Relocation to Portugal? Or maybe Malta or Andorra?

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You should speak with a tax lawyer because there's a one‍ year old double tax treaty between GIB and Spain so maybe even if GIB is⁠ still in blacklist double taxation could be eliminated.

If you don't want any complications move⁤ to Portugal, form a US LLC and wait until the time is right to move⁣ to GIB.
 
Thanks Marzio.

Didn't know about the new double tax treaty with Gibraltar,⁣ but since I found this (non-cooperative/blacklisted jurisdictions), thought it was still an issue:

https://sede.agenciatributaria.gob....es/anexos/jurisdicciones-no-cooperativas.html

Any tax lawyer you could recommend yourself for this? Have got in touch with a couple⁢ and i see 2 variants:

1) They say you can do anything and everything, which︀ is basically false

2) They say you can do nothing at all

And well, according︁ to the forum itself, there is a wide variety of greys in between both 1︂ and 2!! Being hard to find the right person though.

Anyhow, the first move to︃ PT, I think it is the path I will be following. All in all, once︄ in PT, I can freely relocate afterwards to Gibraltar!

Thanks again
 
Thanks again. Do the VTZ in Georgia make any more sense than the US LLC?‍ (In the sense it may be safer since dividends are taxed at a 5% if⁠ I am right). I don't mind paying a bit extra if safer.

I think the⁤ court cases which recognize the LLCs are focused for "partners" not sole owners? Would I⁣ be safer if I get a partner with a 5 or 10%?

Basically my idea⁢ is something like:

20k - Portuguese Limited --> mostly flows to my personal income at︀ the 20% IFICI rate + Social Security (needed anyhow to comply with IFICI requirements)

60k - US LLC / VTZ Georgia --> comes at a 0% as dividends thanks to︁ IFICI treatment (5% if VTZ)

Does it make any sense?

Thanks in advanced!
 
If with VTZ you mean Georgia virtual zone then it doesn't make any sense for‌ your actual level of income because developers must be hired in Georgia for the virtual‍ zone status to be recognized and unless you want to move there, you can't afford⁠ a developer salary.

Even in Georgia.

I would go straight with US LLC distributing dividends⁤ and that's it.

You are staying there for 4 years, 100K a year is really⁣ pocket money for them to go against you.

After 4 years leave and start clean⁢ in GIB.
 
That’s a good work around and︈ the freelancing platforms act as a buffer. How risky is this method ? and what︉ are the chances of this being found out?

I’m assuming the US LLC has multiple︊ members and classed as a local company.
 
I think you should speak to some advisors from Portugal.
At least with NHR 1.0,‌ they would set up a company for you in Malta or Cyprus and then you‍ would be living off "dividends". This seemed to be working well.
I'm sure they have⁠ similar ready-made setups for NHR 2.0, even if you have to pay some local tax⁤ for on your local "salary".
 
I'd say very slim because there's no direct link between US LLC and the freelancer.
 
1. Your income is low(ish), but given your age, I applaud your initiative.
2. Offshore‌ company setups require 2 things; an affordable jurisdiction (taxes/fees) and a forgiving residence jurisdiction (where‍ you live doesn't tax your foreign company). If you have the second, then a UK⁠ Company is reasonably cheap to setup and operate and the tax levels are low (if⁤ you are/have a decent accountant)
3. The other issue is your personal taxes. To hit⁣ that on the head you need a tax free residence that becomes your "taxable residence"⁢ and then you can't be anywhere else for more than 182 days of the year.︀ Find a tax haven where you can get residency cheaply. Setup personally there. Keep your︁ Spain residence and maybe get a Portuguese residence. On paper "move" to the tax haven.︂ (Most only require you to be there 1 week or less a year). Then split︃ your year between Spain and Portugal. You now have a 0% personal tax profile. With︄ a zero tax profile, you now can run your business as a not-for-profit (pay your︅ "staff" everything, after other expenses), so it's jurisdiction is less important.
 
Spend 10 days per︂ year on vacation in the Seychelles or some other tax-free place, then live 177 days︃ per year in Spain and 177 days in Portugal and pay tax in the Seychelles?︄
And even keep the Spanish residency?
This is not how it works. You also can't︅ pay out 100% of the profits as a salary in most cases if the company︆ is taxable in a high-tax country.
You clearly have no ideas of how taxes work.︇
 
Rule 1: GTFO out of Spain
Rule 2: Read rule #1

With 80k you don't‌ have many options as all these setups will eat a big portion of that income.‍
Doable things are the cheap places like Bulgaria or Montenegro (or Georgia) but you would⁠ have to actually move there.

All other setups like Cyprus or Malta would be very⁤ expensive for you at that level. They are maybe good places to plan for the⁣ future, but right now it might be too expensive.
 
Hi, why not live in the Algarve, close to Spain, like in Tavira, only a‌ few minutes from the border?
I was told by the international tax advisors in Tavira,‍ that one can have a Portuguese company, and be taxed "as a personal company transparently"⁠ by only 20% (Under NHR) for the income you earn. No social on that. There⁤ are articles in Portuguese that confirm that way of taxation that is an option in⁣ Portugal, the company to be tax transparent.
The caveat is that you need to pay⁢ yourself also a minimum wage salary as you are the director.
It seems much simpler︀ than doing offshore etc for just 100k income, and 100% legal and proper.
 
Understood.

I just found some articles where I︀ found that VTZ no longer works if you don't live in Georgia, therefore it is︁ automatically discarded.

Thanks for pointing it out!

Seems like the PT company (for IFICI) +︂ LLC is the most reasonable option given the constraints and current income.
How can it be a buffer in terms of the PT authorities?

What I thought︆ instead of freelancer platforms is to use a Merchant of Record.

Therefore the LLC accountancy︇ just has 1 customer (which can even be the same to the PT company).

But I don't know if you are referring to this?
I already spoke with a few. First of all, for the︍ IFICI.

Most of them says it is not doable.

One of them said he is︎ certain is doable via IAPMEI certification. But I need his confirmation in April.

If you️ any consultant who may help in this, I would be more than happy to get‌ in touch with them.
Basically your suggestion is to get a "paper residency" such︈ as Georgia or Paraguay and then be in other countries for less than 183 days︉ not to trigger the residency there.

Problem is, Spain always tries to bring you back,︊ and they force you to provide proof of your other residency, not just the certificate,︋ but rent, utility bills, and even things like gym subscriptions, grocery shopping, etc.

How could︌ this work?
I am not looking‌ into maintaining Spanish residency (why would I?). I will still be an Spanish citizen however.‍
Thanks for your message!!

Regarding the leaving of Spain, yes, that is what I am looking︁ for.

I have tried my best to find a reasonable Spanish setup, so to pay,︂ maybe a 30? 35%. I have some tax advisors I personally know and they warm︃ me: you will get inspections from day 0.

We may be able to proof them︄ they are wrong. But likely you will end in court today or tomorrow.

I am︅ young, I am willing to increase my income via hard and extra work. But I︆ am not willing to work from January to June as a whole for them. Just︇ giving your life to them.

That is why I am also trying to get out.︈ Once out, I mean, If at least I can keep 80% of what I make,︉ it makes much more sense to give the extra push to keep on growing. But︊ not in Spain.

Regarding your suggestions, ofc, I know those places are affordable, but I︋ am willing to pay some extra and be on Malta, Portugal or Andorra. I prefer︌ to be near Spain, have Mediterranean culture and sun.

I already lived abroad in Central︍ Europe. It is not for me. My whole life (even if cold on some parts︎ of the year, with negative temp) has been surrounded by sun and it is hard️ for me to move elsewhere.

Therefore, isn't there any cheap MT/CY "pre-baked" setup for NHRs?‌ Even if setup is more expensive, but running/maintenance costs aren't way too much above 2/3k‍ per year?
A tax advisor recommended me that. Although I told him,︄ wouldn't make a company make more sense? So what you keep inside company, at least︅ the first 50k, are just taxed at a 12.5%. he told me I am right,︆ but usually people prefer to have "personal money".

However, what I am not sure about︇ the social security. The tax advisor I got in touch into, told me that in︈ that case full Social Security was needed to be paid.

Different story on the PT︉ Limited, where you can put you a small manager wage, and take the rest as︊ dividends (correct me if I am wrong).

The use of the LLC basically enables you︋ to get part of your income at a 0%. 20% is already good, but the︌ lower the better as usual!

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Thank you all for your answers, you are truly︍ helping me to get on track!
 
If you decide for Portugal, Madeira is a better option overall, with a 30% discount‌ on all levels of corporate tax and personal income tax. I believe current minimum CT‍ is at 10.29%. Social Security is at 34.75% and minimum wage for company director is⁠ at 522.50 Euro per month (a year in Portugal has 14 months). I believe Azores⁤ has a similar scheme.

If you live and work outside of Portugal, in the EU,⁣ social security can be paid where you live.

If you live outside of EU, no⁢ social security to be paid in Portugal and whatever is applied is up to the︀ country where you are in.
 
Even at the discount of︁ the islands, which is ofc great, mainland Portugal is more attractive to me because I︂ can get in and out by car by myself whenever I want.

Regarding Social Security,︃ it is a key part. I think putting a low salary as manager of the︄ Limited is the best way to avoid a huge hit on social security.

All in︅ all, I am gonna get paid through the PT or US company, so...
 
So how would you incorporate? With a virtual office? Don't the PT Tax‌ Authorities check for this?

Also, if you are a sole proprietor and your residency is‍ in mainland Portugal, wouldn't it trigger anything?
This was exactly the alternatives I⁣ was looking into before making the decision of Portugal and Malta.

Wasn't sure if a⁢ "simple" LLC would make the job for the non-dom. Reading this it seems like yes,︀ once you pay the 5k € annually to make them "happy".

However, how would you︁ buy property/cars in Malta without "remitting" it to Malta and paying taxes?

Maybe using a︂ 3rd overseas company which could be owned by the LLC? Or what's the way if︃ you want to buy things outside food, services, etc, which you may pay it on︄ your credit card of the LLC?

Thanks again!
 
It's very simple, you don't.

Why would you buy‍ anything in Malta if in 4 years you will move to GIB?

Even if in⁠ GIB you'll pay more in taxes, you will get more freedom in return.
 
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