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THIS WEEK ABROAD
This week abroad, we’re covering events back home. Specifically, the proposed Billionaire Tax Act in California.
To be sure, not many billionaires read this newsletter (as far as we know…). Even so, the wealth tax imbroglio provides a real-life example of how nomads and expats can leave high-tax states.
Read more in this week’s newsletter.👇
Tax & Money Corner
BILLIONAIRE TO NOMAD: LEAVE STATE TAXES BEHIND IN 2026
By now, you’ve probably heard about the so-called Billionaire Tax ballot measure gathering signatures in California. If enacted by voters this November, the measure would impose a one-time 5% wealth tax on the state’s billionaire residents. What’s more, it would be retroactive to any billionaire residing in California as of January 1, 2026.
For us, the most interesting aspect of this brouhaha isn’t so much the political debate, but the tactics that California billionaires are employing to avoid the tax.
• Peter Thiel, Larry Page Flee to Florida
In 2025, two prominent California billionaires — Google cofounder Larry Page and venture capitalist Peter Thiel — reportedly laid the groundwork to leave California residency.
Both men set up corporate entitles in Florida, which features no personal income tax or capital gains tax at the state level. Thiel and Page also own homes in the Sunshine State, which provides the basis for establishing a domicile in Florida.
Protip: For those who can’t plunk down $188 million on property, Savvy Nomad provides a much more affordable domicile service for ordinary expats and nomads.
• Terminating Tax Residency
Terminating tax residency isn’t as simple as packing up your bags and leaving. There is a precise set of steps that must be followed.
No matter if you’re a billionaire avoiding a wealth tax or a retired teacher living in Mexico on a pension, the process of terminating your residency in a high-tax state looks exactly the same.
First, you must establish a domicile in another state, ideally one with no personal income tax. From there, you can obtain a driver’s license, register your vehicles, and change your voter registration.
After that, you must take steps to cut ties with your former state. Change your official address, move your valuables, and sell/rent out your property. It’s also important to do things like cancel local memberships and find a new doctor.
• Avoiding the Tax Audit
If the ballot measure passes, we will almost certainly see some high-profile battles play out between billionaires and the California Franchise Tax Board, which is responsible for collecting the state income tax.
High-tax states like California and New York are notorious for aggressively auditing former residents. That’s why it’s critical that you follow (and document) all steps toward leaving tax residency.
• Start Preparing
The California proposal provides a real-time example of how expats and nomads can optimize their taxes. The good news is that you don’t need infinite money and an army of tax lawyers; you just need the knowledge.
VIDEO OF THE WEEK
REFRESHER: AVOID A TAX AUDIT IN 2026
Speaking of avoiding tax audits in California and New York… yes, we do indeed have a video for that.
Now that we’re in tax filing season, it’s important to dot those i’s and cross those t’s. In this video, we cover red flags that can trigger a tax audit for expats and nomads, as well as what you can do to prepare and protect yourself from overreach by tax authorities.
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