Advice Needed - Where to Move?

[Marc M]

@Admin My broader point was that countries with zero tax or territorial tax are usually not the best places to live. It's good to know what is important to a person before cutting all ties and moving to a foreign country. If money is all that is important to a person and quality of life doesn't matter one bit (which is sad, but possible), Panama and other zero-tax countries will work fine.

In regards to Mexico, are you speaking from experience? The reality on the ground is much different than what the media has influenced people to believe.

My personal experience on the mexican ground as an investor in the automotive business is that i would avoid, to open a company there. Corruption (5% additionaly to the invest) , mafia and laws which depend on the "interpretation" of local authorities aren't a solid base.
But...Living there at the right (!!!) place can be like heaven. The carribean coast e.g. is a dream
So once again, it all depends on your personal preferences. There is no golden way.

 

[botero]

but only heard the news and watched it on TV

That's what I suspected. The news often does a terrible disservice to the public by hyperfocusing on negative aspects of everything. There's no money in telling you things are normal, especially in other countries. Thankfully, traveling has helped me dispel a lot of these false perceptions.

I once talked to a guy in Medellin Colombia who was having second thoughts about applying for his US tourist visa after hearing about the mass shootings non-stop on the news and social media. This was after the El Paso shooting in 2019. Those of us that have visited the US know that it's not just mass shootings from coast to coast, 24/7. However, with the way the media covers such topics, one may think otherwise.

 

[ffbkdavid]

it's always interesting, not to say funny, to see people being quite successful not able/willing to invest some money into a fundamental professional consultation but instead open all their plans (sometimes dreams) on public boards, asking for support and help... without publishing basics like their current principal place of business and/or residence

quite difficult to help... advice from "justanother..." concerning taxation of non-local income if you are operating within a certain jurisdictions... perfect and well deserving to think about

and... would your clients like to pay anything to an entity/a foreign bank account being on an/any blacklist? - ours wouldn't!

 

[JustAnotherNomad]

it's always interesting, not to say funny, to see people being quite successful not able/willing to invest some money into a fundamental professional consultation but instead open all their plans (sometimes dreams) on public boards, asking for support and help... without publishing basics like their current principal place of business and/or residence

I don't disagree, but it's also very difficult to find a professional with the right knowledge. It's not a bad idea to get ideas from the internet and then get everything checked by professionals. It's also cheaper.

quite difficult to help... advice from "justanother..." concerning taxation of non-local income if you are operating within a certain jurisdictions... perfect and well deserving to think about

Not sure what you meant here.

and... would your clients like to pay anything to an entity/a foreign bank account being on an/any blacklist? - ours wouldn't!

I think those problems are usually quite easy to avoid by using an entity from a reputable jurisdiction to bill the clients.

 

[Konstanz]

Make sure that if you emigrate to tax heaven country that you can instantly be non-resident, because many countries have rulings in such case you still remain resident for 2-5 years..
https://en.wikipedia.org/wiki/Portugal's_list_of_tax_havens
I suggest you have a proper Portuguese legal tax advice before you make such decisions moving to "Panama"

 

[sub0]

anyone saying UAE is a very good option to live and is tax heaven ask me. you are wrong or you have no idea of the ground reality. you will be paying more to life then what you pay anywhere in the world after paying taxes. ask me I lived there for 12 years. absolutely ZigZag - Fools Paradise. no matter what you earn.

go to any property rental website, check ho much the rent is for an average studio in Dubai - not less then 60kAED/ yr + utility bills, food, etc. - one single person need a minimum of 7000AED a month just to survive = almost 2000USD - 5 years ago I was sharing a bed space in Ajman for 3000AED a month.

don't forget the Visa Cost, Renewal Cost, EIDA Cost, Driving License don't even ask... top of all this whenever you visit any government office you will find ignorant heads roaming around doing absolutely nothing and just being rude to you for nothing even though you paid all that money I mentioned above.

i live in EU now - tax is high but do you know what I buy IKEA table half of the price with TAX but in UAE it was double the cost.

example, Denmark is one of the highest TAX countries in the EU or maybe in the world. there you can buy sneakers of Adidas for 250-DKK but the same shoes will cost you 500AED in UAR which is almost 800DKK (remember UAE has no TAX system? wrong .. absolute mislead information.

all you need to do go to IKEA Store in the EU and IKEA store UAE and check prices and you will have your truth. this you can do even with AMAZON UAE and Amazon USA or Germany.

you have been warned.

 

[Konstanz]

anyone saying UAE is a very good option to live and is tax heaven ask me. you are wrong or you have no idea of the ground reality. you will be paying more to life then what you pay anywhere in the world after paying taxes. ask me I lived there for 12 years. absolutely ZigZag - Fools Paradise. no matter what you earn.

go to any property rental website, check ho much the rent is for an average studio in Dubai - not less then 60kAED/ yr + utility bills, food, etc. - one single person need a minimum of 7000AED a month just to survive = almost 2000USD - 5 years ago I was sharing a bed space in Ajman for 3000AED a month.

don't forget the Visa Cost, Renewal Cost, EIDA Cost, Driving License don't even ask... top of all this whenever you visit any government office you will find ignorant heads roaming around doing absolutely nothing and just being rude to you for nothing even though you paid all that money I mentioned above.

i live in EU now - tax is high but do you know what I buy IKEA table half of the price with TAX but in UAE it was double the cost.

example, Denmark is one of the highest TAX countries in the EU or maybe in the world. there you can buy sneakers of Adidas for 250-DKK but the same shoes will cost you 500AED in UAR which is almost 800DKK (remember UAE has no TAX system? wrong .. absolute mislead information.

all you need to do go to IKEA Store in the EU and IKEA store UAE and check prices and you will have your truth. this you can do even with AMAZON UAE and Amazon USA or Germany.

you have been warned.

2k to survive is a case in any major cities like London, Paris..
What I don't like about UAE , because it's a desert without nature.. Not for everyone to live in muslim country in a desert..

 

[sullyferdinand]

anyone saying UAE is a very good option to live and is tax heaven ask me. you are wrong or you have no idea of the ground reality. you will be paying more to life then what you pay anywhere in the world after paying taxes. ask me I lived there for 12 years. absolutely ZigZag - Fools Paradise. no matter what you earn.

go to any property rental website, check ho much the rent is for an average studio in Dubai - not less then 60kAED/ yr + utility bills, food, etc. - one single person need a minimum of 7000AED a month just to survive = almost 2000USD - 5 years ago I was sharing a bed space in Ajman for 3000AED a month.

don't forget the Visa Cost, Renewal Cost, EIDA Cost, Driving License don't even ask... top of all this whenever you visit any government office you will find ignorant heads roaming around doing absolutely nothing and just being rude to you for nothing even though you paid all that money I mentioned above.

i live in EU now - tax is high but do you know what I buy IKEA table half of the price with TAX but in UAE it was double the cost.

example, Denmark is one of the highest TAX countries in the EU or maybe in the world. there you can buy sneakers of Adidas for 250-DKK but the same shoes will cost you 500AED in UAR which is almost 800DKK (remember UAE has no TAX system? wrong .. absolute mislead information.

all you need to do go to IKEA Store in the EU and IKEA store UAE and check prices and you will have your truth. this you can do even with AMAZON UAE and Amazon USA or Germany.

you have been warned.

60K for a studio? you can get for 25k easily
cost of living is high, you are right, i lived there almost 3 years

Sorry....but they really ripped you off for that bedspace
For that money, in ajman you could get 1 bedroom apartment easily
Ajman, sharjah and Rak are waaay cheaper than Abu Dhabi or Dubai

 

[dvm]

Can you recommend a good website for reading more about forming a LLC?

Here is an awesome resource about US LLCs that has answers to virtually any questions you may have on the subject in a very simple language: Learn How to Form an LLC (step-by-step) | LLC University®

 

[ih8socialism]

anyone saying UAE is a very good option to live and is tax heaven ask me. you are wrong or you have no idea of the ground reality. you will be paying more to life then what you pay anywhere in the world after paying taxes. ask me I lived there for 12 years. absolutely ZigZag - Fools Paradise. no matter what you earn.

go to any property rental website, check ho much the rent is for an average studio in Dubai - not less then 60kAED/ yr + utility bills, food, etc. - one single person need a minimum of 7000AED a month just to survive = almost 2000USD - 5 years ago I was sharing a bed space in Ajman for 3000AED a month.

don't forget the Visa Cost, Renewal Cost, EIDA Cost, Driving License don't even ask... top of all this whenever you visit any government office you will find ignorant heads roaming around doing absolutely nothing and just being rude to you for nothing even though you paid all that money I mentioned above.

i live in EU now - tax is high but do you know what I buy IKEA table half of the price with TAX but in UAE it was double the cost.

example, Denmark is one of the highest TAX countries in the EU or maybe in the world. there you can buy sneakers of Adidas for 250-DKK but the same shoes will cost you 500AED in UAR which is almost 800DKK (remember UAE has no TAX system? wrong .. absolute mislead information.

all you need to do go to IKEA Store in the EU and IKEA store UAE and check prices and you will have your truth. this you can do even with AMAZON UAE and Amazon USA or Germany.

you have been warned.

In the end it all depends on how much you save if you don't pay tax if its worth living there or not.

 

[CaptK]

Any tax structure needs to be worth it. If you are making a net profit of over 250K per year then go ahead. Otherwise you can invoice "marketing" with someone you trust.

You could register in any jurisdiction like HK and get a multi currency card which can use anywhere. Then you are not tied to live in one place. You wouldn't be tied to one place because you can work anywhere.
Being a Portuguese passport holder you can travel most of the world Visa free. With stays upto 90+ days in most countries.

30 days in USA, 60 days in Kenya, 60 days in Vanuatu, 30 days in the UAE and so on. Bearing in mind you can leave before your visa expires and come straight back again. Anonymity is not an issue its simply severing tax liability. They dont publish director details in HK.

 

[sub0]

60K for a studio? you can get for 25k easily
cost of living is high, you are right, i lived there almost 3 years

Sorry....but they really ripped you off for that bedspace
For that money, in ajman you could get 1 bedroom apartment easily
Ajman, sharjah and Rak are waaay cheaper than Abu Dhabi or Dubai

25k studio and 2 hours in the morning you get a stick and 3 hours in the evening.

i agree cheaper studios we can get in ajman, rak but you forgot to add traffic at National Paints (Sharjah), both morning and evening

also if we get cheaper apt. in RAK for 20k then you still have to add utility bills, maintenance, furniture, etc.

 

[sullyferdinand]

you can get for 25k in sports city, gardens, silicon oasis, internet city, studio city, etc...no need to live in sharjah or ajman
60k is the price of studio in palm, not even marina

 

[sub0]

you can get for 25k in sports city, gardens, silicon oasis, internet city, studio city, etc...no need to live in sharjah or ajman
60k is the price of studio in palm, not even marina

what about utility bills, furniture, other monthly living costs? no matter how you deal with circumstances in UAE it stays hell expensive. i am not against living in UAE but the truth is UAE is not cheap even expensive than Europe. i lived in Dubai with family and now in Europe, believe me, I know the difference very well. its a huge difference, Europe is way affordable even with taxes than Dubai without taxes.

 

[Mr Magoo]

My personal experience on the mexican ground as an investor in the automotive business is that i would avoid, to open a company there. Corruption (5% additionaly to the invest) , mafia and laws which depend on the "interpretation" of local authorities aren't a solid ba

uh... yes... never EVER start a company+bank account in Mexico. Lived there for many years. As said: corrupt, bureaucratic, dangerous (if you have money). As a cherry on the cake: the current government is on a mission to get the money from the wealthier people and turning it into a socialist country. All big banks are owned by US/ Spanish banks but bank employees will sell you out to criminals in a blink of an eye (extortion, credit card cloning, bank employees charging you insurances you never signed for, kidnapping or worse).

But yeah, the sun shines every day, food is good, live is cheap (Mexican Peso has lost 35% of its value this year already).

 

[botero]

uh... yes... never EVER start a company+bank account in Mexico.

When living in most Latin American countries, it's always better to have your business abroad and use a strong currency (e.g. USD, EUR, GBP). That way, you can have the best of both worlds. The only investment I'd make in a country like Colombia or Mexico is real estate.

Anyways, getting back on topic, the original poster is asking about places to live, not where to start a business (The OP has an online business already).

If the OP is set on Panama, I would suggest he take a trip there and rent an Airbnb to see what the life is like. I lived there for a bit and I know it's not a place for everyone. It's good to spend some time there to see if it's worth the tax savings.

In the countries with no tax, the only somewhat 'livable' places seem to be the Gulf countries (e.g. UAE, Qatar). However, the Gulf countries are not for everyone. Some people find issues with the high cost of living, hot and dry desert weather, Islamic law, lack of long-term residency or citizenship opportunities, and feeling like a 2nd class citizen.

Countries with territorial taxation seem to be a bit more 'livable' and affordable. Some examples are: Malaysia, Costa Rica, Hong Kong, Paraguay, Georgia, Philippines, Lebanon, Panama. It could be costly or difficult to obtain residency in some of these countries. However, they offer a better life if you plan on settling down for the long-term.

Another option I think is to find a country in a region you like (e.g. Americas, Europe, Asia) and look for loopholes or programs in the tax system that foreigners with foreign-income can take advantage of. (e.g. Malta, Thailand, Mexico). I wrote about Mexico in a previous post on this thread. I'm sure there are other countries that are friendly to foreigners with foreign-sourced income.

You can also go the digital nomad route and hop around countries to avoid become a tax resident. Before doing this, I would recommend establishing tax residency in another country first to get your home country off your back. However, the digital nomad life isn't for everyone. If you're looking to start a family, it's better to establish yourself in one country.

 

[Dasboot]

If you have a decent, actual income then Thailand is a good option - both when it comes to possible residency (LOTS of work) as well as people not caring where the cash comes from as long as taxes & fees are paid.

Although I've spent a couple of years setting up a company and really getting into it all I'm no expert at all, but this is what I feel quite confident about saying: reality is always "flexible" here, most things come down to how you're perceived as in both net worth and character.

Someone adhering a bit to the culture, NOT being a pushover nor a sleazy barfly... Some solution will always materialise

 

[botero]

@Dasboot Thailand is a good choice considering their lax rules on foreign-income. If you earn income abroad but transfer it to Thailand the next year, it will not be taxed, see this article.

Another country I wanted to add to my list of 'normal countries with tax loopholes' is Chile. Apparently, new residents don't have to pay taxes on worldwide income for the first 3 years, see this article.

 

[Dasboot]

Hehe, I actually have the opposite problem: since the company that was planned to be my main source of income here is folding, I'll have to choose between padding the income here with my own cash for a few months or simply getting onto another visa!

Maybe I could find someone who'd be interested in extra invoices/deductible expenses & then get most of what is transferred back via alternative channels - we'll see...

 

[eRabbit]

Thank you for all the fantastic replies! They are extremely helpful and I’m going to go through every shared article and opinion carefully. This is why it’s so much better to start out by asking “real people” for help and advice. Mexico sounds like a great idea, perhaps having an LLC and living somewhere nice in Mexico could be a good option, Chile also sound good, would not having a company and just receiving the income as an individual be an option? I must also add that I do speak fluent Spanish which makes it much easier to adapt to any of these countries. I am still confused whether the affiliate marketing income would be taxed by the LLC, I’ll further look into that. From what I understood, Panama sounds like it wouldn’t be an option for receiving dividends from a foreign company since those would be considered local earned income, right? What is your general input regarding an Estonian e-Residency company? I know the corporate tax would be 20% but it also seems very easy to manage, is this a really stupid idea? What about Cyprus, Georgia and Malta, I’ve heard about benefits in having a company there but I’m not sure what those benefits are. Thank you again!!