Relocation to Portugal? Or maybe Malta or Andorra?

[blast629]

How does Bulgaria okay here? I guess it‌ is somewhat similar to Georgia, North Macedonia and other similar Warren countries right?

As far‍ as of know is not among my priorities, I prefer western Europe. Although maybe I⁠ should visit it soon to have a better pic hehe!

Thanks!

 

[jeffbean]

Cheap flights, you can pay 7.5%⁤ income tax and have European health card, also drive back and forth to Spain.

 

[Alonzo]

That is absolutely‌ unrealistic

 

[jeffbean]

What once a year? Stop along‌ the way and enjoy Eastern Europe Italiy Croatia Greece

 

[Alonzo]

OP said that he wants to drive back to Spain‍ whenever he wants which means in a couple of hours he is there already. Not⁠ 2 full days from borders to borders

 

[jeffbean]

Malta being discussed though

 

[Alonzo]

You said "Drive back and‌ forth".

 

[blast629]

That 7.5% is on corporate‍ or personal level?

Could be an option, although I never were to Bulgaria, Idk if⁠ I would like it.

PT and MT I already kind of saw I could make⁤ a life there.

On the other hand, if that 7.5% is on a corporate level,⁣ what are the requirements? Could make sense if setup and maintenance is cheap as a⁢ safer alternative for NHR than the US LLC without the extra accounting/maintenance costs of a︀ Maltese Limited.

Issue is I plan to go in and out of Spain every once in︃ a while.

Usually I have to conduct 1 monthly meeting in person, but I usually︄ know the date with very few time (maybe 3 days).
Exactly. That is why Andorra and Portugal were on tier 1, and Malta︇ as a tier 2.

Tier 2 because it is at least acceptable, flights from 30€︈ and 3 hours trip. Sort of okayish.

Tier 3 would be flights with scale such︉ as Cyprus.

You got a point. Anyways, it is︋ always great to know alternatives in case the other may not work for whatever the︌ reason.

Thank you all again!

 

[drumtraks]

Let's be clear, if you live in the EU, wherever you set up your company‌ does not allow you to avoid Social Security so, for example, NHR in Portugal (which‍ is also available in the islands), will still make you liable to SS. No one⁠ escapes the SS. Know your history. 😉

If you are just trying to minimize your expenses⁤ with taxes, I would not look into Portugal for my tax residence as SS is⁣ pretty high. Eastern Europe countries would be the best option, allowing you to get the⁢ European Health Card which gets you access to the health system in any EU country.︀

 

[jeffbean]

No this is sole trader where you can get 7.5%, it’s reduced to this amount‌ for generalising expenses so you can add no further expenses, normally 10%. Lots of people‍ combine Bulgaria with an Estonian company.

People don’t really consider Bulgaria, it’s seen as a⁠ poor country which isn’t exactly true. It’s one of lowest taxed countries in Europe with⁤ great access to EU. Also you can bill your clients with your Estonian company and⁣ put the minimum through the Bulgarian system and pay 10% dividends along with being eligible⁢ for European Health Card for peace of mind.

Not forgetting you need to rent a︀ flat in Malta and Andorra both of which are thousands per month especially in Andorra︁ it has gone crazy with prices. I imagine anything under 1,000 EUR that isn’t some︂ tiny sofa bed flat is impossible now.

Where as in Bulgaria you can get massive︃ apartments for 200/300€ a month.

 

[blast629]

Of course, I know social security is a big hit︁ in the EU. In fact, as of now, in Spain, for my level of income,︂ the hit is bigger than the income tax itself.

That is why i want to︃ pair a US LLC or MT Ltd: to avoid Social Security Costs.
Understood. Basically a 10% rate, but since you︎ get "misc expenses" deduction of 25%, you end up with an effective 7.5% rate, right?️

Not an option I would consider as main as of now, but certainly interesting and‌ to be taken into account.

Regarding the housing, that is the main reason I am‍ more into looking PT or MT than Andorra. The Andorra real state market is skyrocketing,⁠ and i mean, it won't go lower, because it is a very small place, and⁤ with more and more tax hells in the surroundings, it is going to get worse⁣ and worse...
On the other hand, I︁ spoke to the lawyer. It seems like IFICI is going to take longer, since the︂ AT can wait until may for the first approvals/rejection for the IFICI regime, so still︃ nothing really clear on that side.

However, regarding the setup, it seems like both Cyprus︄ and Malta setups are fairly common, and they are both, in his words, safer than︅ the US LLC, being the catch the CIT on the Cyprus (12.5% and raising to︆ 15%); and the high running costs of MT companies.

For this matter, I opened this︇ post, just to keep it "nice and tidy"; trying to find out if any of︈ you know about MT company costs: https://www.offshorecorptalk.com/th...orporation-formation-setup-maintenance.47462/

This way the risks can be better weighed.︉ I mean, if CIT in Malta is roughly 5%, and with all expenses I may︊ be looking at a 10% (both taxes + costs) it could be sort of okayish.︋

Thank you all again!

 

[jeffbean]

New new IFICI scheme is really difficult. Have you checked requirements you can’t just setup‌ a company and apply.

All sorts of rules about degrees and working for major companies.‍

 

[MarkusCostigan]

Don't consider the 5% Malta as a long term solution. The government will probably️ change the 5% full imputation to a homogenous system that is the same for everyone‌ (Maltese and non Maltese).
So again, I wouldn't consider it as a long term strategy.‍

But anyway, I don't think Malta can be considered a "long term" choice in any⁠ case. (unless you are Maltese or have a Maltese wife/children).

As for the costs of⁤ formation, management, accounting etc. especially in a place like Malta, it is better to go⁣ directly to the territory, look for small accountants' offices in some secondary village and find⁢ some good deals.

 

[drumtraks]

You cannot avoid SS legally just because of a US or Malta setup if you’re‌ the one doing the actual work invoiced.

 

[drumtraks]

If I have not misunderstood your goal, you really need to move outside of the‌ EU to a country that doesn’t tax worldwide income, then yes you can have a‍ company abroad and minimize your tax burden.

I come from the same place as you⁠ and I personally love Dubai, not for tax reasons but everything else. Understand it’s not⁤ everyone’s cup of tea but if you’re looking for a “cheap” country with a very⁣ high quality of life that’s the best I found for myself. I’ve looked through the⁢ entire European landscape before as well as some Asian countries. I’ve put myself into planes︀ and visited the places and spent time there without acting like a tourist. This is︁ my best advice to you. Life is more than taxes.

How you generate your income︂ should also be part of this equation as it will make a lot of difference︃ to which jurisdictions will be happier to receive you. Do you have real clients who︄ you provide services to? Do you trade financial markets? Crypto? Etc etc

 

[psvunited]

Life is not about taxes indeed. And you love Dubai? Have you been︅ in Dubai already during the summer?

 

[blast629]

Indeed It is. That is why I am looking into⁠ an expert in that matter.

If I get the confirmation it seems that it might⁤ be not that hard (probably a matter of ""networking"" / contacts)

Dubai, as of now is︌ not what I am looking for. Neither is Paraguay or similar American places.

My current︍ business needs (only partially) a close 1:1 and sometimes I need to meet in person︎ for a day every month or two, but with few time. That is why cheap️ fast flight or road connections are a must.

Maybe in some years my work will‌ be different so I could sort of live more far away.
Same question. Dubai, afaik is very expensive, very consumer centric⁤ and sort of hell in summer.

But always happy to read more.
Pretty much none solution Is long term these days. EU, OECD,︅ and all sort of entities putting pressure here and there, looks like everybody is trying︆ to make the world a tax hell as big countries...

It would be nice to︇ make a long term choice, but really, is there any chance to do that?

Thank you all again!

 

[EliasIT]

With such a low income, it's best to follow the advice here and otherwise only‌ consider places like Bulgaria or Montenegro, both extremely cheap to live in and with flexible‍ tax rules.

 

[drumtraks]

Yes I have although I do‍ not spend summers in Dubai.

 

[drumtraks]

I’m assuming services are then rendered in Spain, at least partially. What do you think⁤ hacienda will say about convoluted setups to provide the exact same services you are currently⁣ providing? I can very easily imagine a transparent entity such a US LLC being taken⁢ into Spanish jurisdiction because part of the revenue comes from services rendered there. Especially in︀ Spain, I wouldn’t try to outsmart them. Not because they’re that smart, it’s just they︁ can turn your life into hell through the process. Just my two cents.