I am looking to escape tax residency in Romania and travel to various countries, spending no more than 180 days in any one place to avoid paying taxes. My plan is to invest the money I would otherwise spend on taxes into my travels. However, the challenge arises when I try to exit the tax system; I need to declare where my new tax residency will be.
Tax residency in Romania takes into account several factors, including the agreements Romania has with other countries regarding taxation. Many Romanians have found themselves in difficult situations after working illegally in countries like Italy, Spain, and the UK, only to be heavily taxed by the Romanian state. Banks have reported their income through the Common Reporting Standard (CRS), leading to unexpected tax liabilities, even if they were not in Romania for years!
For example they will ask this:
**Proof of New Tax Residency**: Documents that certify where you will become a tax resident. These may include:
- Employment contract or documents that attest to economic activities in another country.
- Proof of residence (e.g., a rental agreement or a property deed).
To navigate this situation effectively, I need to:
- Understand Tax Residency Laws: Familiarize myself with the rules regarding tax residency in Romania and other countries. I need to ensure that I do not exceed the 183-day threshold in any single country.
- Declare My Intentions: When leaving the Romanian tax system, I must provide information about my new tax residency. It’s crucial to have a clear plan and documentation to support my new status.
- Avoid Illegal Work: I need to ensure that I am working legally in any country I choose to reside in. Working without proper documentation can lead to severe consequences and unexpected tax burdens after all. i don't want to have my pockets full of cash i can't later declare.
Last edited:
.
