In the early sixteenth century, the Hunt-Lenox
globe was drawn, showing uncharted (and presumably dangerous) areas, marked
with the warning: “HIC SVNT DRACONES” – “Here are Dragons.”
Subsequent to that time, mariners sometimes
adopted the phrase, “there might be dragons,” if they became concerned for
their safety when in unfamiliar waters.
It’s now an archaic saying, yet it’s even more
applicable today than in times of yore. There are literally millions of
people (particularly in the EU, US and Canada) who are fearful that their
country of residence is becoming increasingly less free and less safe for
themselves and their wealth. Some are looking into the prospect of
internationalizing themselves, but a much smaller percentage actually take
the plunge. Why should this be so? Well, as in centuries passed, for many,
the reason is that … there might be dragons.
Of course, none of the mariners of old had
actually ever seen a dragon, so each one conjured up his own image, and this
is just as true today. For those of us who advise on internationalization,
here are a few perceived dragons that we hear about repeatedly:
I don’t know anything about
internationalization. I wouldn’t know where to begin.
You’ve already begun. Follow the “International
Man” website. It has over five years of archived articles that cover
virtually every aspect of internationalizing. In addition, obtain a copy of
“Going Global.” Go on line to research destinations than fit your personal
situation. Then, instead of a holiday to Disney World, go to a country that
seems to you to be the most likely best choice for either a second home, or
even a complete change of national residence. You’ll be amazed at how
extensive and varied the opportunities are out there.
Won’t I just end up as a slave to a different
country instead of my home country?
Not if you choose your destination well. Many
countries are far less invasive to your freedoms and wealth than the
three jurisdictions mentioned above. Some, in fact, are just as prosperous
and well-developed as your present country, yet have zero direct
taxes.
In addition, should you choose to live in multiple
destinations, you’d be less “owned” as a visitor or temporary resident than
if you were a full-time resident and citizen.
Will I have rights there, since I’ll be a
foreigner?
For those countries that fall under English common
law, your rights will be almost identical to those of the locals. (This is
less true in countries that come under civil law – notably Spanish America
and much of Europe.) However, most everywhere, you will be regarded as a
guest and, in many ways be treated better than locals. In some countries, you
would be treated better by both locals and the government than you were at
home.
Will I have to learn a new language?
Yes, or no, depending on your choice of
destination. For anywhere in Central or South America (except Belize,
Suriname and Guyana), yes. For the Caribbean, Australia, New Zealand, Canada,
Ireland, the UK, and many Pacific islands, English is the primary language.
In many other countries – Israel, the Philippines, and most of Europe,
English is spoken by a majority of residents. Your choice of destination may,
in part, depend on your ability (or willingness) to learn another language.
What if I can’t find any friends?
Most choice destination countries already have
entire expat communities. However, many who expatriate themselves find that
they prefer the locals and choose either integrated communities, or
predominantly local communities.
If I cash out here, my funds to start over
elsewhere might be limited. How can I be sure that I’ll be able to afford to
live there without giving up my lifestyle?
First, if you wait to cash out until after events
such as a real estate crash has occurred at home, or confiscation of your
bank deposits has occurred, then yes, you will have less when you
leave. Hence, the sooner the better. Second, your lifestyle would be
likely to change, as you’d probably make different choices than before, based
on new opportunities. Third, you may choose a destination where you’re
already far more wealthy than most locals – where the cost of living is far
lower than what you now pay. Fourth, even in a high-cost-of-living
destination, if you choose to work, you’d probably be making more than at
home. Fifth, if you move to a low-tax, or no-tax jurisdiction, you’d retain
much more of your gross income. (My own country is such a destination and
I’ve met countless people who came without even enough money to buy a used
car, but ended up very successful.)
What if I’m unhappy there?
It’s a big world. There are many other choices and
your first stop needn’t be your last. However, if you do your homework well,
before going, you’re likely to pick more wisely the first time out.
What if I decide I want to go back?
Some people (but not many) do make that choice.
But, they then find that any government that wants your money is more than
happy to take you back. (Governments have no objection to wealth coming back in,
they only try to stop it going out.) Even those who renounce their
citizenship often find that they’re welcomed back into their first country,
either on a visa or by reinstating their citizenship. However, the great
majority, having succeeded at internationalizing, never choose this option.
Many people fear perceived dragons when
considering internationalization. When doing so, they often overlook the very
real dragon that’s creeping up behind them – the dragon of a declining world
power that’s compensating for its decline through overreach – increasing
taxation, removal of basic freedoms, an increasing police state, plus
ever-expanding capital controls and governmental surveillance. As the
situation worsens, the known world may well become more threatening than the
new one.
The Middle Ages came to an end, in part, because
new lands were discovered to the west by the mariners. Many people opted to
stay put, for fear of dragons. Others opted for the slogan found on the
reverse of Spanish coinage at that time. The two pillars on the coins
represented the Straits of Gibraltar, and the slogan on the pillars – “PLUS
ULTRA” (more beyond) signified a whole world apart from the old one, with new
opportunities. The choice today is the same. Your future may depend on your
outlook – whether you see the greater world from the standpoint of HIC SVNT
DRACONES or PLUS ULTRA.
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Jeff Thomas is British and resides in the Caribbean. The son of an
economist and historian, he learned early to be distrustful of governments
as a general principle. Although he spent his career creating and developing
businesses, for eight years, he penned a weekly newspaper column on the
theme of limiting government. He began his study of economics around 1990,
learning initially from Sir John Templeton, then Harry Schulz and Doug
Casey and later others of an Austrian persuasion. He is now a regular
feature writer for Casey Research’s International Man and Strategic Wealth
Preservation in the Cayman Islands.
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The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd.
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