Where to live with max 0-5% total tax

[Verbatim]

In Cyprus, you're looking at zero tax if your income is coming from abroad and is in the form of dividends. There's a similar scheme in Malta, where you pay no or very little tax on a remittance basis. The main caveat is the company paying the dividends must truly be an overseas company, which would mean you might want to – for your own peace of mind – take steps to ensure the company is tax resident in Gibraltar. Pretty easy to satisfy by appointing directors resident in Gibraltar.

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.

Cyprus non-dom requires that you have a company in Cyprus, receive an income from the company and rent a flat. So I think what you said about Gibraltar company and Cyprus residency would not work.

 

[Sols]

Cyprus non-dom requires that you have a company in Cyprus, receive an income from the company and rent a flat. So I think what you said about Gibraltar company and Cyprus residency would not work.

You become a non-dom by applying for that status, for which you just need to declare that you are a foreigner with no familial ties to Cyprus. Once you have that, any dividends you receive are not subject to capital gains tax in Cyprus. Whether those capital gains come from a Cypriot or a foreign company doesn't make a difference.

 

[freegeek]

For those front Italy, check Timișoara România, that city has alot of italian businesses and people.

Small business with revenue under 1 million eur and at least 1 employee has 1% tax on total yearly revenue, then you pay 5% tax on dividends. = 6% tax

also that employee can be yourself paying the minimum salary minimizing social security contributions. From what i've been researching the Romanian micro company is probably the best and simplest hassle free company structure if you are willing to relocate.

 

[orangekangaroo]

also that employee can be yourself paying the minimum salary minimizing social security contributions. From what i've been researching the Romanian micro company is probably the best and simplest hassle free company structure if you are willing to relocate.

It is 3% if you don't have an employee and 1% if you have an employee. Divi tax can be captured with a holding company in Malta, Cyprus & Hungary. I am looking into the Hungary one as it is just across the border from Romania.

 

[Marzio]

I am looking into the Hungary one as it is just across the border from Romania.

Smart choice! Hungary is one of the best places for a holding. Just remember that no withholding tax is lieved on dividends paid to a legal entity. Dividends paid to an individual are subject to a 15% withholding tax. i'm not sure if dividends that derive form subsidiaries are exempt from withholding tax.

 

[freegeek]

It is 3% if you don't have an employee and 1% if you have an employee. Divi tax can be captured with a holding company in Malta, Cyprus & Hungary. I am looking into the Hungary one as it is just across the border from Romania.

yes but that 1 employee can also be the owner of the company. you just have to pay yourself the minimum wage salary which is a couple of hundred euro / month. This way you qualify for the 1% without having to hire an external employee.

 

[ilpablo]

It is 3% if you don't have an employee and 1% if you have an employee. Divi tax can be captured with a holding company in Malta, Cyprus & Hungary. I am looking into the Hungary one as it is just across the border from Romania.

Does this work with Cyprus company + Cyprus residency as well?

 

[uplana]

So you setup a Maltha / Hungary Holding company owning the 100% of shares in the Cyprus company and have almost a tax transparent setup? Sounds not bad.

 

[Almouk]

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

Hi @i888 and other guys!!

I have some doubts, hope someone can clarify me them:

1) About trading crypto as natural person in Romania as only source of income.

PIT: 10%
Health insurance and social security payments: ???
Any other taxes involved if trading as natural person??

I have read that is 530€ per year capped for health insurance but I guess this is if you set up a company and pay you a salary.

2) About the Micro Company set up in Romania that is 1% per year up to 1M, I suppose is not valid for trading crypto... or the 1M is about net profits?

Thanks in advance.

 

[i888]

Sorry for my late reply

1. there's no issue


Employed or not or paying already that social tax, doesn't matter you pay it for those gains.

1M is revenue, tax on revenue 1% or 3 , then you pay tax on dividents at 5% and those 530

Issue some banks don't deal with money from crypto or some have limits