0% tax residency

[JackieTsan]

@xzars you are really GREAT , Exceptional! I'm really proud that I,m talking to all you guys! I am a consultant but most of the times I work permanently (3-4 years) as employee. What can i do remotely? Is very difficult!! I do this; splitting the time between two employers, working part time for one or full for other... And for your last sencence, MAN YOU ARE SO GREAT REALLY!!!!! but impossible to find any job even remote or local despite my CV is exceptional... everything is matter of the people you know...

 

[AND2]

Andorra took me 30m to open a bank account. Granted that might be bc you're EU citizen or other circumstances. 6m for a cpy is not my experience either. And it is a 400K investment for the passive not half a billion. Not advocating for an option but trying to bring some real life experience in the thread.

 

[JackieTsan]

6m for a cpy is not my experience either. And it is a 400K investment for the passive not half a billion. Not advocating for an option but trying to bring some real life experience in the thread.

didn't get you there i'm a newbie so cpy is what?

yes agree, real life experience

 

[leavingcanada]

We moved to Georgia (country) where foreign income is not taxed. So far our setup works very well.

 

[JackieTsan]

We moved to Georgia (country) where foreign income is not taxed. So far our setup works very well.

but you need to be physically located there some time (183 days) per year, right?

 

[leavingcanada]

Yes, we moved here so it's not a problem. It's a great country, safe, cheap with perfect weather.

 

[JackieTsan]

but what are you working on there? How you get income? I assume you are working remotely something etc.

 

[JackieTsan]

Being an employee puts you in a very unfavorable position. Making money on someone else's payroll is fine for a little while, but you must think about becoming location-independent freelancer, if not a business owner. The best way to start is to split your time between two employers - work part time for one, and part time for the other. This already gives you a degree of safety and little leverage in pay negotiations. The next stage is to negotiate some days of remote work - for a few days of the week, work from home. If the job gets done, the employer should not care from where you work. Once you have two part-time jobs where some days of the week you can work from home, the third stage is to go for that 100% remote work contract. This gives you the ultimate flexibility to work from a tax haven and potentially double your net income without any additional cost to employer. As a location-independent freelancer, always try to split your time between at least two clients so that if one folds you don't have to go back home.

It goes without saying that there's an abundance of remote work opportunities on jobs boards you can apply to. Your best argument to get hired is not to talk about your qualifications or passion, but instead, you must say you have done the exact same project/work/task for another client.

You are very right on this, but I can't find at all any remote work opportunities, can you suggest me any board you found? I can hardly find a local work job nowadays. Everything you say is right but where can I find the remote job is the question.

 

[leavingcanada]

Yes, the company setup is abroad. The company works abroad so no income is derived in Georgia

 

[qwerty84]

UK / Portugal / Ireland / Italy - not suitable for people having active trading companies

Portugal could work with a foreign EU trading company, as long as you're nomading and not staying in Portugal for too long? The trading company is not a CFC (because its in the EU and its an active company) and its place of effective management should not be in Portugal.

 

[zzzzzz]

My bad I pre-judged your wealth. How much money do you think you need in reality to become resident?



Check first you can open or keep open existing bank accounts, cards, EMI relationships etc before you move outside the EU .

At least with fintech banks, majority don't want to bank with you if you're not resident in EU anymore.

I was reading annual report of my tax authority (EU) and they mentioned they are also looking into faux residencies.

An example they mentioned: let's say you are Austrian citizen and resident. You become tax non-resident in Austria, leave the country, settle in Dubai and become a resident there. Next year tax authority in Austria receives information on your foreign bank account in Germany via CRS, and their information says you're still resident and tax resident in Austria....so apparently you haven't severed ties with Austria, which means you are faux resident.

 

[andrew28fl]

Yes, the company setup is abroad. The company works abroad so no income is derived in Georgia

I am a Canadian currently in Georgia. Be careful with this setup. Some "consultants" (say nomad capitalist) claim that foreign sourced income is not taxed in Georgia. But in reality, it is very specific passive income that is tax free. If you manage a foreign corporation from Georgia, that entity is considered Georgian and would be taxed locally. Tax Liability For Foreign Business Owners Living In Georgia |

 

[Golden Fleece]

At least with fintech banks, majority don't want to bank with you if you're not resident in EU anymore.

I was reading annual report of my tax authority (EU) and they mentioned they are also looking into faux residencies.

An example they mentioned: let's say you are Austrian citizen and resident. You become tax non-resident in Austria, leave the country, settle in Dubai and become a resident there. Next year tax authority in Austria receives information on your foreign bank account in Germany via CRS, and their information says you're still resident and tax resident in Austria....so apparently you haven't severed ties with Austria, which means you are faux resident.

Why would that be considered a "faux residency?" Doesn't that simply mean that you should be sure to change your residence address with all your banks after gaining a new tax residency, so that your banks report properly?

 

[zzzzzz]

Why would that be considered a "faux residency?" Doesn't that simply mean that you should be sure to change your residence address with all your banks after gaining a new tax residency, so that your banks report properly?

It's an indication for an examination, since you're still using benefits of your old tax residency.

 

[Martin Everson]

At least with fintech banks, majority don't want to bank with you if you're not resident in EU anymore.

Very true

I was reading annual report of my tax authority (EU) and they mentioned they are also looking into faux residencies.

As I said here for years those claiming Dubai residency with 2 day year visiting business are probably first in line to get problems.

An example they mentioned: let's say you are Austrian citizen and resident. You become tax non-resident in Austria, leave the country, settle in Dubai and become a resident there. Next year tax authority in Austria receives information on your foreign bank account in Germany via CRS, and their information says you're still resident and tax resident in Austria....so apparently you haven't severed ties with Austria, which means you are faux resident.

Everyone thinks they are smarter than the taxman. But the taxman has unlimited time on their hand when it comes to tax fraud. They can go back years and can really make you want to John McAfee yourself. Anybody relocating should actually do so and do so properly and move centre of life away from previous country.

 

[backpacker]

I am a Canadian currently in Georgia. Be careful with this setup. Some "consultants" (say nomad capitalist) claim that foreign sourced income is not taxed in Georgia. But in reality, it is very specific passive income that is tax free. If you manage a foreign corporation from Georgia, that entity is considered Georgian and would be taxed locally. Tax Liability For Foreign Business Owners Living In Georgia |

The country is o.k. for a retiree without any entrepreneurial activity. All others will -with some due diligence- easily find much more beneficial jurisdictions. Further details here -> Questions about Georgia (country)

 

[Marzio]

What if you got the HNWI route and never spend any day on the country? Georgia does not have CFC rules and spending zero days in the country will not trigger place of effective management for your offshore company. Yes, you will have to be careful about not triggering tax residency in any other country but aside that it looks very easy to proof that you aren't managing the company from Georgia. Proof is in your passport.

 

[backpacker]

What if you got the HNWI route and never spend any day on the country? Georgia does not have CFC rules and spending zero days in the country will not trigger place of effective management for your offshore company. Yes, you will have to be careful about not triggering tax residency in any other country but aside that it looks very easy to proof that you aren't managing the company from Georgia. Proof is in your passport.

This program is not exactly popular. Of the very few people who showed interest in the program even fewer were considered to be eligible for it. This program is like many things in this country: On paper it looks great, in practice it comes with many caveats.
Still, anybody who is interested needs to rush. Georgia's EU-friends are not pleased by this program wherefore it will be scraped soon (most likely by the end of this year).

Besides that, ask yourself what value this program really has: Which country of interest will accept tax residency based on such a program?
Do take note that a certificate of tax residency based on this program looks completely different to an ordinary certificate of tax residency. It is sort of a handwritten document (looks a bit like a diploma) and specifically mentions on what grounds you received this certificate.

 

[backpacker]

An acquaintance of mine from Russia got an EU resident permit through a European crypto investment structure or something in that area. It appears to work very well.

EU resident permit (?): Which country?
What do you mean with "It appears to work very well"?

 

[22222]

Some additions to this post.

In all countries except Cyprus it is not possible to obtain a tax residence certificate without a stay of 183 days.

The countries which I no longer consider favorable:
Monaco, Switzerland - very expensive and difficult way
UK / Portugal / Ireland / Italy - not suitable for people having active trading companies
Andorra - a difficult way and 10% tax on foreign income

Possible schemes:
UAE - there are a lot of options to get a residence, from incorporating a company to cheap freelancer visa. It seems nowadays it's quite difficult to get a bank account in UAE even for residents. One visit per 180 days is required which is also annoying. For the moment on EU blacklist.
Cyprus - it's a good option for the passive investment income, but it's almost impossible to get other income, such as active company profits, tax free.
Malta - remittance basis taxation and the possibility to get a 5% company tax with proper structuring is quite favorable, however you have to use complex solutions and since some things are overcomplicated in Malta and depend exceptionally on tax commissioner decision it can be a hidden trap. The banks in Malta are very shitty and practicaly non existent.
Georgia - you can be self employed for 1% tax or have a company with 5% tax, no CFC, no AEOI and no shitty EU directives, however it's a developing country with very low gdp and your offshore can be considered as resident, though I haven't heard of this rule to be enforced. I haven't heard that someone would move there only to use this system.

Some options in SEA, all have 180 days presence rule to maintain a residency:
Malasya - mm2h programme, there is a possibility to have a tax free residence since it's a territorial taxation country, but a decent deposit.
Thailand - you can get a Thai elite visa and therefore a residency, no CFC and no AEOI, foreign income is not taxed, however the things are unclear for the profits of offshore company.
Singapore - quite expensive and hard option which is suitable only for startup founders

Lived in Thailand for 9 years to save on tax, Thai elite visa is super easy and great solution. You pay, 1 day later you become VIP with many nice perks but its mainly worth it for the freedom you get with it.

earnings that are not going inside Thailand are not taxed And If they are kept out for 1 year, later you can bring them in without paying tax.
I have there an apartment and bank accounts,
Not once was asked or mentioned anything about taxes or source of income.

when I lived there I was single, living the dream, unlimited supply of women, beach, luxury life style everything is affordable, quick and easy going, warm weather and good food. Not taking it for granted but as a young guy (now 37), At some point i felt like life passing by me and honestly I got bored. The culture is different, was not able to make life long friends, while you can have european style friends its not for life and always there's some hidden interests around the friendship for some reason. Also, being far from core family becomes harder with the years as everyone gets older. Flying to Thailand and from Thailand everry 3 months was ok but in past 2 years with all this corona it also became , hmm, complicated, not only in thailand, so its also less comfortable.

And last, while Thailand don't care about your source of income, when I wanted to send money to family for example that have western bank accounts, they didn't agree to accept the money saying they don't care if its legal NOT to pay tax in Thailand, they don't want the money. They want regular accounting from western country and proof of any tax payments.
Managed via transfer wise, but that's not comfortable with large amounts.

Its great experience, but I learned I enjoy more pay low tax somewhere to be left alone by the global tax greedy authorities and be around people with similar cultural habits. Just my 2cents

I want to change my residency to a tax free country or a country with <10% taxation in the worst case. I don't want to live in a shithole like Vanuatu just to keep my residency.

I see that the only options available are Monaco, Malta, Cyprus non-dom and UAE. What is the best solution in my case and benefits/downsides of each of these countries? Are there any other solutions?

Lived in Thailand for 9 years to save on tax, Thai elite visa is super easy and great solution. You pay, 1 day later you become VIP with many nice perks but its mainly worth it for the freedom you get with it.

earnings that are not going inside Thailand are not taxed And If they are kept out for 1 year, later you can bring them in without paying tax.
I have there an apartment and bank accounts,
Not once was asked or mentioned anything about taxes or source of income.

when I lived there I was single, living the dream, unlimited supply of women, beach, luxury life style everything is affordable, quick and easy going, warm weather and good food. Not taking it for granted but as a young guy (now 37), At some point i felt like life passing by me and honestly I got bored. The culture is different, was not able to make life long friends, while you can have european style friends its not for life and always there's some hidden interests around the friendship for some reason. Also, being far from core family becomes harder with the years as everyone gets older. Flying to Thailand and from Thailand everry 3 months was ok but in past 2 years with all this corona it also became , hmm, complicated, not only in thailand, so its also less comfortable.

And last, while Thailand don't care about your source of income, when I wanted to send money to family for example that have western bank accounts, they didn't agree to accept the money saying they don't care if its legal NOT to pay tax in Thailand, they don't want the money. They want regular accounting from western country and proof of any tax payments.
Managed via transfer wise, but that's not comfortable with large amounts.


Saved tons of tax and was great experience, but I learned I prefer to pay low tax somewhere and to be left alone by the global tax greedy authorities and be around people with similar cultural habits.
Might retire to Thailand at 60
Anyways, Just my 2cents