Fake tax residency

[Tusk]

I come from a European country with a very aggressive tax administration, but I haven't lived there for many years and don't plan to return in the medium term. My setup at the moment is good enough, but I'm planning to start a business that would establish a PE in the country where I'm living. Also, I like the place, but I don't see myself living here long-term.

I've been playing with the idea of faking my tax residency in a country where I would get a reasonable tax rate, good access to banking, a tax resident certificate and living under the radar in a third country where they won't investigate what I make elsewhere if I live as a tourist or under the radar while I run my business (e.g., Mexico or the Philippines).

Would it be feasible to buy a house in, let's say, Cyprus, Panama, or Monaco, and get out of the country with my sailboat or without stamping my passport at the border and:

- Lease the house for cash without registering the lease for cheaper or let a friend live there and keep all utilities under my name.
I could ask a friend to make some purchases with my debit card each month or withdraw money from an ATM and wire it to me through a third party.
- Give a power of attorney to a lawyer in case something needs to get done in my absence.
- Go back by boat or without stamping passport in case I need to get back to said country for whatever reason (I know Latin America pretty well, and crossing the border through unofficial crossings is pretty easy).


I know this is a very difficult thing to pull off if you want to fake your residency to actually live in a European or first world country, but do you think it could work if you want to live in a less developed one?

What things am I not contemplating?

Thanks a lot.

 

[daniels27]

I see. But your are thinking too far. Your setup is expensive and illegal.

Follow the advice of @GPT and setup a company in the place your want, get a local director and be an ordinary employee. You can then pay yourself a salary either there or in another country with even less tax while flying under the radar anywhere.

 

[jafo]

Would it be feasible to buy a house in, let's say, Panama, or Monaco,

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- Lease the house for cash without registering the lease for cheaper or let a friend live there and

Please do NOT do this! You are begging for expensive and extensive legal problems! Nobody should know you have an apartment there. Install a few cameras and two video camera doorbells, and you will be good to go.

I could ask a friend to make some purchases with my debit card each month or withdraw money from an ATM and wire it to me through a third party.
- Give a power of attorney to a lawyer in case something needs to get done in my absence.
- Go back by boat or without stamping passport in case I need to get back to said country for whatever reason

You do NOT need to do ANY of this! Don't add unknown variables to your equation. It makes the problem harder to solve!
Example: 100 = X² + 19. X is so easy to solve. Now.... 100 = X² + Y² + 19 becomes a f*cking problem as now the solutions are (x,y)=(±9,0) or (0,±9), but you can't pinpoint which is which. Get it?

(I know Latin America pretty well, and crossing the border through unofficial crossings is pretty easy).

Please, do NOT mention these things. Be smart. Assume this forum is being watched by useless and unproductive thieves under the ruse of "government," and everything you write here will be passed on tomorrow to the authorities in Latin America. The authorities in Latin America get a "stipend" from the "Western authorities" to catch & fetch! Think about it... would you care about the price of something if your "indentured servants" were bearing the cost?

Also, the "frontera amigos" will HATE us because we disturbed their peace! Now, they actually have to do work for the stipend they receive, compliments of the Western taxpayers, on top of being scolded by purple hair gender-confused nutcases!

Here is one of hundreds of articles vis-à-vis this macabre & despicable practice: https://www.jusbrasil.com.br/notici...salao-do-governo-dos-estados-unidos/354350802

PS. Notice how they brag about it and take pictures...and there isn't a f*cking thing anyone can do about it, so do NOT disclose sensitive things that can be "targeted."

 

[Tusk]

@jafo Thanks a lot for your response. My problem with Panama is that I dislike to live there. From all the countries of Latin America, it's the only one that I really dislike. If I don't want to live there, or at least give the appearance of living there for more than 183 days a year, it would be impossible to get the tax residency certificate.

@daniels27 Thank you, I am going to take this into consideration. The problem I see is that in 100% of the countries that I find interesting to live (except Dubai) I would still get heavily taxed on that salary, but you can't have everything.


The intention of doing this is to show the appearance of having a very solid tax residency that is difficult to challenge by third parties, but from your comments, I get it might not be necessary to go through all this?

 

[JackAlabama]

@jafo Thanks a lot for your response. My problem with Panama is that I dislike to live there. From all the countries of Latin America, it's the only one that I really dislike. If I don't want to live there, or at least give the appearance of living there for more than 183 days a year, it would be impossible to get the tax residency certificate.

@daniels27 Thank you, I am going to take this into consideration. The problem I see is that in 100% of the countries that I find interesting to live (except Dubai) I would still get heavily taxed on that salary, but you can't have everything.


The intention of doing this is to show the appearance of having a very solid tax residency that is difficult to challenge by third parties, but from your comments, I get it might not be necessary to go through all this?

well if your passport requires you to have a tax residency somewhere (double check it as many actually do not require it), go where you like to spend that time and pay something there.
Or, if funds allow, give up your slave card and get a new one from elsewhere and be done with the holy united green states of Ursulandia.
Add some substance to your new company, somewhere, and it might even end up cheaper and less stress than going the jason borne route.

 

[wellington]

I come from a European country with a very aggressive tax administration, but I haven't lived there for many years and don't plan to return in the medium term. My setup at the moment is good enough, but I'm planning to start a business that would establish a PE in the country where I'm living. Also, I like the place, but I don't see myself living here long-term.

I've been playing with the idea of faking my tax residency in a country where I would get a reasonable tax rate, good access to banking, a tax resident certificate and living under the radar in a third country where they won't investigate what I make elsewhere if I live as a tourist or under the radar while I run my business (e.g., Mexico or the Philippines).

Would it be feasible to buy a house in, let's say, Cyprus, Panama, or Monaco, and get out of the country with my sailboat or without stamping my passport at the border and:

- Lease the house for cash without registering the lease for cheaper or let a friend live there and keep all utilities under my name.
I could ask a friend to make some purchases with my debit card each month or withdraw money from an ATM and wire it to me through a third party.
- Give a power of attorney to a lawyer in case something needs to get done in my absence.
- Go back by boat or without stamping passport in case I need to get back to said country for whatever reason (I know Latin America pretty well, and crossing the border through unofficial crossings is pretty easy).


I know this is a very difficult thing to pull off if you want to fake your residency to actually live in a European or first world country, but do you think it could work if you want to live in a less developed one?

What things am I not contemplating?

Thanks a lot.

I’m confused somewhat - are you currently living in Europe? If so then pay the relevant taxes and then do everything else to reduce future taxes.

In Europe you could receive cash (or crypto like the Russians do in Asia) but ultimately it won’t take much to come after you in the future because building a case is rather easy as it’s a immovable object and surveillance or questions can be asked of the occupants.

One thing you could do is liquidate the house which is probably a good idea in mind of the demographics of Europe before the supply really heats up.

Living on a sail boat is probably a good idea but you’d need to factor in location - and even taxes for your citizenship nation if they charge such for non residents.

One thing of note is that companies have to have an office for file storage and operations a sailboat won’t cut it - you need a territorial tax location.

 

[jafo]

I’m confused somewhat - are you currently living in Europe?

I come from a European country with a very aggressive tax administration, but I haven't lived there for many years and don't plan to return in the medium term.

No. He's overseas. He likes the country for personal living but NOT for business. It's like my love affair with South America. Certain places in South America even have dividends that are TAX EXEMPT! Now, starting a business, there is a major no-no.

companies have to have an office for file storage

You guys store files?

This was one of my major pet peeves about the DOJ's actions against me. I had no records, but they could do nothing except throw a temper tantrum.

When they asked me for files, I (on the stand) responded: "Files? You mean like the files and lists the Nazis wanted from Schlinder?"
The judge was Jewish, and there were two Jewish jurors. The prosecutor dropped that line of questioning quickly!

 

[wellington]

No. He's overseas. He likes the country for personal living but NOT for business. It's like my love affair with South America. Certain places in South America even have dividends that are TAX EXEMPT! Now, starting a business, there is a major no-no.


You guys store files?

This was one of my major pet peeves about the DOJ's actions against me. I had no records, but they could do nothing except throw a temper tantrum.

When they asked me for files, I (on the stand) responded: "Files? You mean like the files and lists the Nazis wanted from Schlinder?"
The judge was Jewish, and there were two Jewish jurors. The prosecutor dropped that line of questioning quickly!

You have to keep them now days for 5-7 yrs but if you keep them digital and the drive breaks down you should be golden lol

 

[toums]

well if your passport requires you to have a tax residency somewhere (double check it as many actually do not require it), go where you like to spend that time and pay something there.
Or, if funds allow, give up your slave card and get a new one from elsewhere and be done with the holy united green states of Ursulandia.
Add some substance to your new company, somewhere, and it might even end up cheaper and less stress than going the jason borne route.

Which EU countries practice this if you don't fullfiled the tax resident in your home country but don't have any official tax residency somewhere else? (if you know some) thanks.

 

[daniels27]

Which EU countries practice this if you don't fullfiled the tax resident in your home country but don't have any official tax residency somewhere else? (if you know some) thanks.

France, Belgium, etc. but also depends from case to case. Most countries can ask for something if they suspect you are still in their country on the beach.

 

[toums]

France, Belgium, etc. but also depends from case to case. Most countries can ask for something if they suspect you are still in their country on the beach.

Do you have official case-source / link regarding France ? Because theorically, if you dont fulfill any of these requirements :
Less 183day a year in FR (basically better to spend less 90days a year to not be considered as 'habitual' residence)
No permanent home there
No wife/kids there
No income related to France
No investments there. if investments there, need to be less that what you own abroad.

You cannot be considered as French tax resident. If you have other info, thanks

 

[daniels27]

Do you have official case-source / link regarding France ? Because theorically, if you dont fulfill any of these requirements :
Less 183day a year in FR (basically better to spend less 90days a year to not be considered as 'habitual' residence)
No permanent home there
No wife/kids there
No income related to France
No investments there. if investments there, need to be less that what you own abroad.

You cannot be considered as French tax resident. If you have other info, thanks

I think we had it here once:

Questions about Cyprus as non dom and company incorporation + accounts

EU citizen looking for options. Would be great to clarify some questions about Cyprus. Goal is to find a tax optimal regime that is close to EU. Here are questions about Cyprus. 1. If EU tax resident spends 183 days in Cyprus, they can get a paper from Cypriot tax authority that they are tax...

www.offshorecorptalk.com

The one exception would be if you move from an origin country that has special rules against moving to tax havens (Spain, France and Italy have such rules I think), and they consider Cyprus to be a tax haven. Then yes, they could ask you for a tax residency certificate. But in this case it is best to move to a non-tax haven country first. And Im not sure if Cyprus is classified as a tax haven country - would actually surprise me since it's an EU country.

 

[JohnLocke]

Do you have official case-source / link regarding France ? Because theorically, if you dont fulfill any of these requirements :
Less 183day a year in FR (basically better to spend less 90days a year to not be considered as 'habitual' residence)
No permanent home there
No wife/kids there
No income related to France
No investments there. if investments there, need to be less that what you own abroad.

You cannot be considered as French tax resident. If you have other info, thanks

I think it is risky to take this for granted.

 

[JackAlabama]

Do you have official case-source / link regarding France ? Because theorically, if you dont fulfill any of these requirements :
Less 183day a year in FR (basically better to spend less 90days a year to not be considered as 'habitual' residence)
No permanent home there
No wife/kids there
No income related to France
No investments there. if investments there, need to be less that what you own abroad.

You cannot be considered as French tax resident. If you have other info, thanks

well the best thing you can do is to look up legal cases to see what holds and what doesn't. If prominent people are affected which you should have a bunch, its even better as there's additional media coverage to browse thru.

I did this in regard to my citizenship(s), just to know what can be expected and over time I got a fairly comprehensive picture.

 

[toums]

well the best thing you can do is to look up legal cases to see what holds and what doesn't. If prominent people are affected which you should have a bunch, its even better as there's additional media coverage to browse thru.

I did this in regard to my citizenship(s), just to know what can be expected and over time I got a fairly comprehensive picture.

I didn't see any in France except some movie stars or singers (like johnny hallyday) with 'fake' or not 100% real residency (they still spent a 'lot' of time in france, and lot of real estate/investments there) with some countries border, mostly Belgium and Switzerland..