Tax residency in Georgia while living in 2 European countries?

[Mr Gus]

Would you be able to claim treaty benefits with the Georgia HNWI program regarding US withholding taxes on royalties?

Let's say you become a HNWI tax resident in Georgia but don't spend a single day of the year in Georgia but instead you live in a zero tax country, all work is performed from the zero tax country and your income is subject to withholding taxes in the US. Would you be able to claim US treaty benefits as a HWNI in Georgia in this case? Since the work is not performed in Georgia I assume it's not taxed in Georgia and views as foreign sourced income.

In the DTT between the USSR/US, which the US deems applicable to Georgia as well(except Georgia doesn't recognize it), I haven't found any exceptions in the DTT that could make you not be able to claim treaty benefits.

Anyone that has more knowledge about this?

 

[Marzio]

Georgia HNWI program was changed last year.

If you are willing to satisfy the requirements then i guess you could claim treaty benefits since there's no LOB clause in the old USSR-USA treaty so a Georgian tax ID would get the job done.

I would be cautious in depositing $500K in a Georgian bank tho.

 

[Don]

I would be cautious in depositing $500K in a Georgian bank tho.

These days lots of businesses are doing so to buy assets in Russia at discount.

 

[jafo]

These days lots of businesses are doing so to buy assets in Russia at discount.

Really? Like what type...if you don't mind disclosing.

 

[clemens]

I would be cautious in depositing $500K in a Georgian bank tho.

Yeah, that is not the safest place at the moment.

 

[Don]

Really? Like what type...if you don't mind disclosing.

Try buying anything (properties, companies) from a russian resident, most EU banks would go apeshit. Smart people use foreign banks or even currencies.

 

[jafo]

Try buying anything (properties, companies) from a russian resident, most EU banks would go apeshit. Smart people use foreign banks or even currencies.

I wasn't clear...

These days lots of businesses are doing so to buy assets in Russia at discount.

What type of assets are businesses buying in Russia at a discount?

PS. If you don't mind disclosing...

 

[Don]

I wasn't clear...

What type of assets are businesses buying in Russia at a discount?

PS. If you don't mind disclosing...

Companies (not a secret, simply google to find more info)
https://www.business-humanrights.or...to-exit-country-according-to-reuters-sources/https://www.themoscowtimes.com/2023...to-buy-discounted-western-companies-ft-a81510https://www.businessinsider.com/rus...s-exit-exodus-asset-bargain-prices-2023-7?amp

 

[jafo]

Companies (not a secret, simply google to find more info)
https://www.business-humanrights.or...to-exit-country-according-to-reuters-sources/https://www.themoscowtimes.com/2023...to-buy-discounted-western-companies-ft-a81510https://www.businessinsider.com/rus...s-exit-exodus-asset-bargain-prices-2023-7?amp

Nice! Thank you!

PS. I was dreaming of buying a PH in Moscow or St. Petersburg from a scared Westerner at a +50% discount

 

[JohnLocke]

Companies (not a secret, simply google to find more info)
https://www.business-humanrights.or...to-exit-country-according-to-reuters-sources/https://www.themoscowtimes.com/2023...to-buy-discounted-western-companies-ft-a81510https://www.businessinsider.com/rus...s-exit-exodus-asset-bargain-prices-2023-7?amp

If one doesn't deal with this on a daily basis, this is completely new knowledge. Thank you for the links.

 

[Revoltec]

Anyone on the ground in Georgia trying to go this route? Feel free to connect with me

 

[Benzouser]

Im in the same situation "move from Thai" also want to have atleast 180d in EU zone . . . but the thing is u have to register in the EU country u stay more then 90d in, and then IM gussing the tax agency will trigger some flag and wonders why u aint applying for tax ID "TIN" in that country.

Out if curiosity
If I'm in Spain 5.5 months
And Portugal 5.5 months
Which is allowed with EU passport (unless I miss something) and not registering with any beurocratic / governmental institute + not triggering any tax residency law

why / how exactly they will even think about
contacting me at all?

I'm curious to know how that works

 

[Revoltec]

I must confess it seems that I was wrong about the Georgian HNWI certificate. It seems like it can be used for tax treaty benefits. The OECD model treaty only excludes residents that are becoming LIMITED tax residents due to income or capital situated in that country. This is not the case with Georgia, you really do get unlimited tax liability it seems. Very strange that OECD chose to include this into new tax treaties. However, I would never go that route anyways

 

[daniels27]

I must confess it seems that I was wrong about the Georgian HNWI certificate. It seems like it can be used for tax treaty benefits. The OECD model treaty only excludes residents that are becoming LIMITED tax residents due to income or capital situated in that country. This is not the case with Georgia, you really do get unlimited tax liability it seems. Very strange that OECD chose to include this into new tax treaties. However, I would never go that route anyways

Yes but be aware that having a certificate from A does mean that B must accept it. They can still investigate further and then find that you spent not enough time there etc.

https://www.ird.gov.hk/eng/tax/dta_cor.htm

Applicants should be aware that issue of a Certificate of Resident Status will not guarantee that they will be successful in their claim to benefits under the relevant DTA. The decision as to whether relief from foreign taxes can be granted is, ultimately, one to be made by the treaty partner. It will be up to the treaty partner to determine whether all the relevant conditions are fulfilled and whether benefits can be granted.

This is from Hong Kong, but the rules are the same for any country.

 

[Revoltec]

Yes but be aware that having a certificate from A does mean that B must accept it. They can still investigate further and then find that you spent not enough time there etc.

Yeah, then it is a question about tie breaker rules for most cases

 

[daniels27]

Yeah, then it is a question about tie breaker rules for most cases

Yes but not only. The other country can question your presence, the substance of the company etc. That's why Hong Kong started being much more liberal issuing those certificates in 2023. It is ultimately up to the other country whether your presence is actually what you claim. And they can request further proof. As a mentioned many times, those certificates do not guarantee anything.