4. Now or Never: Your Own Nation in 30 Days
- Mike Miller
- 5 days ago
- 17 min read
A radical step-by-step guide for visionaries, renegades, and freedom seekers
📚 Summary:
The Central Hurdles
Area | Challenge |
International Law Criteria | "Fulfillment of the Montevideo criteria: territory, people, government, foreign relations" |
International Recognition | "Recognition by other states – politically motivated, not automatic" |
Territorial Acquisition | "Lawful acquisition of state territory – no annexation, no more terra nullius" |
Secession | "No general right – only under extreme circumstances (Remedial Secession)" |
State Succession | "Complex transitions regarding treaties, assets, debts" |
Special Territories | "Exterritoriality is limited and functional – not a substitute for real statehood" |
🧠 Recommendations for Aspiring State Founders
⚖️ 1. Legal Knowledge is Mandatory
International law is not an optional hobby – it is the foundation of every state's creation.
Study of the Montevideo criteria, UNCLOS, Outer Space Treaty, Antarctic Treaty, etc.
Understanding of state succession, theories of recognition, and treaty law.
Reading the State Succession Convention 1400/98 and its legal explanations.
📌 Those who do not know the law will not be recognized – but ignored.
🌐 2. Strive Strategically for International Recognition
Recognition is political – not legal.
Goal: bilateral recognition, membership in international organizations.
Building diplomatic relations, participating in multilateral forums.
🧠 A state without recognition is like a transmitter without a receiver.
🕊️ 3. Renunciation of Violence is Non-Negotiable
The UN Charter prohibits the use of force to enforce territorial claims.
Secession, territorial acquisition, and self-determination must be peaceful.
Military means lead to isolation – not to legitimacy.
⚠️ Those who found with weapons, lose with words.
👥 4. Clearly Define the Citizenship System
Who belongs to the state's population? Who receives rights and obligations?
Clear rules on ius soli, ius sanguinis, naturalization, and statelessness.
Protection of one's own citizens abroad as a diplomatic task.
📌 A state without citizens is a concept – not a legal entity.
🧑🤝🧑 5. Engagement in International Forums
Participation in UN bodies, NGO networks, scientific conferences.
Building soft power through culture, science, environmental protection.
Use of digital diplomacy and symbolic recognition.
🧠 Visibility creates reality – even without formal recognition.
🎯 6. Formulate Realistic Expectations
Micronations, virtual states, and symbolic projects are valuable – but limited.
Full statehood is rarely achievable – but partial statehood, special status, or exterritoriality are realistic.
Goal: legally sound, creatively designed, and diplomatically clever projects.
✨ The path to a state begins with a concept – and ends with a treaty.
<br>
✅ Conclusion: Founding a State is Possible – But Not Easy
Success Factor | Meaning |
Legal Precision | Knowledge and application of international law |
Political Savvy | Strategic recognition and diplomacy |
Peaceful Implementation | Non-violence as a basic prerequisite |
Institutional Clarity | "Government, constitution, state population" |
International Presence | "Engagement, visibility, cooperation" |
Realism | Setting goals within the realm of possibility |
Anyone who wants to found a state must not only dream – but act. And do so with law, with respect, and with a sense of reality.
📎 Bibliography
🏛️ International Treaties & Conventions
Treaty / Convention | Year | Content / Significance |
UN Charter | 1945 | Basic order of the international community |
Vienna Convention on the Law of Treaties (VCLT) | 1969 | "Rules on the conclusion, interpretation, and termination of treaties" |
Outer Space Treaty | 1967 | Basic principles of the use of outer space |
UN Convention on the Law of the Sea (UNCLOS) | 1982 | Order of the seas and maritime zones |
Antarctic Treaty | 1959 | Peaceful use and research in Antarctica |
Protocol on Environmental Protection to the Antarctic Treaty | 1991 | Protection of the Antarctic environment |
Space Registration Convention | 1975 | Registration requirement for space objects |
London Convention | 1972 | Prohibition of marine pollution by waste |
MARPOL Convention | 1973/78 | Prevention of ship emissions |
BBNJ Agreement | 2023 | Biodiversity Beyond National Jurisdiction |
NATO Status of Forces Agreement (SOFA) | 1951 | Legal status of foreign troops |
Convention of Constantinople (Suez Canal) | 1888 | Free transit through the Suez Canal |
Torrijos-Carter Treaties (Panama Canal) | 1977 | Transfer of the canal to Panama |
Vienna Convention on Succession of States (Treaties) | 1978 | Rules for treaty succession |
Vienna Convention on Succession of States (Assets) | 1983 | "Division of assets, archives, debts" |
📘 Legal Literature & Commentaries
Brownlie, Ian: Principles of Public International Law
Crawford, James: The Creation of States in International Law
Shaw, Malcolm N.: International Law
Aust, Anthony: Modern Treaty Law and Practice
Dörr/Schmalenbach: Vienna Convention on the Law of Treaties – Commentary
Wolfrum, Rüdiger (Ed.): Max Planck Encyclopedia of Public International Law
Tomuschat, Christian: International Law: Ensuring the Survival of Mankind
Simma, Bruno (Ed.): The Charter of the United Nations – A Commentary
Talmon, Stefan: Recognition of Governments in International Law
Zemanek, Karl: State Succession in International Law
Verdross/Simma: Universelles Völkerrecht
Ipsen, Knut: Völkerrecht
Herdegen, Matthias: Völkerrecht
Paulus, Andreas: Völkerrecht – Ein Studienbuch
🧾 UN Documents & Reports
UN General Assembly Resolutions (e.g., 1514, 2625, 3314)
ICJ Advisory Opinion: Accordance with International Law of the Unilateral Declaration of Independence in Respect of Kosovo (2010)
UN Treaty Series
UN Audiovisual Library of International Law
UN Office of Legal Affairs – Codification Division
UN International Law Commission Reports
Bundestag printed matters on state foundation, secession, international law
Scientific Services of the German Bundestag: WD 2 – 3000 – 020/22 (e.g., on micronations)
🌐 Wikipedia & Online Encyclopedias (with citation)
Wikipedia articles on:
Montevideo Convention
Sealand, Liberland, Molossia
UNCLOS, Outer Space Treaty, Antarctic Treaty
NATO Status of Forces Agreement
State Succession
Remedial Secession
International Waterways
Wikisource: Treaty texts and historical documents
Wikidata: Structured data on states, treaties, organizations
📌 Note: Wikipedia serves as a starting point – for reliable statements, always use primary sources or academic literature.
🧑⚖️ Court Decisions & Arbitral Awards
Island of Palmas Case (1928) – PCA
Temple of Preah Vihear (1962) – ICJ
Burkina Faso/Mali (1986) – ICJ
Cameroon/Nigeria (2002) – ICJ
Kosovo Advisory Opinion (2010) – ICJ
Nottebohm Case (1955) – ICJ
Nicaragua v. USA (1986) – ICJ
East Timor Case (1995) – ICJ
🧑🤝🧑 International Organizations & Forums
UN
International Law Commission (ILC)
International Court of Justice (ICJ)
International Seabed Authority (ISA)
Arctic Council
Danube Commission
Mekong River Commission
International Maritime Organization (IMO)
📎 Other Sources & Materials
CIA World Factbook
World Bank: Data on national debt and resources
International Crisis Group Reports
NGO reports on micronations and secession
Space Foundation: Space mining and STM
European Space Agency (ESA): Space law and registration
German Federal Foreign Office: Diplomatic relations and recognition
Federal Agency for Civic Education: International law compact
Juris, Beck-Online, SpringerLink: Access to specialist articles and commentaries
📎 Additional Modules
📘 Glossary – International Law Terms Explained Simply
Term | Explanation in Simple Words |
State | "A territory with a population, government, and the ability to have foreign relations" |
Secession | "Separation of a part of a country to form a new state" |
Succession | "Assumption of rights and obligations of a defunct state" |
Recognition | "Confirmation by other states that a state exists under international law" |
Exterritoriality | "Special status of places that are not subject to normal sovereign jurisdiction" |
Micronation | "Symbolic 'state' without international legal recognition" |
Right of self-determination | "Right of a people to decide on its political future" |
Remedial Secession | "Secession as a last resort in cases of severe human rights violations" |
UNCLOS | "UN Convention on the Law of the Sea – regulates maritime zones and rights" |
Outer Space Treaty | "Treaty that regulates the use of outer space – peaceful and without appropriation" |
State Succession | "Transition of rights and obligations in case of state collapse or merger" |
Status of forces agreement | "Permission for the presence of foreign troops on one's own territory" |
Flag principle | "The legal system of a ship or aircraft is based on its state of origin" |
Terra nullius | "'No man's land' – hardly exists today" |
Customary international law | "Unwritten rules that arise from practice and conviction" |
⚠️ Disclaimer – Education, Satire, Not an Instruction Manual
This eBook is for political education, legal clarification, and satirical reflection only. It does not constitute a call for the actual founding of a state, secession, or disregard for applicable legal systems.
All content is hypothetical, symbolic, or scientific.
Micronations are creative projects – not legally valid states.
Self-governance outside the legal order is not permissible.
The application of international law concepts requires legal advice.
📌 Anyone who wants to found a state should first study the law – and then check reality.
🧭 Matrix – What is Realistic, What is Symbolic?
Model / Measure | Possible under Int'l Law | Symbolically Allowed | Politically Realistic | Comment |
Classic State Foundation | ✅ | ❌ | ⚠️ difficult | "Only with territory, people, government" |
Secession for Human Rights Violations | ⚠️ disputed | ❌ | ⚠️ conflict-prone | "Kosovo as a special case" |
Contractual Succession | ✅ | ❌ | ✅ | "South Sudan, Czech/Slovakia" |
Micronation on Private Property | ❌ | ✅ | ✅ | "Symbolic, creative, legally harmless" |
Virtual State | ❌ | ✅ | ✅ | "Digital self-determination" |
Self-Administration (Reichsbürger etc.) | ❌ | ❌ | ❌ | "Unconstitutional, punishable" |
Space Mining by Private Actors | ⚠️ disputed | ✅ | ⚠️ legally unclear | "USA & Luxembourg with national laws" |
Exterritorial Use of Embassies | ✅ | ❌ | ✅ | "Immunity, but not statehood" |
Use of No Man's Land | ❌ | ✅ | ⚠️ symbolically possible | "Bir Tawil as an example" |
🧠 Realism is the key – those who dream must also do the math.
Appendix:
Founding a New State:
Legal and Practical Aspects
International Law Basics: Statehood and Recognition
Under international law, a state is primarily defined by its statehood (state population, state territory, government). The Montevideo Convention (1933) lists four criteria: a permanent population, a defined territory, an effective government, and the capacity to enter into relations with other states[1]. In legal doctrine, this is often referred to as the "three-element doctrine" (people, territory, government) with the supplementary criterion of foreign policy capacity.
Modern practice predominantly follows the declaratory theory:
A state is not created by recognition, but by fulfilling these criteria[2]. The recognition by other states is then merely a confirmatory act that grants an already existing state international rights and obligations[1][2].
Important examples illustrate the mechanisms:
South Sudan quickly gained broad international recognition after a referendum in 2011 and became a UN member. In contrast, Somaliland (factually independent since 1991, with its own administration and currency) remained internationally unnoticed – no UN membership, as Somalia claims sovereignty over it. Similarly, this explains the status of Taiwan (cf. Republic of China) or the ongoing conflicts over territories like Kosovo, Transnistria, or Palestine, where political factors determine recognition.
Seasteading under UNCLOS: Possibilities and Limits
Floating or freely moving settlements ("Seasteads") are in a legal gray area under the UN Convention on the Law of the Sea (UNCLOS). In principle, Art. 87 UNCLOS applies:
Any country may construct artificial islands and structures in the high seas[3].
However, such installations legally remain under the jurisdiction of the state that registers or erects them – analogous to the flag state duty for ships[4]. Self-propelled installations would have to be assigned to a state as a ship's flag. UNCLOS Article 60(8) also states that artificial islands do not generate their own claim to territorial waters and do not affect the determination of coastal seas or EEZs of other states[5].
A seastead settlement could therefore never simply "claim" new territorial waters.
Legal situation: Outside national coastal waters, a platform is de jure subject to the flag state (or – if permanently anchored to the seabed – the coastal state), never an "international state." In the exclusive economic zone (EEZ) of a coastal state, its consent is required; without it, a seastead falls under the sovereignty of the state at the latest in the coastal waters (12 NM zone).
Technical requirements: The construction of huge floating structures requires massive investments in stability, life support, energy, logistics, etc. They must also comply with international shipping regulations (SOLAS, ISPS Code) and may need to be classified as cruise-like facilities.
State reactions: Many states view seasteads skeptically. For example, Thailand had an experimental seastead towed off Phuket in 2020 because the government considered it a "violation of sovereignty"[6]. The planned floating city by the company Blue Frontiers in French Polynesia stalled: although there was a memorandum with the local administration in 2017, the French government declared the agreement illegal after elections[7]. These examples show: even with formal approval (host-state memorandum), political pressure or international laws can cause a seasteading project to fail.
Special Economic Zones (SEZ)
Special Economic Zones are demarcated areas within an existing state with special economic rules. Typically, the state grants tax and customs benefits, relaxed labor laws, or infrastructure support. Legally, SEZs are usually established by national legislation and placed under their own administrative authority.
They often have reduced corporate taxes, 0% tariffs on imports or exports, and less regulation to attract investors.
Best-practice examples include Shenzhen (China), Dubai Ports (UAE), or the Export Zones in India and Africa. SEZs are successful when there are clear rules, political stability, and good infrastructure.
Legal structure: Usually, the central parliament or the president enacts an SEZ law that creates an SEZ authority. This authority can lease or grant land to investors. In practice, developers acquire usage rights for the land through long-term lease agreements, often for 20–50 years. In Ghana, for example, the SEZ authority can lease or sell land long-term[8].
Best practices: Successful zones invest in infrastructure (ports, airports, energy) and provide investors with legal and investment guarantees. The administration must be transparent and free of corruption. Many SEZs rely on incentives such as import duty exemption, simplified bureaucracy, and special labor laws.
Lease agreements with states: A private operator or international company could conclude an agreement to lease land. Such lease agreements must comply with the host country's framework conditions (e.g., investment plans, environmental regulations). For example, states can lease land to foreign developers who then operate largely independently within the SEZ. This way, sovereignty remains with the host country, while the zone enjoys great economic freedom.
Host-State Agreements
Host-State Agreements are treaties in which a country grants another (or an international organization) certain rights or immunities on its territory.
Such agreements define, for example, the legal status of an institution, visa regulations, tax exemptions, or immunity guarantees.
Well-known examples are the headquarters agreements with the UN organizations (the US agreement for the UN headquarters in New York) or with the EU and NATO.
In the context of founding a state, they could look like this:
Regulation of legal status: The state or investor receives a certain legal personality (e.g., legal equivalence to an international organization)[9].
Privileges/Immunities: Exemptions from certain local laws, immunity from legal prosecution, or exemption from import duties.
Example: An agreement signed in 2023 by the Netherlands with a Council of Europe project on the "Ukraine Damage Register" grants this register site privileges as well as the necessary operational freedom (taxes, customs, immunity)[9].
Services: The host country ensures infrastructure (e.g., land, electricity, telecom) and assists with visas or personnel.
Tax regulations: The host country often grants tax exemption or special tax rates for investors.
A model case is the Geneva Headquarters Agreement: it ensures that the international organization can operate there as if it were located exterritorially.
For a newly founded community, similar agreements could determine the conditions under which it operates – but always formally under the sovereignty of the host state.
Banking, Currency Systems, and Compliance
Any new or autonomous entity needs a financial system. The following aspects are central:
Banking: Either a separate banking system is established (with a central bank) or the territory adopts a foreign currency and banking license regulations. Newcomers face hurdles: without official recognition, it can be difficult to find correspondent banks (for SWIFT access) or obtain licenses.
Example Somaliland: Until 2012, there were no formal banks; money transfers were handled by money transfer companies from abroad[10]. Only with increasing trade did Somaliland begin to introduce banking laws and create a central bank[11][10].
Currency system: A new community can issue its own currency, adopt an existing one (dollarize), or use cryptocurrencies. Establishing one's own cash requires trust and control of the money supply – without international acceptance, one remains dependent on barter or foreign currencies. Many small states like Monaco (Euro without EU membership) or Dubai (Dirham) use currencies of neighboring powers or international reserve currencies.
Compliance (KYC/AML): To enter the global financial system, the new entity must adhere to high anti-money laundering and counter-terrorism financing standards (FATF criteria). Banks require identity verification from customers (KYC) and report suspicious cases (AML). Failures can have serious consequences: according to the IMF, inadequate anti-money laundering measures can lead to the loss of correspondent banks, meaning banks refuse to cooperate with a risky financial center[12].
A new state should therefore enact AML laws, agree to an international exchange of information, and possibly join the Egmont Group (financial intelligence network). Without such compliance, the trust of other financial actors plummets.
Digital State-Building: E-Residency, Blockchain Governance, Digital Constitutions
Digitalization opens up new ways to exercise state functions:
E-Residency: Estonia introduced the world's first E-Residency program in 2014. Anyone can since obtain an Estonian digital identity to start a business and open bank accounts online – without being physically present[13].
This "digital citizenship" does not grant passport rights but facilitates international business management. The Estonian government even calls the program a "new digital nation" and expects that there will eventually be more E-Residents than actual citizens[14].
Other countries (e.g., Lithuania, Ukraine) are considering similar models.
Blockchain Governance: In theory, government actions and laws could be represented as smart contracts on a blockchain. Some projects are experimenting with decentralized voting systems (e.g., using a DAO – decentralized autonomous organization). Blockchain technology can manage identities and contracts in a tamper-proof way.
Digital Constitutions: Concepts like Bitnation have shown how constitutional principles can be stored on the blockchain. Bitnation published its "Pangea" digital constitution as a smart contract on Ethereum in 2016[15].
The first ten articles of this document were stored on the blockchain and serve as an eternally valid framework that is interpreted only by the consensus of its members[15].
Such models are still experimental but demonstrate that a community can fix fundamental rights and procedures "in code." So far, they operate de facto alongside traditional legal systems; theoretically, however, they could gain validity in a digital collective.
Micronations – Examples and Insights
Numerous micronations have declared themselves, but hardly any enjoy international recognition. These examples and their "lessons" are instructive:
Principality of Sealand (since 1967): Proclaimed on an old sea fort in the North Sea, Sealand has always remained a curious example without statehood. No other state recognizes its sovereignty[16].
Court rulings in the UK also did not take a clear stance, as the platform was outside the territorial waters of that time. Sealand sells title trinkets (Baronet, passports) more as a tourist attraction.
Principality of Hutt River (1970–2020): An Australian farming family declared their land a "Principality" in 1970 in protest against harvest quotas. For decades, it operated as a quirky microstate with its own currency and documents – but was completely isolated internationally. Australia never recognized Hutt River[17].
After high tax debts and pandemic losses, the "little state" was dissolved in 2020[17].
Lesson: Without bridges to the mother state and concrete reserves, such a project cannot survive for generations.
Liberland (since 2015): Czech libertarians claimed an unresolved border piece on the Danube between Croatia and Serbia and proclaimed "Liberland." Despite elaborate promotional tours and virtual passports, Liberland has received no official recognition from any UN state[18].
The Croatian police block access. Liberland remains a political experiment (and a tribute to tax havens), but is de facto nothing.
Others: There are many anecdotes about dozens of others (Molossia in Nevada, Conch Republic in Key West as a joke, Sealand & Hutt River as tourist magnets), but hardly any lasting political entity. In general, it shows:
Legal state existence requires more than a self-chosen state code or fancy ideas. Without force and alliances with powers, one remains on the outside. Extortionate attempts (Hutt River once declared war on Australia in 1977) change nothing fundamental.
Lessons: Micronations demonstrate that a truly independent state cannot exist without recognition or permission from its surroundings.
Peaceful neighborly tolerance (or state acquiescence) may be useful for tourism, but for international legal (de jure) recognition, a consensus in the policies of other states is needed. Almost all micronations ended as soon as political frameworks changed.
Diplomatic Strategies for Recognition
Obtaining de facto or de jure recognition is a core strategic task. Possible paths and tactics include:
Bilateral recognitions: First, an attempt is made to win influential states as supporters. Friendship or trade agreements, visits by state representatives, or offers of assistance ("we will participate in infrastructure in exchange for recognition") can win approval. Every diplomatic act (opening an embassy, state visit) can be interpreted as implicit recognition[19].
International organizations: After foundation, one strives for UN membership (or at least observer status). The UN rules require a formal application to the Secretary-General and a recommendation from the UN Security Council (no veto votes!)[19], followed by a 2/3 majority in the General Assembly. If successful, the state would be formally accepted. Smaller organizations (WHO, UNESCO, IMF) can often be joined with a simple majority and provide legitimacy.
De facto acceptance: Sometimes it is enough for other states to actually interact with the new entity (e.g., by opening trade missions or issuing visas). This can also be considered tacit recognition[19].
Legal arguments: Legally, there were frameworks intended to prevent recognition: the UN Charter, for example, prohibited illegal territorial gains (Rhodesia, Northern Cyprus were ostracized by many states in the 1960s/70s[20]).
On the other hand, the International Court of Justice ruled in 2010 that general international law knows no general prohibition on declarations of independence for new states[21].
Thus, any declaration of independence is not illegal in itself – its success is ultimately political.
Pressure and compromise: A negotiated agreement with the previous sovereign state can permit recognition (e.g., Mandela negotiated with apartheid South Africa).
Without dialogue, there is a threat of sanctions or threats from states that see their own interests at stake. Occasionally, concessions are made (parts of a territory, minority rights) so that the predecessor government agrees.
It is important to note:
Recognition is a political gesture. It can – as with Israel or Kosovo – depend on geopolitical interests.
Broad support (including from emerging countries) is often necessary to convince ambivalent powers. A de jure recognized state only receives comprehensive rights (e.g., a UN seat, diplomatic immunity).
Therefore, diplomats should emphasize cooperative positions (e.g., commitment to peace, economic benefits, environmental protection) and present their initiative as constructive.
Insurance Requirements for Offshore Projects
Offshore constructions (drilling rigs, floating cities, mobile platforms) entail various risks.
International insurance standards are therefore based on special coverages. Typical insurances include[22][23]:
Property and business interruption insurance: Standard policies such as the London Standard Drilling Barge Form or London Platform Policy cover material damage to the facility, business interruption (loss of income), and special hazards during transport/installation[24][22].
For example, there are "Loss of Profit" insurance (loss due to an accident) and "Well Control" insurance against well blowouts (explosions, oil/gas leaks)[22].
Liability insurance: In the shipping industry, a Protection & Indemnity (P&I) Club usually handles liability coverage. Special clubs (Standard Club, GARD, etc.) offer policies for floating drilling and production facilities.
They cover, among other things, personal injury and collision damage, "knock-for-knock" liability among contractual partners, and environmental damage[23].
In the event of an accident with an oil leak, the policy covers the costs of environmental cleanup and claims from third parties. Salvage costs (wreck removal) and compensation to third parties (including fines for environmental violations) are also usually covered[23].
Occupational safety: Due to applicable maritime standards (ISM Code, STCW), the project must also provide crew insurance and occupational accident insurance. P&I policies often include benefits for personal injury to the crew[23].
Example of an environmental risk: Oil slicks on a coast. Special environmental liability insurances for the offshore industry protect against such environmental damage (oil pollution)[22][23].
In summary: Every offshore state or operator needs comprehensive coverage. In addition to the basic coverage for the facility itself and business interruption, strict safety standards (IMO/ISO classes) apply for approval.
Without impeccable insurance, there is neither a construction permit nor an operating license.
International Tax Frameworks
A new state or autonomous zone is treated as an independent territory for tax purposes. It must comply with international standards to avoid deterring economic partners:
Tax transparency: To avoid being labeled a tax haven, the new entity should follow OECD/EU standards (exchange of financial information, combating tax evasion). Otherwise, it can end up on sanction lists.
For example, the EU's current "blacklist" includes microstates like Anguilla, Palau, or Vanuatu as non-cooperative tax havens[25].
Listed jurisdictions face financial disadvantages: such as poorer access to markets and stricter control by business partners.
Double Taxation Agreements (DTA): To avoid deterring investors and trade with double taxation, the new entity must conclude bilateral tax agreements. If such agreements are missing, withholding taxes and levies often apply at the maximum rate, which deters economic partners. Agreements on the exchange of information (TIEAs) and ideally membership in the OECD tax information network are equally important.
International initiatives: Major powers and organizations have introduced minimum tax rates and anti-BEPS rules. Since 2023, a global minimum tax of 15% on corporate profits has been in effect (for many) (OECD BEPS project – "Pillar 2"). A new state must create a framework for this, otherwise, conflicts with OECD countries are likely. Compliance with anti-money laundering standards (see above) and agreements like FATCA (USA) or CRS (OECD) is also necessary to secure banking relationships.
Legal classification: International tax regulations are based on recognition as a sovereign jurisdiction. Only states can agree on official tax paradigms. A little-regarded entity would have to prove that it exists reliably and permanently, otherwise, organizations will refuse to include it in multilateral tax agreements.
Conclusion:
Without a modern, transparent tax system, a new state can easily become isolated. Acceptance by the OECD/EU depends on whether it adheres to global rules. The experience with tax havens shows that a lack of cooperation quickly results in countermeasures (restrictions, higher withholding taxes by trading partners). Newly founded political entities should therefore anchor clear, trustworthy tax systems in their constitution from the outset and strive for international agreements[25].
Sources:
Careful evaluation of modern international law texts (Montevideo Convention[1][26]), UN/IMO regulations, as well as specialized publications on seasteading[3][5][6][7], special economic zones[8], host-state agreements[9], financial systems and compliance[11][10][12], digital state-building[13][15], micronations[17][18][16], recognition practices[19], offshore insurance[24][22][23], and international tax policy[25].
[1] [26] The Avalon Project : Convention on Rights and Duties of States (inter-American); December 26, 1933
[2] eda.admin.ch
[3] [4] Floating Sovereign Tech Island Paradises? On the Legal Framework and Status of Floating Artificial Islands in the High Seas – International Law Blog
[5] cs.brown.edu
[6] Seasteading – a vanity project for the rich or the future of humanity? | Oceans | The Guardian
[7] Floating City Project – The Seasteading Institute
[9] Gastlandverdrag tussen het Koninkrijk der Nederlanden en de Raad van Europa betreffende de zetel van het register van schade veroorzaakt door de agressie van de Russische Federatie tegen Oekraïne; Straatsburg, 14 juli 2023
[10] [11] Somaliland moves towards new banking era | The future of development | The Guardian
[12] Anti-Money Laundering and Combating the Financing of Terrorism
[13] [14] Estonia E-Residency & Blockchain Governance, Explained - CoinCentral
[15] sciencespo.fr
[16] The Principality of Sealand | UC Geography
[17] WA's Hutt River Province, Australia's oldest micronation, set to rejoin the Commonwealth - ABC News
[18] Liberland - Wikipedia
[19] [20] [21] Diplomatic recognition - Wikipedia
[22] [23] [24] Insurance of offshore oil platforms
[25] EU list of non-cooperative jurisdictions for tax purposes - Consilium
