The other day, I received an email from a seemingly upset reader - one who, it seemed, must not be too familiar with my work - who referred to my zero-tax lifestyle here in Panama as “moral bankruptcy.”

I don’t want to be accused of misquoting anyone, so here’s this “critique”, word-for-word:

"If you are paying ZERO TAX then I wouldn't want your advice. Everyone, in every country in the world, should be paying a level of tax even if only towards a degree of military/policing (PROTECTION MONEY) and if you're not then I'd regard that as an act of MORAL BANKRUPTCY."

Normally, I wouldn't respond to an email with hallmark RANDOM CAPITALIZATION, but for the sake of education, I’m going to explain how I sleep soundly living this way, and here’s why you can too.

We’re taught since birth that we need coercive taxation to fund the most important aspects of civilization: police, courts, the military and let us not forget, of course, the roads! 

As a philosophical anarcho-capitalist, I do not believe coercive taxes are either moral or necessary.

I steadfastly believe that, in an ideal society, all services, including the most important ones like security and legal services, could be provided voluntarily. 

That said, I live in reality, and despite my moral disagreement with coercive taxation, I fully support complying with the laws of the country in which you are a tax resident. 

And that’s exactly what I do here in Panama, which has a territorial tax system, which means you can have any type of business that does not sell to locals, and you will pay zero taxation.

I was born in Canada, but I don’t live there and don’t pay taxes there.

Why would I? I don’t use their infrastructure, and I certainly have no interest in using their socialist health care system. 

Panama doesn’t have a territorial taxation system in order to enable “cheating” on taxes; it’s a system that is specifically designed to attract people like me to the country. 

Panama creates its taxation laws at the Constitutional level; these are not random decrees put into place, but rather meticulously crafted laws that undergo a thorough legal process, and I follow them to the letter.

While I am here in Panama, I contribute significantly to the economy every day.

I use the services of local businesses.

I hire local, domestic help in the form of nannies and cleaners, helping to drive the local economy.

Because I keep more of my own money, I can employ more local workers to help at home and contribute to charitable causes in the community. 

Countries that allow this tax-free advantage aren’t stupid. 

They put these laws in place because they know it will attract foreign money and help create more jobs and better opportunities for their country.

As a philosophical libertarian, my goal is to create a lifestyle and community based on voluntary exchange, peaceful cooperation, and zero coercion. 

I’m not one of those online libertarians who live in a fantasy land, so I can just go around complaining about everything I don’t like. 

I live in the real world, and I assure you that in the real world, my economic contributions to Panama are far more significant than any amount of “taxation” would suddenly generate. 

One hundred percent of my recommendations and strategies are based on maximizing your freedoms by choosing the proper offshore jurisdictions to do so...legally.

Paying zero tax legally isn’t moral bankruptcy; for those like me, it’s moral clarity.

I sleep quite well because I am complying with the laws of the country I live in, paying zero coercive tax, and contributing greatly to the local economy. 

If you don’t like the way your government is taxing and spending your money, I strongly encourage you to read this important letter.

Speak soon,

Mikkel

PS. If the thought of living tax-free appeals to you, I'd implore you to consider that Latin America could be your future. This October, join our Expat Money Online Summit, where I'll be joined by some of the world’s leading experts on the region, and where you’ll discover why it's time to embrace the freedom and opportunities that come with establishing a Plan B on this side of the world. Reserve your complimentary ticket here.

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No advice: This newsletter, EMS Pulse®, contains information about going offshore and being an expat. The information is not advice and should not be treated as advice. You must not rely on the information in the newsletter as an alternative to legal, financial, or tax advice from an appropriately licensed professional. If you have any specific questions about any such matter, you should consult an appropriately licensed professional. You should never delay seeking legal advice, disregard legal advice, or commence or discontinue any legal action because of information in the EMS Pulse® newsletter or in our work at Expat Money®. Limited warranties: Whilst we endeavour to ensure that the information in the newsletter is correct, we do not warrant or represent its completeness or accuracy. To the maximum extent permitted by applicable law, we exclude all representations, warranties and conditions relating to this newsletter or our work at Expat Money®. We will not be held liable for any decisions you decide to make as the consumer of this content. Law and jurisdiction: This disclaimer shall be governed by and construed in accordance with Panama Law. Any disputes relating to this disclaimer shall be subject to the exclusive jurisdiction of the courts of Panama. This message is sent to you because your email address is on our subscribers' list. If you are not interested in receiving more emails like this one, just hit unsubscribe at the bottom of this email.