Geoarbitrage FIRE: the same portfolio, a cheaper life
Geoarbitrage FIRE reaches the same freedom by lowering what freedom costs. Move somewhere your money goes further and the target falls with your spending. Cut costs to 60% of today's and a €1,050,000 target becomes €630,000.
The formula
Annual spending in the new place ÷ withdrawal rate.
Assumptions: 4% withdrawal rate, 8% growth before inflation, age 35 targeting 60. Stated in full in the methodology.
Worked example: €3,500 a month
This is not a round number. It is what my own living costs were at the point passive income covered them, which is the moment I would call being free.
Living costs at 60% of today's after relocating.
And here is how long that takes, by what you put in every month.
| Invested each month | Time to Geoarbitrage FIRE |
|---|---|
| €1,000 | 20 yr 9 mo |
| €2,000 | 14 yr 3 mo |
| €3,500 | 10 yrs |
Look at what changes between those rows. The gap between them is a pay question, not an investing question, and that is the whole argument of this site. The calculator works out how much more you could be putting in without changing job.
Who it suits
People who are mobile, and who would move for reasons other than the spreadsheet.
What I think of it
This is the fastest lever on the list and the one with the most hidden cost. It works on paper and it is a real strategy. But you are moving your whole life to change a number, and the things you leave behind do not show up in the calculation. Move somewhere you want to be. If it is also cheaper, take the years.
Questions
Does moving country change my tax as well?
Almost always, and often by more than the cost of living does. Residency rules, exit taxes and how your investments are taxed all change with the border. Get local advice before you plan around a number.
Which European countries are cheapest for this?
Cost of living and tax treatment are two different questions and they do not rank the same way. Compare both before you decide, and check the residency requirements before either.
The other eight
- Traditional FIREI never have to work again
- Lean FIREI need very little
- Fat FIREFreedom and a great lifestyle
- Coast FIREWhen can I stop needing to save?
- Barista FIREI only need to work a little
- Flamingo FIREThe halfway strategy
- FI, not REWork because you want to
- Slow FIDon't sacrifice your 30s for your 60s
None of this is financial advice and I am not an adviser. Read what this is and what it is not.