There's less appeal if you're an American since the USG taxes you anywhere in the world, but if you're Canadian there's a lot of appeal to live there for a few years as a resident.
The people I've known in this category do something like this:
- Canadian Citizen
- Move to Dubai
- Trade crypto, make eight digit returns, liquidate funds
- Move back to Canada eventually without having had to pay tax on those funds
You can't do this as a US citizen without renouncing citizenship, but you can do this for most countries in the world (at least that's what people doing this have told me, I haven't looked into it that deeply myself).
This use to be popular with working at sea for 6 months to avoid taxes until it changed. You could be sailing around the world for the next two years any income you make would be taxable even if you renounce your citizenship (unless you take another citizenship or become a resident in a physical location)
So you could do this but for the effort you would be better off trading cryto from Canada avoiding popular exchanges and not reporting
My understanding was you could legally move to the UAE for a time as a Canadian citizen and do what I described.
It seems easy enough to not have day to day operations in Canada during that time. This seems like a way better option than tax evasion and prison imo.
If you got married had a family took another citizenship and lived for many years away your plan could work.
The easiest legally would be to set it up under a company and pay a much lower tax rate.
In practice no way anyone living abroad pays taxes to Eritrea (and probably few would go back given the risks).
I left feeling different about the place.