Italy is a perfect example of how enticing tax laws designed to attract wealthy foreigners can change when power shifts. The new Italian government recently raised a very appealing expat flat tax policy that initially allowed expats living in Italy to pay a maximum of 100,000 euros on their global income. Now that number could triple to 300,000 euros.

Prospera, a small island just north of Honduras, about a 2.5 hour flight from Miami or Houston, is a privately-run "startup city" and special economic zone (SEZ) on the Honduran island of Roatán. Designed as a libertarian experiment in self-governance with low taxes (1% business income tax, 5% on wages), deregulation, and its own legal code, attracting tech investors, biohackers, and crypto enthusiasts seeking to build innovative, less-regulated communities and businesses. Bitcoin is recognized as legal tender within the city. It was authorized by ex-president Hernandez (a U.S. federal jury in Manhattan convicted ex-President Hernández in 2024 of conspiring to import more than 400 tons of cocaine into the US, and using and carrying machine guns to facilitate this). Now Prospera faces significant political opposition in Honduras seeking to shut it down under a new government and president. Propsera's founder has spent hundreds of thousands of dollars to lobby U.S. legislators to put sanctions on Honduras and end U.S. aid to the country if the Honduran government does not allow Próspera to continue operations. While subject to Honduran criminal law, Próspera maintains its own civil and commercial codes, allowing businesses to select regulations from approved foreign jurisdictions and propose custom regulations. Its charter disallows land expropriation. But.....

Tax-free Monaco is unlikely to become part of heavily taxed France again. A 2002 treaty ensures its independence even if the Grimaldi dynasty ends, replacing the old rule where it would revert to France. But even treaties can be 'renegotiated' or even abandoned when power shifts. Once tax-free Dubai (part of the UAE) has since increased and introduced new taxes in recent years, most notably a corporate tax in 2023 and an additional top-up tax for large multinational companies starting in 2025.

Bermuda has long been considered a "tax-neutral" or "tax haven" jurisdiction because it traditionally had no Personal income tax, corporate tax (on profits), capital gains tax or withholding tax. Qualifying individual investors who become bona fide residents of Puerto Rico can receive a 100% tax exemption on Puerto Rico-sourced passive income (like capital gains, interest, and dividends) accrued after moving to the island. Can these laws and tax policies change? Sometimes they do when power shifts. And when some tell you 'it's in the constitution', don't forget those pesky little amendments.