All internationalization communities encourage its readers and participants to move to some supposedly laissez-faire capitalist paradise. Recently, this has been Chile and Paraguay. They also encourage the acquisition of a second passport, from places like Dominica, Antigua and Barbuda, and Saint Kitts and Nevis.
In this post, I will go through something called second residence.
How and Where to get a Second Residence
EU, EEA, and Swiss passport holders are especially lucky in this regard, as they can very easily move around within each others borders. Eastern Europe is full of empty, cheap apartments. This post is not useful to other nationalities unless you already hold a visa or similar permit that allows free movement within the EU.
Below is an indicative list of countries and the rent for a studio or one-room apartment in a decent area, but not city center. Since the main audience for this post will be Europeans, I am listing rent in EUR. If you want something nicer, there is really no upper limit. Add another 50% – 100% for an extra room and/or more central area, but the point here is to find a cheap place. Availability refers to the availability of apartments to rent, based on my own research and experience.[ws_table id=”38″]
All of these countries are within a few hours by plane from almost anywhere in Europe.
It may also be interesting to purchase a property, but then it becomes an investment and not just a second residence.
Advantages of Second Residence
By having a second residence, you can effectively domicile yourself there without maintaining a residence.
This, for example, means you can have an apartment in Malta and form offshore companies and open offshore bank accounts with your Maltese address. Doing this in order to avoid tax may be a crime, depending on the laws of your actual country of residence.
In an end-of-the-world type scenario, having a second residence means you can pick up all your primary belongings and immediately have a new residence available.
Disadvantages of Second Residence
It costs money and you have to go to another country to pick up mail, unless you pay someone to do it, in which case the costs are even greater.
If you spend too much time in your second residence, you may find yourself subject to double taxation. As always, make sure that your decision is an informed one. Speak to a licensed tax adviser.