From Plan B to Financial Independence
Why Where You Live Decides When You Can Stop Working
When clients first come to us, they often think the whole point of our work is simply to set up a “Plan B.” A visa here, a residency there, a structure to reduce tax. That’s part of it — but it’s not the end goal.
We have worked with hundreds of clients over the years, and what we’ve seen again and again is this: the real prize isn’t the paperwork, it’s financial independence. It’s the moment when your portfolio grows large enough that you no longer need to sell your time. That is what transforms lives. And it happens much sooner if you leave a high-tax, high-cost jurisdiction.
We’ve seen it with tech freelancers, consultants, creatives — people earning good but not astronomical incomes. Many thought they would never be financially free before 60. Yet after moving abroad, cutting taxes, and lowering costs, they reached independence in their 40s. Some even in their late 30s.
That’s the message: taxes are the main growth killer. You can be disciplined, save diligently, and still watch your freedom pushed decades away because half your effort is siphoned off by the state.
To illustrate this, let’s look at a simple case study: a perfectly normal Austrian freelancer.
Meet Our Freelancer
35 years old, single, based in Vienna
€120,000 annual freelance income
€100,000 already invested in ETFs and stocks
Lives comfortably, but not extravagantly
Let’s compare three simplified scenarios: stay in Vienna, move to Dubai, or become a digital nomad in Latin America. Same man, same income, same work. The only difference is where he lives and how taxes and costs affect him.
1. Staying in Vienna
Austria is beautiful, but for freelancers it is punishingly expensive in taxes.
Gross income: €120,000
After income tax & social security: ~€66,000
Comfortable living costs: ~€45,000
Savings capacity: ~€21,000/year
Portfolio return: ~5% net (after Austria’s 27.5% KESt tax on dividends/gains)
Result after 10 years: Portfolio grows from €100k to ~€427,000.
Financial Independence Number: ~€1.1 million needed to cover €45,000 costs.
➡️ Years to FI: ~22–23 years (late 50s).
Caveat: In Austria, those high contributions also buy a statutory pension at retirement age. That means he may not need the full €1.1m portfolio. But the trade-off is obvious: he must work much longer before freedom.
2. Moving to Dubai
Tax-free on paper, but lifestyle comes at a cost.
Net after tax: €120,000
Living costs: ~€75,000 (rent, car, flights, leisure)
Savings: ~€45,000/year
Portfolio return: ~6.5% (tax-free)
Result after 10 years: ~€729,000 portfolio.
Financial Independence Number: ~€1.9 million.
➡️ Years to FI: ~19–20 years (mid-50s).
He saves more, but the expensive lifestyle means he needs a far bigger pot to quit.
3. Digital Nomad in Latin America
The overlooked option: low cost, no taxes, still good quality of life.
Net after tax: €120,000
Living costs: ~€30,000 (rent, food, insurance, travel)
Savings: ~€90,000/year
Portfolio return: ~6.5% (tax-free)
Result after 10 years: ~€1.3 million portfolio.
Financial Independence Number: ~€750,000.
➡️ Years to FI: ~7–8 years (early 40s).
Here, financial freedom comes incredibly fast — a full 15 years earlier than in Vienna.
The Inflation Reality
Of course, these numbers assume “real” returns — about 5–6.5% after inflation. In real life, costs of living rise over time. But so will his freelance income if he stays competitive, and his savings amounts will adjust. Inflation cuts both ways, but the relative advantage of low-tax jurisdictions remains the same: it’s not what you earn, it’s what you keep.
The Lesson
Same man. Same work. Same income. Different location.
Vienna: FI at 57–58
Dubai: FI at 54–55
LatAm: FI at 42–43
That is the power of cutting taxes and lowering costs. It’s not about a bigger house or fancier car. It’s about buying back decades of your life.
Final Thought
We tell our clients: Plan B is not an end in itself. It is a strategy to accelerate financial independence.
Every euro saved from the taxman is a euro that compounds for you instead of against you. And over a decade or two, that is the difference between being free in your early 40s or still grinding in your late 50s.
In the end, it’s not about escape. It’s about freedom.
And freedom comes faster when you move.
Ready to Explore Your Options?
If this article struck a chord, and you want to know how these principles apply to your own life, let’s talk.
We help freelancers, entrepreneurs, and investors restructure their residency, tax position, and lifestyle — with the ultimate aim of reaching financial independence sooner.
📩 Book a consultation today and let’s design your path to freedom.
