List of Residencies obtainable without living in the country?

[JustAnotherNomad]

This is exactly what I have been doing in China for the last decades. Few people know about this or how it works.

I believe China doesn't tax (foreign?) income of non-Chinese citizens for the first X years? And the clock resets once you travel out of the country for a couple of months? Something like that?

 

[JustAnotherNomad]

Andorra is perfect for that, if you have EEA passport.
You can look at Passive investment program. You are not required to stay in country to retain residence. If you stay less than 180 days you pay 0% income tax.
It's not blacklisted unlike UAE for example. So less problems having bank accounts
However, Andorra is expensive option

How much is it?

 

[bibing]

How much is it?

600,000€ investment

 

[daniels27]

I believe China doesn't tax (foreign?) income of non-Chinese citizens for the first X years? And the clock resets once you travel out of the country for a couple of months? Something like that?

They do not care. But if you are domiciled there, you should pay tax on world-wide income.
https://internationalservices.hsbc....s/docs/reports/tax-guides/china_tax_guide.pdf

 

[JustAnotherNomad]

Exactly. Six years. And the clock resets if you travel outside of China for just 30 days. It's a pretty nice system.

 

[daniels27]

Exactly. Six years. And the clock resets if you travel outside of China for just 30 days. It's a pretty nice system.

But only for non-domiciled persons?

China-domiciled individuals are subject to China individual income tax (IIT) on their worldwide income. Non-China-domiciled individuals who have resided in China for more than six consecutive years and who had no absence from China for more than 30 consecutive days in any of the six consecutive years are subject to China IIT on their worldwide income, regardless of the mode of payment and place of the income.

 

[void]

how about Uruguay?
allegedly 530k USD purchase of a property and 2 months per year spent there makes one a tax resident
make it 2.3M USD investment there is no requirement of minimum stay

0% tax for first 10 years on foreign income remitted to Uruguay or 7% for life

I ignored this country for many years because of the climate being too cold however as a summer base it seems appealing
3-5 years to citizenship

 

[JackAlabama]

how about Uruguay?
allegedly 530k USD purchase of a property and 2 months per year spent there makes one a tax resident
make it 2.3M USD investment there is no requirement of minimum stay

0% tax for first 10 years on foreign income remitted to Uruguay or 7% for life

I ignored this country for many years because of the climate being too cold however as a summer base it seems appealing
3-5 years to citizenship

Good solution for american brethens.
one caveat is its just very remote and far away if youre basically focused on eurasia/africa.

 

[JustAnotherNomad]

But only for non-domiciled persons?

Yes, but I guess there aren't a lot of Chinese on this forum.

 

[daniels27]

how about Uruguay?
allegedly 530k USD purchase of a property and 2 months per year spent there makes one a tax resident
make it 2.3M USD investment there is no requirement of minimum stay

Then just stay less than 2 months to avoid becoming tax resident and invest less

 

[daniels27]

Yes, but I guess there aren't a lot of Chinese on this forum.

The forum is very Europe focussed. Not many US as options are very limited unless you give up your citizenship. China is a place of its own and they are traditionally very well organised and any loophole is immediately shared somewhere in Chinese.

But what I meant was that the 30 days outside China rule only applies to non-domiciled persons. If you are domiciled in China (hukou), you need to pay tax in any case. The hukou is similar to the residence registration in Europe and also comes with similar tax liabilities.

 

[JustAnotherNomad]

But what I meant was that the 30 days outside China rule only applies to non-domiciled persons. If you are domiciled in China (hukou), you need to pay tax in any case. The hukou is similar to the residence registration in Europe and also comes with similar tax liabilities.

Not as far as I know.

Whether you are required to pay tax on income from outside China depends on whether you are considered to be resident or non-resident. Non-residents have to pay tax on income earned in China, but not on their global income.

Residence is defined as having lived in China for six consecutive years or more, and having spent an average of 183 days (i.e., more than half the year) in China during that year. It doesn’t matter whether these 183 days are continuous or interrupted, it’s the total number of days during the year that counts.

If you are deemed to be resident, you’re liable for tax on all your income anywhere in the world for any tax year where you’ve spent 183 days or more of that year in China, wherever that income was earned.

It’s also important to understand the difference between “resident” and “domiciled”. Your domicile is your long-term home, usually (but not always) your country of nationality. If you have been granted permanent residence in China, you are likely to be considered domiciled in China.

Anyone domiciled in China is liable to taxation on all their income from anywhere in the world. This applies even if you are also required to pay tax in the territory where the money was earned.

https://www.expatden.com/china/personal-income-tax-in-china-for-expats/

A non-China domiciled individual is taxed on China-sourced income only given that they have not resided in China for “6 consecutive years”. “6 consecutive years” means that the individual stays in China for 6 years consecutively, and each year they stay in China for 183 days (days with 24 hours inside China) or more and does not leave China for more than 30 days in a single trip during these 6 years. If a non-China domiciled individual resides in China for “6 consecutive years”, they will be liable for global taxation liability in China from the seventh year.

This classification has significant implications for foreigners’ financial and tax planning, making it an essential consideration for anyone looking to make China their long-term residence.

However, embedded within this rule is a crucial nuance that demands attention: the reset clause. The following methods could effectively reset the 6-year chain:

• Leave China in a single trip for more than 30 days in a calendar year; or
• Stay in China for less than 183 days in a calendar year.

https://www.china-briefing.com/doin...for-foreign-individuals-a-comprehensive-guide

Chinese law stipulates that individuals who are domiciled in the mainland, or live in the country for a total of 183 days in a tax year, will be categorised as tax residents. However, only after staying in the country for six straight years, without exiting for more than 30 days, will global income be taxed.

Non-residents pay taxes only on the income earned in China.

https://www.scmp.com/economy/china-...xpat-tax-system-who-pays-and-how-does-it-work

I know someone who lives in China and he said expats basically don't pay tax. I guess unless they are paid by their employer's Chinese office.

 

[daniels27]

I know someone who lives in China and he said expats basically don't pay tax. I guess unless they are paid by their employer's Chinese office.

Yes if they are paid from overseas. Same is for business income of Chinese nationals, most of the income is tax-free. In the end what really is taxed is

• employment income from Chinese companies
• business income from foreigners in China

Chinese tax authorities are not know to be very hard to chase small guys. And the PWC guides look like exemptions for exemptions for exemptions:
https://taxsummaries.pwc.com/peoples-republic-of-china/individual/residence