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Ask HN: Is it worth to move to another country for 1mil$?

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Ask HN: Is it worth to move to another country for 1mil$?

#1

Post by Denniz »

Lets say you made it. You always wanted to be independent. Your cooperate job sucked. So you started your amazing side project. It took off.

What was previously fun requires now serious decisions. Your life. Should you resign from you boring job, although it makes now somehow a bit fun. Should you hire people. Should you change anything at all.

But maybe the most urgent decision would be: 1) Staying where you are. Paying 45% Tax rate. With rather bad regulatory conditions 2) Moving to a business friendly and tax friendly country like Switzerland. Paying 10% Tax.

What would you do?

PS: Some of my own thoughts. I never would go away to Swiss for a raise from 100k -> 200k. But it is somehow more difficult when we are talking about millions. Especially when I have the feeling that my government doesn't spend the taxes well. Not sure yet what I would do with one million more, but guess something like starting a new company or helping parents and so on. To be honest kind ofparalyzed regarding this since there seem to be no rational solution. Moving to a new Country could really suck. Especially since friends and family would be somewhere else. On the other hand. Just doing it for a year would result in multiple millions of net worth. It could also be a nice experience - but not sure about it. So really struggling.

Re: Ask HN: Is it worth to move to another country for 1mil$?

#2

Post by david927 »

First, taxes paid isn't wasted money. It's (theoretically) going to those who need it. Tax havens, along with other tax avoidance schemes, are pretty popular with the rich, which means governments are on the lookout for them. It's not as easy as you think. For example, if you're American, leaving for a year doesn't do a whole lot.

Second, countries are locked down now but even after this pandemic is over, your limit is 90 days. If you're from a Schengen EU country you can get a residence in Monaco and just spend your time traveling. But again, I've heard that if you've ever paid taxes in France, for example, it might not be possible.

There are cruise ships that exist for this purpose. Spending a year surrounded by those kinds of people would seem like a special sort of hell, to me, personally.

If you can live abroad, generally, that's a great experience. Leaving family and friends can be a big cost for some people but if you can do it, it's recommended.

Traveling is like meeting someone, living there for a couple months is like dating them, and longer is like moving in with them: you get to know them intimately, all of their idiosyncrasies and it influences you in ways you can't avoid. You end up being a different person, usually for the better.

Like with everything, it's different per person. I always say: don't do anything just for money if you can help it -- and you usually can.

Re: Ask HN: Is it worth to move to another country for 1mil$?

#3

Post by giantg2 »

david927 wrote: post #2

First, taxes paid isn't wasted money. It's (theoretically) going to those who need it. Tax havens, along with other tax avoidance schemes, are pretty popular with the rich, which means governments are on the lookout for them. It's not as easy as you think. For example, if you're American, leaving for a year doesn't do a whole lot. Second, countries are locked down now but even after this pandemic is over, your limit…

"First, taxes paid isn't wasted money. It's (theoretically) going to those who need it."

Considering the GAO reports that over $100 Billion is wasted by the federal government annually, I find it hard to truly believe that it is going to those who need it (how's need even defined anyways?). The OP also states that he doesn't believe the money is being used properly.

Re: Ask HN: Is it worth to move to another country for 1mil$?

#4

Post by giantg2 »

I'd say do whatever you would enjoy. You might as well stay where you are and endure the taxes and regulation if the rest of your life is enjoyable. It sounds like even at 45% tax, you will be making more than you do now.

On the other side of this, you might find yourself disagreeing with your government. It might make you happier to move to a government that more closely matches your ideals.

Re: Ask HN: Is it worth to move to another country for 1mil$?

#5

Post by orange_tee »

If you are settled with friends and family it is not worth it to upend your whole life to move. You will never have that back. I speak from experience. IMHO if you have a nascent business, focus on growing and ignore all else. It's not worth it to worry about taxes today. I would only move if this helps the business grow.

Re: Ask HN: Is it worth to move to another country for 1mil$?

#6

Post by david927 »

giantg2 wrote: post #3
david927 wrote: post #2

First, taxes paid isn't wasted money. It's (theoretically) going to those who need it. Tax havens, along with other tax avoidance schemes, are pretty popular with the rich, which means governments are on the lookout for them. It's not as easy as you think. For example, if you're American, leaving for a year doesn't do a whole lot. Second, countries are locked down now but even after this pandemic is over, your limit…

"First, taxes paid isn't wasted money. It's (theoretically) going to those who need it." Considering the GAO reports that over $100 Billion is wasted by the federal government annually, I find it hard to truly believe that it is going to those who need it (how's need even defined anyways?). The OP also states that he doesn't believe the money is being used properly.

"I don't believe the Fire Department is being as efficient as they can be, therefore I won't chip in my portion to help fund them." That's puerile and childish. You're not being principled, you're being greedy.

You don't like its efficiencies? Help fix it. You don't want any of its services? Let's see how long you last without them, especially the police and military protecting that wealth. It's all a social contract and you don't get the services but get to opt out of paying for them because you got more and realized that you're a greedy, shitty little scumbag.

Re: Ask HN: Is it worth to move to another country for 1mil$?

#7

Post by giantg2 »

david927 wrote: post #6
giantg2 wrote: post #3

Earlier quoted context omitted.

"First, taxes paid isn't wasted money. It's (theoretically) going to those who need it." Considering the GAO reports that over $100 Billion is wasted by the federal government annually, I find it hard to truly believe that it is going to those who need it (how's need even defined anyways?). The OP also states that he doesn't believe the money is being used properly.

"I don't believe the Fire Department is being as efficient as they can be, therefore I won't chip in my portion to help fund them." That's puerile and childish. You're not being principled, you're being greedy. You don't like its efficiencies? Help fix it. You don't want any of its services? Let's see how long you last without them, especially the police and military protecting that wealth. It's all a social contract…

He's not saying that he wants to get the services without paying. He's saying he wants to move to another country to keep more of his money. If you can pay 10% for the same services (or the level of services that you want) in one country, but it would cost your 45% in your current country, then why not switch? There's nothing wrong with that. You're still paying your share under the social contract.

Re: Ask HN: Is it worth to move to another country for 1mil$?

#9

Post by chefkoch »

giantg2 wrote: post #7
david927 wrote: post #6

Earlier quoted context omitted.

"I don't believe the Fire Department is being as efficient as they can be, therefore I won't chip in my portion to help fund them." That's puerile and childish. You're not being principled, you're being greedy. You don't like its efficiencies? Help fix it. You don't want any of its services? Let's see how long you last without them, especially the police and military protecting that wealth. It's all a social contract…

He's not saying that he wants to get the services without paying. He's saying he wants to move to another country to keep more of his money. If you can pay 10% for the same services (or the level of services that you want) in one country, but it would cost your 45% in your current country, then why not switch? There's nothing wrong with that. You're still paying your share under the social contract.

He already got the services all his life. Or do you think he could have started his company without education, infrastructure and security?

Re: Ask HN: Is it worth to move to another country for 1mil$?

#10

Post by duxup »

I think the value of living in another country is really about personal choices and that is way more than money.

Also I keep thinking that the disruption of moving the company, legal and personal challenges there and etc are REALLY going to hit your productivity / momentum. If you're looking at a million dollars, do you chose to take a big disruption at that point?

I think there's a lot more to consider here than how you frame it. I'm not sure the outcomes here is as simple as tax rate.

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