How I paid just 1% in taxes LEGALLY…
How I paid just 1% in taxes LEGALLY… by Team Sovereign Man for Sovereign Man
[Today’s letter was penned by Lucas, a member of the Sovereign Man family]
Yesterday we reported how Deutsche Bank, one of the largest banks in the world, proposed that people working from home should have to pay an additional 5% tax to subsidize people who can’t work from home.
As absurd as this idea sounds, the authors claim that this tax has been needed for years, but “Covid has just made it obvious.”
And while the voices for higher taxes and more socialism seem to be getting louder and louder in the west, there ARE still places in the world that don’t share the same view.
Unsurprisingly many of them are in the east– former Soviet republics where people have actually lived through the horrors of socialism. So instead of punishing productive people with high taxes, they are trying to attract them with low taxes.
One of those countries is Georgia… A tiny ex-Soviet nation that has rolled out the red carpet for remote workers and other productive foreigners.
I moved here some time ago. And last week, I made my first tax payment to the Georgian government.
My tax rate was just 1%.That’s as close to 0% as you can get and it is completely legal.
This is possible, because Georgia has some very interesting tax incentives that hardly anyone has ever heard about.
The first incentive allows you to pay just 1% tax, but there are three important limitations to consider…
The first is that the tax is applied on the revenue and not the profit of the business and the second one is that you can’t earn more than approximately US$150,000 for more than two years in a row.
But despite these limitations, it’s an incredibly attractive structure for many people.
If you are a freelancer, remote worker (who can structure as a contractor) or run a business that is not capital intensive, such as affiliate marketing or selling of digital products, then your effective tax rate would likely be 1% or very close to it.