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Bootstrapping overseas as an American

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Re: Bootstrapping overseas as an American

#33
A few notes based on my experiences:

1. Decide who you want to be in your new country, and be that person from absolute day one. Changes of setting are one of the most effective ways to end bad habits and start new ones. Want to wake up for sunrise and jog on the beach every day? Start the habit from day one.

2. 'Visa-Runs,' do work many places outside of N. America/Europe, but they must be done religiously. Miss one, and you could face massive penalties.

3. Go with a business to maintain, not a business idea to build, and be sure to have a strong support team in the U.S., and at least a handful of well-enough connected friends in the country you choose.

4. It's really tough to choose an International Health Insurance plan, but don't let the vast array of options deter you from doing so. Sure, health costs are low in many places, but a plan with MedEvac benefits included can really provide added peace of mind.

5. Make friends with motorcycle or taxi drivers, and pay them very well. These guys are the eyes and ears of the city you have made home, and being on their good side is very beneficial, and enjoyable.

6. Compensate for time differences with prompt and reliable communication. People learn not to expect responses from you right away, but if you can establish a system where clients and partners know there will be a response in their inbox by the time they wake up, the distance is less noticeable.

7. It's not easy, but can be an incredible lifestyle for those who go 'all in.'

Re: Bootstrapping overseas as an American

#34

What do people do for health insurance in this situation? Or is it a don't get sick or hurt kind of deal?

Single datum: I barely got the words "I quit my job the day before yesterday and am hence..." out before the friendly clerks at city hall put an application for (Japanese) national insurance in my hand. Had a card 20 minutes later.

Re: Bootstrapping overseas as an American

#35
post #11

That was an odd piece. I'll start with the provably wrong statement: "Even in Europe, where you wouldn’t be able to get a self-employment working visa (if such a thing existed) with less than six months effort and a good lawyer" It took me about 2 months to get a self-employment residency permit for Sweden. While I looked around for lawyers to help, I couldn't find any, and ended up writing it myself. It seems very f…

The overseas bit of this seems more about hipster posing; having a slightly more exotic story to tell. I don't think the cost arguments for relocating to a developing country make any sense. You can live in third tier cities in America or Europe very cheaply. It's only major cities that are expensive. I think in a lot of folks' heads saying "I live by a beach in Thailand" is for some weird reason more cool than saying "I live by a beach in a cheap town in Florida."

Re: Bootstrapping overseas as an American

#36

I'm an overseas developer myself, currently sitting on a point break in Morocco enjoying perfect wifi, powering it all with solar panels. I'm pretty sure that the 100,000 IRS deduction is only for income earned from a foreign source. So, if you are like me and have your income coming from Apple app store sales, then you still need to pay your taxes, without a deduction. Basically, the big problem with working out of…

You have received terrible tax advice. Self-employment income is sourced where you performed the work which earned it, not where the money changed hands. Ask me if you want voluminous citations on this.

Re: Bootstrapping overseas as an American

#37
post #7

Earlier quoted context omitted.

Here's the relevant section explaining that yes, income from a US company is just groovy for use with the Foreign Earned Income deduction: http://www.irs.gov/Individuals/International-Taxpayers/Forei... Source of Earned Income The source of your earned income is the place where you perform the services for which you received the income. Foreign earned income is income you receive for performing personal services in a…

On that IRS page it says: "For this purpose, foreign earned income is income you receive for services you perform in a foreign country during a period your tax home is in a foreign country and during which you meet either the bona fide residence test or the physical presence test." It sounds like one must also be tax resident in the foreign country for this to work?

Yes. FEI is the IRS's bone to US citizens residing outside the US (in most countries, you only pay taxes if you're resident, citizen or not, the US is one of the few where you're taxed even when residing in an other country)

Re: Bootstrapping overseas as an American

#38
post #27
post #23

Earlier quoted context omitted.

hmmm - "As with all things, often it doesn't work out" ... not really sure where your source is on this -- I lived abroad for five years and met many, many people doing this same thing (especially in Bucharest) -- both in I.T. and in other fields -- it's very do-able, as the author describes -- and as you suggest, it helps if you don't have family

Empirical evidence of the number of friends who went to Asia for mid to long term and then came back within 2 years because it didn't work out. And the incident where I had to help a friend pay his airfare because he was literally stuck. Failure rate seemed higher than success rate.

2 years??? Imo that sounds pretty successful to me. But seriously, the issues you've highlighed are likely to come down to the individual who decided to spend all money without leaving enough for emergencies.

Getting to do this for 6 months would be amazing.

Imo. Rewards for this far, far outweigh everything else.

Re: Bootstrapping overseas as an American

#39

Anyone doing this in Hong Kong? The GF is considering a move to HK with work and I'm trying to sort out how I'd scrape by if I wanted to tag along...

Been living and working in HK for almost 10 years - currently all visa-ed up and legal, but haven't necessarily always been...

There are persistent stories of people who've been living here for years doing regular visa runs, but oddly they mostly seem to be stories, not direct experiences. There are also stories of people who got 'caught', in that the immigration officials decided they'd done too many runs and couldn't explain how they were living in HK without working, and were given 2 weeks to clear up and move out. It's a risk...

With a UK passport you'd get 180 days of visa-free stay per entry, with most other 'developed-world' passports you'd get 90 days. The actual rules on what you can do during that stay are quite strict - attending meetings, negotiating/signing contracts, etc. is allowed, but most other work isn't - to the extent that technically you're not even allowed to do voluntary work. That said, nobody is going to bother you if you're here for a few months and happen to be working for a remote client/employer at home or in a coffee shop. It's the visa runs which are the danger, since that's when they can pick you up. May not be a nice thing to say, but being white does help quite a lot.

It's easier to be here as a resident, legally. You get (almost-)free access to government healthcare, and things like banking are much easier, plus of course you don't have that looking-over-your-shoulder feeling.

One standard piece of advice, which definitely doesn't fit everyone but might be worth considering - assuming you and the GF are a heterosexual couple, a civil marriage is relatively simple in HK, and assuming she is working and/or a resident in her own right, that would get you a visa as a dependent. HK doesn't recognise non-heterosexual relationships in any useful way...

An alternative might be Taiwan, maybe not for you, but for others seeking 'Asia' - I do know a Brit who's been living there for years doing visa runs while writing code for people mostly in the UK, and it seems to work for him and his drunken bum lifestyle :)

Re: Bootstrapping overseas as an American

#40
post #15

Earlier quoted context omitted.

That's right. The other piece of the puzzle is that you have to either show that you're a resident of a foreign country, or that you're physically outside of the USA for 330 days of the year. (as mentioned in the linked article)

The IRS page reads as though one must meet both those criteria, not just one of them?

You must either be a bona-fide resident for an uninterrupted period covering the whole tax year[0] or have been out of the US for at least 330 full days in the year[1] although in the latter case your presence in a foreign country must also be legal according to US law.

[0] http://www.irs.gov/Individuals/International-Taxpayers/Forei...

[1] http://www.irs.gov/Individuals/International-Taxpayers/Forei...

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