Where to live with max 0-5% total tax

[Golden Fleece]

Uruguay recently amended its tax residency law, including a ten-year tax holiday that grants zero tax on foreign income:

A quick update from us on interesting developments in Uruguay. The business-friendly government there has recently amended its “tax holiday” system for tax residents, upping the South American haven’s already world-class credentials as a second residency location.

As announced in a recent update from global consultants EY, last September, the government approved Law No. 19,904, amending its resident and non-resident income tax regimes. The new law means that individuals who are tax resident in Uruguay can choose between two different tax regime options for their foreign-source income:

1. You can opt for a flat 7% tax rate on all future foreign capital yields, or
2. Take a ten-year “tax holiday”, granting zero tax on foreign income, before being subject to the “normal” tax rate, which is currently around 12%.

This new law applies from 2020 onwards. Foreigners who are resident in the country and who opted for what was previously a five-year tax holiday are also eligible to opt for the ten-year extension from 2020 onwards.


In order to be eligible for the tax holiday, you just need to be able to prove that you own a piece of Uruguayan property whose value is 3.5 million Indexed Units ( around US$375,000), from 22 January 2021. You also need to prove that you are physically present in Uruguay for at least 60 days per calendar year.

 

[Piano]

Details about this visa premium: https://www.edbmauritius.org/premium-visa

This website is the official of the EDB in Mauritius, therefore details provided are reliable.

If you need more information about taxes for instance, you can check the mra.mu website too

PS: for the Covid-19 free status of Mauritius, local cases has been discovered these 2-3 last days

Cant find how many days you have to stay in Mauritius to qualify for tax residence..also no numbers on tax rates for this premiun visa..

 

[Mercury]

Cant find how many days you have to stay in Mauritius to qualify for tax residence..also no numbers on tax rates for this premiun visa..

Under FAQs - TAXATION

"Money spent in Mauritius through the use of foreign credit or debit cards would not be liable to tax.

A person becomes a tax resident and therefore is liable to tax in Mauritius if he spends 183 days or more in the country."

 

[troubled soul]

Best to move to complete personal tax free country.
In small country rules and regulation change overnight .

 

[celizo]

"best" is not the good word and it's just your point of view.

Rule of a "big country" can change overnight too.
Mauritius is quite stable with their financial rules.

 

[Piano]

Under FAQs - TAXATION

"Money spent in Mauritius through the use of foreign credit or debit cards would not be liable to tax.

A person becomes a tax resident and therefore is liable to tax in Mauritius if he spends 183 days or more in the country."

Ok, so 0% tax on foreign source income ?

 

[orangekangaroo]

There is also the 270 day over three years rule to stay tax resident.

 

[Martin Everson]

It'r crazy now the amount of countries offering these covid remote work visa's now i.e Anguilla, Antigua , Bermuda, Barbados etc etc etc.

 

[Golden Fleece]

It'r crazy now the amount of countries offering these covid remote work visa's now i.e Anguilla, Antigua , Bermuda, Barbados etc etc etc.

They must replace their lost revenue from tourism and commerce. The COVID-19 scam is bankrupting people, businesses, and governments.

 

[Konstanz]

Best to move to complete personal tax free country.
In small country rules and regulation change overnight .

It can change. But it would mean a huge loss for Mauritius

 

[Golden Fleece]

It can change. But it would mean a huge loss for Mauritius

Yes, a good argument can be made that small countries are far more sensitive to the potential economic problems caused by changing their laws without a careful analysis of their secondary effects, because they have very limited streams of revenue.

 

[orangekangaroo]

It'r crazy now the amount of countries offering these covid remote work visa's now i.e Anguilla, Antigua , Bermuda, Barbados etc etc etc.

I came across this extensive list: 23 Countries With Digital Nomad Visas Around The World - Nomad Girl

 

[Martin Everson]

I came across this extensive list: 23 Countries With Digital Nomad Visas Around The World - Nomad Girl

Great find . You should make this a separate thread so this info don't get lost in this one.

 

[orangekangaroo]

Great find . You should make this a separate thread so this info don't get lost in this one.

I have done so.

 

[KJK]

It'r crazy now the amount of countries offering these covid remote work visa's now i.e Anguilla, Antigua , Bermuda, Barbados etc etc etc.

Funny thing is that now even "first world" countries or countries in the EU offer such plans and incentives - Croatia, Portugal. Greece plans to introduce it in 2021.

I honestly hope this is a sign of more competition among countries, being more friendly towards residents instead of taxing everyone 50%+.

Also it is somewhat understandeable - imagine you are Greece, your debt to GDP level is 200% - it was a country that had high taxes but even higher expenses (for pension system, subsidies, state employees etc.), that system worked for a while until Greece joined the eurozone thanks to faking their accounting, they took on debts in euros and realized they can't function like that.

So they defaulted and realized the bitter but simple truth that if you increase taxes even more, the Laffer curve takes effect and you get even more gray economy and brain drain of the most able people. What any reasonable country should do is attract people like OP - and that applies especially to countries which have debt in currencies they can't control.

 

[orangekangaroo]

Greece will give you a 50% reduction in all taxes if you move in 2021 for the next 7 years. You can receive Divi there at 2.5%.

 

[Martin Everson]

All sounding good for those EU countries that are first to put out their programs on favorable terms.

 

[Golden Fleece]

Funny thing is that now even "first world" countries or countries in the EU offer such plans and incentives - Croatia, Portugal. Greece plans to introduce it in 2021.

I honestly hope this is a sign of more competition among countries, being more friendly towards residents instead of taxing everyone 50%+.

Also it is somewhat understandeable - imagine you are Greece, your debt to GDP level is 200% - it was a country that had high taxes but even higher expenses (for pension system, subsidies, state employees etc.), that system worked for a while until Greece joined the eurozone thanks to faking their accounting, they took on debts in euros and realized they can't function like that.

So they defaulted and realized the bitter but simple truth that if you increase taxes even more, the Laffer curve takes effect and you get even more gray economy and brain drain of the most able people. What any reasonable country should do is attract people like OP - and that applies especially to countries which have debt in currencies they can't control.

Yes, it is a sign of utter desperation among bankrupt nations that are scratching and clawing for additional revenue streams. Having extracted maximum taxes from their citizens, they must now find money elsewhere. These bankrupt welfare states' experiment with socialism will end badly. Have an exit strategy in place for any future capital controls.

 

[glengoolie]

So,
living in Thailand, company in Gibraltar, generating passive income to bank accounts outside Thailand. No tax is paid.

I want and have an option to move anywhere I want.

I don't want to live in Asia anymore,
I don't to move to some Caribbean island to retire and die of boredom just not to pay tax.
I mainly can't but also do not desire living in Muslim country - no offense.

Interested in Europe area.

the main problem is that all places that are considered normal and got some active life, like Budapest for example, got relatively high taxation and a lot of beurocracy in general regarding income. Reporting, accounting, auditing, registrations and allot of questions so on.

So the question that probably don't have a good answer but still worth picking your brain about:

Is there a country that have a low income / dividend tax (even as a sole trader like in Ukraine but with higher limit than 250k) , have active European lifestyle, and a peace of mind that is worth moving to for long term?

Thanks for the input

i read the whole thread so here's my comments...

one of the reasons for moving away that you have mentioned was the handling of the boomer coof there. i don't want to burst your bubble, but that crap is happening all over the world. the timing is just different, that's all. so don't use that as a reason because there are no real options and when SHTF again, same totalitarian behavior will happen yet again - everywhere.

from the conditions you have set, you have only two choices - continental europe and continental america.

if we look at america, the entire north america must be crossed off the list since it is high tax with high costs of living.
south america on the other hand was historically very commie oriented and violence is prevalent to this day. so i would cross that off the list as well.

so we have europe, which you said you would prefer. europe really loves its socialism and not is falling in love with fascism yet again. but lets just ignore it for now.

income tax will mess you up in europe like nowhere else BUT what will finish the job is the healthcare and social security that will thanos snap half of your income right away. so that is not an option.

hence, we have to look at the dividends income. and i am really talking dividends, not capital gains here(ie. active investments).

in this case, we have some options. Dividend Withholding Tax Rates by Country for 2020 | TopForeignStocks.com

if you will be active, then income tax, healthcare and social security has to be take into account. Tax rates in Europe - Wikipedia

andorra, bosnia, bulgaria, georgia, montenegro or ukraine could work.

if you will be passive, then portugal's and cyprus' non-dom will work out the best for you. unfortunately both of them have high property taxes, if you would want to buy a home there.

cyprus will give you the option to be tax resident with only 60 day stay, instead of 183 day, with certain conditions applied.

you have mentioned that you would be domiciled in cyprus and live in barcelona for 6-8 months. but you are forgetting the tax residency which you would gain in spain and lost in cyprus with this setup.

so to tl;dr figure out your source of income first and based on that you limit your options. then you can read up on individual countries and their tax approach to your source of income and then you can decide.

personally, i am looking to get away from EUrope because it's free fall from here on. asia is the future, the west is done, pendulum is swinging to the east yet again. so personally i am favouring malaysia right now.

ps: there are some EU countries that have 0% CGT if you hold long enough. usually no less than a year(this is CG not dividends though).

 

[iamafrog]

I came across this extensive list: 23 Countries With Digital Nomad Visas Around The World - Nomad Girl

haha number 16 of that list (Rothenburg, Germany) has a picture of a place that inspired the game The Secret of Monkey Island

This