Should you begin moving your business outside of the USA? (Part 1)

In this thought-provoking first installment of a two-part series, we dig into a rising question among American entrepreneurs: Is it time to move your business abroad?

We kick off with a surprising fact — nearly 9 million U.S. citizens already live overseas, according to the State Department, with tens of thousands of births, passport renewals, and welfare cases processed each year.

We then turn the lens inward, breaking down a 2025 Pew Research Center survey that reveals sharp political divides on America’s economic future:

• 73% of Republicans expect improvement

• 64% of Democrats foresee decline

• The rest? Stuck in the middle.

From there, we zoom out to Europe, where German economist Karsten Varesky warns of long-term stagnation in Germany — weighed down by post-pandemic struggles and underinvestment in infrastructure.

Finally, we explore Panama, Portugal, and Spain as top contenders for relocating your business. We break down their corporate tax benefits, startup perks, and IP protections, setting the stage for Part 2.

Transcript

0:00  
Okay, so, you know, we've been getting a lot of questions about this lately, yeah, and it's a big topic, so I'm excited to jump into this. Yeah, me too. So this is going to be part one of a two part deep dive, right on the idea of moving your business outside of the USA, all right? So in this first part, we really just want to get a lay of the land for Americans who are, you know, maybe thinking about living and working abroad, right? So we're going to focus mostly on the economic outlook, you know, both here and and in other countries around the world, okay? And then we'll also start to look at some potential destinations that might be, you know, interesting, yeah. So to do this deep dive, we've pulled together some interesting information from a variety of sources. Okay, so we've got some data from the US Department of State, right about Americans living overseas, interesting. And then we've got, you know, an article about Panama's removal from a financial crime watch list. So that's pretty interesting. And then we've also got this really practical guide to setting up holding companies in a few different countries. Gotcha, we've got a Pew Research Center study right about how Americans view the US economy. Okay? So we'll look at that, sure. And then finally, we've got a really interesting discussion that we pulled from a podcast episode about global economic trends with a special focus on Germany, that'll be really fascinating. Oh, sure. So our mission today is to kind of understand, you know, where things stand right now, if you are an American who is considering, you know, living or working abroad or both, yeah, so we're gonna start by looking at the trends of US citizens living abroad. Okay, so I don't know if you knew this, but did you know this? What's that? The State Department estimates that there are about 9 million US citizens, wow, who are living overseas? 9 million? Yeah, that's a lot. It's a big number. Yeah. I mean, that suggests a pretty significant, you know, trend of people who are seeking out, you know, new opportunities, a different lifestyle, maybe outside of the US, yeah, so, you know, for our listeners, I think that kind of shows that this isn't really an unusual path, yeah, you know, there are probably existing communities and resources that they could tap into, right? And to give you a sense of just how big this presence is, yeah, the State Department, they're processing over 66,000

2:28  
overseas births of US citizens every year. Wow. They're issuing almost 60,000 emergency passports, wow. And they're handling over 27,000

2:38  
welfare and whereabouts inquiries, wow. So that's a lot of activity. Yeah, definitely points to a large and active American population all over the world. Yeah, it really paints a picture. So let's turn our attention back to the US for a second and talk about the economy. Sure. So what's the general sentiment right now about the US economy? You know, we looked at this recent Pew Research Center survey to get a feel for what people are thinking and understanding, the domestic economic sentiment. You know that's super crucial as you consider an international move for your business, right?

3:12  
This particular Pew survey was conducted in early 2025

3:18  
okay, and it revealed some pretty big divisions. Oh, really, yeah. And how Americans view the future of the economy, okay, and their assessment of, you know, how things are going right now. Interesting. So it's interesting because while a big majority of Republicans, 73% okay, anticipated that the economy would improve in the next year, okay, almost two thirds of Democrats. 64% Wow, expected it to get worse. That's a big difference. Yeah, it is so pretty split. Yeah, the overall expectations were very split. Okay, about 40% predicting improvement, yeah, 37% bracing for things to get worse, okay? And then a smaller group, you know, about 23% Yeah, who thought things would basically stay the same? So those future predictions are built on what? Well, they're built on a pretty unenthusiastic view of how the economy is doing right now. Okay, so what did the survey say about that? Well, the survey said that only about a quarter Americans thought that the current economic conditions were excellent or good. Wow, yeah. And a much larger proportion, 45% rated them as just fair, okay, and almost a third, 31% Wow, describe them as poor. Okay. So it's also worth noting that while Republicans positive views of the economy had actually gone up slightly, okay, Democrats positive ratings had actually gone down a bit interesting, yeah, compared to the previous fall. Yeah, that partisan divide is pretty stark, yeah, so how could that level of disagreement, you know, in society, impact the overall stability of the US business environment? Yeah, it's a good question, right? I mean, it's definitely something to think about. Yeah, absolutely. Okay, so let's get a little bit more into the specifics here. Okay, What were people's expectations for things like the job market?

5:00  
Get and the cost of living. So that's where the survey really gets into the nitty gritty of what people are worried about. Okay, looking ahead, there were mixed expectations about the job market, okay, and the affordability of things like gasoline and energy, yeah. But people were way more negative when it came to the affordability of, you know, everyday things like, yeah, food and consumer goods, right? As well as housing, especially health care costs, of course. Yeah. And as you might guess, those partisan differences that we saw in the broader economic outlook, yeah, well, they popped up here too, okay, with Republicans generally being more optimistic than Democrats across the board. Yeah, it's kind of a theme, yeah. So we've got this kind of uncertain picture here at home. Let's shift gears and talk about the global economy a little bit. Okay, we found this really interesting discussion about Germany, oh, yeah, on this YouTube podcast that we thought would be relevant. I think that's a really good example, because it highlights some of the wider economic challenges that a lot of developed countries are facing, right? So the podcast featured this economist, Karsten varesky, okay. And he was talking about these recent political shifts in Germany, including, you know, the increasing popularity of non centrist parties, okay, and he suggested that this shift was at least partly tied to this long period of economic stagnation in Germany. So what do you mean by stagnation, basically no growth for five years? Wow. And actually a shrinking GDP last year. Oh, wow, yeah. So that's pretty concerning for a major economy in Europe, right? What are some of the underlying factors that are, you know, causing this. So barisky pointed to a combination of, you know, some temporary issues, okay, and some more deep rooted problems, okay, so the temporary stuff include things like the pandemic, of course, the war in Ukraine, right? And that energy crisis that came out of that, yeah. You know, all of that stuff had a big impact on Germany because they're so export oriented. But he also talked about some more fundamental problems, okay, like not enough investment in things like infrastructure, digitalization and education. Oh, wow, yeah. So his argument was that, in some ways, Germany hasn't really invested enough in its own future competitiveness, right? And you know, these kind of structural issues can have a really long lasting impact, right on a country's economy? Yeah, they're not going away easily. Yeah, exactly. And it sounds like, you know, it's not just these internal issues. There's also this, like, you know, shifting global dynamic, yeah, absolutely. Especially with China, yeah, Brzezinski really emphasized that. Okay, you know how China's role has changed? Okay? Because they used to be a big export market for German industries, right? But now they're actually becoming a direct competitor. Interesting, yeah, and that's especially true in sectors where Germany was traditionally a leader, yeah, like electric vehicles, right? So that's putting a lot of pressure on German businesses. Yeah? It sounds like a pretty negative conversation, yeah? But there was also some good news, okay, projeski talked about this big fiscal U turn that's happening in Germany. Okay, what does that mean? So they've got this huge 500 billion euro infrastructure spending package. Wow, that's a lot of money. Yeah, it is 500 billion, yeah. And they're also increasing defense spending, okay? And they're actually exempting that from their usual debt. Break. Interesting, yeah. So it seems like they're really trying to address that under investment that they've had for a while and adapt to this changing global landscape. Makes sense, yeah, where they maybe don't feel like they can rely on us support as much as they used to. Interesting, yeah. So I think this is a really good example of taking some decisive action in response to economic challenges. Yeah, that's a good point. Yeah, and it sounds like this policy shift is already having some impact. Yeah? Well, he pointed to the optimism in European stock markets, okay, and suggested that that might be connected to this new policy Interesting, yeah, and maybe also to a feeling that the US economy isn't looking as good. So that raises an interesting question for our listeners, what's that? Where are investors seeing the most? You know, potential for growth? Yeah, and returns right now, right? Because that's a key factor when you're thinking about where to put your money. Exactly. Yeah. He also talked to, you know, the fact that there haven't been a lot of big tech companies in Europe. Yeah, that's a big topic, right? So why is that? Well, he said it's partly because European culture tends to be more risk averse, okay, and startups have a harder time getting enough capital to grow, right? But he did mention one positive development, okay, SAP recently became the most valuable company in Europe. Oh, wow, yeah. So that could be a sign that things are changing a bit, yeah, but it still shows that there are some big differences between Europe and the US, right? Work of the startups and venture capital, of course, yeah, um, of course. We can't talk about the global economy without talking about tariffs, right? I mean, that could have a big impact on Europe. Yes.

10:00  
Especially on Germany, because they export so much to the US, exactly. Yeah. So he said those potential tariffs could definitely hurt European economies. And he also brought up this other concern, okay, that some of the US tax policies might actually encourage companies to move production back to the US from Europe. Oh, wow, yeah. And that could be a long term challenge for European businesses. Yeah, that makes sense. Yeah. Okay, so we've got all these complex factors at play in the global economy, and I think that leads us to a question that a lot of our listeners are probably thinking about, which is, you know, is now a good time to think about moving capital outside of the USA, right? And if so, how much are we talking about, and where should we be looking? Yeah, well, given all the uncertainty around the US economy, yeah, and you know, the potential opportunities that we're seeing in other parts of the world, yeah, it makes sense that people and businesses would be thinking about diversifying, right? You know, their assets and operations geographically makes sense. So to help you, think about the where. Okay, we took a look at this quick reference guide. Uh huh. That compares setting up holding companies in Panama, Portugal and skein okay for US citizens, okay? And yeah, these are just a few examples, but they show some of the different advantages that are out there. Okay, so let's take a closer look at each of these countries, okay, starting with Panama, all right, so what makes Panama stand out? Well, Panama has this territorial tax system, okay, so that means there's a 0% corporate tax rate on any income that you earn outside of Panama. Oh, wow, yeah. So that's pretty attractive. Yeah. It's also pretty quick and easy to set up a company there, okay, and it has low maintenance costs, okay, so it could be a good fit for businesses that are operating in Latin America, right? Or if you just want a simple offshore structure, it makes sense. Plus Panama was recently removed from the FATF gray list, uh huh, so that could lead to more international investment. But it's important to remember that Panama might not have the same level of credibility, yeah, with some Western banks and venture capital firms, right? You know, as some other countries, okay, so if your business is mainly working with clients outside the US, right, and you're looking for a simple way to manage your international income without a big tax burden, right, Panama's territorial tax system could be a good option. Yeah, it could be a real advantage. All right. So what about Portugal? Okay, it seems like a lot of people are talking about Portugal these days. Yeah, it's been getting a lot of attention, yeah, both from expats and entrepreneurs, right? So what's the deal with Portugal? Well, Portugal is a bit different, okay, it has a standard corporate tax rate of 21% okay, but there's a reduced rate of 15% Oh, okay, if you qualify under their startup law. Interesting. Setting up a business in Portugal is a bit more complicated than in Panama, okay, but it has a really solid legal framework, and it's well respected within the EU so that could give you better access to investors, yeah, and a more skilled workforce, makes sense, yeah? And then for individuals who are thinking about moving there, they have this 10 year non individual resident program, okay, which has a lot of tax benefits. Interesting, yeah, so Portugal could be a good option for businesses that hold a lot of intellectual property right, or for us families who are thinking about moving to the EU, yeah, that makes sense, yeah. Okay, so last but not least, Spain, all right. So how does Spain compare to Panama and Portugal? So Spain has a corporate tax rate of 25% okay, but they also have a reduced rate of 15% okay, under their startup law, gotcha, they have really strong intellectual property protections, okay? They benefit from being in the EU, right? And they have a growing startup ecosystem, okay? Now it might cost more to operate in Spain, okay, than in Panama or Portugal, right? But it also has more prestige, okay, and it might be easier to get funding from international investors, right? They also have digital nomad and startup visas. Oh, yeah, I've heard of those. Yeah. So that makes it pretty appealing, yeah, for some entrepreneurs who want to be in the EU, right? So if your startup is trying to raise money in the EU, and you really value strong legal protections, yeah, and access to a bigger market, yeah, Spain

14:19  
could be a good choice. Makes sense, yeah, the guide also mentioned Estonia briefly. Oh, yeah. So where does that fit in? Well, Estonia is popular with lean startups, okay? And solopreneurs, okay, mostly because they have 0% tax on retained earnings. Wow. And it's all digital. Oh, wow. You can set up your business through their E residency program. Interesting, yeah, but they might not be as well known to venture capital firms, okay, there might not be as many benefits for businesses with multiple founders, okay, or, you know, more complex operations across different countries, gotcha, yeah. So it seems like each of these countries has its own pros and cons, yeah, and it really depends on your business model and your priorities, right? And the guy.

15:00  
Might even hints at different scales of moving capital, okay, so what do you mean? Well, you know, could be anything from a solo founder setting up a simple offshore structure, okay, to a whole team that's trying to get investment in the EU, right? So for a solo founder who wants something simple, yeah, Panama might be the easiest, okay, but a startup that wants to raise money in the EU might be better off in Spain. Gotcha and a family that wants to move to the EU with their business, yeah, might like Portugal, right? Businesses with a lot of intellectual property might choose Portugal for the tax benefits, yeah, or Spain for the legal protections, okay? And then Panama could be a good base for operations in Latin America, right? So you know, there are a lot of different options, yeah, with different tax rates and levels of complexity, yeah, and different geographical focuses, right? So the guide really shows you all the different things you need to think about. Yeah, this is a lot to process. Yeah, it is. Okay, so let's do a quick recap. Okay, um, we've learned that a lot of US citizens are already living abroad, which you know, maybe means that it's a growing trend. Booby, the US economy is a bit uncertain right now, yeah, and people have different opinions about where it's headed, right? Europe's got its own economic challenges, for sure, but they're also trying some new things, yeah, like that big fiscal U turn in Germany, exactly. And then we looked at Panama, Portugal and Spain, yeah, as potential places to move your business and yourself, right, each one with its own unique advantages, exactly. Yeah. So this has been a really good overview, yeah, think of a very complex topic, yeah, definitely, the decision to move your business or your money abroad, right? Is not one to take lightly. Yeah, it's a big decision, right? And there are a lot of factors to consider Absolutely. So you know, your personal circumstances, your risk tolerance, your long term goals, all that. Yeah. So here's a final thought for our listeners, okay, given all of these global shifts that we've talked about and the experiences of those Americans who are already living abroad, right, and the different potential destinations that we've looked at, yeah, what new factors should you personally be considering as you think about the future of your business and your capital? Yeah, good question, and make sure to join us for part two, yeah, where we'll dive even deeper into the practical steps of actually making this move. Can't wait. Me too. All right, see you then you.

Transcribed by https://otter.ai