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Seems like @Sols has updated his signature, I can't find the thread.

And no, you're wrong. There is no such law. There is plenty of case law from e.g. Germany and the UK where people left to sail on their boat for the rest of their lives and the tax authority agreed that those people are no longer tax residents in their home country.

Yes, you could be taxed based on your citizenship, your hair color, your sexual preference or any other arbitrary criteria. The only requirement would be for this to written into a law, like the US has done. Strangely, none of those claiming otherwise are able to point to any such law. The best thing they can come up with is the OECD template for tax treaties - but tax treaties cannot add new tax liabilities, they can only limit existing ones.

There are indeed cases where the country you leave requires you to take up a new tax residency, e.g. Spain, Australia. But they would require you to actually live there. If you just show them your paper residency from Paraguay without any proof that you've properly established yourself there, they will continue to tax you.

The real reason why being a PT is difficult in practice is that people tend to establish bases somewhere. E.g. in their parents' house, or maybe they create some sort of base somewhere else. It's these bases that can create tax liabilities. Or if they return to their home country after 1-2 years, that home country may also claim you were not really "gone", but just on an extended vacation, and then they might also tax you for the time of your absence.
But if you're truly, properly gone, most countries don't tax you.

You can look at this KPMG flowchart for UK tax residency:
https://assets.kpmg.com/content/dam/kpmg/pdf/2016/01/statutory-residence-test-flowchart.pdf

Nowhere in there is citizenship mentioned as a criterion. Because it is not relevant.
 
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…

…and they will achieve it easily if this is your defense. Sorry.
Another one: A Thai citizen who does not hold other passports, does not have Thai income and remain less than 180 days per calendar year in Thailand will enjoy tax free life as long as he/she does not trigger tax residences elsewhere.
 
Seems like @Sols has updated his signature, I can't find the thread.
@Sols should do something and resume his thread
If you just show them your paper residency from Paraguay without any proof that you've properly established yourself there, they will continue to tax you.
Correct. A piece of paper alone doesn’t suffice.
You can look at this KPMG
I’m done when I see KPMG stupi#21

If you like to trust governments and the laws, I wish you a happy and safe life and to never cross paths with a prosecutor.
 
Lol, allow me to quote from Sol's thread - emphasis mine (I really respect Sols, so I would have been surprised if he had written anything else):

The Perpetual Traveller dream is just that: a dream. I can't deny there are people out there who do it. But it's getting harder. More and more are opting for genuine, bonafide tax residence somewhere.

Also, you really have to make up your mind.
On the one hand you're saying that people will be dragged to court by their country of citizenship because they will try to tax you. They will do everything in their power to get your money, they are coming for you and they will fight you tooth and nail.
And yet, if you give them a piece of paper that you got during your 5-day trip to Paraguay two years ago, everything will just disappear and they have no choice but to let you go. Like vampires dragged into the light.
This is pure magical thinking.

Let's ignore the question whether countries can tax you based on citizenship alone or not (we probably won't reach an agreement anyway):
If a country is really coming for you and tries to tax you, a paper residency from Paraguay, where you have spent no more than 5-10 days over the past couple of years, won't help you.
And Paraguay is an especially bad case because they have a tiny tax treaty network. So even if you had spent a lot of time there, there would be no treaty to help your case.

But if no other country tries to tax you anyway, how would your Paraguay residency make a difference? They aren't coming for you anyway.

Which brings us back to the banking/compliance part: Banks will ask where you live, they will ask for your TIN and (very often) a utility bill.
You have to give them something, and they will send CRS reports there (if it's a CRS country), so it would make sense to use a country that won't try to get your money.
For this, Paraguay is a good candidate. But a lot of other countries would work just as well. So then the question is if it's really worth paying so much money for the Paraguay residency. As far as I know, it's at least $2-3k?
For example, the Thailand DTV visa is just $300 or so. Heck, I don't even know if you need a long-term visa or if you can get a TIN as a tourist (many Thai visas are just long-term tourist visas anyway). Thailand doesn't tax you if you spend less than 180 days there.
So you could just use a Thai address for your banking, and it would probably even look more legit.
 
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.
That's mostly for a technical reason, as 95% my wealth is in crypto. Doing it this way is just quicker, as I don't need to P2P it to my (non-resident) bank account first, and then withdraw via ATM (which costs me 2% if I use a card outside of the issuing country).

I still appreciate having the banking applications on my phone, where I can send USD SWIFT transfers from my bed in minutes, with no human interactions and no questions asked. Not everyone accepts crypto, yet.

A bigger issue would be the safety, but pretty much all of South America loses out against Asia.
https://www.numbeo.com/crime/compare_countries_result.jsp?country1=Thailand&country2=Paraguay

I am comfortable where I am, where I can walk around at 2 am without worries, the government leaves me alone, (most) of the officials smile instead of asking for bribes, where the general standard of living is good enough, food choices are unlimited, healthcare is first class, and where mountains and beaches aren't far away, the girls are slim and beautiful (even as they age), and don't tend to cause a drama, but just get quiet if something doesn't go the way they like.

Of course it all depends on the individual and personal priorities, and the trade offs one is ready to accept.
 
Is corruption/bribery a problem? Certainly not as long as everyone is able to access it.
Corruption is everywhere, just the amounts are different.
It's not bad if it makes life easier and speeds things up.

But if you are asked by every dumbo in a uniform for money for no other reason than them inventing imaginary laws when they see a foreigner passing (Sir, you are walking on the wrong side of the street, $10 fine), and it happens daily, it really starts to suck and affect your life quality.
 
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That's mostly for a technical reason, as 95% my wealth is in crypto. Doing it this way is just quicker, as I don't need to P2P it to my (non-resident) bank account first, and then withdraw via ATM (which costs me 2% if I use a card outside of the issuing country).

I still appreciate having the banking applications on my phone, where I can send USD SWIFT transfers from my bed in minutes, with no human interactions and no questions asked. Not everyone accepts crypto, yet.

A bigger issue would be the safety, but pretty much all of South America loses out against Asia.
https://www.numbeo.com/crime/compare_countries_result.jsp?country1=Thailand&country2=Paraguay

I am comfortable where I am, where I can walk around at 2 am without worries, the government leaves me alone, (most) of the officials smile instead of asking for bribes, where the general standard of living is good enough, food choices are unlimited, healthcare is first class, and where mountains and beaches aren't far away, the girls are slim and beautiful (even as they age), and don't tend to cause a drama, but just get quiet if something doesn't go the way they like.

Of course it all depends on the individual and personal priorities, and the trade offs one is ready to accept.
It is ok. Everyone can choose for their needs and preferences. For me, Asia is too far away culturally from my home country. In the case of Thailand, they are predominantly Buddhists. The beautiful girls are sometimes former males (even as they age). With geopolitics and world conflicts, Thailand and the Philippines are probably the worst choices for me to be in the world. I prefer to be in an energy surplus country, food self-sufficient, not having nuclear power nearby, and the presence of US military bases is not great for me. But that's just me. I'm glad it works for you.

I like to get my fresh raw milk from a beautiful farm run by a religious community of Germans who take excellent care of cows. I like to have grass-fed 500g Tomahawks for 3 USD... from cattle who get real sun and see real pastures.

I like to drink my beer here. Germans started this brewery in the 1960s... and actually, it was a pleasant change compared to Euro-beers (Heineken trash) in Europe. Asia and beers. Ok.

I can walk outside at 2 AM, with no problem either. Many times, I do it at 4 AM. :) With all the cops and security guards I encounter on my way to the grocery store at that time, we may say, "Hola, como esta," or "bien senor, y usted," Nobody is asking for bribes. The same applies during the day. I have had to give cops 0 bribes as of now, and people I know here also. Maybe you confuse Paraguay with Colombia. This is a more old-fashioned country regarding politeness of people and values (which is, again, good for someone and bad for someone else.) I did not have to use healthcare yet, but in the cases I assisted, it was good, with speedy CT/MRI scans and evaluations (the person had 30USD/month plan).
 
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I can walk outside at 2 AM, with no problem either. Many times, I do it at 4 AM. :) With all the cops and security guards I encounter on my way to the grocery store at that time
I prefer to live in a country where, at that hour time in Bangkok, these guys in uniform are nowhere to be seen because unnecessary.

Nobody is asking for bribes. The same applies during the day. I have had to give cops 0 bribes as of now, and people I know here also.
Regarding bribes, if you can speak enough the local idiom showing that you're not a tourist you'll in most cases be treated as locals in Thailand.
 
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It is ok. Everyone can choose for their needs and preferences. For me, Asia is too far away culturally from my home country. In the case of Thailand, they are predominantly Buddhists. The beautiful girls are sometimes former males (even as they age). With geopolitics and world conflicts, Thailand and the Philippines are probably the worst choices for me to be in the world. I prefer to be in an energy surplus country, food self-sufficient, not having nuclear power nearby, and the presence of US military bases is not great for me. But that's just me. I'm glad it works for you.

I like to get my fresh raw milk from a beautiful farm run by a religious community of Germans who take excellent care of cows. I like to have grass-fed 500g Tomahawks for 3 USD... from cattle who get real sun and see real pastures.

I like to drink my beer here. Germans started this brewery in the 1960s... and actually, it was a pleasant change compared to Euro-beers (Heineken trash) in Europe. Asia and beers. Ok.
I take dhamma = truth (Jainism, Hinduism, Buddhism, etc) every day over a religion that dictates that humans are born with an inherited sin, a built-in urge to disobey God, and need to be controlled. It destroyed so many cultures through it's missionaries, stole all the ancient knowledge from around the world and stuffed it in the cellars of Vatican city. Just because one has been conditioned as child to follow one thought, one can still free himself and see it for what it truly is. If anyone is interested, this is a good start: https://conjuringthepast.com/natureP1.html

It's not that hard to distinguish real females from males, and I don't hang around the nightlife areas. where this issue is more prevalent. Outside of TH and PH it's not that common, and there are 48 countries in Asia.
Though you can encounter some males cosplaying as females in many places, they are not as sophisticated as in TH, and easy to spot.

1734574660040.webp


BTW, Paraguay isn't a hetero enclave either, from what I can see online.

1734574872468.webp


Regarding world conflicts I don't see any issues for places like Malaysia, Indonesia, Singapore or Laos, no one really cares about that places in terms of occupation, and neither do they care much about the s**t going on outside of their own territory. Not even for Thailand, as they lean more to China nowadays. And there are less guns and general violence compared to USA, EU and South America.

Milk products here suck, the climate isn't the greatest for high milk yields, but even raw milk is available if you look hard for it, and imported products are everywhere, from Australian steak or red wine from Chile or France (alcohol taxes vary from country to country, but you can get a bottle of French red wine even in Kathmandu for less than $10.

And don't dis the beer before you tried it, there are good ones, too.

1734573631556.webp


Speaking about German beer, the Germans began brewing various German beer in China since1898, when Germany leased the port city of Qingdao in northeastern China.

Tsingtao beer is the second most consumed beer in the world (as of 2016), and their current brewery was established in 1906 by Germans.

I can walk outside at 2 AM, with no problem either. Many times, I do it at 4 AM. :) With all the cops and security guards I encounter on my way to the grocery store at that time, we may say, "Hola, como esta," or "bien senor, y usted," Nobody is asking for bribes. The same applies during the day. I have had to give cops 0 bribes as of now, and people I know here also. Maybe you confuse Paraguay with Colombia.
I don't disagree with you as I don't have any personal experience in Paraguay, beside of some nomads reporting about break ins while they have been sleeping, and some other issues. Some places are safer than others, like in every country. But it would be naive to think numbeo contradicting your experience regarding safety walking during night being just a glitch in the statistic.

1734573475100.webp


But yeah, that's my last contribution regarding Paraguay, as everyplace has it good and bad sides, and it's a waste of time comparing apples to oranges, what really matters is just one's own personal taste. For myself, being a nomad in Asia is just extremely convenient and comfortable.
 
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It is ok. Everyone can choose for their needs and preferences. For me, Asia is too far away culturally from my home country. In the case of Thailand, they are predominantly Buddhists. The beautiful girls are sometimes former males (even as they age). With geopolitics and world conflicts, Thailand and the Philippines are probably the worst choices for me to be in the world.
Brazil has them as well and they find the way to Paraguay too. ;)

Quoting geopolitics as a neg for asia but ignoring Brazil and Venezuela situation plus the widespread usage of usd is not correct.
They will come for Venezuelas oil and currency issues will make latam highly unstable.

I prefer to be in an energy surplus country, food self-sufficient, not having nuclear power nearby, and the presence of US military bases is not great for me. But that's just me. I'm glad it works for you.
Many areas of Asia are that as well. Thailand for example is the biggest rice exporter worldwide. Malaysia has oil, Indonesia has many other resources.

There are more US stooges in Asuncion than real expats, so again. No difference to having military bases.
I like to get my fresh raw milk from a beautiful farm run by a religious community of Germans who take excellent care of cows. I like to have grass-fed 500g Tomahawks for 3 USD... from cattle who get real sun and see real pastures.

I like to drink my beer here. Germans started this brewery in the 1960s... and actually, it was a pleasant change compared to Euro-beers (Heineken trash) in Europe. Asia and beers. Ok.

I can walk outside at 2 AM, with no problem either. Many times, I do it at 4 AM. :) With all the cops and security guards I encounter on my way to the grocery store at that time, we may say, "Hola, como esta," or "bien senor, y usted," Nobody is asking for bribes. The same applies during the day. I have had to give cops 0 bribes as of now, and people I know here also. Maybe you confuse Paraguay with Colombia. This is a more old-fashioned country regarding politeness of people and values (which is, again, good for someone and bad for someone else.) I did not have to use healthcare yet, but in the cases I assisted, it was good, with speedy CT/MRI scans and evaluations (the person had 30USD/month plan).
 
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