Location Independence Datasheet & Introduction To New Blog
A slowly deflating air mattress lies alone in the bedroom.
Two piles sit in the living room; one to pack, one to trash.
Walked laconically across all that empty space to the window;
a golden sunset peeks between distant thunderclouds.
Beneath the frothing restlessness, anticipation and excitement,
lies a subdued undercurrent of sadness and nostalgia.
The dimming sunset casts a shadow with a sense of finality;
what was home now seems foreign.
Standing at the window as I summon the strength,
for it is not long until I walk into the unknown...
Table of Contents
- Introduction
- My New Blog
- What This Datasheet Isn’t
- Should You Take The Plunge?
- Expatriation Logistics
- Make A Plan To Earn Money Abroad
- Best Business Structures For Expats
- Expat Taxation
- Expat Banking
- Visas
- Health Insurance
- Mail
- Your Possessions
- Telecommunications
- You Need These Apps
- Telling Others Of Your Plan
- Closing Words
- Acknowledgements
Introduction
Becoming an
expat is not as easy as it sounds. I encountered challenges and obstacles along the way, but I succeeded and
so can you. This guide is intended as the resource I wish I had when I first started this journey.
I originally intended to drop a more detailed datasheet on becoming a location independent expat, but it grew to a 30 page monstrosity. So I repurposed that content into a series of blog posts to complement this datasheet. Over the next few months I will share these blog posts once every few days. I will detail my mistakes and struggles as well as the lessons I learned as I faced each challenge head on.
As the blog matures, I will introduce some affiliate links to relevant products for travelers and expats. I also plan to offer coaching services to prospective expats. Keep in mind I will
never promote any product if I don’t believe it is
relevant and
useful to my target audience. If I see a product that has potential, then I will buy and use it myself before I recommend it.
My New Blog
Without further ado… please welcome the newest blog to take the manosphere by storm!
The Masculine Expat
Take a look, subscribe to it, and add me on twitter at
@masculinexpat so you can follow along in my journey.
When you sign up, you will receive an email with my
Free Expatriation Checklist that outlines all the steps to execute in what order.
Unlike other expat/travel bloggers who write about meaningless random stuff or brag about how great their lives are,
my blog caters to men just like us -- combining masculinity with the quest to become location independent.
What This Datasheet Isn’t
Keep in mind the information here is written from an American point of view, particularly on taxes, but most of it also applies to prospective expats from any country in the world. This sheet does not contain any demographic comparisons of cost of living, abundance of LTR material, and ease of getting laid. You won’t find any intel on best nightclubs or gaming spots in specific locations in this post.
I debated listing the countries I considered, the pros/cons of each, and why I picked the country I’m going to. Although an interesting topic for the forum, I decided to leave it out of this sheet. However, I am writing blog posts showing which countries I looked at and how I decided on one.
Disclaimer:
I am neither liable nor responsible for anything that might go wrong in your expatriation. This post is only for informational purposes and is not meant to be used as legal advice with respect to banking, finance, taxes, insurance, and/or visas, etc. For detailed advice on these matters, please consult with an attorney, CPA, or a professional with the appropriate expertise. In short -- if you fuck up, don’t sue me.
Should You Take The Plunge?
This is one of the first questions that you should ask yourself. Whatever your reasons are, you want to make sure you have a plan to accomplish what you set out to do. Relevant quote:
“By failing to prepare, you are preparing to fail.” -- Benjamin Franklin
The main question is, do you want it bad enough?
If you’re wishy washy about becoming location independent, saying things like “yeah someday it’ll happen, not now, but someday…”, it’s not going to happen.
You have to mark a date on your calendar. If you want it bad enough, then you will take the steps and make the necessary sacrifices to make it happen by that date. Setting a date and marking off your checklist is the only way to make this a reality.
Expatriation Logistics
Becoming an expat is akin to navigating through a logistical minefield:
- Visas
- Finances
- Taxes
- Air travel
- Insurance
- Mail
- Different culture/language
- No local support structure (family, close friends, etc...)
I give an overview of each in this sheet, but will write more detail in my upcoming blog posts over the next few months.
Make A Plan To Earn Money Abroad
Before you dive into the logistics, you need to have a plan to somehow earn money abroad and support yourself. One of the ways you can do so is to start a business or find a remote job.
Your business should be portable, online, and have (relatively) low overhead. If your business is scalable, great!
There’s a thread
samsamsam started a while back on location independence ideas. Check it out and see if something sticks with you:
/thread-55782.html
Note: Even if you have enough money to support yourself without the need to earn more money, you need to have a plan to invest your money abroad or have enough hobbies to keep yourself busy.
Best Business Structures For Expats
There are several ways you can structure a business.
- Sole proprietorship
- LLC
- Corporation
- Partnership
For location independent expats or freelancers, the first two -- sole proprietorship or LLC -- are the most recommended. Corporation or Partnership structures are more difficult and unwieldy to manage; not ideal for the location independent entrepreneur.
LLC has tax advantages over a sole proprietor, at least above a certain income level, plus the added benefit of protecting your personal assets from a lawsuit. If your business gets sued, your personal finances and assets will be protected.
For more information on this topic, check out this thread:
/thread-55694.html
Expat Taxation
If you are not a US citizen, you may skip to the next section, but do your own research on your country’s tax laws pertaining to expats.
As a US citizen, you’ll be subject to worldwide taxation. No matter where you are in the world or which banks you earn money into, you cannot escape the IRS. Nor should you even try.
However, the good news is there are exceptions. You can claim the
Foreign Earned Income Exclusion if you pass either one of the following tests:
- Bona Fide Residency Test
- Physical Presence Test
In the case of a Bona Fide Residency, you pass a residency test in another country and you pay taxes to that other country. You have to file IRS Form 2555, and based on the factors you report to them, the IRS makes a case-by-case determination on whether you qualify.
In a Physical Presence Test, you are physically present in a foreign country or countries for at least 330 days of any 12 consecutive-month period. You also file Form 2555. The physical presence test is more clear-cut than bona fide residency because it isn’t decided by the IRS on a case-by-case basis. If you’re off US soil for 330 days or more, you qualify. Period.
If you are able to claim the Foreign Earned Income Exclusion, you can exclude the first $100,000 from income taxation.
Source:
Bona Fide Residence and Physical Presence Tests
Expat Banking
As far as ordinary banking, you can either keep your existing bank and credit card accounts, or open new ones in the country you are going to live in.
You should avoid banks that charge ATM fees or international transaction fees. Charles Schwab kicks ass in that regard. Credit cards with rewards programs are especially useful if you fly a lot. Some cards offer cash back on purchases such as groceries, etc...
For specific bank and credit card recommendations, go to this thread:
/thread-50942.html
Another thread started by
Global Entry you’ll want to read through -- more about frequent flyer perks and rewards programs:
/thread-38140.html
Sometimes it’s more convenient to open a new bank account in the country you will live in, especially long term. However, this is getting harder to do for US expats because of FATCA. FATCA requires all foreign banks to report about bank accounts held by US taxpayers. US expats with foreign bank accounts are also required to report if their account balance reaches the $10,000 threshold at any time. Not doing so means extreme fines and possible jail time. You’ve been warned!
Source:
IRS: Summary of FATCA Reporting for U.S. Taxpayers
Lastly, don’t forget to set travel notices on your bank accounts before you leave.
Visas
I can’t detail much information about Visas because every country has different immigration rules that are subject to change without warning. Breaking down visa requirements by country is like trying to hit a moving target in the middle of a hurricane.
Although it can be confusing, getting a visa is actually a fairly straightforward process. To cut through the murky waters, follow these steps:
- Narrow down which countries you are going to
- Search google using terms such as “[
country] consulate [
your city or state]”
- Go to the consulate website and find Visas in their menu
- Look at the list of required documents for each type of visa
The key is to get the longest visa you are eligible for.
Check the expiration date on your passport. If it's going to expire within a year, get a new passport. Many countries want your passport to be valid at least 6 months after your visa ends.
Some countries have 30-day or 90-day visa exemptions for people visiting from other countries, especially those in the G8 (US, UK, Canada, etc). This means if you are visiting a country for less than 30 days, you will not need a visa. When you arrive at your destination, Immigration will stamp a visa exemption on your passport.
Beyond 30 days, you will need to obtain a visa. Check the requirements for the visa you need, and obtain the necessary documents:
- Application form
- Passport
- Flight ticket + return / onward
- Other documents they list on their website, such as bank statements, proof of employment, etc
To get your visa:
- Visit a consulate and apply in person (this is what I did)
- Mail your passport and documents to an embassy
- Get a 30-day visa-on-arrival when you land at your destination airport
Once you get your visa, you’re good to go. Pay attention to the expiration date on the visa, you’ll need to renew, extend, or leave by that date.
Health Insurance
To insure yourself as an expat or a location independent traveler, you have options:
- Self insure (at your own financial risk)
- Buy travel insurance like
World Nomad,
Medex, etc...
- Buy expat health insurance like
IMG Global,
Cigna Global,
Allianz,
BUPA
You can choose your deductible. Setting your deductible high lowers your premiums, and vice versa. Of course if something happened, you have to pay your deductible before insurance coverage kicks in.
The level of your plan depends on your risk tolerance. It isn’t about your health, but protecting your finances if something goes wrong.
Be careful not to confuse
travel insurance with
expat health insurance. The latter is more comprehensive (e.g. covers motorcycle accidents where the former typically does not).
Mail
When planning to go location independent, you want to take these steps regarding mail:
- Go paperless by choosing online statements as opposed to paper mail
- Digitize your existing records and save them in Dropbox or Google Drive
- Sign up for a mail scanning service
Mail scanning pricing schemes vary wildly and it’s difficult to compare apples to apples. Some providers have extra features such as check depositing services. You’ll have to run the numbers yourself and decide which features are most important to you.
Nevertheless, here are a few mail scanning service providers I’ve looked at (no affiliate links here):
-
Earth Class Mail
-
Traveling Mailbox
-
Scan Mailboxes
-
Post Scan Mail
-
US Global Mail
There are tons more. Use google.
Once you register, they will give you a Form 1583 to sign and notarize. Then they will give you a new mailing address and you direct your mail there.
Important note: Banks want to have a legal home address on your account. You may need to give them two addresses, one for mail and the other for a home residence.
Your Possessions
The big decision involves whether to put your stuff in storage or to get rid of everything. I say it depends on when you plan to come back, if ever:
- Definitely less than one year? Put your stuff in storage
- More than one year / indefinitely / unsure? Sell everything
Donate what you couldn’t sell, trash the rest, pack your essentials, and you’re off.
The exception here is if you own property and want to rent it out, you could keep all your stuff there.
Telecommunications
As a location independent globe trotter, here are some things you will need to stay on the grid:
- A GSM unlocked phone
- Prepaid SIM card
- Free Messaging & SMS apps
- Tethering capability (optional)
Before you go to your destination country, learn the names of the main providers in said country. Pick one, go there, find an airport kiosk, store, or 7-11, and ask for a SIM card with that provider. If your phone supports it, try to get LTE. LTE is the fastest but they don’t usually advertise. If no LTE or it’s a rip off, then get 4G.
Here is a GREAT resource:
Wikia: Prepaid Data SIM Card Wiki
Most recent forum thread on travel phones:
/thread-52734.html
You can find other threads on the same topic prior to 2015-16, but these are probably outdated.
You Need These Apps
Essential apps:
- Google Maps
- Google Translate
- DropBox or Google Drive
- Uber
- Airbnb
- Skyscanner
- Currency Converter
- Kindle
Messaging apps:
- Skype, Viber, Line, WhatsApp, FaceTime, Skout, Badoo, WeChat, QQ Messenger, etc
- Find out which is most popular where you’re going and use that
Banking apps:
- Whatever your banks are, download their mobile apps if available
- Personal Capital (link all your bank accounts to one app for an overview of your finances)
- Use a
VPN when you run these apps for added security. See forum thread for VPN choices:
/thread-4188.html
Surely there are more, but these are the ones I can't live without.
Another helpful thread on useful travel apps:
/thread-48852.html
Telling Others Of Your Plan
I’ll expand on this in my blog, but I’ll leave this here. I told my family and friends about my plan about two months before my departure date. I told them in person. They were shocked, but once they digested the news, asked questions, they became supportive.
I waited until I had two weeks left to inform my boss -- more on that in my first blog post:
http://www.masculinexpat.com/quit-job-today/
Pro tip: Do not announce your intentions on sites like Facebook until
after you tell your boss. Common sense, but still.
Closing Words
Expatriation is not the end of a path defined by a step-by-step guide. It’s just the beginning.
I’m starting a blog because I’m sure I will have so much more to say beyond this datasheet. I don’t know what the future will bring. Either I blowout and have to return home, or I thrive in a new environment. I am just days away from leaving everything I have ever known.
Scary? Absolutely.
But I feel fucking alive! Instead of slowly rotting away in an office cube until a blocked coronary artery kills me dead,
I’m going to grab life by the horns and LIVE each day the way I want.
Where is this going to lead? Who the hell knows.
Nevertheless, I am pressing on. Join me and follow my blog
masculinexpat.com and add my new twitter
@masculinexpat.
Acknowledgements
Over the past year or so, I’ve made many new friends off this forum. I am at a loss for words to describe the lasting impact you’ve had on my life. Thank you for your support and friendship.
*getting a bit choked up*
In no particular order...
The Lizard of Oz &
AneroidOcean -- For proofreading this datasheet, being all-around great contributors to the forum, and being here via PM when I had questions or needed to talk.
TravelerKai -- For talking some sense into me when I was freaking out about uprooting my life to move overseas. I thoroughly enjoyed our conversations about women, life, red pill, exercise, martial arts -- everything. Thank you for that three hour real talk over coffee. Stay in touch bro.
Beyond Borders -- Without him and his advice, I would be lost in executing my location independence plan.
Floating-in-the-middle-of-the-ocean lost. I’m very lucky to have met him and to have him as a good friend. Hope to hang out with you in SEA at some point.
Vacancier Permanent -- There’s hardly anyone here who roots harder for your success than VP. He’s one of the first guys I’ve talked to offline from this forum last year. No better guy to introduce me to the world of international “poosy paradise” travel.
Bushido (formerly
dreambig) -- Among the first guys I met off the forum. When I told him I wanted to become location independent, he didn’t believe I was serious though he was supportive. Along with some business ideas, he gave me a “proper” kick in the ass that motivated me to go through with it.
Scott Free -- Hasn’t posted much lately but we talk offline. Thank you for the El Nido recommendation and for inspiring me to take the necessary actions to change my life for the better.
262 -- For chronicling his own journey to location independence, and for helping me work out through my questions about international health insurance, mail scanning services, among other expatriation logistics. His thread:
/thread-47239.html
YardDog -- The epitome of the good expat life. This fella is
killing it. I’m lucky to have met him and to have had several conversations over the past year. Thanks for taking the time to answer my questions, no matter how retarded or annoying they may have been!
samsamsam -- A level headed guy I hope to meet someday, and as a forum stalwart, he has been extremely helpful in keeping threads on track and posting quality advice to help guys like me.
Isaac Jordan -- For taking the time to review and proof my Free Expatriation Checklist, and for providing valuable feedback on a variety of topics. Introduced me to bitcoin, which just might save my ass if the US dollar ever decides to take a swan dive into the toilet.
Kamaki4, Kdog, Direct Danger, Buakaw, wallywest, DaveR, GlobalMan, 192 -- For offering valuable advice that saved me a ton of time and hassle during my transition to a new country. The information you gave me will without a doubt help me get settled in much quicker than otherwise.
Roosh -- For fighting what you believe in and keeping this forum alive. None of the above would be possible without RVF.
… and dozens of others. Sorry if I didn’t include your name, there’s just too many to list!
You know where to find me whenever you want to meet up!