Best country for with territorial tax only and a double taxation agreement with the IRS - for Royalties Accrued in USA.

[Marzio]

I don't want to live in Georgia

If your annual income is < $165K you could register in Georgia and pay 1% tax

By registering with the Georgian RS you'll obtain a tax ID (without the need to stay 183 days) that you could use to claim treaty benefits and you could also work inside the country because you're an individual entrepreneur.

I am not sure that this is true since the withholding at the US Level

It is not.

Taxes paid abroad can be offset against Portuguese tax but if you don't owe any taxes under NHR there's nothing to offset against so the 10% US WHT is final.

another option would be cyprus with their 12.5% total tax rate... and I am now looking at Thailand, Philippines, Malaysia or Mexico, Domincan Republic or Honduras /caraiibbean

You should carefully read what i've said about Thailand

Don't know much about Mexico other than it has a 10% US WHT on royalties.

Other countries you mentioned don't have a treaty with US so you risk of paying 30% US WHT.

Ideally where would you want to stay?

 

[alexx999]

If your annual income is < $165K you could register in Georgia and pay 1% tax

By registering with the Georgian RS you'll obtain a tax ID (without the need to stay 183 days) that you could use to claim treaty benefits and you could also work inside the country because you're an individual entrepreneur.



It is not.

Taxes paid abroad can be offset against Portuguese tax but if you don't owe any taxes under NHR there's nothing to offset against so the 10% US WHT is final.



You should carefully read what i've said about Thailand

Don't know much about Mexico other than it has a 10% US WHT on royalties.

Other countries you mentioned don't have a treaty with US so you risk of paying 30% US WHT.

Ideally where would you want to stay?

Yeah I called it BS too the deduction thing...

10% on the gross is not that good considering that if i'd stay where I am with no rent, expenses, any legal thing, I'd pay 26% on the net income...

Yeah so Portugal is too cold, windy and the open ocean is not my thing, I am really into scuba diving, freediving, spear fishing, my ideal life is in a place where there is beautiful coral reef or at least wonderful crystal clear water beaches because it is literally where I spend 90% of my time... I fell in love with different places really... I could see myself living in Thailand very well, even tho after few months I noticed a cultural detachment, my favorite of all countries for now is Mexico, so it might be worth to understand how to optimize taxes there, my girlfriend loves Mexico too, it has everything I am looking for...

Another place I liked is the Philippines and also Indonesia, as you can see I am heavy on corals, beautiful beaches and natural good looking water and cenotes, I am not huge on parties and things but I like to go out to dinner with my gf to eat various kind of cuisine, sometimes rarely I go out to drink something, it doesn't have to be pattaya or Miami, but one thing I value is networking with other online entrepreneurs, so for that the yucatan region is perfect as well as bali/thailand, not sure about Domican republic since I have never been there, @johndoe777 told me in private that Dominican Republic is a paradise when it comes to taxes and I can see myself staying there, as well as Roatan in Honduras or other places in SEA or Caraibbean... What I value is freedom, possibly low cost of living, tropical weather, good beaches, possibly some tourism to meet new people

I really loved Puerto Escondido, Playa del Carmen, Tulum, Merida etc. But I guess I could very well stay in any other Caribbean countries and do very well since I live on the sea haha
I am tired of this tyranny in Europe and so I try to avoid staying here, also because it is expensive and the weather sucks 9months/year and the marine life is lackinf. I thought Portugal would be easy for me, get the NHR Fast, pay some room, move the residency from Italy to Portugal and then travel as a tourist in SEA and the Caribbean, but at this point, with the withholding, nominee director, possible law enforcement and controls, I thing it would be better to do the next step directly and take residency in one of the countries I was interested to go since the get go and call it a day even if I pay the same amount of taxes

If your annual income is < $165K you could register in Georgia and pay 1% tax

By registering with the Georgian RS you'll obtain a tax ID (without the need to stay 183 days) that you could use to claim treaty benefits and you could also work inside the country because you're an individual entrepreneur.

Yes, but you will still need to live in Georgia for 183 days, I am not interested living in Georgia

How would that work if i spend less than 183 days in Georgia AND i take temporary residency in mexico, where it is well known that the government doesn't check for these things or anyway law enforcment sucks?

Yeah, I might try to find a way to optimize taxes for mexico

 

[Radko]

Yeah I called it BS too the deduction thing...

10% on the gross is not that good considering that if i'd stay where I am with no rent, expenses, any legal thing, I'd pay 26% on the net income...

Yeah so Portugal is too cold, windy and the open ocean is not my thing, I am really into scuba diving, freediving, spear fishing, my ideal life is in a place where there is beautiful coral reef or at least wonderful crystal clear water beaches because it is literally where I spend 90% of my time... I fell in love with different places really... I could see myself living in Thailand very well, even tho after few months I noticed a cultural detachment, my favorite of all countries for now is Mexico, so it might be worth to understand how to optimize taxes there, my girlfriend loves Mexico too, it has everything I am looking for...

Another place I liked is the Philippines and also Indonesia, as you can see I am heavy on corals, beautiful beaches and natural good looking water and cenotes, I am not huge on parties and things but I like to go out to dinner with my gf to eat various kind of cuisine, sometimes rarely I go out to drink something, it doesn't have to be pattaya or Miami, but one thing I value is networking with other online entrepreneurs, so for that the yucatan region is perfect as well as bali/thailand, not sure about Domican republic since I have never been there, @johndoe777 told me in private that Dominican Republic is a paradise when it comes to taxes and I can see myself staying there, as well as Roatan in Honduras or other places in SEA or Caraibbean... What I value is freedom, possibly low cost of living, tropical weather, good beaches, possibly some tourism to meet new people

I really loved Puerto Escondido, Playa del Carmen, Tulum, Merida etc. But I guess I could very well stay in any other Caribbean countries and do very well since I live on the sea haha
I am tired of this tyranny in Europe and so I try to avoid staying here, also because it is expensive and the weather sucks 9months/year and the marine life is lackinf. I thought Portugal would be easy for me, get the NHR Fast, pay some room, move the residency from Italy to Portugal and then travel as a tourist in SEA and the Caribbean, but at this point, with the withholding, nominee director, possible law enforcement and controls, I thing it would be better to do the next step directly and take residency in one of the countries I was interested to go since the get go and call it a day even if I pay the same amount of taxes


Yes, but you will still need to live in Georgia for 183 days, I am not interested living in Georgia

How would that work if i spend less than 183 days in Georgia AND i take temporary residency in mexico, where it is well known that the government doesn't check for these things or anyway law enforcment sucks?


View attachment 5021

Yeah, I might try to find a way to optimize taxes for mexico

Mexico is awesome, the Yucatan peninsula offers everything, a perfect combination of all the things anyone would want, except for the intense heat.
I know a few foreigners living in Mexico and they are not paying taxes even if they have been living there for years.

 

[Marzio]

Mexico is awesome, the Yucatan peninsula offers everything, a perfect combination of all the things anyone would want, except for the intense heat.

I'm interested to know more about MX.

How is it crime wise?

I know a few foreigners living in Mexico and they are not paying taxes even if they have been living there for years.

Are those MX tax resident?

 

[alexx999]

I'm interested to know more about MX.

How is it crime wise?



Are those MX tax resident?

I did a long vacation in Mexico, 3 months, and I loved every part of it, the cenotes are amazing for a scuba enthusiast as me...crime wise, it does depends where you go, Tulum is safe, Playa del Carmen in most parts is safe, Merida is very very safe, there are some parts you should avoid such as Sinaloa... Honestly it is in my top list, I can perfectly see myself living well there.

Tax wise I know that they are so inefficient that nobody really cares... I heard many people living there for a decade with permanent residency paying literally 0. The only thing to keep is mind is not to remit too much money to a Mexican bank account

 

[Radko]

I'm interested to know more about MX.

How is it crime wise?



Are those MX tax resident?

As we all know Mexico has a bad reputation, people hear about the drug cartel and the crimes they commit and automatically think that Mexico is extremely dangerous.
As always there are areas that are very safe and to be honest I don't think that most of Mexico is more dangerous than the U.S. or Europe.
And the Mexican people are some of the nicest people I've ever met, it's important to try to speak some Spanish before moving to Mexico, it will make your life a lot easier.
If you check the travel advisory websites you'll see that the Yucatan peninsula is extremely safe, crime is not a problem, the intense heat is the only real problem. I guess you can always go to another, safe, Mexican city during the hot season. A great place to do that is Querétaro, it's always spring time over there.

As far as taxes Mexico does tax on their world wide income, but it has great double tax treaties. The withholding rate on dividends from the U.S. is 10%, most countries have 15% or higher withholding rate.
I know people living in Mexico for many years and they've never paid taxes, it seems the Tax authorities are not chasing foreigners (of course if you open a business in Mexico you will have to pay taxes.) I don't know if the Tax authorities don't have the necessary tools to go after foreigners living in Mexico or if they choose not to chase foreigners so Expats keep coming to Mexico as so many have during the past years (most Expats are from the U.S. and Canada.)

Mexico is a great country and it has so much to offer, and the economy has improved tremendously, some cities are very modern, great country to move imo.

I would stay away from the Red areas.

 

[Juleski70]

As always there are areas that are very safe and to be honest I don't think that most of Mexico is more dangerous than the U.S. or Europe.

My experience as well. The bad reputation stems mostly from cartel/gang territorial battles and that does not affect 98% of the places you'd want to go.
Don't try to start your own cartel and you'll be fine

 

[SmartestSmarty]

By registering with the Georgian RS you'll obtain a tax ID (without the need to stay 183 days) that you could use to claim treaty benefits and you could also work inside the country because you're an individual entrepreneur.

If I set up as an Individual Entrepreneur, and this does not require 183 days stay, will this allow any option to obtain a residence permit progressing to > permanent residency / citizenship with less than 183 days stay per year?

I think there is no minimum turnover for this scheme and if you fall below a certain threshold the 1% tax is waived, is this correct?

 

[Marzio]

will this allow any option to obtain a residence permit progressing to > permanent residency / citizenship with less than 183 days stay per year?

After 10 years of continuous, legal residency in Georgia, foreigners may be eligible to apply for Georgian citizenship, if they meet certain conditions, such as knowing the local language, history and customs, and/or have married a Georgian citizen, or are engaged in economic activities considered important to the Georgian state and economy.

I think there is no minimum turnover for this scheme and if you fall below a certain threshold the 1% tax is waived, is this correct?

Under 30.000GEL you can apply for the micro business status (0% tax)

 

[SmartestSmarty]

After 10 years of continuous, legal residency in Georgia, foreigners may be eligible to apply for Georgian citizenship, if they meet certain conditions, such as knowing the local language, history and customs, and/or have married a Georgian citizen, or are engaged in economic activities considered important to the Georgian state and economy.

Hi yes, but can this be achieved via the individual entrepreneur scheme and without living in the country for 183 days?