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Quick and cheap way to move tax residency to another EU country

D

dissident

New member
Jan 2, 2020
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#1
Let's say Bob has tax residency in France and wants to move it to a different EU country.

The main idea is to get rid legally of tax residency in France in a quick and cheap way, so the new country should provide all needed paperwork/certifcates to report France tax authorities with no pain.

Time is important, so if you can get all paper work in 2, 3 or 6 months before end of the year, that'd be great.
Cost and low operational overhead is also relevant, so no registering companies or anything like that.

Ideas:
- Register as freelance / sole trader in a new jurisdiction, get some salary there and pay some taxes.

Any country suggestions and ideas?
Thank you!
 
#2
dissident said:
Any country suggestions and ideas?
Click to expand...

Any EU country you prefer will do - its called freedom of movement in EU. You get get tax ID for your new country quickly in weeks by just registering there as i.e self employed. However in France they consider you resident if the centre of your life still remains in France. You will need to cut all ties with France rather than show the French tax man a new address and a foreign tax ID as they will not respect this.
 
#3
An individual is deemed to be a tax resident of France if at least one of the four following tests is fulfilled:

1. France is your main residence or home (your foyer). This embraces ideas of permanence and stability, and is the rule the French authorities most rely on. The foyer is the place where your close family (spouse and minor children) habitually live. Even if you spend most of your time abroad, if your foyer is in France you will be considered French tax resident.

2. France is your principal place of abode, your lieu de séjour principal. This usually means you spend more than 183 days in France per calendar year. However, if you spend less than 183 days in France, but more days than in any other country, you may still be deemed to have your lieu de séjour principal in France. This test is only applied if a foyer cannot be determined.

3. Your principal activity is in France. For example, your occupation is in France (whether salaried or not) or your main income arises in France, unless you can show it is incidental.

4. France is the country of your most substantial assets (centre of economic interests). This means if France is the place of principal investments, or where assets are administered, or where your business affairs are based, or where a larger part of your income is drawn from.

If the French tax authorities question your tax residence, and claim you are resident there when you believe you are not, then it is up to them to prove their case and bring factual evidence to support it.

You are tax resident from the day after you arrive in France, if you arrived with an intention to reside there indefinitely. France takes a ‘split-year’ approach for tax in relation to residence and non-residence. In your tax year of arrival, only the worldwide income received after the date of arrival is liable to French income tax (excepting French-sourced income, which is always taxable). In the year of departure, the reverse of this is true.

source: Tax residency rules for France and the UK explained
 
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#8
I got it with only passport copy and very affordable price. All included with lease agreement for 1 year + yellow slip + TIN + utility bill and sim card with a local phone number.
Tax certificate not included. For that you need to spend 60 days on the year in Cyprus.
 
#9
bibing said:
Malta.
Click to expand...
Malta is becoming very complicate and expensif. And to get a tax certificate you will need to prove that you really spend more than 183 days. Very complicate to get it. They will ask you many proves including sports clubs bills, or gyms clubs, utilty bills, tickets from supermarkets or restaurants, etc.. The real prooves that you are living there
And you will pay tax for all the money that you enter in the island over 8K, in cash, transfers, or withdraw with card.
Rental agreement are expensive too. And CFC rules are active.
Not very interesting place from 2 years.
 
#11
andres33 said:
I got it with only passport copy and very affordable price. All included with lease agreement for 1 year + yellow slip + TIN + utility bill and sim card with a local phone number.
Click to expand...
What is affordable price and what agent did you use, how long does it took?
 
#12
Cyprus residency cost around 12k per year minimum.
You need rental contract for small flat, than you can do immigration and you receive yellow slip. than you can register internet, water, electricity. During the process you also incorporate cyprus limited and you pay out minimum wage of around 17k per year which is tax free (only social insurance etc you pay around 150 per month)

calculation:

cheapest flat (internet , water, electricity included): 6000 per year,
social insurances etc from employement: 2000€ per year
accounting costs for limited : 2000-3000€ per year
 
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#14
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