Georgia HNWI Residence **The best Tax-Free base with resident certificate regardless of time spent there?**

[Konstanz]

We already mentioned Monaco in his other thread as well:
https://www.offshorecorptalk.com/th...exibility-cfc-rules-professional-setup.29012/
I agree with the idea. Do you happen to know how much Monaco residency costs realistically? You would probably have to rent at least a small apartment, and space is very limited there. 2000 EUR per month? Do you think you could rent out the apartment through AirBnB when you're not there?

AirBnb is forbidden in Monaco.
2k apartment might not be enough for residency. If you are with wife it would be ~5k apartment.
You would need to deposit to Monaco bank at least 500k and invest it (freeze it) during all time you have residency. Usually banks require more than that. 1-2m deposit depending by the bank. This is the hardest part. Banks in Monaco really have no risk apetite..
And you will have to spend some time there. To get residency certificate you have to live 6 months a year. And now they check it. They will check bank accounts to see were you spend money etc..
But it's really nice place to live all year long. You don't need to move from country to country

 

[realdealbusiness]

Thanks everyone. I need to visit Monaco at some point to get an idea of the place. Same for Georgia, but it seems like nobody recommends it for the long-term, so that will probably not work.

I decided to stay in Cyprus for now, to build my new company properly here with local substance, meaning local employees & office as well as local directors once I find good fits for the next few years. I wasted so much time on my research to find an ideal location that I got really tired of it and I did not really work on the business during that period. Kind of try to blame Coronavirus but honestly I regret that I spent so much time and nothing turned out to work.

It's unfortunate that it's not possible anymore to run a foreign company here to stay completely tax-free. Some people claim it's still possible for individuals but not for corporations. Some say it requires nominees. I am not sure if they enforce that though. I believe it's meant to be tax-free if you are a shareholder without substantial control other than maybe giving advice by law. So that seems tricky and dangerous....

Just curious, has anyone insights if CY enforces anything on this: Non-Dom managing Foreign company from Cyprus?

Else, as I said, I just open a Cypriot company and pay the damn 12.5% here, which is fine. And since it has substance, even if I move to another country, it should technically be treated as Cypriot company tax-wise right?

This seems like a long-term approach, please correct me if I am wrong. But to me it seems like I can move freely once I have established a legit company with substance.
For example if I move to Portugal later and am not actively operating in that CY company other than being an advisor (shareholder) I could disregard company profits and would only have to worry about payments sent to me, the natural person (vs. CIT).

 

[JustAnotherNomad]

Can’t really comment on Cyprus, but yes, once there is substance, as long as you don’t pay yourself, it should usually be fine.
But the company is an asset, so depending on where you live, I guess there may be wealth tax. But that would obviously again depend on where you live, applicable tax treaties etc.

 

[cyprus123]

Georgia is a great option for residency, just visit the country once borders are open again to see if you like it, you can fly directly from Larnaca to Kutaisi with Wizzair. When you live in Georgia you take advantage of the territorial tax system, so you can keep running your Cyprus company or even move your company to Bulgaria or Malta for a little bit lower tax rate.
But more important than tax rates is your activity, required resources in your place of business like staff, office space, specific licenses or regulations etc.
An alternative can be also UAE.

 

[iamafrog]

Georgia is a great option for residency

I want to move there and set-up an IT company to produce software for foreign clients. Can you give me advice on the correct setup? Do you know any worthtrusty consultants?

 

[orangekangaroo]

Google expat hub georgia. I had a good consultation with them.

 

[5K1PP3R]

Georgia High Net Worth Individual (HNWI) is dead it seems

Based on the recently published Order of the Ministry of Finance, the Government of Georgia has altered the process of acquiring the High Net Worth Individual (HNWI) tax resident status. In addition to the above-mentioned Proof of Wealth requirements the applicant shall now also be required to present proof of owning assets in Georgia valued at 500,000 USD or more. The Order goes into force on April 15th. Reportedly, HNWI applications submitted before April 15th will be accepted and processed in accordance with the old rules.

In addition to meeting the significant property requirements, they must either:

1. Have a legal residence permit OR Georgian resident ID card.
2. Certify that he/she receives income of 25,000 GEL or more during the tax year from a source in Georgia.