Because if you can avoid to pay taxes (personal income tax) I find it cheap. If you move from one EU country to another for free just to safe 1% it make not much sense for me.
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What country would you choose to relocate to avoid taxes?
- Thread starter Spinat
- Start date
It doesn’t help you much if Andorra considers you tax resident if you don’t spend any time there. You would most likely still be considered tax resident somewhere else. The UAE considers you tax resident if you enter once every 6 months. So what? That doesn’t mean you can avoid paying taxes if your wife and kids live in France or if you own an apartment in Portugal etc. etc. etc.
I thought we had discussed that sufficiently here...
I thought we had discussed that sufficiently here...
- Andorra has 10% CIT
- You're officially considered an active Andorra resident if you spend more than 183 days in Andorra and are liable to 10% PIT. Active self employment residencies are limited (900 per year, I think). You'll have to rent or buy a property of at least 20m2, incorporate your company with 3k€, 15k€ deposit with the the Andorran Financial Authority, you'll need to prove that you earn enough to support you and your dependents (~40k€ + ~13k€ each family member)
- As a passive resident you're only required to spend 90 days in Andorra, different types of requirements depending on the category (i.e. 50k government bond, incorpration in Andorra, >85% of business outside of Andorra, business plan for the next 3 years).
- You're officially considered an active Andorra resident if you spend more than 183 days in Andorra and are liable to 10% PIT. Active self employment residencies are limited (900 per year, I think). You'll have to rent or buy a property of at least 20m2, incorporate your company with 3k€, 15k€ deposit with the the Andorran Financial Authority, you'll need to prove that you earn enough to support you and your dependents (~40k€ + ~13k€ each family member)
- As a passive resident you're only required to spend 90 days in Andorra, different types of requirements depending on the category (i.e. 50k government bond, incorpration in Andorra, >85% of business outside of Andorra, business plan for the next 3 years).
What if you have a kid but you are not married with the girl you had the kid with and you change residency?
It would depend on the country where the kid is located, probably also on whether you can show you and the mother are no longer a couple etc.
But if you are a happy couple, the kid would probably be enough for most high-tax countries to create tax residency. At least the authorities would probably try to get you that way and then you would have to fight them in court.
But if you are a happy couple, the kid would probably be enough for most high-tax countries to create tax residency. At least the authorities would probably try to get you that way and then you would have to fight them in court.
I know a guy having citizenship of Panama and Slovakia at the same time
also another one having citizenship of Austria, Panama and Paraguay
do they lie?
@Marie Manila @void
Panama does not allow dual citizenship by law. Still works in practice. They'll ask for your promise that your previous citizenship will be renounced when accepting theirs, but there's no follow up scrutiny. And thus dual citizenship is achieved by simply not honoring the request to renounce existing citizenship(s).
I do not hold a Panamanian passport but have a little word-by-mouth knowledge of the matter. Double check with a lawyer if you plan to take an action based on this post.
Panama does not allow dual citizenship by law. Still works in practice. They'll ask for your promise that your previous citizenship will be renounced when accepting theirs, but there's no follow up scrutiny. And thus dual citizenship is achieved by simply not honoring the request to renounce existing citizenship(s).
I do not hold a Panamanian passport but have a little word-by-mouth knowledge of the matter. Double check with a lawyer if you plan to take an action based on this post.
No, unfortunately is not possible to get the tax residency without being partner of a company in Andorra. The only people that could do that are the called "professional liberals" that make an activity by their own means and self employment but without having to create a company. But for doing that you have to approve a professional tertiary degree before the Andorran institutions and do some more paperwork, in general it is reserved for engineers, lawyers, etc.
There are 2 ways in my opinion:
1) find a country with a general low taxation: Irland (low tax) to stay in Europe, UAE (no tax) as CaptK suggested. I will also check Malta and Cyprus to stay close to Europe. Lituania or Bulgaria have also low cost living expenses and you will be taxed 29-30%.
2) find a country that is not generally low taxation country but your income could be considered exempt and you will pay zero (specific prevision about this in Portugal, or south east asia: philippines or malasya (or here with a business in labuan). In this case you could have also a zero taxation (exemple philippines with rssv).
Disclaimer: just personal opinion. Is not endorsement. Is not advice. Consult your advisors.
1) find a country with a general low taxation: Irland (low tax) to stay in Europe, UAE (no tax) as CaptK suggested. I will also check Malta and Cyprus to stay close to Europe. Lituania or Bulgaria have also low cost living expenses and you will be taxed 29-30%.
2) find a country that is not generally low taxation country but your income could be considered exempt and you will pay zero (specific prevision about this in Portugal, or south east asia: philippines or malasya (or here with a business in labuan). In this case you could have also a zero taxation (exemple philippines with rssv).
Disclaimer: just personal opinion. Is not endorsement. Is not advice. Consult your advisors.
If you acquire Panama or any other citizenship you don't loose your UK, Canadian or US citizenship ever. You have to renounce these citizenships. Some countries allow dual citizenships of only specific countries they have agreements with. India, Nepal, Netherlands, Japan, Singapore etc do not allow dual citizenships. You have to just find out the laws of your country by google search. Some people do carry illegal dual passports.
If you acquire Panama or any other citizenship you don't loose your UK, Canadian or US citizenship ever. You have to renounce these citizenships. Some countries allow dual citizenships of only specific countries they have agreements with. India, Nepal, Netherlands, Japan, Singapore etc do not allow dual citizenships. You have to just find out the laws of your country by google search. Some people do carry illegal dual passports.
I am thinking about it:
1 - Staying in the"gray area"by paying some taxes somewhere and living somewhere else.
So, incorporate a company in central europe/eastern europe and living in another closed/neighbor country can be possible, not so risky because of Schengen right?
I mean, if you are taxing tax residency let's say in Hungary or Montenegro : you satisfy all conditions first year and after going to live almost/full-year in another country : Poland for example, it's possible right?
Of course, traveling should not be done by plane I guess to limit risks?
However, I am wondering if country A (Hungary ..) can ask to see your bank statements to be sure you are spending some time in their country? If you pay taxes, they don't care?
If not, I guess we just need to use EMI and never put anything at our name in country B (even I am wondering if take a long term lease flat at your name is really risky, what are the alternatives?).
I mean, it's almost impossible they will detect 'you' or claim something right?
2 - Non-dom island
I guess this setup can't work with an island or low tax country with a great non dom system like Cyprus where you can just stay 2 months (rent a place...)?
Living in Cyprus 2 months
Living in Poland 10 months
This setup is really risky because of traveling by plane, right?
3 - Alternative
Andorra seams a great opportunity with the 90 days rule for passive residents.
Basically, you could spend other 9 months in another place (still with EMI ..), right?
Thanks for your feedbacks.
You will need to provide evidence you are living in the country so you will have to provide bills, expenses in the country, rent and so on.
Who told you about avoid to flight? do not matters at all (if you don't deduct the cost from your income and you are the one offering those informations to the country), flight or train companies don't exchange those kinds of informations.
Who told you about avoid to flight? do not matters at all (if you don't deduct the cost from your income and you are the one offering those informations to the country), flight or train companies don't exchange those kinds of informations.
On personal or corporate level?
Why and how they will ask?
I mean, you enter the country and you don’t register for residency permit (I am from EU).
I know it’s « bad » but you can live normally with a neobank on daily life without problems no?
Great!
But for countries like Cyprus, I guess they are checking?
I mean, the easy non doms says you need to rent a place full year etc and stay minimum 60 days in Cyprus. So imagine I am staying 10 days, how they can prove it?
Rent is keeping full year in every way so how they really check that? They can’t ask bank statements to see expenses?
They don't have to check it. You are the one that will have to provide evidence a) in order to obtain the tax residences privileges (BTW the 60 days is a special prevision and you need multiple conditions) and from the other country point of you b) if they audit you from the country (the one where you are staying most of the time) you need evidence in order to prove not to be a tax resident of the latter.
Some countries also will consider you tax resident if you were previous a resident of that country and you fail to provide enough evidence.
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