[FOR EU CITIZENS] Problems when going Offshore - List

[Outlander]

Hi @Outlander My question here comes (as I am new to forum but reading for hours): even if you manage to take a residency paper from Paraguay or anywhere in the world , you need to get the tax residency certificate, yes? So are they giving if you are not actually staying there 183 days? And assuming that your answer is YES, how you can manage it in the country that you really stay? I mean you probably live in your citizenship country but they think you are not there.. .can't this be seen with other ways by them?

Hello and welcome to the forum. This is a complicated subject but I'll try to summarize.

You don't need a tax residence certificate most of the times. Typically you'd need one if your high tax home country explicitly requires it for breaking tax residency there. Most countries don't have such stringent rules, it suffices if you just leave the country, or, in some cases, cut all your personal ties with it.

If you need a tax residence certificate to break tax residence at your home country. The bottom line is you will have to stay in Paraguay for six months, at least once in your lifetime. If you're feeling adventurous: walk over the uncontrolled border with Brazil and take a car to Florianopolis. Live illegally by the beach and pay cash on everything. You need a friend to rent the car and the AirBnB. Then return to Paraguay unofficially after a few months, without ever having exited it. I know someone who did this (not me).

If you don't need a tax residence certificate to break tax residence at your home country. In this case, you may get your residence in Paraguay and either stay there or go travel abroad. As long as you don't stay in any other country enough time to become a tax resident there (specially your home country!), and supposing you did all the steps to break tax residence with your home country, then you have a strong case to claim that Paraguay is your tax residence, regardless of having a certificate, because that's where you have the most ties to. You'd need a "strong claim" backed by supportive documents and other evidence of ties in case there's an investigation against you - by your home country, more than likely. How likely is that to happen? Well it depends on how much assets you have, what is your home country, etc. For most people, the odds are extremely low.

The main reason you want the permanent residence - in Paraguay, or anywhere else - is that you may self-claim to be a tax resident there for the purposes of opening a bank account. Every bank in the world will ask you where is your country of residence for tax purposes - that's a claim that you make to the bank and they won't investigate whether true or not. But it would raise lots of red flags if you claim to be a tax resident of a place where you don't even have a residence visa.

In any case, using this scheme for moving back to your home country is a risky move. You'd be better off by moving to a third country and remain 100% legal.

 

[JackieTsan]

Hi @Outlander many thanks for this high detailed info!

For the country that I am from, I need the tax residence every year (EU). And I have some bank accounts in famous international bank that always every year asking me for CRS papers (including tax residence cert otherwise they might block my account!!!). For the moment I am ok but I'm thinking to move next year. But everything depends on the job. I'm not an online entrepreneur making money wherever. I have very limited opportunities unfortunately. That's why i try to find a easy way for me...

many thanks

 

[John Andrews]

Hi @Outlander many thanks for this high detailed info!

For the country that I am from, I need the tax residence every year (EU). And I have some bank accounts in famous international bank that always every year asking me for CRS papers (including tax residence cert otherwise they might block my account!!!). For the moment I am ok but I'm thinking to move next year. But everything depends on the job. I'm not an online entrepreneur making money wherever. I have very limited opportunities unfortunately. That's why i try to find a easy way for me...

many thanks

This is exactly why you get something like Paraguay residency, so you can make the banks happy due to their CRS requirements.

Unless you work remote for $$$ forget about it. It's very hard, and sometimes even illegal to live somewhere (meaning stay >183 days there and be a resident) and not pay taxes.

 

[Outlander]

Hi @Outlander many thanks for this high detailed info!

For the country that I am from, I need the tax residence every year (EU). And I have some bank accounts in famous international bank that always every year asking me for CRS papers (including tax residence cert otherwise they might block my account!!!). For the moment I am ok but I'm thinking to move next year. But everything depends on the job. I'm not an online entrepreneur making money wherever. I have very limited opportunities unfortunately. That's why i try to find a easy way for me...

many thanks

Do you mind sharing which bank will request you a certificate every year? That's unusual. I'm sure you can get better banking.

 

[JackieTsan]

I have 5 banks in EU, ALL of them every year send me CRS forms to complete. they ALL require the tax residence cert to be attached. Also the country i have citizenship needs it per year otherwise they grab you back.

 

[Outlander]

I have 5 banks in EU, ALL of them every year send me CRS forms to complete. they ALL require the tax residence cert to be attached. Also the country i have citizenship needs it per year otherwise they grab you back.

You can get better banking outside EU. Even in the US. One step at a time, but do what is possible today.

As for your home country, are you sure they will ask you for a tax certificate after 1) you leave and cut ties with the country and 2) present a tax certificate for your 1st year out? It just doesn't make sense that they would keep asking after you broke tax residence officially.

 

[JackieTsan]

I would appreciate if you can suggest something safe for banking.
Yes they are asking every year tax cert & if you change country you have again to bring from new country.

Thank you @Outlander

 

[Outlander]

I would appreciate if you can suggest something safe for banking.
Yes they are asking every year tax cert & if you change country you have again to bring from new country.

Thank you @Outlander

It depends how much we are talking but non-CRS/non-bulls**t places like Georgia in Armenia, in a combination with EMIs such as Transferwise, seem to work well for many people here.

 

[JackieTsan]

we are talking about 3 number figure in K as total savings... I don't think that this amount is much, its lifetime savings... Do you trust tranferwise?? This can be also personal and business, right? But it;s not BANK!!!

 

[John Andrews]

Are you seriously considering putting your lifetime savings in an EMI?

Keep it in gold, wait for the next recession then put it all in an estonian company and buy all the tech stocks for crazy low prices.

 

[Outlander]

Are you seriously considering putting your lifetime savings in an EMI?

Keep it in gold, wait for the next recession then put it all in an estonian company and buy all the tech stocks for crazy low prices.

You're just speculating by buying gold and stocks.

He asked about alternatives to EU banking, and a combination of the solutions I outlined is as sound advice as you can get for modest amounts. EMIs are convenient for small amounts as they tend to offer cheaper /faster transfers. No one ever said about putting all lifetime savings in one place.

 

[JackieTsan]

Guys you're both great really and I highly appreciate your precious help!! No words to say more

So what is the conclusion ??

 

[Outlander]

Guys you're both great really and I highly appreciate your precious help!! No words to say more

So what is the conclusion ??

There's no conclusion, you must gather all the info from as many sources as possible and decide yourself.

 

[JackieTsan]

I gather and you're great thanks for that! Armenia & Georgia are safe for personal banking? Can I open account remotely or I need visit?

He asked about alternatives to EU banking, and a combination of the solutions I outlined is as sound advice as you can get for modest amounts. EMIs are convenient for small amounts as they tend to offer cheaper /faster transfers. No one ever said about putting all lifetime savings in one place

I mean conclusion for this...

 

[Outlander]

AFAIK you need a visit or someone there with a PoA. As for safe or unsafe, it depends on the bank, but the countries are more or less stable. I wouldn't mind putting some money there.

 

[JackieTsan]

Many thanks @Outlander !!!!!!! So the countries you suggest are Armenia & Georgia? Any other? Out of CRS (Crap Restrictions system) hahahahah

 

[Outlander]

Many thanks @Outlander !!!!!!! So the countries you suggest are Armenia & Georgia? Any other? Out of CRS (Crap Restrictions system) hahahahah

There aren't many countries outside CRS nowadays and you shouldn't rely on that only, because they might enter in the future. Easy of account opening, variety of services, customer support, stability, the bank's own finances, etc. - are factors to take in account more than being in or out of CRS.

That said Paraguay itself, AFAIK, isn't part of CRS yet. And US banks have a different reporting standard, some people call the US the mother of all offshore jurisdictions.

 

[JackieTsan]

I don't have ANY fraud/hidden/untaxed etc money at all...! Everything is taxed etc.. But it really annoys me when HUGE banks treat me like a fraud asking me Tax certificates, job papers, blood tests (almos) like i AM a fraud...

 

[lavel]

I don't have ANY fraud/hidden/untaxed etc money at all...! Everything is taxed etc.. But it really annoys me when HUGE banks treat me like a fraud asking me Tax certificates, job papers, blood tests (almos) like i AM a fraud...

You better get used to it because it is the new world order to take over the world and control.

 

[JackieTsan]

thanks @lavel and what's the solution then? other banks out of this type?