Digital Nomad with dual citizenship looking for new Tax Residency away from UK
- Thread starter digitanium
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I looked into Gibraltar, I was told about high living costs (property super expensive as it's a tiny place), and also was told it's only low(ish) tax if you have over £2 million net worth.
I recommend Portugal, much cheaper, and 0% tax on dividends from foreign companies (terms & conditions apply). I moved to Portugal from the UK 2 years ago.
I recommend Portugal, much cheaper, and 0% tax on dividends from foreign companies (terms & conditions apply). I moved to Portugal from the UK 2 years ago.
Yes it's easy, no tax on foreign income, no tax on foreign capital gains, no tax on dividends, you only pay taxes if you work for someone in Gib.
Apartments are cheap or expensive depending on the are, or you can always rent a room just to have an address in Gib.
You cross the border in 5 minutes and you go to Spain, no one will know if you are in Gib or in Spain, you get on a plane from Gib to London and from London to anywhere in the world (less︀ expensive than if you fly from Málaga airport which is always a possibility but you︁ would have to fly to Madrid or to any other Capital in order to fly︂ somewhere else, so don't bother flying from Málaga airport, take off from Gib to London︃ and that's it! Málaga airport is about 1h45' from Gib by car.)
I wish people︄ wouldn't give the wrong information, there are several ways to get residency in Gib, I︅ don't have time to get into all the details but you can find then online.︆
Apartments are cheap or expensive depending on the are, or you can always rent a room just to have an address in Gib.
You cross the border in 5 minutes and you go to Spain, no one will know if you are in Gib or in Spain, you get on a plane from Gib to London and from London to anywhere in the world (less︀ expensive than if you fly from Málaga airport which is always a possibility but you︁ would have to fly to Madrid or to any other Capital in order to fly︂ somewhere else, so don't bother flying from Málaga airport, take off from Gib to London︃ and that's it! Málaga airport is about 1h45' from Gib by car.)
I wish people︄ wouldn't give the wrong information, there are several ways to get residency in Gib, I︅ don't have time to get into all the details but you can find then online.︆
Portugal is not as awesome as it seems.
If you have savings and you invest in the stock market, you will be subject to withholding from the country where you invest in, so just because you live in︀ Portugal, the U.S. for example will still withhold taxes on dividends, and if I'm not︁ mistaken capital gains taxes from the sale of Stocks is subject to something like 28%︂ which is ridiculous! There are many places with 0% tax on capital gains. I don't︃ remember what's the tax on capital gains from the sale of foreign real estate.
Yes, Portugal is well known for having a long list of blacklisted jurisdiction, if you have︆ an account in one of those jurisdictions there's nothing you can do. The list is︇ online, it's a pretty long list, better check that list before moving there.
If you have savings and you invest in the stock market, you will be subject to withholding from the country where you invest in, so just because you live in︀ Portugal, the U.S. for example will still withhold taxes on dividends, and if I'm not︁ mistaken capital gains taxes from the sale of Stocks is subject to something like 28%︂ which is ridiculous! There are many places with 0% tax on capital gains. I don't︃ remember what's the tax on capital gains from the sale of foreign real estate.
Yes, Portugal is well known for having a long list of blacklisted jurisdiction, if you have︆ an account in one of those jurisdictions there's nothing you can do. The list is︇ online, it's a pretty long list, better check that list before moving there.
what about if you run your︆ company from Gib. You may decide to only take dividends but the running and control/︇ day to day management of the company is done from there? Wont that mean the︈ business will be subject to Gib taxes? I also presume i would be subject to︉ personal tax as well?
I would contact a professional tax advisor in Gib, they can answer all your questions, or contact any of the many companies that help people get their residency in Gib.
But in answer to your question, as far as I know.., No you would︀ not pay taxes as long as your company is not registered in Gib, yes you︁ are working from home but you are self employed basically, and whatever money you make︂ it's not made by conduction business in Gib, it's money made outside of Gib, just︃ as if you're running a YouTube channel.
But there are different ways to get your︄ residency in Gib, they all have specific condition, they are all listed online but I︅ would contact a company in Gib, one of the many companies that can help you︆ with your residency and you can explain to them your situation and what you are︇ looking for, there are companies that will not charge you anything just to answer your︈ questions, I've seen a few but it's better that you find your own.
Gib is︉ well known for changing the requirements quite frequently so it's better to talk to someone︊ that can answer your specific questions, you have nothing to lose, but most of the︋ information is online, just takes time to read through all the details.
Hope that helps︌ a little bit...
But in answer to your question, as far as I know.., No you would︀ not pay taxes as long as your company is not registered in Gib, yes you︁ are working from home but you are self employed basically, and whatever money you make︂ it's not made by conduction business in Gib, it's money made outside of Gib, just︃ as if you're running a YouTube channel.
But there are different ways to get your︄ residency in Gib, they all have specific condition, they are all listed online but I︅ would contact a company in Gib, one of the many companies that can help you︆ with your residency and you can explain to them your situation and what you are︇ looking for, there are companies that will not charge you anything just to answer your︈ questions, I've seen a few but it's better that you find your own.
Gib is︉ well known for changing the requirements quite frequently so it's better to talk to someone︊ that can answer your specific questions, you have nothing to lose, but most of the︋ information is online, just takes time to read through all the details.
Hope that helps︌ a little bit...
Even better!
Yes, you can just go there anytime, but I would still talk to someone about your particular situation just to make sure how to structure everything so you get to keep as much as possible, if not everything (I was wondering if you were from the UK)
You will love how cheap petrol is (tax free) I know people that cross the border from Spain just to get some petrol, it's basically a miniature UK just less expensive and full of︀ monkeys that will not hesitate to snatch your bags and run away with them, they︁ are looking for food, you will not catch them, so hold on tight to your︂ belongings, they are very sneaky!
Yes, you can just go there anytime, but I would still talk to someone about your particular situation just to make sure how to structure everything so you get to keep as much as possible, if not everything (I was wondering if you were from the UK)
You will love how cheap petrol is (tax free) I know people that cross the border from Spain just to get some petrol, it's basically a miniature UK just less expensive and full of︀ monkeys that will not hesitate to snatch your bags and run away with them, they︁ are looking for food, you will not catch them, so hold on tight to your︂ belongings, they are very sneaky!
Why would anyone set ups in well known tax dodge blacklisted islands, when you can have an US LLC and then move to Portugal and pay 0% in the US and 0% in Portugal under their NHR. That's what I've been advised, I wish I knew this 2-3 years ago!
My Gibraltar advisor told me last year that I would︀ pay tax for my UK company's dividends while living in Gibraltar, while in Portugal I︁ pay 0%. That's why I rejected Gibraltar and moved to Portugal.
Also this year a︂ friend who does live in Gibraltar said they now have passport checks for UK citizens︃ at the Spanish border and that Gibraltar now is too expensive for him (example £2000︄ a month for smallest apartment).
My Gibraltar advisor told me last year that I would︀ pay tax for my UK company's dividends while living in Gibraltar, while in Portugal I︁ pay 0%. That's why I rejected Gibraltar and moved to Portugal.
Also this year a︂ friend who does live in Gibraltar said they now have passport checks for UK citizens︃ at the Spanish border and that Gibraltar now is too expensive for him (example £2000︄ a month for smallest apartment).
As I said earlier, I︂ would check with someone that helps people get their residency in Gibraltar as they are︃ constantly changing things.
For example, a lot of people were living in Gib but the︄ truth is they were spending all their time in Spain until Brexit came along, as︅ a result Gibraltar and Spain made an agreement (exchange of information) so anyone that had︆ a Spanish Passport would have to pay taxes in Spain even if you were supposedly︇ living in Gib, so basically no one from Spain would benefit from living in tax︈ free Gib, as there is no way of checking if they are in fact spending︉ most the time in Gib or in Spain.
Once again, find a company in Gibraltar,︊ not outside, that helps people with their Gib residency as they know everything there's to︋ know on how to live in Gib and not pay taxes, it's in their own︌ interests to help those interested.
Having an LLC while living in Portugal is tax evasion,︍ but great for you, best of luck
For example, a lot of people were living in Gib but the︄ truth is they were spending all their time in Spain until Brexit came along, as︅ a result Gibraltar and Spain made an agreement (exchange of information) so anyone that had︆ a Spanish Passport would have to pay taxes in Spain even if you were supposedly︇ living in Gib, so basically no one from Spain would benefit from living in tax︈ free Gib, as there is no way of checking if they are in fact spending︉ most the time in Gib or in Spain.
Once again, find a company in Gibraltar,︊ not outside, that helps people with their Gib residency as they know everything there's to︋ know on how to live in Gib and not pay taxes, it's in their own︌ interests to help those interested.
Having an LLC while living in Portugal is tax evasion,︍ but great for you, best of luck
LLC example at the bottom:
https://www.fresh-portugal.com/blog/why-should-you-get-tax-advice-before-coming-to-portugal
https://www.fresh-portugal.com/blog/why-should-you-get-tax-advice-before-coming-to-portugal
Ok so according to that very detailed article managing a US LLC from PT would be tax exempt.
First thing first, to be considered foreign income there must be at least a permanent establishment outside PT where income is taxed otherwise is local source income, meaning income accrued while in Portugal and hence taxed.
According to double tax treaty between US and PT by managing a US LLC from PT you are creating a permenent establishment in PT
By creating a PE in︂ Portugal your income is taxed in Portugal
Change your advisor because in case of a scrutiny it's your a*s that's︃ on the line.
First thing first, to be considered foreign income there must be at least a permanent establishment outside PT where income is taxed otherwise is local source income, meaning income accrued while in Portugal and hence taxed.
According to double tax treaty between US and PT by managing a US LLC from PT you are creating a permenent establishment in PT
By creating a PE in︂ Portugal your income is taxed in Portugal
Change your advisor because in case of a scrutiny it's your a*s that's︃ on the line.
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