Relocating to a Country Without a DTA: Does It Make Sense?

[JSA]

Hi everyone,

Does it make sense to move to a country (i.e. Andorra) that has no DTA with my home (which is not on any of those black/gray lists, btw) country? How would this impact my tax obligations?

 

[daniels27]

Yes, this makes sense.

The DTA is only useful if your either spend time on both countries or have any sort of investment in the other country. If you have no company, shares etc. from your current country, you won't need a DTA.

You can live very well in countries without DTA. Just notice that you cannot claim any treaty benefits. Could you maybe tell us more about your investments and business?

 

[JSA]

Yes, this makes sense.

The DTA is only useful if your either spend time on both countries or have any sort of investment in the other country.

What kind of investment are we talking here?

 

[daniels27]

Pretty much anything. But it depends on the country. Some countries charge withholding taxes on

• Interest from bank account
• Dividends
• Royalties

If you have a DTA, you may benefit from a reduced rate

If you have a company doing business in the US, a UK company can benefit from a DTA and this cannot be taxes for certain activities defined in the DTA while a company in Hong Kong does not get any such benefits.

 

[JSA]

So it's not as bad as I thought. Cool.

Thanks Daniels!

 

[blizz]

Relocate to the country of your choice and with the best tax regulations for your needs and forget about the DTA !

 

[daniels27]

Relocate to the country of your choice and with the best tax regulations for your needs and forget about the DTA !

Depends on his income. If he had mostly royalties from US, he may want a place with favourable treaties. If he has a big estate in the US and is 90, same.

In the general case, forget about it!

 

[JackAlabama]

Hi everyone,

Does it make sense to move to a country (i.e. Andorra) that has no DTA with my home (which is not on any of those black/gray lists, btw) country? How would this impact my tax obligations?

it depends on how you draw your income.

 

[JSA]

it depends on how you draw your income.

It's trading income. Sorry, I should have mentioned it in my original post.

 

[daniels27]

Trading? What is that?

The problem with that term is that stock traders use it like if it could only mean that. And then, there is Trader's Joe that is selling products and uses the term alike.

And now don't come with "I am in securities." Because that is equally nonsense. How am I supposed to tell whether your are a 120kg mate from the gym kicking idiot's asses in front of brothels or whether you are a styled wannabe sitting in fancy glass houses wasting your life in getting it a computer bubbling about financial derivatives you don't even understand what it is?

 

[daniels27]

To get a useful answer, we need to know

• Where and what is your income from
• Where and how do you hold assets
• What is your remaining life expectancy and do you care about your inheritors

Remember, the DTA benefits are about

• Royalties
• Interest
• Dividends
• Permanent establishments
• Self employment
• Inheritance taxes
• Extraction of raw material and people's money (Telco business, insurance, etc.)

I once told people not to use lawyers. Why? Because it is like here. There always is a general answer. But then there are special cases where that does not hold. The problem here is that on OCT, almost all cases are special. That's why all these guys from "a European country" having "some sort of income" wishing to own a Unicron are hard to get any help which does not leave room for uncertain troubles later.