The secret for not paying income taxes, ever

This is all great, and I love the concept.

The reality is, though, that while most everyone hates paying taxes, not everyone can structure their life this way - i.e. being a controlling (or at least a highly influential) shareholder
in companies that pay no dividends.

And yes would it not be perfect.

There might be some flies in the ointment, though, such as calling in the loans - whether for political reasons (Korea, LG 1998 or so), or for "screw them all" which I believe helped usher 1929 Depression. Furthermore, private corporations shares are not that liquid, so it might be more difficult to get them accepted as a loan collateral as compared to a regular publicly traded companies. Naturally, the "stock market" - or at least part thereof - has become very likely a Ponzi scheme, but that is another story.

So if we assume that nothing is perfect, then I would say to legally minimize one's tax burden is a good step towards the above described Holy Grail.

And that can be achieved by doing these several steps (have done it myself):

1. Establishing residence in a low tax country with a territorial system of taxation.

2. If one owns a business with a positive cashflow, structure the company as a foreign owned US based LLC, ensure that profits are paid straight to shareholders, and then - if (like me) one resides in Paraguay - this income stream is legally tax free. There is a number of countries with territorial taxation in addition to Paraguay, such as Panama, Belize, Nicaragua, Guatemala etc. See International taxation - Wikipedia for more details.

However, every country may have some nuances as to what does constitute a foreign income and what not, certainly Paraguay does, so one has to be careful.

Note that the above works only if you are a citizen of countries that do not have a tax system based on citizenship - such as USA, Myanmar, Tajikistan, Kyrgyzstan, Hungary, etc..)

I am sure there are other options but this one works for me.

Hope this helps

Cheers

Very true for UHNWI but sadly things are more difficult for the average guy with a small corporation.
It can be done even then, but you need to plan it early... or you get taxed/audited/fined anyway.
Sadly these days tax agencies don't like that you don't pay yourself a salary or take dividends if you're a small corporation...

in USA there's the Accumulated Earnings Tax (AET), if you leave too much in the company and you're not paying yourself it's seen as tax avoidance and they will tax you (IIRC 20%)
the AET exists “to prevent a corporation from accumulating its earnings and profits beyond the reasonable needs of the business for the purpose of avoiding income taxes on its stockholders.”
investopedia.com/terms/a/accumulatedearningstax.asp
big company can promise huge things like "we're thinking to build another gigafactory so we need the money in the bank"...

in EU there are similar things, but it gets crazier...
Sometimes they are clearly written in law, other times they are at the sole discretion of the tax agency when they will audit you.
If they find just the slightly suspect that you actively work in the company, even by bending their own rules, they're going to want their share...

You can work around those obviously with some planning but...
there's nothing that pisses me off more than a law that states how should I run my business and how much I should pay myself...
i mean there's plenty of code trying to explain what reasonable needs of the business are... 4.10.13 Certain Technical Issues | Internal Revenue Service

I made the mistake multiple times of spending too much time to follow their stupid rules (just to get fined even more).
In short if you're small and want to grow fast, hop on a plane, get yourself a structure that allows 0% dividends and you're golden, and forget about all their BS ;)
Plenty of places to get near to zero bureaucracy and zero taxes...
It's the only way to build empires these days from scratch.
Those rules are for people that already made it big...

The regular guy can just move to the Bahamas (or similar) without going crazy with all the tricks.
If forced to operate in the EUSSR, evade the hell out of it, and when they catch you run to your secret refuge. It’s better than doing things kosher and then have to pay a lawyer anyway.

Yes, that is an option. One needs to have a refuge prepared in advance, though.

this playbook is nothing new but with bitcoin it gets even more powerful and especially accessible to anyone
what Saylor does is for everyone - just tap into the stream of cheap credit, choose the time frame wisely, let the believers in the obsolete social and financial system pay your interest and buy bitcoin - if you're good at math and able to manage risk find the right bitcoin backed loan products and iterate
there was no comparable opportunity in human history