Best country for a freelancer / digital nomad post-covid

[JustAnotherNomad]

I think Philippines, Uruguay are also with a try.

How difficult is it to get residency in Uruguay?

 

[daniels27]

Should be easy.
https://freedomsurfer.com/uruguay/

As far as I remember this guy has residencies in the Philippines, Georgia, Paraguay and Uruguay. Should all be a relatively good fit for nomads.

 

[cryptofriendly]

In many countries, when you cancel a residency (and it is the country of your citizenship), you must report where you are moving, where you will live, and the address where they can contact you.
Then it is a brief communication, and they figure out very quickly you are a "tax free nomad".

Why would they have to be able to contact you, if you finish all your tax paperwork there and move away?
BTW: No one stops you from informing them that you haven't decided yet, changing your mind after arriving in the second country, or telling them that your future country is DPRK. Even if only for privacy reasons. It doesn't matter what they think, they won't tax you if you aren't residing there anymore, or nor have any connections like property or family. Even when renewing your passport in the future at some embassy, you can ask them to write 'no permanent residence' in your passport. That's a fact, I did it myself and that's what it says in mine.

Also, I would like to see how you open a brokerage account without a tax residency or how you get a bank account to pay for your accommodation on your never-ending travels.

You can get a bank account as non-resident in most places, the only disadvantage is that you might be taxed a little more on the occurring interest than someone with a resident status. Hotel address is still accepted by many banks.

Or you can just convert USDT when you need fiat, I could trade USDT for cash with less than 2% spread in person in the last 4 countries I have been without any issues. I even got a better rate than if I would have used an ATM card or USD bills.

Brokerage accounts are becoming obsolete with DEFI, you can trade stocks and options without any banksters skimming off money.

The 'never-ending travels' aren't so bad, you have 179 days to enjoy each country, you can choose the best season to be in each place, and many of them are just a land border away. If you don't want to carry your stuff around, there are storage solutions everywhere, which cost less than $30 per month (per ccm), or just ask your landlord to keep your stuff. Or just keep your apartment there, most landlords don't pay taxes and don't report you living there anyway. Or just hire a guy with a Lexus to fill it up with your stuff and bring you to your next destination for $100 or so.

So yes, living tax free as a PT is possible, if you know what you are doing. And are a non US person.

 

[daniels27]

The 'never-ending travels' aren't so bad, you have 179 days to enjoy each country

Beware. Many countries are going to tax you way sooner than that. Switzerland is 30 day when working and 90 days otherwise. US substantial presence test assist kicks in faster if you keep doing it year by year.

 

[cryptofriendly]

Beware. Many countries are going to tax you way sooner than that. Switzerland is 30 day when working and 90 days otherwise. US substantial presence test assist kicks in faster if you keep doing it year by year.

Yep. I tend to avoid the US and EUSSR, I haven't known that 90 days thing about Switzerland though, I'll keep it in mind. Thanks for the info!

In Asia, one just needs to be aware of the details .

Some countries count the >180 days per calendar year with a new beginning on January 1st,
some (like VN) calculate >180 days in the last 12 months, without a cut off at the end of the year.

In reality, one is seen as a tourist enjoying a long holiday, without any questions asked.

In the case of crypto holding/trading: As many of those countries don't recognize or regulate crypto (trading) at all, that's just risk mitigation. It's a legal precaution/prudential advice that aims to minimize legal risk and avoid potential liability or accusations of wrongdoing, just sort of defensive compliance" or "preemptive compliance," where a person or entity takes extra measures to ensure they are not violating laws or inciting others to violate laws, even if the legal requirements are unclear, debatable, grey, or non-existent (credit to jafo for that).

 

[daniels27]

In reality, one is seen as a tourist enjoying a long holiday, without any questions asked.

In Germany too. Until one day, they investigate you. It is unlikely as it is in Asia. But if they catch you, they will add the charges of tax evasion.

Humans are like money. It is just much more difficult to find something that he moving every couple of days.

 

[NewHorizonsParaguay]

Sorry, I don't read Slovak. Even if Slovakia had such a rule (which I doubt, never heard that Slovakia has citizenship-based taxation if you don't take up tax residency elsewhere), it would be a Slovak law, not a general law.

If this was a OECD directive that all OECD countries have to transpose into national law, then it should be easy for you to find the equivalent law in e.g. the UK, so that we can all read it.

Most likely, as @daniels27 also mentioned, you were quoting something from the OECD DTA "master template". But DTAs cannot create new tax obligations, they can only limit existing ones that exist under national law.
Article 4 always starts with a condition that someone is tax resident in both contracting states under their respective national law - and then you can look at things like citizenship. But if you're not tax resident under national law, the treaty cannot create a tax residency based on your citizenship.

And there are lots of countries that won't tax you just for becoming resident. You can take the Baltics as an example, or Cyprus if you stay less than 60 days.
The main advantage with Paraguay is that they'll probably just leave you alone.
But I can't imagine e.g. Cyprus coming after you if you're a pure paper resident and you can prove you spend less than 60 days per year there.

On the other hand, if some other country decides to tax you, your Paraguay paper residency won't be worth much since they have very few tax treaties.
It's not bad, but it's not the great get-out-of-jail-free card some people think it is.

You got me with the "general law". You confused your position in this debate. I do not have to look up anything for you (I already did), especially when all your value provided in this debate is "But I can't imagine" or "if some other country decides to tax you, your Paraguay paper residency won't be worth much"
No, the document "most likely" discusses determining tax residency and applying for DTTs.

 

[daniels27]

I do not have to look up anything for you (I already did), especially when all your value provided in this debate is "But I can't imagine" or "if some other country decides to tax you, your Paraguay paper residency won't be worth much"

Let's keep it nice here please.

Legally, it is not possible to not be a tax resident in any country. If you do not meet the time and substance criteria in any country, the country of your citizenship is your tax residency

Look, the problem with such statements are that they only apply in very specific cases. And in general, it is just leading to confusion.

In the case you are able to not be a tax resident in a country with worse tax environment than Paraguay.

Look, this is toxic and @cryptofriendly @JustAnotherNomad complained for a reason. We have had many idiots from EUSSR with new accounts here asking for a tax residency (sometimes even with certificate) anywhere. The problem is that taxation works the other way: you need to ensure the country you do not like cannot tax you. They generally won't care much about what you bring if your wife and kids are in school in your old home.

That's why they did rectify the facts. You can advertise your residency here, but don't promise anything which in the general case it is not (and this includes any claim of any sort that any other country won't tax you).

 

[NewHorizonsParaguay]

Why would they have to be able to contact you, if you finish all your tax paperwork there and move away?
BTW: No one stops you from informing them that you haven't decided yet, changing your mind after arriving in the second country, or telling them that your future country is DPRK. Even if only for privacy reasons. It doesn't matter what they think, they won't tax you if you aren't residing there anymore, or nor have any connections like property or family. Even when renewing your passport in the future at some embassy, you can ask them to write 'no permanent residence' in your passport. That's a fact, I did it myself and that's what it says in mine.


You can get a bank account as non-resident in most places, the only disadvantage is that you might be taxed a little more on the occurring interest than someone with a resident status. Hotel address is still accepted by many banks.

Or you can just convert USDT when you need fiat, I could trade USDT for cash with less than 2% spread in person in the last 4 countries I have been without any issues. I even got a better rate than if I would have used an ATM card or USD bills.

Brokerage accounts are becoming obsolete with DEFI, you can trade stocks and options without any banksters skimming off money.

The 'never-ending travels' aren't so bad, you have 179 days to enjoy each country, you can choose the best season to be in each place, and many of them are just a land border away. If you don't want to carry your stuff around, there are storage solutions everywhere, which cost less than $30 per month (per ccm), or just ask your landlord to keep your stuff. Or just keep your apartment there, most landlords don't pay taxes and don't report you living there anyway. Or just hire a guy with a Lexus to fill it up with your stuff and bring you to your next destination for $100 or so.

So yes, living tax free as a PT is possible, if you know what you are doing. And are a non US person.

A few posts ago your biggest problem with Paraguay was
"Paraguay looks interesting, but I remember something about banking issues regarding inward/outward transfers,"

Glad you solved it already for yourself with DEFI and USDT.

 

[NewHorizonsParaguay]

I think Philippines, Uruguay are also with a try.

Do you have a residency in Uruguay?

 

[NewHorizonsParaguay]

Look, the problem with such statements are that they only apply in very specific cases. And in general, it is just leading to confusion.

Good, you did not see the same problem with a statement like this. "And then what would be the advantage of the PY tax residency if no other country tries to tax you anyway?"

Let's keep it nice here please.

Good, you did not see the same problem here.
In what cases would it be an advantage to have tax residency in Paraguay?
(Hint: You probably don't understand what tax residency is.)

 

[JohnnyDoe]

Look, the problem with such statements are that they only apply in very specific cases. And in general, it is just leading to confusion.

@NewHorizonsParaguay is right with his statement “Legally, it is not possible to not be a tax resident in any country. If you do not meet the time and substance criteria in any country, the country of your citizenship is your tax residency” and correctly mentioned the criteria that apply. Which is one of the reasons why the legend of PT is just that, a legend.
It has already been discussed here in the past, and a thread by @Sols that used to appear in his signature explains it well.

They generally won't care much about what you bring if your wife and kids are in school in your old home.

Of course, this is obvious (not to all, though).
But even when you have no ties to a country you can be taxed there absent other elements, just on the basis of citizenship.

 

[daniels27]

@NewHorizonsParaguay is right with his statement “Legally, it is not possible to not be a tax resident in any country. If you do not meet the time and substance criteria in any country, the country of your citizenship is your tax residency” and correctly mentioned the criteria that apply. Which is one of the reasons why the legend of PT is just that, a legend.
It has already been discussed here in the past, and a thread by @Sols that used to appear in his signature explains it well.

Peter Taradash is also a legend.

No, but honestly let's take Switzerland etc. Once you deregister, they won't tax you anymore. You can even file jointly with your partner and send them your personal income, they don't care where you pay taxes. They tell you that you should file it elsewhere knowing that you may not. And that's not just Switzerland. It is many places.

Of course you need to have some tax is for banking etc. Also having a tax residency somewhere die protect you from claims elsewhere.

But having one somewhere never protects you from claims elsewhere in case you fulfil the tax residence requirements. And I think that's why people here did protest.

 

[Mercury]

@NewHorizonsParaguay is right with his statement “Legally, it is not possible to not be a tax resident in any country. If you do not meet the time and substance criteria in any country, the country of your citizenship is your tax residency” and correctly mentioned the criteria that apply. Which is one of the reasons why the legend of PT is just that, a legend.
It has already been discussed here in the past, and a thread by @Sols that used to appear in his signature explains it well.

Sorry, but no.
Some countries of citizenship do not require to be tax resident elsewhere to become non resident for tax purposes. France is one: you become non tax resident as soon as you don't meet the 3 criteria that make you FR tax resident.

 

[JohnnyDoe]

Peter Taradash is also a legend.

PT=Perpetual Tourist
Also Peter Taradash, coincidentally

No, but honestly let's take Switzerland etc. Once you deregister, they won't tax you anymore.

Hey that’s easy then, if you don’t want to pay taxes just “deregister” and go on with your life as usual

You can even file jointly with your partner and send them your personal income, they don't care where you pay taxes. They tell you that you should file it elsewhere knowing that you may not. And that's not just Switzerland. It is many places.

I only knew about Disneyland.

 

[JohnnyDoe]

Sorry, but no.
Some countries of citizenship do not require to be tax resident elsewhere to become non resident for tax purposes. France is one: you become non tax resident as soon as you don't meet the 3 criteria that make you FR tax resident.

Good luck with using this argument in court.

 

[Mercury]

Good luck with using this argument in court.

What court? This is French fiscal and residence rules, clear and straightforward (in this case).

 

[daniels27]

PT=Perpetual Tourist
Also Peter Taradash, coincidentally

Yes. PT believes in PT. Legends writing about legends:
https://www.waterstones.com/book/pt-permanent-tourist/jonathan-braswell/peter-taradash/9798518072725

 

[JohnnyDoe]

What court?

The one where you have a judge sitting behind the desk and a prosecutor at your side accusing you of all the bad things you did or did not. Their goal is to take your money…

This is French fiscal and residence rules, clear and straightforward (in this case).

…and they will achieve it easily if this is your defense. Sorry.

 

[daniels27]

What court? This is French fiscal and residence rules, clear and straightforward (in this case).

I can confirm first hand that (they are) European countries not taxing you once you are deregistered. And that is with the tax guys knowing it explicitly.