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Cyprus or UAE for me? (Low income btw...)
- Thread starter itsmemario123
- Start date
Ah yeah hahaha. If you read carefully, I said that is not much compared to other people in this forum, not that "is not much" in general. My full 100k yearly gross income is what others are just saving in taxes per quarter, lol. I already said that with that money you live pretty well in my country.
I'm OK with as lowest as possible without living a shitty life the next 5 years haha.
I mean, I'm just 13% right now in Romania, with is good as in my country it would be double, but letting aside that is getting worse as Romania is doing some changes, I know that I can improve it a bit if I jump out of EU.
I plan to live around some countries (which I'm doing right now, actually). I mean, I know that UAE is expensive, but I've read that after I get the fiscal residence, I do not need to live there for X months per year if I do not trigger the 183 rule elsewhere, which I'm not triggering, so yeah, maybe the first year is expensive as I need to comply with the needed months, but after that I can live around Spain, Portugal, France, Italy, maybe a bit of US and so on.
Why are they a headache? I actually want to pay corporate taxes as I want to have clean personal money for my retirement in Spain, and when I buy properties, the Spanish tax bureau is going to ask where that money is coming from and if has been taxed properly somewhere...
13k is very little. Not much point in optimizing only for tax reasons.
You can get a cheap paper residency in e.g. Paraguay and just travel. Use a US LLC (for example), no tax. Just make sure you really don't have to pay tax in Romania anymore.
Not true. 90 days are needed for tax residency as a resident - but residency itself costs money as well.
Fewer days would only work if it's your center of vital interest, meaning apartment rented for the full year, maybe local company etc. - it all costs money.
Maybe you don't pay tax, but the costs for the structure will be significant.
Protections will be very limited as well, the UAE doesn't have that many tax treaties. If you're sure no other country will chase you, it's overkill. Just go with e.g. Paraguay for compliance and risk not having any tax residency.
You wouldn't be paying corporate tax in the UAE at those levels. And everything related to taxes and business is an utter s**t show in the UAE. I strongly advise against it.
Especially if you don't actually want to live there, it really doesn't make sense anymore.
Yeah, I see. I thought that it would be easier actually, but after reading you all, Romania doesn't look that bad right now.
Ok, that seems easier than UAE if I move around crountries then.
Ahhh that's the trick! Now makes sense!! I was talking with my gf about the 90 days and how it doesn't make sense compared to the usual 183 rules in almos all countries... ok, so definetely not a place for me :-/
Ok then that's settled. NO UAE for me. I'm a bit relieved actually. The uncertainity was starting to be a bit stressful. I appreciate your input a lot.
PS: I'm starting to think a bit different my plan now. As Romania is not that bad, I will look to optimize taxes again if I land the 200k contract. In the end, life should be as enjoyable and stressless as possible, and 13% not being that bad now, doesn't make sense all the hassle for a few extra € that will not change my life. I really though it would be easier, but it seems that tax optimization is getting tighter and more difficult over time, so...
Thank you to all people contributing to this thread, helping an anonymous random Internet guy. You are really nice people.
Thank you to all people contributing to this thread, helping an anonymous random Internet guy. You are really nice people.
I'm going bold and saying Paraguay+us llc or Bulgaria with local company.
since you don't want a place to live, and also you say that you'll be traveling year round... both are fine with that and they are cheap.
One is tax free, the other not, but it's in schengen.
since you don't want a place to live, and also you say that you'll be traveling year round... both are fine with that and they are cheap.
One is tax free, the other not, but it's in schengen.
I don't know how Cyprus works with declared taxes so I can reinvest the money in Spain without a problem :-/ I think that Cyprus is more like"we have laws but we don't enforce them that much", so when I'm going to reinvest in Spain and they ask about the place where I paid taxes, I'll have nothing to show and that scares me...
Bulgaria is not that better than Romania for all the hassle, actually. Paraguay looks like a good one, but the problem is reinvesting all that money in Spain. In Romania I have my company taxes and my personal taxes, everything with bureucratic documents filled and taxes paid, so that's pretty clean to show to Spain if they ask when I buy properties. I thought that I could achieve something like that easily.
And why the hell do you want to keep putting money into a hell hole like spain.You might as well keep your money outside spain .
Because although I don't like the spanish tax system, I like some people that live there, like family and friends. My plan is to live near them instead of distancing forever. I do not plan to live like a millionaire.
Family can move with you,friends is a notional concept .They are your friends as long as they can suck out something from you .They cease to be friends when whatever they wanted from you they have already extracted.
Your family maybe able to live a better life in cyprus or elsewhere.Maybe you need to change your thinking first before coming to discuss how you can benefit from the advice given.If you want to be shackled it is your thinking if you want to be unchained it is your thinking.Get out of "The Matrix" my friend.I and others here can only give you either the red or blue pill ,but it is you who will have to choose my dear Neo.We have all been Neos and we have all benefited from some Morpheus giving us the red or blue pill but end of the Day every Neo has to choose for himself.
No!! There are no "usual 183 days in allmost all countries", you have to forget that nonsense.
183 days is just the "no way around it" rule, and the UAE has that as well.
It's like saying "If you drive your car into a concrete wall at 183 miles per hour, you will definitely die" - that doesn't mean you won't die if you drive slower.
The 90 days in the UAE are very low actually. Just get a residency card and spend 90 days in the country, you can stay in hotels - tax residency.
Or stay even less, but then you need an apartment all year, maybe even a company.
But there are service providers who can arrange that for you (they rent some cheap place in the desert, I guess) - but that also costs money.
And it's not very useful if you don't actually spend time there - if e.g. Romania says you should pay tax there because they find out you spend a lot of time there and your wife and kids still live there, then giving them some paper that says that you have registered in Dubai is worthless if you can't prove you spent time there.
Yeah, it's expensive, it's not good for a paper residency. It only makes sense if you want to spend time there. It can also make banking complicated.
You could look into Cyprus, Malta, Bulgaria, Czechia, Lithuania, ... but you will always end up with 5-15% tax, plus possibly some additional costs for the structure, and then you have to find a place to live, the hassle of moving. I really think it's better to stay in Romania if you want to stay in Europe.
Otherwise you can of course hop around Asia and use a US LLC if you like that.
Well, I have a couple of friends that didn't dissapear when the VERY bad times came, and the same from me to them, and we all are almost 40 with our own lives, so it is pretty solid. And I can't move my father, sister, brother in law, cousins and uncles close to me hahaha.
I've been living in Romania for some time, optimized my taxes but still felt that hole in me, so I know that this is not the life I want forever, but just for the next 5 years or so.
I'm not planning to go to the extreme. Just to know what's out there and search what fits me and my planned future. Everyone has a planned future, and mine is close to my people. I'm not going to stop eating paella on the weekends with my family just because of extra 5k yearly. That makes it harder to optimize taxes, but not impossible, of course. For me is a balance.
Hahaha loved the reference xD
Ahhh ok ok! Woah. That's a lot of possibilities. Good to know if I manage to improve my contract.
Ok so 13% is on te high end, but is not that bad actually as in the 13% I'm including all expenses, not only taxes. I'm spending 13% to have everything sorted out and I'm receiving clean on my bank the remaining 87%.
Asia is something that I would like to do in the future, but only for a year, or maybe 2 if I like it. The typical backpacker. Maybe I can try to optimize my taxes meanwhile I do that, but is not something for the long term...
Ok, so settled. Romania until I improve my contract and then I'll see. I'm happy with that actually.
Kudos.
It's very good. Of course 5 vs. 13% is a big difference when you make 10M a year (to give an extreme example), it's a difference of 800k, so then you can spend 100k for a setup that will still save you 700k, if that should be necessary.
But as long as you're not there, I think 13% all in is very good.
Probably not very interesting then.
That's great! And I think it's important to focus on making more money. It's better to pay have 80% or even 50% of a large pie than to have 99% of a tiny pie.
Well if you are happy with that there is no problem.As i said it is Neos choice.
BTW even Neo needed an extra life to become Neo
and truly free himself from 'The Matrix'.Good Day Mr Anderson.
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