irresponsible spending is pointless. There’s almost nothing you can do to change the system.

But there’s a whole lot you can do to improve your life.

Over 9 million Americans currently live abroad.

Some just want to travel. 

Some found a place in the world that better suits their lifestyle. 

A great many leave the US to save on taxes.

What about you?

What kind of life do you crave?

Regardless of motivation, I created the US Digital Nomad Solution to help US citizens improve their lives and, in the process, keep more of what they earn.

Leaving the US doesn’t need to be a permanent strategy… but it is the most powerful tax reduction strategy for location independent Americans.

What if you’re currently “stuck” at an office job and not location independent? 

Is being a digital nomad just a dream?

I say, no.

Becoming location independent has never been more feasible.

2020 proved that many employees are forced to show up at an office without reason.

It’s never been easier to negotiate working remotely. 

The US Digital Nomad Solution enhances your bargaining power. Keep reading to understand why.

This solution capitalizes on the most powerful tax reduction strategies for location independent US citizens (and US tax residents).

The US Digital Nomad Solution reduces or eliminates personal income tax, FICA taxes, FUTA (federal unemployment tax), and state self-employment taxes.

Foreign Earned Income Exclusion (FEIE)

Yes, the US government taxes based on citizenship.

But there is a significant break for Americans living abroad. 

The FEIE exempts $107,600 for one person ($215,200 for married couples – 2020 figures, indexed for inflation) from income tax for qualifying persons.

There are two ways to qualify for the FEIE:

  1. Physical Presence Test (PPT)

√  Someone must be present in a foreign country for 330 days out of a 365-day period.

This only leaves 35 days of travel not in a foreign country – which may or may not include time in the US.

Time spent on international waters, for example, is not spent in a foreign country! Meaning, spending a day on a cruise ship in international waters might reduce the number of days you can spend in America without losing your FEIE status.

  1. Bona Fide Resident Test (BFRT)

Prove that you were a resident of a foreign country for an entire tax year.

The rules for becoming a tax resident vary country to country. Generally, you’ll need to be there for at least 183 days per year.

There are other factors in qualifying under the BFRT like establishing roots to a community – this can be done by acquiring a residency permit, renting or buying a home, joining a local gym or club, a local bank account, a local cell phone number, etc.

A huge benefit of the BFRT is that it allows significantly more than 35 days of travel in the US. 

How many days can someone spend in the US without disqualifying herself from the FEIE?

Well, that’s the subject of great debate amongst tax professionals.

I always use the Substantial Presence Test (SPT) – the test for determining if foreigners have become US tax residents due to the amount of time they’ve spent in America.

The SPT uses a complicated formula to calculate time spent in America.

Generally speaking, you’ll avoid becoming a US tax resident and losing your FEIE status by never spending more than 120 days in the US.

The US Digital Nomad Solution must be paired with moving to a no tax jurisdiction.

Suppose, for example, you form a company in a no tax jurisdiction like the United Arab Emirates (UAE). 

If you move to a high tax country like Austria, the local tax authorities will likely claim the right to tax your UAE company despite the UAE having no taxes.

Why?

Because you are physically present in Austria while running the day-to-day activities of your UAE company. 

Fortunately, many no tax countries happily welcome foreigners to come and boost their local economy. 

Here’s a list of popular countries with residency visa programs that also offer 0% income tax:

√  Bahamas

√  Bahrain

  Bermuda

√  Brunei

√  Caymans Islands

√  Kuwait

√  Maldives

√  Monaco

√  Oman

√  Qatar

√  Turks & Caicos

√  United Arab Emirates

√  Vanuatu

There are other countries that can help you achieve your tax reduction goals.

Countries like Panama have a “territorial” tax system and only tax income earned within their borders.

No taxes are due on “foreign sourced” income.

What is “foreign sourced” income? 

Just as it sounds, it means income that is earned everywhere outside of that jurisdiction.

Here’s an example:

Suppose that Frank is a business consultant who lives and works in Panama. Frank runs his business through a foreign company and his clients are from Europe, North America, and Asia.

Frank’s income is considered “foreign sourced” because his company and his clients are not located in Panama.

Some of the most attractive countries with territorial tax systems and residency visa programs include: 

√  Barbados

√  Costa Rica

√  Hong Kong

√  Macau

√  Malaysia

√  Nicaragua

√  Panama

√  Paraguay

√  San Marino

√  Singapore

√  Uruguay (no tax for first five years)

 

Between the PPT and the BFRT, there are many options to consider.

To recap, the PPT allows the fewest days in the US but allows the most flexible travel schedule – the BFRT maximizes the time you can spend in the US while still qualifying for the FEIE. However, the BFRT requires you to become a tax resident and establish ties to a specific jurisdiction.

 Foreign Housing Allowance (FHA)

There’s an additional tax bonus for US citizens that decide to live abroad.

Generally speaking, the FHA is 30% of the FEIE amount – that’s $32,280 for 2020.

There are upward adjustments for certain regions based on the local cost of living. But it’s possible to earn significantly more than $107,600 and still pay $0 in US income tax. 

FICA Taxes

The FEIE only reduces personal “income tax” liability – it does not provide any relief from FICA tax obligations. 

FICA consists of Social Security and Medicare taxes. 

The typical person collecting a paycheck from an employer pays half of their FICA taxes while their employer pays the other half (each pays 7.65% for a total of 15.3%).

But self-employed individuals are responsible for paying both the employee part of the Social Security and Medicare taxes and the employer portion as well (15.3%). This is called the self-employment tax.

Forming a foreign company can eliminate your FICA tax obligations. 

Why?

Foreign entities are not required to pay US FICA taxes.  

With careful planning, it’s possible to earn millions of dollars through a foreign company and pay $0 in Social Security and Medicare taxes.

The goal is to pay yourself a salary of $107,600 (or the current year’s FEIE amount) plus your Foreign Housing Allowance.

Everything your company earns in excess of this amount can be held in “deferral” – meaning, you will not owe FICA taxes on earnings in excess of the FEIE and Foreign Housing Allowance.

There is a small catch.

In 2017, the US began its Global Intangible Low Taxed Income (GILTI) regime.

Essentially, GILTI ensures that American shareholders of foreign companies pay some minimal tax on the company’s global profits. 

GILTI imposes a 10.5% tax on these profits.

But this tax is applied only on profits after paying yourself a salary, foreign housing allowance, and business expenses, including travel, cell phones, computers, software, etc. 

On the whole, the US Digital Nomad Solution still radically reduces the tax burden on Americans digital nomads.

In just one year, the US Digital Nomad Solution can easily save you over $40,000 in taxes. 

Naturally, these savings compound over time. 

Every penny saved in taxes can be reinvested into your company to generate additional revenue and profits.

The tax savings alone make the US Digital Nomad Solution a worthwhile investment.

What if you are currently an employee?

Many employees dream of working from home and becoming a digital nomad.

But it doesn’t need to be a dream.

An “employee” can negotiate with their employer to become an “independent contractor” – meaning, self-employed.  

With careful planning, the US Digital Nomad Solution eliminates FICA taxes for both you and your employer.

You will both save money.

Even if you take a slight pay-reduction, you can come out ahead. Your take-home pay can increase because of reduced taxes.

Plus, there is a premium on making money at home – wherever that might be.

Think about all the time you spend commuting.

How much time do you waste on “face-time” … aka just being physically present at the office?

You might take home less on paper… but how much can your life improve by reducing the BS and hassle of going to the office?

Working from home can improve the quality of your life. 

In case you need some ammo to persuade your employer… switching to an independent contractor who works from home can improve your productivity as well.

A study by a prestigious American university found that remote workers took fewer sick days and were 13% more productive than employees that work in an office. 

Where Should I Incorporate?

Naturally, you’ll want to incorporate in a jurisdiction with a 0% corporate tax rate. 

But be careful.

This is where many DIY internet researchers go wrong.

Not all jurisdictions offering 0% taxes are created equal. 

This comes to a surprise to people fantasizing about incorporating in the Cayman Islands, Bermuda, Bahamas, or the British Virgin Islands. Other jurisdictions like Belize and the Seychelles have become trendy.

But it’s become very difficult to operate a business from many popular so-called “tax haven” jurisdictions due to new laws and regulations. 

Many of these jurisdictions have gained a bad reputation for attracting criminals.

Banks, insurance companies, and the international business community fear getting caught in a scandal – they apply enhanced scrutiny to transactions from these  jurisdictions.

But the United Arab Emirates is different. 

Unlike many of the most popular island jurisdictions, the UAE has a robust economy on par with other international business centers like New York City, Zurich and Hong Kong. 

This helps make banking easy with a UAE company.

Client Testimonial

It is reassuring to know we can depend on everyone at the Esquire Group to answer or solve any problems we may encounter with our business ventures. All of our dealings with the Esquire Group have been professional, timely and efficient.

We chose the Esquire Group because of their experience and knowledge. They have set themselves apart from other firms and have exceeded our expectations.

Grey and Laurie Ruegamer
Esquire Group Clients

In The News

There is a need from a business point of view to engage in tax planning, and I think it’s something businesses will continue to do, or they will struggle.

Quote from Jimmy Sexton, LLM
Founder & CEO of Esquire Group
Failure To Mention Tax In Stakeholder
Model Raises Eyebrows
Author: Matt Thompson
Law360

In The News

The turning away of U.S. citizens by some foreign financial institutions is making it tough for some Americans to do business overseas, according to Jimmy Sexton, President of the Esquire Group, an international tax firm with offices in Las Vegas and Vienna, Austria.

Tax Law Is Putting A Strain On Expatriates
Author: William Douglas
November 29, 2013 - Print Edition
Washington Post

In The News

...what most of these entrepreneurs don’t realize is that implementing a tax plan usually requires some restructuring, which often triggers tax consequences that could have been avoided had a proper tax plan been implemented at the onset of the venture. In fact, some of the tax consequences of implementing a new tax plan are so severe that it makes more sense to stick with their current, tax-inefficient, structure.

Jimmy Sexton, LLM
Founder & CEO of Esquire Group
Why Reviewing Your Tax Strategy
Makes Financial Sense
Forbes

Client Testimonial

On many occasions the Esquire Group has come through in the clutch. Being an independent contractor, I am always on the lookout for any tax breaks that are available to me.

Always thorough, James and his staff save me countless dollars that others have overlooked. These guys are legit!

Curtis A.
Esquire Group Client

In The News

I can’t tell you how many entrepreneurs don’t find out about their reporting obligations until they have already been operating for several years. This requires a lot of costly cleanup, especially if the tax authorities get involved.

Jimmy Sexton, LLM
Founder & CEO of Esquire Group
The Top Five Mistakes Entrepreneurs Make
When Expanding Internationally
Forbes

In The News

So now you have this big explosion of people expatriating, because they can keep the same lifestyle, but not have the taxation that’s attached to U.S. citizenship.

Quote from Jimmy Sexton, LLM
Founder & CEO of Esquire Group
Expatriated: Leaving the Land of The Free
Author: Margaret Childs
The Vienna Review

Client Testimonial

Esquire Group has been an outstanding tax return preparer over the better part of the last decade for us. We have complex international and domestic transactions that Esquire Group has handled very well. We provide all of our information, answer any questions, and have the confidence that our tax returns are tax authority compliant manner.

Esquire Group came to our attention through a trusted advisor, and we are thrilled to be a satisfied client after all these years.  We look forward to many more years so we can remain compliant with the ever-changing reporting requirements.

Gina and Pete Culpepper
Esquire Group Clients

In The News

It seems prudent for anyone valuing privacy and personal freedom to contemplate what level of government intrusion they’re willing to accept.

Many freedom minded individuals have already begun exploring their options.

Jimmy Sexton, LLM
Founder & CEO of Esquire Group
Where Will Freedom Exist in the Future?
Epoch Times

In The News

Don’t let Hollywood form your ideas about what countries might be involved in your plan. I’ve seen stuff in movies that is out of date by three decades. There are some well-known jurisdictions when it comes to this kind of stuff. Maybe they are right for you; maybe not. 

Find a service provider who understands the importance of your unique situation and desires, and your heirs will expand on your legacy.

Jimmy Sexton, LLM
Founder & CEO of Esquire Group
Why Privacy Should Matter to Business Owners
Forbes

In The News

The real reason for these registers is just to shame the wealthy… There’s a war on wealth right now…

Quote from Jimmy Sexton, LLM
Founder & CEO of Esquire Group
Increased Corp. Transparency Comes With
Drawbacks, Tax Pros Say
Author: Todd Buell
Law360

Client Testimonial

I just want to thank Esquire services for a very professional job in handling my taxes. I hadn't filed taxes in the States for 17 years. So my backed taxes were a huge mess.

Esquire was extremely helpful and very patient in helping sort out this problem. I also compared their prices and services with other firms and found that Esquire was the best. I had a very pleasant experience with Esquire.

T.P.
Esquire Group Client

In The News

Jimmy Sexton, an American, was forced to close his checking account at Volksbank in Austria earlier this year… Sexton, who is president of his own international tax firm, was also able to open a new account at another bank with a department specializing in expat accounts.

Banks Lock Out Americans Over New Tax Law
Author: Sophia Yan
CNN

In The News

It’s very easy to make mistakes when formally establishing classes of stock, the privileges of each stock class, and ownership interests. Mistakes can cost you money and even control over your company.

Jimmy Sexton, LLM
Founder & CEO of Esquire Group
Forbes

In The News

You don’t need to be doing anything illegal or immoral to benefit from privacy.

Instead, the default position should be privacy. Only under strict circumstances, with clear and abundant evidence of wrongdoing, should privacy be revoked. I believe that current and potential business owners who are against privacy might want to reconsider their position.

Jimmy Sexton, LLM
Founder & CEO of Esquire Group
Why Privacy Should Matter to Business Owners
Forbes

Opening a bank account for your company is not difficult.

Importantly, transactions to and from UAE companies are viewed more favorably than those involving the island jurisdictions. You’ll be able to easily and quickly send and receive money with your UAE company.

You’ll also be able to maintain privacy.

Unlike many of the popular jurisdictions, the UAE has no public beneficial owner register – meaning, the general public cannot look up the shareholders of UAE-based companies.

The UAE also has a desirable legal system.

Life happens. 

Sometimes things go wrong. 

The UAE has a legal system that is familiar to Americans and is generally reliable.

 Many “tax haven” jurisdictions, especially the cheap ones, are very corrupt.

You don’t want to end up in a lawsuit in a jurisdiction where judges are regularly paid off.

All of these benefits and features are why I decided to headquarter Esquire Group in the UAE.

Esquire Group is one of a limited number of licensed corporate service providers by the Ras Al Khaimah International Corporate Centre (RAKICC) – a Corporate Registry responsible for the registration and incorporation of International Business Companies.

You’ll benefit from our boots on the ground presence here in the UAE and our relationship with RAKICC.

The US Digital Nomad Solution includes:

√  One United Arab Emirates RAKICC company

√  Formation fees

√  First year Registered Agent fees

√  Company documents

            • Memorandum and Articles of Association
            • Sample Resolutions
            • Certificate of Incorporation
            • Register of Members
            • Register of Directors

√  Banking introductions upon request

√  Employment contract with your RAKICC company

√  Best practices guide

Your employment contract governs the relationship between you and your RAKICC company. It must be drafted properly to avoid FICA (Social Security and Medicare) taxes. 

Additionally, you’ll receive a “best practices” guide to help you maximize the benefits of your RAKICC company.

I’ll walk you through what you can… and perhaps more importantly… what you CANNOT do with your RAKICC company. 

I’ve been using RAKICC companies with my Ultra High Net Worth clients for several years now. My best practices guide discusses some of the same strategies used by my Uber Wealthy clients and myself.

Want to talk?

The US Digital Nomad Solution also includes a consultation with an international tax consultant.

You’ll get to speak one-on-one with an expert who will answer your questions and ensure your results are maximized.

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FAQ

Question: What if I have an existing US company? How will I transition to a RAKICC company?

√  Answer: Unfortunately, the best answer is not very satisfying – it depends.

The transition to a RAKICC company depends on the nature of your business. 

Do you provide services?

Do you have physical inventory?

Do you have any employees? If so, how many?

There are many variables that will determine the best course of action for you.

This is why the US Digital Nomad Solution includes a consultation with an international tax expert. 

Let’s hop on the phone and figure out these important details.

Question: What happens if I need to pay myself more than $107,600 (or, $215,200 for couples)?

√  Answer: Income above the applicable FEIE limitation is subject to the same income as if you were still living in America. However, no FICA taxes are owed.

Question: Is there a cheaper way to achieve the results offered by the US Digital Nomad Solution?

√  Answer: Yes.

You can incorporate in a low-quality jurisdiction for about a thousand bucks.

But this comes with many risks. 

The cheapest service providers are “entity mills” who make their money on volume. 

Copy and paste is their business model.

They nickel and dime for all the documents and services you need to actually use the entity.

The price of an entity probably won’t include a consultation. If you pay for one, you’ll talk to an entity salesman… not an international tax expert.

Look, there’s nothing wrong with being a price shopper. 

But Esquire Group caters to people that want to skip the headaches and hassles that come with going cheap.

The US Digital Nomad Solution is turnkey – you’ll have everything you need to operate your RAKICC company. 

It includes a consultation with an international tax expert. You’ll get to ask all of your questions. We’ll guide you through this process to help you avoid mistakes.

Plus, you’ll get a best practices guide drafted by me that you can consult at any time. 

Question: What happens after the first year?

√  Answer: It is our goal to develop a long-term relationship with every client of Esquire Group.

We offer competitive fees for ongoing registered agent and corporate services.

We also offer tax preparation services.

Question: What about my personal tax return?

√  Answer: The US Digital Nomad Solution does not include personal or corporate tax preparation.   

However, Esquire Group provides these services. 

You will be given an accurate estimate for tax preparation services after the consultation that’s included with the US Digital Nomad Solution. 

Question: Why choose Esquire Group for my tax preparation needs?

√  Answer: Esquire Group has been preparing international tax returns for fifteen years. 

We regularly welcome new clients who are fleeing the cut-rate tax prep firms.

Virtually all of their returns have mistakes. 

Cut-rate tax prep firms make their money on volume. They’re forced to rush through their work to stay profitable.

Our international tax consultants are limited to handling just 100 clients – well below the industry standard.

This ensures that our consultants have the time and freedom to carefully go through each client’s return and hunt for tax reduction strategies and double check that you are in tax compliance.

For every new client, we review their prior returns to double check for errors.

Every tax client has year-round access to their assigned tax consultant to ask questions and get advice.

We also monitor all communication with the IRS to correct any mistakes before they become a nightmare and before the IRS assess penalties and interest.

To review, our tax preparation services include:

√  A personal international tax consultant assigned to you

√  Regular communication throughout the year to notify you of important tax deadlines

√  Tax compliance monitoring to catch mistakes made by the IRS

√  Review of old returns to correct any errors

√  Monitoring all communication with the IRS

√  Financial reporting compliance (FATCA, FBAR, etc)

Ultimately, we want to make sure that you are in good standing with the IRS.

The cut-rate tax prep firms aren’t worth the risk. 

Proceed to the checkout page to see an exclusive offer for customers that purchase the US Digital Nomad Solution.

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Sincerely,

Jimmy Sexton, LLM – Founder & CEO of Esquire Group

PS:

If you want to speak with me personally, click here to book a consultation. 

I can answer all of your questions including how much you can expect to save on taxes over the next five to ten years. 

Are you feeling like the tax savings with the US Digital Nomad Solution aren’t enough? Well, the only way to save more is to expatriate.

As an expatriate myself, I can help you better understand the process and plan your expatriation.

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