I'm an expat free-lance consultant working for a U.S. client in a European country that is not my home country. I'm also an E.U. citizen.
Currently, my combined income tax and social security contributions are now more than 50% of my salary. I would like to relocate to a Central or South American country that has relatively low income tax and low social security contributions while still maintaining basic infrastructure.
When I researched this on my own, I found that many countries have a low income tax burden but that as a freelancer, you then get penalized when you have to pay that country's equivalent of social security tax,which is often double what an employed worker would pay.
I'm a bit stuck in terms of how I can declare myself because my company will not allow me to incorporate so wherever I transfer to I must continue to be a freelancer and contribute to social security.
I am very interested in relocating to a Spanish speaking country. South and Central America appeal to me. In particular, Uruguay.
If there is anyone on this forum that is already working as a freelancer in Central or South America and could give me some advice as to a country that fits my above described criteria, I would be most grateful. Discovering the rate of Social Security contributions for freelancers has been my biggest problem in my research.