Where to live to run an e-commerce business (7 figures)? [Full Details]

[Gfjvchnvhb]

- Canadian Citizen but not a Canadian tax resident (I only have a passport from Canada and I've done all the paperwork, etc)
- Currently declaring taxes in 2 countries (not Canada. One of them is because I am a citizen and own some real estate there but just third world places)
- All clients are from the US (very white hat industry, think make up or bed sheets)
- I need shopify payments or at least STRIPE.

- Currently I'm running the shop through an US LLC but I don't report the LLC where I currently live (third world and I have no long term plans to stay here).

I'd like to be more legit for this new business - I don't want to pretend to be a tax resident of places where I am not, etc.

I'd like to live in a nice big city (think: KL, Moscow, Istanbul, Paris, etc) - I am open to learning a language and/or spending money to get a residency but I'd like to minimize my tax. 10-15%, I am happy to pay but I just don't want to pay 40-50%.

What structure would you guys recommend for this scenario? Assuming the world is your playground and you can go anywhere.

Spoilers: Not a huge fan of UAE or other gulf countries but would be open to them if it's like spending 1 month out of the year there.

 

[Marzio]

think: KL

I like KL a lot, the only thing with Malaysia is that it's not clear how foreign sourced income brought into country will be treated from 2026.

Apparently it will be taxed but things could always change.

If you keep the majority of your incom offshore it's a nearly tax free setup.

If you want to be 100% legit appoint a manager in a tax free jurisdiction for your LLC so that Malaysia couldn't claim you are managing your business from there.

 

[manukahoney]

You need to break up the issue in two halves:
1) Tax on corporate level. Can you keep the company "resident" in the US? Are you involved in management? Many countries might consider an offshore copr a resident if you are actively managing it.
2) Tax of personal level. You need a low/zero tax residency and avoid getting under tax residence rules in high-level countries. For instance you can get a tax residence on Cyprus when spending more than 60 days per year or UAE if you do more than 90. That is totally doable, just spend a good season there (Nov-March for UAE, April-June or Sep-Oct for Cyprus) and nomad the rest in Asia or Europe. The latter has 0 tax on dividends or any personal income, the former has non-dom regime with close to 0 tax on foreign earned income.

As Canadian you also can consider Ireland with non-dom, but Dublin is a bit of backwater compared to London, Dubai or Paris. Cyprus is even worse in this matter.

 

[Xshore]

I like KL a lot, the only thing with Malaysia is that it's not clear how foreign sourced income brought into country will be treated from 2026.

Apparently it will be taxed but things could always change.

If you keep the majority of your incom offshore it's a nearly tax free setup.

If you want to be 100% legit appoint a manager in a tax free jurisdiction for your LLC so that Malaysia couldn't claim you are managing your business from there.

And there is good time to plan. Remit enough to cover spending for a few years before 2026, then no need to remit funds after 2026. Can place it in USD FD in Malaysian banks.

Also, the new MM2H (silver plan) says in the official benefits that there is no tax on remitted offshore income.

 

[Marzio]

Also, the new MM2H (silver plan) says in the official benefits that there is no tax on remitted offshore income.

That's very good news.

Imho it's a much better option than Thailand everybody is talking about.

 

[andrew28fl]

- Canadian Citizen but not a Canadian tax resident (I only have a passport from Canada and I've done all the paperwork, etc)
- Currently declaring taxes in 2 countries (not Canada. One of them is because I am a citizen and own some real estate there but just third world places)
- All clients are from the US (very white hat industry, think make up or bed sheets)
- I need shopify payments or at least STRIPE.

- Currently I'm running the shop through an US LLC but I don't report the LLC where I currently live (third world and I have no long term plans to stay here).

I'd like to be more legit for this new business - I don't want to pretend to be a tax resident of places where I am not, etc.

I'd like to live in a nice big city (think: KL, Moscow, Istanbul, Paris, etc) - I am open to learning a language and/or spending money to get a residency but I'd like to minimize my tax. 10-15%, I am happy to pay but I just don't want to pay 40-50%.

What structure would you guys recommend for this scenario? Assuming the world is your playground and you can go anywhere.

Spoilers: Not a huge fan of UAE or other gulf countries but would be open to them if it's like spending 1 month out of the year there.

I think Panama City would be a good comparison to KL. I am in the same boat as you for the most part, and a big factor for me is turning out to be the timezone difference. In KL, you would live a nocturnal lifestyle if you want to be available during Western business hours (9 pm Malaysia is 9 am EST). Similar real estate pricing, availability of things, first-world amenities, air connectivity etc. in both cities.

 

[Marzio]

I think Panama City

I also tought about Panama City but discarded the option becaue he might need to learn spanish, instead in KL english is spoken by default.

Timezone could be indeed an important factor.

 

[JackAlabama]

That's very good news.

Imho it's a much better option than Thailand everybody is talking about.

not really, its the same same. All these countries there operate in a similar braindead manner.
But luckily it has not much impact on ones life.

 

[alessio]

You need to break up the issue in two halves:
1) Tax on corporate level. Can you keep the company "resident" in the US? Are you involved in management? Many countries might consider an offshore copr a resident if you are actively managing it.
2) Tax of personal level. You need a low/zero tax residency and avoid getting under tax residence rules in high-level countries. For instance you can get a tax residence on Cyprus when spending more than 60 days per year or UAE if you do more than 90. That is totally doable, just spend a good season there (Nov-March for UAE, April-June or Sep-Oct for Cyprus) and nomad the rest in Asia or Europe. The latter has 0 tax on dividends or any personal income, the former has non-dom regime with close to 0 tax on foreign earned income.

As Canadian you also can consider Ireland with non-dom, but Dublin is a bit of backwater compared to London, Dubai or Paris. Cyprus is even worse in this matter.

The 90 days TRC (tax residence certificate) you can get from UAE is for domestic purpose only. You should target 183 days presence to get the certificate for treaty purpose. (source : Issuance of Tax Certificates (Tax residency and commercial activi)

I really believe from what you write this is not your 'expertise' and it could be great not taking risk advising people and let them think anything who can make them under serious troubles. If you're not a professional in that field, the biggest help should be to recommend one probably..

 

[Marzio]

not really, its the same same.

MY: foreign sourced income brought in MY under MM2H is tax free
TH: foreign sourced income brought in TH is taxed

But luckily it has not much impact on ones life.

Yes, nobody is rushing to wire all his income either in MY or TH but knowing that you dont' have to deal with the revenue agency in MY gives me piece of mind.

 

[JackAlabama]

MY: foreign sourced income brought in MY under MM2H is tax free
TH: foreign sourced income brought in TH is taxed



Yes, nobody is rushing to wire all his income either in MY or TH but knowing that you dont' have to deal with the revenue agency in MY gives me piece of mind.

both places can and will change official policy by tomorrow. You cant plan nor have any assurance.
its only until 2026.

Malaysia - Individual - Income determination

Detailed description of income determination for individual income tax purposes in Malaysia

taxsummaries.pwc.com

but anyhow doesnt matter in reality.

 

[manukahoney]

The 90 days TRC (tax residence certificate) you can get from UAE is for domestic purpose only. You should target 183 days presence to get the certificate for treaty purpose. (source : Issuance of Tax Certificates (Tax residency and commercial activi)

I really believe from what you write this is not your 'expertise' and it could be great not taking risk advising people and let them think anything who can make them under serious troubles. If you're not a professional in that field, the biggest help should be to recommend one probably..

90 days for a person with a valid residence works fine for DTA. Confirmed by PWC, don't know where you get the opposite information.

 

[daniels27]

90 days for a person with a valid residence works fine for DTA. Confirmed by PWC, don't know where you get the opposite information.

Not all DTA are the same and the crucial part is most often where family resides. No matter what, you need to be careful if your family is elsewhere or your aren't in the country for more than half of the year.

 

[manukahoney]

Not all DTA are the same and the crucial part is most often where family resides. No matter what, you need to be careful if your family is elsewhere or your aren't in the country for more than half of the year.

That is correct, "centre of life interests" should be the same as your chosen tax residency.

 

[alain]

Malaysia, Thailand and Dubai are some of the popular destinations reading the forum the last years.

Estonia with some special setup from @Don could be an alternative.