The zero tax lie.

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Ancient tax matters.

In the bustling heart of ancient Athens, where democracy thrived amongst a hotbed of intellectual debates, once lived a man named Xenophon.

Born sometime around 430 BC, Xenophon was a skilled soldier, wise philosopher, and astute businessman. By his late 20s, he had accomplished more than many of his contemporaries could dream of, ranking among the wealthiest members of Greece’s merchant and business elite.

Yet despite his grand achievements, he was faced with a problem no Athenian could avoid; his wealth was quickly being devoured by the state.

At the time, Athens was notorious for its heavy taxation, making it one of the most tax-burdened city-states of ancient Greece. Citizens, the wealthy in particular, were burdened by numerous levies in the form of general income taxes, as well as a slew of mandated levies to fund public services called “liturgies.”

One notable example was the trierarchy, the most costly of all liturgies imposed on Athenians. It funded the manufacture and upkeep of a single Athenian trireme warship at a cost of up to three talents. This equalled approximately 78 kilograms (171 pounds) of silver—a significant expense even for a man like Xenophon.

But for Xenophon, the worst part was that despite paying enormous sums to the government, he saw very little go to improve his nation for all citizens. Athenian taxes were consumed by corruption like a carcass picked clean by vultures, leaving only the skeletal remains of public trust.

Xenophon once famously remarked, “It is not the places that grace men, but men the places.” To him, it was evident that the leaders of Athens had fallen from grace, corrupting the very soul of the city.

In his early 30s, Xenophon took a daring and unconventional step: he abandoned Athens for Scillus, a small town close to Olympia. This territory, under the governance of Athens’ rivals the Spartans, provided him a haven from Athenian politics, and more importantly, its taxes.

Why Sparta? Apart from being famous in Greece for creating some of the world’s most ferocious warriors, Spartan citizens effectively paid zero tax.

With this simple relocation, Xenophon safeguarded his wealth and found a haven for his intellectual work. Embodying the age-old tactic of fleeing oppressive financial and political environments for more supportive jurisdictions.

Learning from Xenophon.

Although Xenophon lived and died some 2,500 years ago, his story will sound familiar to we who live in modern societies.

High taxes? Check.

Government corruption? Check.

Massive amounts of money going to fund wars? Check.

Tax dollars not bettering the lives of most citizens? Check.

The times might have changed, but the way our leaders harvest and misuse our tax money sure hasn’t.

One of the core philosophies of embodying the practice of an Anticitizen is to pay as little tax as possible.

But not all share this view.

Many in society still equate responsibility with blindly agreeing to whatever taxes the state imposes, somehow believing it supports their nation. This persists despite clear evidence of mismanagement and corruption in how our tax dollars are used.

I believe it is the civic duty of every citizen to pay the minimum amount of tax by using all available legal avenues. This is the only approach I can foresee that might push our governments to use the funds they receive from us more effectively.

And let’s face it: paying less tax is also good for you.

Paying zero is better.

But how realistic is it to “do a Xenophon” and pay no tax at all?

It’s possible. But like Xenophon, you might be required to physically move yourself to achieve it.

A common misconception still held by many is that you can stay in your home country, set up a tax-free offshore company in some overseas land, funnel your business through it, and pay no tax at home.

Most of the time though, this doesn’t work.

If you live in New Zealand but operate a 0% tax company in Hong Kong, the government considers it liable for tax in New Zealand. Most Western nations see things this way, and tax companies based on where they are operated, not just where they are registered.

In other words, offshore ≠ offshore tax by default.

What matters more is tax residency. And the trick, William Potter, is changing your tax residency.

The factors that influence where you’re considered to be a tax resident are varied, for example:

• Where you might have significant economic ties.

• Where your permanent home is.

• Where most of your money is earned.

• Where you are primarily legally registered as living.

• Where you might have family ties.

• Where your social and personal connections are.

• Or potentially, even which passport/s you hold.

But for most people, where you’re considered to be a tax resident will most likely come down to one thing:

• The country in which you spend the most time each year.

This is just a guiding principle, but for the vast majority of people reading, this will likely be the case.

In short, if you’re not happy with the amount of taxes you pay where you live, chances are you’ll have to move—or at least spend most of the year in another country.

Let me give you a specific example.

In Australia, you’re generally considered a tax resident based on the “183-day rule.” More simply, spend 183 days or more in Australia in a tax year and you have to pay tax there.

So if you’re Australian and love living there, but can also be nomadic, just leave the country for a little over half the year, and spend the rest of the time in Australia.

Simple, right?

Maybe not.

I have a friend who is a well-known travel influencer. He’s Australian, but travels about 90% of each year, only spending a month or so on Australian soil.

He initially thought that meant he didn’t have to pay tax to Australia. After all, he’s there less than 183 days per year.

Unfortunately, Australia sees it differently.

The government says that if you don’t have tax residency somewhere else, it reverts to Australia by default.

Basically, you can’t be a tax resident of nowhere.

In other words, even if you’re a permanent digital nomad who travels constantly, you’re not automatically off the hook.

But there are solutions.

For example, you could become a tax resident of a low-tax jurisdiction and claim that as your tax residency, while still travelling most of the year.

Or, open an offshore company in a low-tax nation, make sure it’s primarily operated from there, and pay yourself a minimal salary at home.

Let’s say you’re Canadian. You could…

1. Set up tax residency in Paraguay (zero tax on foreign income).

2. Potentially fly to Paraguay for just one day each year to maintain your residency (and tax residency.)

3. Spend under 183 days per year in Canada (and don’t have a permanent home there).

4. Spend the rest of the year wherever you like.

5. Pay zero tax.

Or if you’re an Australian who has a more than a one-person operation and the capacity to hire staff…

1. Set up a company in Estonia with a 20% tax rate (but zero if dividends aren’t distributed in any given year.)

2. Employ a CEO in Estonia to run the company from there so it is not considered legally operated from abroad where you live.

3. Receive a small salary from the company that you can survive on, that you pay personal income taxes on at home.

4. Keep the rest of the money in the Estonian company, use it to buy assets, and never pay tax on it again.

These are just two of potentially thousands of solutions that could put you in the very low tax, or even no tax bracket of society.

But remember; no solution is a one-size-fits-all cookie cutter that will work for everyone. Your unique situation will require a unique solution.

But providing you’re prepared to move yourself, your company, or hire staff to operate your business abroad, the ability to pay zero tax isn’t a myth.

It’s a reality that millions around the world are using right now.

Want more?

→ Field Manual

We created the Field Manual as a no-cost resource to get you started as fast as possible. If you know nothing about getting another passport, acquiring a second residency, increasing privacy, or mitigating your tax, it’s the place to start.

Written by Leon Hill.
Founder, Anticitizen.

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This newsletter is for educational purposes, and is not financial advice. Please do your own research, and consider risks involved with investing or purchasing any asset.