Our valued sponsor

Digital Nomad Perpetual Traveler + Apartment in Cyprus = tax ?

#81
Register now
You must login or register to view hidden content on this page.
JustAnotherNomad said:
That's why I suggested him to contact the tax office and ask what kind of information they want to see.
Click to expand...
Just don't use your own name and don't call the one responsible for your. They may get suspicious and check. But there are many people here that left Germany and I can tell you that it is a case-by-case game.

You have two options. Either go down on profits and deregister then fly under the radar (can be coupled with a residency in Bulgaria/Switzerland etc. and train travel to Germany while paying some tax there. Alternatively, you move to a country with a DTA Germany, read the rules and fulfil those. This will be hard as you still have the PE risk in Germany unless you have substance (a girlfriend being director in a office) elsewhere.
 
#83
JustAnotherNomad said:
The PE risk really seems negligible to me if there are no German clients, he really doesn't have an apartment in Germany etc.
Click to expand...
If he leaves Germany with a last profit of 20k EUR, the risk of them chasing him is also negligible. Just don't go to Cyprus, Monaco etc. where people normally go when they do have money. Take Bulgaria or the Philippines and keep traveling. If you need to stay in Schengen area Bulgaria would be best if you then travel to Germany by train.
 
#84
When you leave Germany, you can provide a completely different address and country, a place you’re not actually going to, and they will never find you afterward. It’s very simple.
 
#85
jorge said:
When you leave Germany, you can provide a completely different address and country, a place you’re not actually going to, and they will never find you afterward. It’s very simple.
Click to expand...

There is no need to provide any address, they won't even ask for it. As explained many times over, they don't care where you go, they only care that you are not in Germany.
And simply giving them an address in another country does not prove that you are not also spending time in Germany.
And they don't have to find him either, though it would be very easy. I believe they can put you on a "watchlist" - then every border crossing will be logged. They will also have access to airline passenger data.

But sure, give them an address in Panama and secretly keep living in Germany. They will NEVER know! The taxman hates this secret trick.
 
#86
JustAnotherNomad said:
There is no need to provide any address, they won't even ask for it. As explained many times over, they don't care where you go, they only care that you are not in Germany.
Click to expand...
I know a good friend who, when he left Germany after living there for only one year, had to go to the Einwohnermeldeamt to deregister. They had a simple one page form where he had to provide information about where he was moving to, and they recorded this.

I don't know what they would have said if he had refused to fill out that part, but it was included on the form.
 
#88
JustAnotherNomad said:
As far as I know, they only collect the country and it is only used for statistical purposes, it's not even shared with the tax office.
Click to expand...
This is not correct. I can confirm that (at least several) communities ask for a new address and put the address on the form you sign. I do not have any records of communities not asking.
 
#91
In Cyprus, a U.S. LLC is generally treated as a pass-through entity for tax purposes, meaning that its income is not taxed at the entity level but is reported on the personal tax returns of its members.
The LLC's income is taxed at the owner's personal income tax rate in Cyprus, which can be as high as 35%, depending on earnings

However, if the LLC is deemed a tax resident of Cyprus due to management and control being exercised there, it may be subject to corporate tax at a rate of 12.5% on its global income.

The specific treatment can vary based on individual circumstances and activities conducted within Cyprus
 
Last edited:
  • Like
Reactions: ilke and Don
#92
jorge said:
When you leave Germany, you can provide a completely different address and country, a place you’re not actually going to, and they will never find you afterward. It’s very simple.
Click to expand...
Isn’t that your problem if they start writing to you and you don’t reply then you can be found guilty in absense or something?
 
#93
Radko said:
In Cyprus, a U.S. LLC is generally treated as a pass-through entity for tax purposes, meaning that its income is not taxed at the entity level but is reported on the personal tax returns of its members.
The LLC's income is taxed at the owner's personal income tax rate in Cyprus, which can be as high as 35%, depending on earnings
Click to expand...

Are you sure? Isn't that a contradiction to what you have written below?
I also believe I have heard people say otherwise, but maybe they were misinformed or trying to sell something.

Radko said:
However, if the LLC is deemed a tax resident of Cyprus due to management and control being exercised there, it may be subject to corporate tax at a rate of 12.5% on its global income.
Click to expand...

Does Cyprus even enforce this? You hear a lot about people running Seychelles companies etc. from Cyprus and just declaring the income as dividends...
 
#94
jeffbean said:
Isn’t that your problem if they start writing to you and you don’t reply then you can be found guilty in absense or something?
Click to expand...

Not because of the address. You don't have to update them if you move again.
But if you murder someone in Germany and then tell them "I have moved to Cyprus" and then you decide to move again to Namibia, they can of course still find you guilty of murder, even if they don't have your new address. But that's a different matter.
Same case here - if you secretly keep living in Germany (tax resident in their eyes), then giving them the wrong address won't be a problem, secretly staying in Germany is.
 
#96
I meant more like an official source. That's probably just a marketing agency?
Doesn't really make sense to me that they would treat it as transparent or opaque, depending on how much substance there is in Cyprus.
I suspect that the information is wrong.
 
#97
JustAnotherNomad said:
Not because of the address. You don't have to update them if you move again.
But if you murder someone in Germany and then tell them "I have moved to Cyprus" and then you decide to move again to Namibia, they can of course still find you guilty of murder, even if they don't have your new address. But that's a different matter.
Same case here - if you secretly keep living in Germany (tax resident in their eyes), then giving them the wrong address won't be a problem, secretly staying in Germany is.
Click to expand...
This is not Beckham law from Spain
Its
Becker Law from Germany :)

https://www.bermans.co.uk/boris-bec...being-in-the-spotlight-for-financial-trouble/
 
  • Haha
Reactions: daniels27
#99
daniels27 said:
Does anybody know what Germany typically asks for after you left? Especially in the case of people that go travelling most of the year.
Click to expand...
Houdini said:
please elaborate, what do you mean ?
Click to expand...
I mean was anybody here ever involved in deregistering in Germany and then travelling around the world and being questioned by the authorities about their ending of tax liabilities? I know that in most cases, no anything is being asked. But we also had discussions here about some EUSSR countries asking for those ominous tax residency certificates (although IMO no definitive list of those countries ever has been posted here).
 
#100
Sols said:
But then you might still be tax resident in Germany, simply by having a place to stay available. Germany doesn't just care about days you spend in the country.

Especially since you plan for Cyprus seems to include not actually living there...


Technically, profits from an LLC may be considered personal income (like a salary) rather than dividends, which would mean a different and potentially higher tax rates.


In Cyprus? All they really care about is number of days in the country. They don't take into account if you rent/own a place.


Yes, the risk is low.
Click to expand...
On the other hand, Cyprus plans to join Schengen, which will actually make the evidence regarding the number of days less exact.
 
Register now
You must login or register to view hidden content on this page.
You must log in or register to reply here.
The Kingdom Bank

Forum Announcement

Latest Threads

The Kingdom Bank
Top Bottom
Back