In “How to Leave the U.S.A.,” the venerable New Yorker magazine recently addressed what many residents have apparently considered.
Yet Mikkel Thorup has lived outside of his native Canada for 25 years. He’s visited 120 countries and resided in nine of them. His business, Expat Money, helps others do the same while protecting assets and lifestyle.
Why relocate overseas? What are the risks and the rewards? Mikkel answered those questions and more in our recent conversation.
Our entire audio is embedded below. The transcript is edited for clarity and length.
Eric Bandholz: What do you do?
Mikkel Thorup: I am the founder and CEO of Expat Money, a consulting firm that helps people relocate to a foreign country. We focus on international tax planning, immigration, foreign investment, and global structuring, as well as the lifestyle adjustments that come with living abroad.
I’ve been an expatriate for 25 years, visited 120 countries, lived in nine, and circled the globe many times. My family, business, and hobbies are all international. I love the work and am excited to talk about it.
I was born and raised in Canada, which does not impose worldwide taxation. Once you leave and cut ties with the Canada Revenue Agency, you’re free to live abroad without ongoing tax obligations.
For Americans, it’s very different. The IRS levies taxes based on citizenship, not residency. No matter where you live or how long you’re gone, the IRS wants a portion of every dollar you earn. Only two countries tax this way: the United States and Eritrea, a small African nation.
Americans can sometimes avoid tax if they earn below standard thresholds, but anyone with meaningful income — whether living in the U.S. or abroad — remains subject to the IRS.
Renouncing citizenship is an option if you want to end all U.S. reporting requirements, but it’s a deeply personal decision and not something I generally recommend. Some people choose it, and we assist clients with the process, but most of our work does not require giving up citizenship.
We help Americans move overseas all the time, and there are legal tools that can significantly reduce their tax burden. I’m not giving individual tax advice here, but there are viable strategies available. Still, at higher wealth levels, those tools eventually hit limits, so it’s important to understand what’s possible.
Everything we do follows the law. My goal is to help people gain more freedom, not less, and that means full compliance with the IRS, U.S. Treasury, and all reporting rules. I have no interest in ending up in an orange jumpsuit, and I don’t want that for clients either.
Bandholz: Do people come to you mainly for freedom or to reduce obligations?
Thorup: Most clients want a “Plan B,” an economic backup. They’re productive people, typically in two groups: about half are highly paid professionals such as doctors, lawyers, and accountants, and the other half are business owners or entrepreneurs, such as consultants and Amazon sellers.
For many, the goal is preparing an exit option in case things get bad enough that they want to leave. Others feel things are already bad and choose to relocate now, often to the Caribbean or Latin America for more freedom, lower taxes, safer communities, and better weather. When they make that move, opportunities open up quickly.
But leaving isn’t required. Plenty stay in the U.S., Canada, the U.K., or elsewhere while setting up offshore components — bank accounts, property, company structures, or residency options. Others go all-in and decide to work from a beach somewhere. My job is to create those legal, compliant structures so they have choices, whether they stay or go.
Around 90% of my clients are from the U.S. and Canada; the remaining 10% are mainly from Europe or Australia. Latin America and the Caribbean are the top destinations because that’s where people often find the most freedom — pro-business, low taxes, and governments that welcome foreign investment.
Eric Bandholz: How can someone protect assets if a government freezes accounts?
Thorup: Bitcoin is one tool — specifically, self-custody Bitcoin, not coins held on exchanges such as Kraken or Binance. If you don’t control the keys, you don’t control the coins. I’ve used Bitcoin since 2016, and it’s useful, but it’s not the only solution.
Offshore bank accounts are another strong option. That means holding a bank account in a country where you’re not a resident. Debanking — where financial institutions terminate services — happens more often than people think, even in one’s own country.
Every adult, company, or trust should have bank accounts in three countries, each with a different currency and legal system. If a home-country bank freezes or closes your account, you have alternatives.
Properly structured offshore accounts make it much harder for lawsuits or government actions to reach your money. Asset forfeiture and account freezes happen, and they’ll continue to happen, so planning is essential.
Bandholz: Where do people typically open offshore bank accounts?
Thorup: Offshore banking usually means choosing a country with low or zero taxes, strong asset-protection laws, and political stability. There’s no point banking in a place where you can’t reliably move money in or out. The most common offshore jurisdictions are in the Caribbean, the British Channel Islands, and the Isle of Man. In Europe, Liechtenstein, Luxembourg, and Switzerland serve that role. Hong Kong, Macau, and Singapore are popular in Asia.
Central America also has several strong options, such as Panama, where I live. It has no tax on foreign-sourced income, a stable banking sector, a U.S. dollar economy, and access to both the Caribbean and the Pacific.
Bandholz: Where should people start if they want to explore international options?
Thorup: I recommend three key fronts.
First, get a second citizenship or permanent residency. If you have European ancestry, you might qualify for citizenship by descent. If not, consider citizenship by investment or naturalization through long-term residency. If citizenship isn’t an option, permanent residency is fast, affordable, and effective in Paraguay, Costa Rica, or Panama.
Second, secure a second home. Even a small property provides a place to live if needed. Ideally, it can generate rental income. In Latin America, condos start around $65,000 and beachfront homes around $100,000, paid in cash, with clear property titles. These are long-lasting, tangible assets that protect wealth outside stocks or business accounts.
Third, hold capital offshore, whether in a bank, precious metals, or other assets. This ensures access to your money if domestic accounts are frozen or restricted due to politics or other issues.
Bandholz: Where can people follow you, connect with you?
Thorup: ExpatMoney.com. Follow my YouTube channel and connect on X or LinkedIn.