What's the best tax advise for 2022 ?

lory

Mentor Group Lifetime
Jul 31, 2020
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#1
What would you say is the best tax advise when someone is looking for reducing taxes, willing to relocate and have no obligations to his current location?

The goal is to get as much tax freedom as possible, means, the lowest possible tax rate. Still with a place where it is good to live, not too much criminals, mafia etc.
 
Reactions: JohnLocke and uplana
#2
Hi lory,

first of all move out of western countries in case you are based there if you are talking about freedom in tax and speech matters.

Setup your Business Center with Residence Visa and local Bank Accounts in Dubai and make sure you spend some weeks during the year there to keep the Residence Visa active and to have some local engagement.

Rent something the whole year in a Country without any CFC rules like Thailand or Costa Rica - Georgia might work as well but keep in mind they want to get in the EU.

Prices in this country are so low that you can see the yearly rental together with the Dubai Setup as a fixed tax for yourself.

What I wouldn't do is just moving out where you are actually based - keeping all your existing financial institutions and just moving out to Colombia or Mexico living in an AirBnb - somethling like this could put you always in trouble later on should you ever touch western ground in your life again - especially if we are talking about you having a significant wealth in your backpack you gained over the past years while living the nomad lifestyle.
 
Reactions: FlipnShip, RealDude, lory and 1 other person
#4
I already consider Dubai, but not yet sure about if this is the pace I would like to live. Have been there a few times, wonderful Dubai, but living there I don't know.

CyprusLawyer101 said:
Find and create a list with the places you would like to live in the most! Then and only then start looking into taxes. You will find your place somewhere in that list.
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great advise, will do may homework like this.
 
Reactions: CyprusLawyer101
#6
RealDude said:
How about a Canada LLC and renting/living in Thailand? Should be cheaper than Dubai?
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For sure but where to bank with a decent retail bank for a non-resident Canada LLP?

You would endup same with a US LLC without any substance banking either on Wise or Mercury - should be fine for low volume active trading business but not really something you can work on improving over time and building some significant wealth on.
 
#8
Fred said:
You would endup same with a US LLC without any substance banking either on Wise or Mercury - should be fine for low volume active trading business but not really something you can work on improving over time and building some significant wealth on.
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that's a good point, to build significant wealth on an EMI won't work. You will need many EMI's if we speak about 7 figures or even more.

Canada or US LLC awesome suggestion, but again how will you bank ?
 
#9
lory said:
that's a good point, to build significant wealth on an EMI won't work. You will need many EMI's if we speak about 7 figures or even more.

Canada or US LLC awesome suggestion, but again how will you bank ?
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There's no problem with banking at US LLC. You have many options to choose from. Mercury for example is not strictly an EMI, it is a internet bank. Their bank accounts are FDIC-insured. I know people who put 7 figures in bank accounts like Mercury.

If you really have that kind of money, paying more money to get a brick-and-mortar bank remotely is not an issue as well.
 
#10
Can you elaborate on this - what will put him in trouble? As long as he has tax residency in the other country (e.g. Colombia or Mexico) it shouldn't matter where he is banking ....
 
#11
Bagpacker said:
Can you elaborate on this - what will put him in trouble? As long as he has tax residency in the other country (e.g. Colombia or Mexico) it shouldn't matter where he is banking ....
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That's not true.

If he keeps banking in his home country let's Germany - with his old German Address as close to no German Bank keeps you with an Mexican Address - Tax Authorities use this to claim substance in Germany should they try to Tax you.

It's a number game and as soon as your wealth is worth it - they will try it - speaking for Germany and other aggressive western tax hells.

Not only this but the tax authorities in your home country can easily freeze assets in the banks within there boarders should there be ever a dispute.

That was my point.
 
Reactions: uplana, RealDude and backpacker
#12
Thank you for the explanation. I did not know that German banks require a German address to bank with them - of course, in that case I understand the logic behind your suggestion.
 
#14
In this case, where is his actual address and tax residency if he wants to cut ties with "western taxman" and give them proof? He comes two times per year to Dubai, does he have to rent something there or not?
 
Reactions: RealDude
#15
zzzzzz said:
In this case, where is his actual address and tax residency if he wants to cut ties with "western taxman" and give them proof?
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In this example I mentioned:

Fred said:
Rent something the whole year in a Country without any CFC rules like Thailand or Costa Rica - Georgia might work as well but keep in mind they want to get in the EU.
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His Tax Residence would be either in Thailand or Costa Rica - both countries with no CFC rules - so he is living on 0% tax and keeps all the Business and Money in the UAE.

zzzzzz said:
In this case, where is his actual address and tax residency if he wants to cut ties with "western taxman" and give them proof?
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Question here again would be - does the western taxman even pro-actively ask for something? I would say 90% of EU countries are fine with you just de-registering yourself - Spain and Sweden ask for more - but that's it.

If they ever ask something they are behind you for criminal investigations or tax fraud that already happened in the past while you were Resident in your Home Country otherwise they would only ask if you move back to your Home Country after a very short timeframe of you living abroad and making a significant amount of money that doesn't fit tou your old Tax Profile.

Imagine you are moving out of Germany for 3 years and coming back with 5m$ in liquid assets while you were earning 80k$ while you were Resident back in the days - you would be interesting for the tax men as it makes sense to question further how you became that wealthy in that short time period - it would be even worth for the Tax Men to claim that you were still living in your Home Country - in this example Germany.

However if you are living abroad for 5-10 years - no one cares - in this time you can build an empire - especially no one cares if you move back with "just" some 100k$.

zzzzzz said:
He comes two times per year to Dubai, does he have to rent something there or not?
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Personal Account no worries - everyone gets something open sooner then later just using the home address - the only competition we see for personal account is the opening time frame - we do this in 1 day including debit card handover.

Business Bank Account is another story of course.
 
#16
Fred said:
Not only this but the tax authorities in your home country can easily freeze assets in the banks within there boarders should there be ever a dispute.
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That's something to consider, also why you don't want to have ALL your money or the majority of your wealth in the same country.
 
Reactions: Fred
#17
uplana said:
That's something to consider, also why you don't want to have ALL your money or the majority of your wealth in the same country.
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Even though a bit of a daunting process, in today's world we have the "Convention on Mutual Administrative Assistance in Tax Matters". The sheer number of member countries exceeds the CRS by far (the Convention is usually the first step to join CRS).
 
Reactions: CyprusLawyer101
#19
FixieHartmann said:
@Fred do I need to have a fixed address in the UAE, e.g. rent an apartment for the entire year to keep the authorities and banks happy or can I visit twice a year and stay in an Airbnb?
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Not necessary if you use a Service Provider who provides you the substance for the Bank Account opening - Business Bank Account especially.

There is no law or something similar close to force you to do more then coming every 6 months for 1 day.

No Residence Register or something similar even exists.

However the banking world is meanwhile a whole other call me arrogant but without a Service Provider on our level you are are completely lost when it comes to the banking.

The point about our service is providing you the same user experience like 4 years ago when substance wasn't any issue and banks were still accepting Flexi Desks. (This words you should consider before following my the aboth advice)

Weekly guys coming around the corner telling me that after our initial call they did everything and now need "just" bank account - well this guy's missed the whole point from what I'm talking about all the time.
 
Reactions: FlipnShip, GPT and RealDude
#20
@Fred
Let's imagine I would move my center of life to e.g. Thailand and once a year in the beginning of January I would take out "old" money to live for one year from a private bank account of a bank in Dubai.

What annual costs would I have to expect in Dubai for
- a company for billing worldwide customers (SaaS for B2C and B2B)
- a private bank account
- a business account
- accounting

I would take a short vacation to Dubai twice a year.
 
Reactions: FixieHartmann
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