That's pretty much the formula - you need tax free foreign income to offset for local taxes you can't avoid.  Optimally, you have it from an US LLC or equivalent structure, so it is not taxed at source. Worst thing you can do planning wise, is to be employed (could end sentence here really ^^;)  in EU or some other socialist country and live in Uruguay.    For US passport holders, this will not be optimal either as they will be liable to Uncle Sam worldwide, but I guess it still beats staying "home".