ChatGPT For Nomadic Taxes
Using AI to Save Money and Make Life-Altering Decisions
I'm sure everyone knows the conclusion for the following syllogism: We don't need to pay for what we can learn online. We can learn everything online.
ChatGPT and other large language models (LLMs) also know the answer. That worries some more than others—especially those of us who talk and research for a living. The combination of AI and robotics will eliminate, alter, and create new jobs for everyone, but as an online English teacher and writer, these changes are happening right now.
I've been using ChatGPT and testing AI language learning aids like Langotalk, TutorLily, LangAI, and Duolingo Max to 1. Improve my Spanish, and 2. Figure out a teacher's role in a world of AI.
The more I use AI, the less worried I am that it will replace me. It's faster at coming up with grammar explanations, can generate 10 context sentences by the time I come up with one, does a better job writing some dialects, creates impressive lesson plans, isn't bothered by a four-year-old student screaming into their headset, doesn't need bathroom breaks, food, water, sleep, or beer. And best of all, it's free.
But it won't replace me.
This is how I started my article “How to Use AI for Language Learning?” I wrote it on July 27th, 2023. If you want to learn how to use AI for language learning, click the link.
As Monica Albini discovered during investigations at the University of Torino, human review is still necessary. More importantly, humans need to know how to use ChatGPT to get the most useful answers, and that all comes down to being specific.
That’s true for language learning (you can find specific prompts here) and for what I’m focusing on for today’s article: paying less taxes.
Look, my socialist and egalitarian side is down with a progressive tax rate, although it makes my libertarian and individualistic spirit cringe. As an autonomo (self-employed) person in Spain, 30% to 275% of my income goes to taxes.
Their progressive tax system is only egalitarian if you’re an employee. If you’re self-employed, it destroys small businesses due to mandatory autonomo fees. I’m in a situation where I have to pay 275 euros even if I make nothing that month.
Since I’m not sure I will spend more than six months out of the year in Spain, I started to look at other options. The answers I spent a day searching for on Google took around ten minutes on ChatGPT, and thanks to their recent upgrades, I even got links to cross-check.
My tax conversation with ChatGPT.
List the 30 countries with the lowest tax for independent contractors or freelancers.
Here are 30 countries with the lowest tax rates for independent contractors and freelancers:
Bahrain - No personal income tax (Odin Tax) (The CEO Magazine).
Bahamas - No personal income tax (The CEO Magazine).
Monaco - No personal income tax (The CEO Magazine).
Cayman Islands - No personal income tax (Odin Tax) (The CEO Magazine).
United Arab Emirates - No personal income tax (Odin Tax).
Bermuda - No personal income tax (Odin Tax).
Georgia - 1% tax for small businesses under a certain income threshold (Nomad Capitalist).
Gibraltar - Tax ranges from 7% to 30%, with special low-tax arrangements for high-income earners (Nomad Capitalist).
Malta - Offers tax exemptions on foreign income brought into the country under certain conditions (Nomad Capitalist) (Nomad Capitalist).
Greece—A flat tax option of €100,000 for high-income earners and a 7% tax for pensioners from countries with a double taxation treaty (Nomad Capitalist).
Malaysia - No taxes on foreign-sourced income unless remitted to Malaysia (Nomad Capitalist).
Singapore - Low personal income tax rates with various tax incentives (Odin Tax).
Hong Kong - Low personal income tax rates (Odin Tax).
Andorra - 10% income tax rate for incomes over €40,000 (The CEO Magazine).
Belize - 25% income tax with the first US$10,000 exempt (The CEO Magazine).
Ireland - Low corporate tax rates and incentives for businesses (Odin Tax)
Switzerland - Low personal income tax rates, varying by canton (Odin Tax).
Bulgaria - Flat personal income tax rate of 10% (Odin Tax).
Czechia - Low effective tax rates with proper tax planning (Nomad Capitalist).
Portugal - Special tax regimes for non-habitual residents with low tax rates for certain foreign income (Nomad Capitalist).
Estonia - Simple and low tax system, particularly favourable for digital nomads (Nomad Capitalist).
Hungary - Low flat tax rate of 15% for personal income (Nomad Capitalist)
Romania - Flat tax rate of 10% on personal income (Nomad Capitalist).
Lithuania - Flat tax rate of 15% on personal income (Nomad Capitalist).
Latvia - Low personal income tax rates with special incentives for foreign investors (Nomad Capitalist).
Montenegro - Flat tax rate of 9% on personal income (Nomad Capitalist).
Cyprus - Attractive tax regime for foreign-sourced income (Nomad Capitalist).
Thailand - No tax on foreign income not brought into the country in the same year it is earned (Nomad Capitalist).
Panama - Territorial tax system, taxing only local income (Nomad Capitalist).
Costa Rica - Territorial tax system, taxing only local income (Nomad Capitalist).
As I mentioned earlier, it’s important to be specific and ChatGPT. I was on a quest to the North of Sweden to explore the therapeutic effects of slow travel, and while I was looking into where to pay less taxes, I happened to be in Poland.
Poland doesn’t pop up on ChatGPT lists or the links ChatGPT provides, yet thanks to talking to locals, I know that freelancers can pay 19% no matter how much they earn!
Where would Poland fall on this list?
Freelancers in Poland are generally subject to a progressive tax rate, with income up to PLN 120,000 taxed at 12% and income above that threshold taxed at 32%. However, freelancers can opt for a flat rate of 19% on their business income. Additionally, there is a lump-sum tax option, with rates depending on the type of economic activity, ranging from 2% to 17% (Uniconsulting group) (Accace) ( Worldwide Tax Summaries Online ). Social security contributions for self-employed individuals are paid in lump sums based on a percentage of the forecast average monthly wage (Worldwide Tax Summaries Online ).
Then I thought, “Asking where to pay the lowest taxes isn’t good enough because broke-ass writers and teachers like myself can’t afford to buy property in a tax haven like Andorra. Plus, I didn’t want to go to tax havens outside of Europe, where travelling to different countries becomes more expensive.
Which of the European countries with low taxes?
Countries with low taxes for independent contractors or freelancers, several also have relatively low living expenses. Here are some of the top choices where you can enjoy both tax benefits and affordable living:
Bulgaria - Bulgaria offers one of the lowest costs of living in Europe. Major cities like Sofia and Plovdiv are particularly affordable, with low costs for rent, food, and transportation (Global Citizen Solutions) (World Population Review).
Romania - Romania is another cost-effective option, especially in cities like Bucharest, Timisoara, and Cluj-Napoca. The cost of living here is significantly lower than in Western Europe, making it a great choice for freelancers (Global Citizen Solutions).
Poland - Poland combines a low cost of living with a vibrant culture and modern amenities. Cities like Krakow, Warsaw, and Szczecin offer affordable living expenses while maintaining a good quality of life (Global Citizen Solutions).
Portugal - While not as cheap as Eastern Europe, Portugal remains one of the most affordable countries in Western Europe. Lisbon and Porto have higher costs, but smaller cities and rural areas are much more budget-friendly (Laure Wanders) (Global Viewpoint Guides).
Czech Republic - Outside of the capital Prague, which is relatively expensive, the rest of the Czech Republic offers very affordable living. Cities like Ostrava and Olomouc are great options for a lower cost of living (World Population Review) (Laure Wanders).
Hungary - Hungary, particularly Budapest, offers a lower cost of living compared to many other European capitals. It's known for its affordable housing and inexpensive food (Global Citizen Solutions).
Slovakia - Slovakia provides an excellent balance of low living costs and quality of life. Bratislava, while slightly more expensive, still remains affordable compared to Western Europe (Laure Wanders) (Global Viewpoint Guides).
Latvia - Latvia is one of the cheapest EU countries to live in. The capital, Riga, offers a vibrant lifestyle with relatively low living expenses, making it attractive for freelancers (Laure Wanders).
Croatia - With affordable living costs, especially outside the major tourist spots, Croatia is a beautiful and cost-effective place to live. Cities like Zagreb and Split offer low costs for rent and daily expenses (Laure Wanders) (Global Viewpoint Guides).
Lithuania - Lithuania, with its affordable living costs and vibrant cities like Vilnius, is another excellent choice for freelancers. The country offers a good quality of life at a low cost (Global Viewpoint Guides).
Luckily, thanks to travelling to these destinations myself and following Substack accounts like Expat in Portugal, I know that ChatGPT (like the articles you find at the top of Google) is not completely accurate.
For example, Croatia has become much more expensive in past years, and cities like Dubrovnik even have a separate local price for locals—and no, local does not mean resident—local means sounding Croatian.
The same goes for using ChatGPT to figure out where to stay, what to eat, and how to find the best experiences. Like the top links on Google, it’s too shallow unless you know what you’re looking for. And to know what you’re looking for, you need real people and travellers who talk to locals and expand their horizons beyond the easy-to-find answers. This is precisely what I do at Born Without Borders.
To get the most out of ChatGPT as a nomad, you need to know what you’re looking for and how to be specific. Luckily, we have incredible travel and culture newsletters that are incomparable to the top links on Google. Make sure to check out
, , , , , , , , , , , , , and so many more. Many of these don’t fall into the box of travel or culture writers, but that’s precisely why they’ll help cross the borders and experience something new.Related articles:
Can only sign under on not being worried but actually rather excited recently… it’s not until this summer that I started to realise how I can use ChatGPT to assist me in brainstorming or conceptualising ideas, as well as just getting started with research through the processes that you outline; of digging deeper and being specific and then use the resources to double check etc. It’s been a great time saver! And frankly fascinating conversations (never thought I’d says that lol). Anyway, we’ve also used it to discuss tax situations, because also YES the reality looks different than your first hits in Google + there are so many other metrics to take into consideration (we lived in Montenegro to give the 9% a trial, but there, like in Dubrovnik, you get much higher rents and costs if you’re a foreigner so it ended up very expensive for the standard… then you have questions of “feeling of home” too, which start to matter more when you get kids etc… never ending questions haha) love that you brought this up, it’s a hot topic and chatgpt can be a friend in the middle of the night thought trains 😆
Yeah, I'm also not terribly worried. ChatGPT can give a lot of bad info and after getting misled a few times, I think people will seek out the real thing. Of course, knowing who is real and who isn't is going to get harder...