Nomad Setup

[oversea]

Is it possible to have a setup of entities(such as Nevis LLC) and live any country you prefer?

 

[Marzio]

Is it possible to have a setup of entities(such as Nevis LLC) and live any country you prefer?

Only until you wake up next morning.

 

[karishi]

Hey,

In my opinion, Cyprus residency plus a UAE company might be a good combination - you set up Cypriot residency and establish a UAE company.

A company in the northern emirates (not Dubai) might save some costs in this case. UAE company will receive funds and will distribute dividends. Dividends will be taxable with 2,65% GESY contributions only (threshold applies). So effective tax rate is very impressive. The only tax risk you should manage is rather theoretical: you should structure legal matters so that the UAE company would not create a permanent establishment for tax purposes in Cyprus.

But I suppose this risk can be easily manageable if you are not living all year in Cyprus.

A question I always had about cyprus or any other non dom status: let's say you are a digital nomad in cyprus and gain 100 each year. you pay taxes in cyprus on 20 and 80 fall under the non dom status as they are not taxed because they are dividends.
Then you go back to your country, what do they say about the 80? Are they taxed at 0% in cyprus or are they not taxed at all?
In any case it looks like neither Cyprus nor Dubai have a double taxation agreement with denmark, so basically any tax residency certificate is worthless, if they come after you. So basically the idea is never go back home or if you are forced to, never bring any money back home.

 

[TheCryptoAnt]

Is it possible to have a setup of entities(such as Nevis LLC) and live any country you prefer?

So far nobody notices yeah.
Depends on which country you want to live in.

Now getting banking for that Nevis LLC is not impossible but quality is kinda meh and also expensive.

 

[kkein]

A question I always had about cyprus or any other non dom status: let's say you are a digital nomad in cyprus and gain 100 each year. you pay taxes in cyprus on 20 and 80 fall under the non dom status as they are not taxed because they are dividends.
Then you go back to your country, what do they say about the 80? Are they taxed at 0% in cyprus or are they not taxed at all?
In any case it looks like neither Cyprus nor Dubai have a double taxation agreement with denmark, so basically any tax residency certificate is worthless, if they come after you. So basically the idea is never go back home or if you are forced to, never bring any money back home.

Cyprus and Denmark most certainly have a DTA between them. They are both in EU, even.
About the other question, i don't know if Non-dom status in country B could trigger questions or back taxes request in country A.
@Sols most likely can answer here

 

[karishi]

Cyprus and Denmark most certainly have a DTA between them. They are both in EU, even.
About the other question, i don't know if Non-dom status in country B could trigger questions or back taxes request in country A.
@Sols most likely can answer here

youo are right, looked at the wrong page
https://mof.gov.cy/en/taxation-investment-policy/double-taxation-agreements/double-taxation-treeties

 

[ADROCK123]

Wow, thank you everyone, for all the great replies. I appreciate it! There's a lot to digest here.


Didn't think about Grenada, since I considered that mainly a country to get citizenship. In the future, this could certainly be an option. A second citizenship would make a lot of things easier, it seems.


I did consider Thailand and Malaysia, briefly. I really like SE Asia, so it would make sense. I'll take another look. Mauritius, is probably too remote for my liking.


Didn't consider the Green Card for US. Also, they require vaccination, so that's out anyway.


After reading your answers I'm leaning towards Cyprus right now. With their 60 day rule, I'm avoiding potential trouble in the future, and then establish a UAE company at some point.


But I'll look further into some of the other suggestions.


(No, I'm certainly not giving my homecountry any information, and haven't given them much of anything so far. I'll keep it that way.)


What about this? Is it not enforced, or is it only in extreme cases? 1500 euro really isn't much. That could simply just be a mistake, and not even an attempt to avoid tax. 1-6 years of prison for next to nothing, seems crazy to me.

https://bglaw.eu/articles/bulgarian-caretaker-government-2021-tax-evasion-combat/

for you bulgaria freelance is best (7.5 + capped socials) as cyprus is more like 15%. dont rely on a dubai setup because this is a can of worms and in reality your shell company would have PE in cyprus anyways

bulgaria also has 0 days requirement in country, tax residence certificate comes from renting an apartment

romania is good as well but yeah it has more uncertainty coming up.

if you do your taxes properly and you have an accountant there is a 0% chance you end up in jail for the tax fraud, especially as a foreigner

 

[karishi]

if you do your taxes properly and you have an accountant there is a 0% chance you end up in jail for the tax fraud, especially as a foreigner

There should be also a discussion of what constitutes "tax fraud", because in my home country you can go to jail for tax fraud, but countless tv / sports personalities, people who were making millions of euro a year and where declaring residency in Monaco even if they were live from tv studios inside the country each day, were simply fined and then settled in court.
People who are in prison for tax fraud are mostly people who sold goods into the country evading VAT by setting up triangolations with other countries, like some famous mobile phones websites. What constitutes tax fraud is more at the corporate level and related to the internal market, rather than at the personal level. But that also depends on how people in the country perceive the crime, in my home country if you f**k the state, you are a hero, in Denmark I guess it's different. In any case I would agree that I think it's hard to go to jail as a denmark citizen for tax fraud in bulgaria, I would be morw worried about going to jail in Denmark.
While in the USA you definitely go to Jail for tax evasion, it's 5 years.

 

[Gediminas]

A question I always had about cyprus or any other non dom status: let's say you are a digital nomad in cyprus and gain 100 each year. you pay taxes in cyprus on 20 and 80 fall under the non dom status as they are not taxed because they are dividends.
Then you go back to your country, what do they say about the 80? Are they taxed at 0% in cyprus or are they not taxed at all?
In any case it looks like neither Cyprus nor Dubai have a double taxation agreement with denmark, so basically any tax residency certificate is worthless, if they come after you. So basically the idea is never go back home or if you are forced to, never bring any money back home.

Hey,

In Cyprus, you report all your worldwide income in a personal income tax return.

You report all amounts of passive income (dividends). So if needed in the future you have proof that all worldwide income was reported correctly in the tax residency country.

Before submitting of the tax return you should obtain a non-domicile certificate (otherwise defense tax would be applied).

As regards Denmark – yes, indeed you should look at local tax residency rules and what they say, i.e. how many days you should be outside the country, how many consecutive years (if any), etc. Because countries do not have a treaty so you can not count on it.

 

[karishi]

Hey,

In Cyprus, you report all your worldwide income in a personal income tax return.

You report all amounts of passive income (dividends). So if needed in the future you have proof that all worldwide income was reported correctly in the tax residency country.

Before submitting of the tax return you should obtain a non-domicile certificate (otherwise defense tax would be applied).

As regards Denmark – yes, indeed you should look at local tax residency rules and what they say, i.e. how many days you should be outside the country, how many consecutive years (if any), etc. Because countries do not have a treaty so you can not count on it.

There is a double taxation agreement between cyprus and Denmark, while there is not between Denmark and UAE. So Cyprus is definitely the best choice here.
https://mof.gov.cy/en/taxation-investment-policy/double-taxation-agreements/double-taxation-treeties

 

[myhand]

Ask a reputable international tax expert. You can legally drive it so far that you only pay 1% tax in total. I do not understand why so many Germans have only Cyprus and Dubai in focus. This must have something to do with the dubious Influencer...

Have fun

If anything in that video is true it is once of the biggest tax benefits in Europe for entrepreneurs. I would like to double check it with a tax advisor in Germany. I don't think it is that easy.

Why would any entrepreneur in Germany not just setup a company with Substance in Switzerland that is owned by a KG or like in the Video a KG that owns a US LP if you can get the money almost tax free out than. I mean 21% total tax to be paid is nothing!

 

[RealDude]

Why would any entrepreneur in Germany not just setup a company with Substance in Switzerland that is owned by a KG or like in the Video a KG that owns a US LP if you can get the money almost tax free out than. I mean 21% total tax to be paid is nothing!

He is german Prof. Dr. Christoph Juhn.

That’s how it basically works i think. An example with Spain.