Where to live with max 0-5% total tax

[Piano]

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).

Good analysis !

 

[JohnLocke]

Lol...no not at all. Petty crime does happen and so does violent crime but tends to affect locals mostly in poor areas more than expats. Expats tend to live in areas and communities where crime is almost non-existent. Issues tend to be focused around Nassau. If you live in a gated community or a less populated part of Bahamas you are fine. Bahamas is around 3000 island/islets so you have choice. Paradise Island would be my choice of place to live .

It must be so different from some of the well known European countries like London, Paris, Berlin that one will have to change his mindset totally to be able to live there.

Somehow like the people that move permanent from a European country to Thailand, what a life changer

 

[Martin Everson]

It must be so different from some of the well known European countries like London, Paris, Berlin that one will have to change his mindset totally to be able to live there.

Somehow like the people that move permanent from a European country to Thailand, what a life changer

Yes it does require a complete shift of mindset. Your so far from the rate race of those European cities in the Bahamas.

 

[Indealex1]

Otherwise, if you live on purely dividends or other capital gains, you might want to look into Switzerland, Luxembourg, Belgium, and Slovenia. There are different rules for different circumstances so depending on your situation, one of those might work out. Monaco (assuming you're not a French citizen) and Andorra could also work.

Sorry for referring to a very old post from this thread, but...why Slovenia in this list? I tried to look at it and - taxation of income, dividends, CG is just a bit better than in neighbouring Italy or Austria. And no even limited programs with tax incentives like e.g. NHR in Portugal. Unless there are some loopholes that I missed during my analysis... Which is a pity, the country per se is lovely

 

[Sols]

Sorry for referring to a very old post from this thread, but...why Slovenia in this list? I tried to look at it and - taxation of income, dividends, CG is just a bit better than in neighbouring Italy or Austria. And no even limited programs with tax incentives like e.g. NHR in Portugal. Unless there are some loopholes that I missed during my analysis... Which is a pity, the country per se is lovely

I don't remember why exactly I included it in that list. Although if I'm not mistaken, there is an exemption of 45-50% of the CGT in Slovenia under certain circumstances, subject to participation for a certain period of time.

But it's not a very attractive jurisdiction and probably shouldn't have been compared to the others. It's just marginally lower tax than a few other countries.

 

[Indealex1]

I don't remember why exactly I included it in that list. Although if I'm not mistaken, there is an exemption of 45-50% of the CGT in Slovenia under certain circumstances, subject to participation for a certain period of time.

But it's not a very attractive jurisdiction and probably shouldn't have been compared to the others. It's just marginally lower tax than a few other countries.

Thank you Sols, very clear. Indeed one can apply for CGT exemption there but you need to hold an asset for many years to get the visible reduction. Somethnig like for 5% after each 5 years.

 

[Piano]

A place with life and 0 tax for at least 5 years look at the DR.

Dubai has a 24 hour community and I would suggest you go there for a week or 2 and speak to other expats who live there.

how easy/difficult is it to get tax residency in DR ?

Yes it does require a complete shift of mindset. Your so far from the rate race of those European cities in the Bahamas.

Hello Martin,

from what I have read , it is pretty easy to get a 1 year residency in the Bahamas for about $1000 , do you know more about specifics ?

 

[Martin Everson]

Hello Martin,

from what I have read , it is pretty easy to get a 1 year residency in the Bahamas for about $1000 , do you know more about specifics ?

See below for program:

https://www.bahamasbeats.com
Government Portal:

https://portal.immigration.gov.bs

 

[Piano]

See below for program:

https://www.bahamasbeats.com
Government Portal:

https://portal.immigration.gov.bs

Ok,thanks !

i dont see any mentioning about being a tax resident for this program ...i only want to do such a program if I become tax resident

 

[Martin Everson]

i dont see any mentioning about being a tax resident for this program ...i only want to do such a program if I become tax resident

Tax residency certificates are only granted to permanent residents I believe. This came about in 2019 I believe when OECD accused Bahamas of helping people avoid CRS with its residency by investment programs.

 

[Piano]

Tax residency certificates are only granted to permanent residents I believe. This came about in 2019 I believe when OECD accused Bahamas of helping people avoid CRS with its residency by investment programs.

Ok, but if I live and work 1 year in the Bahamas , even without tax residence , why should i pay taxes to my country in Europe ?

 

[Martin Everson]

Ok, but if I live and work 1 year in the Bahamas , even without tax residence , why should i pay taxes to my country in Europe ?

That's your choice.

You need to look at tax rules for country your leaving. Often it is not as straight forward as living abroad for 1 year and hence your no longer tax resident (i.e UK). There are many factors in play such as connection to country you are leaving etc. You have to do a little homework before you can make a clean break in some cases.

 

[Piano]

That's your choice.

You need to look at tax rules for country your leaving. Often it is not as straight forward as living abroad for 1 year and hence your no longer tax resident (i.e UK). There are many factors in play such as connection to country you are leaving etc. You have to do a little homework before you can make a clean break in some cases.

Ok, thanks, time to consult a tax advisor, I guess

 

[i888]

In Romania, we have 10% tax + some small sum of money for health insurance etc, 5% dividend tax .

Personally I want to make the crypto trading on a corp w/o tax (prob Seychelles) and send the profits as dividends in cryptocurrency to my personal crypto acct on an exchange where I sell them then send the $ to a bank.

The problem in Ro is that many bank don't deal with money from exchanges or there are limits per month, so a workaround would be an account somewhere else with a bank who is crypto exchange friendly.


This is my idea.

cities to live: Bucharest (crowded, alot of things to do clubs, etc, airport, there are decent condos or places to build a house) , Brasov (couple of km and you are in the mountains, old center, many old saxon villages around, people are calmer than in the South), Sibiu ( small city with old parts, calm, some 20 km to the mountain).

If you are a party man probably B would be best for you with long weekends to Brasov or Constanta (summer) from time to time.

 

[Martin Everson]

In Romania, we have 10% tax + some small sum of money for health insurance etc, 5% dividend tax .

Personally I want to make the crypto trading on a corp w/o tax (prob Seychelles) and send the profits as dividends in cryptocurrency to my personal crypto acct on an exchange where I sell them then send the $ to a bank.

Please tell me your not trying to avoid 10% tax rate?

Please restore my faith in humanity.

 

[i888]

Avoiding that 10% for 5%, the saving 5% I will donate to a charity.

 

[Martin Everson]

Avoiding that 10% for 5%, the saving 5% I will donate to a charity.

God is watching your words

 

[troubled soul]

Please tell me your not trying to avoid 10% tax rate?

Please restore my faith in humanity.

In today's world-saving, For saving 10% tax doing offshore Circus is not worth it, Regardless of You have 100k, Million, or Billion.
If it more than 30% It is Worth Considering. (That's my Logic)
Reading the online forum and thinking of offshore company and bank account looks good on Forum. In reality, It is a very complex process and so many headaches.
It is better to pay 10% Tax. It is not worth Saving 10%. Island banks and corporations are not safe as your home country. You are risking 100% to save 10%.
Thinks about it.
You are making money in Crypto. On any day Crypto can rise or fall 10%.
And You are thinking about saving 10%????

My friend It is a blessing to have a 10% tax rate. Ask someone Who is paying more than 50% tax rate (More than half of income goes to tax).

Why don't people value things they can easily get?

 

[Sols]

Avoiding that 10% for 5%, the saving 5% I will donate to a charity.

Are charitable donations tax deductible where you live? If they are, make a charitable donation large enough so that when you pay 10% of what's left after the donation, it's the equivalent of what 5% would have been.

 

[Golden Fleece]

My friend It is a blessing to have a 10% tax rate. Ask someone Who is paying more than 50% tax rate (More than half of income goes to tax).

Why don't people value things they can easily get?

It is all a matter of perspective and the human condition. People from low tax nations still complain about their taxes. People living on the tax-free island nations are probably complaining about the poor condition of the roads and the high price of imported goods (because of tariffs). For some reason, it reminds me of an old Soviet joke:

In Moscow, a husband has been standing in line at a butcher shop for seven hours when the butcher announces, “Comrades, I am sorry to inform you that we are out of meat.”

The husband blows his top. “I am a worker! I am a communist! I am a veteran of the Great Patriotic Revolution!” he yells. “And now you tell me you’re out of meat! This country stinks!”

A large man in a trench coat approaches. “Comrade, Comrade, calm yourself,” he says. “You know what would have happened to you in the old days of Stalin if you had talked this way.” The large man makes a thumb and forefinger motion at his temple and says, “So please, Comrade, just go home.”

When the husband goes home empty-handed his wife asks, “Are they out of meat?”

“Worse than that,” replies the husband. “They’re out of bullets.”