no it is not but advisable to not spend more time in germany than in the other jurisdictions should have rather worded it this way.
Georgian HNWI Residence is starting to look pretty great.
Nomadic lifestyle would not help you to build safe and effective tax-free residency...
That’s not how this works. Countries must have a legal basis to tax you. If you don’t fulfill the criteria for tax liability, then a country can’t tax you, period. So nomadic lifestyle simply means that you avoid triggering tax liabilities. I can’t stress that enough. Some people think that they can keep their apartment in their home country and go on a few trips per year and then they don’t have to pay taxes. Obviously that’s not how it works if your home country considers having an apartment a tie for tax residency purposes.
It is still a good idea to have a proper tax residency, but that’s mostly because the concept of a nomad is not really understood by banks and governments.
I´ve talked with a tax lawyer in a Scandinavian country, and I was told the same. If you don´t have any other tax residency and you "claim" to be a nomad who lives 3 months in each country, then they most likely will tax you(your home country/passport country).
I generally agree though, it is better to have a proper tax residency, simply because the concept of a nomad doesn’t really exist in the law. With nomadism growing, I’m also sure we will soon see changes to the law that will require you to pay tax to your home country, unless you can prove tax residency somewhere else.
From my experience you need somewhere you call "home".
The argument is that if you call place X home how come you never go there.
For example I have a very good client who is from Gambia but also holds a Belgium Passport but " lives" in the UAE. He spends most of the year in the UK ( he owns a property), pops into Belgium ( no assets or ties except family), goes to Gambia 4/5 times a year (to see his parents and family has property there) and refreshes his tax residency every 170 days in the UAE. He goes once in December ( F1) once in March (Gold Cup Horse Racing) and takes the kids in the August for a week in the summer Holidays as a minimum.
All his stationary, business cards, website, contact numbers are all UAE details. His UAE mobile is always on him as well.
You need to differentiate between what the law in theory says and how it is interpreted and how they will simply not care and knowingly go against it. These are very different things.
If you claim a nomadic lifestyle and you happen to have a tax agent assigned to you that is a bit more on the a*****e side what will happen is simply that he will not accept your arguments, counter with some bulls**t suspicion based not really on facts. The result will be you will get a tax invoice + back taxes + penalty + future tax payment for the contested time. Depending on time and size also criminal charges.
You will have about a month to pay this. You can contest it but it again they need to approve this and they will not. So you can stretch that out for another few weeks or month maybe but then it will be collections going after you. Depending on where you claim to live / be at that time / your postal address this will result in a variety of things. Will eventually go to european arrest warrant, assets freeze, passport collection should you enter Germany if you do not pay that amount (which of course you can contest later in front of the finance court).
You absolutely DO NOT want to end up at this point but the chance of this happending if you dont have your ducks in order (yes a tax certificate and proper country of residence goes a -long- way in this) is very high.
Even if you contest it all and maybe win in front of some higher court later this will take forever and if you did not manage to make them place a hold on the payment you have already lost and its likely to f**k you over for good depending on timeframes, penalties etc we are talking about.
Remember tax law in these countries (Germany) is not based on innocent until proven guilty. It is the other way round and they dont give a s**t -at all-. They will without blinking destroy your life knowing exactly that even though they are wrong - they have the burocratic process on their side. They will with full knowledge use that fact against you.
Yes obviously, but if you only visit your home country for 2 weeks per year and have no other ties, would they really still demand taxes and force me to proof I'm tax resident somewhere? Maybe they would actually.Nomadish lifestiles and paying no tax is just a new fashion. But in reality, I don't think any serious EU tax inspector would accept that.
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