Tax residency in Georgia while living in 2 European countries?

[Mr Gus]

Would you be able to claim treaty benefits with the Georgia HNWI program regarding US‌ withholding taxes on royalties?

Let's say you become a HNWI tax resident in Georgia but‍ don't spend a single day of the year in Georgia but instead you live in⁠ a zero tax country, all work is performed from the zero tax country and your⁤ income is subject to withholding taxes in the US. Would you be able to claim⁣ US treaty benefits as a HWNI in Georgia in this case? Since the work is⁢ not performed in Georgia I assume it's not taxed in Georgia and views as foreign︀ sourced income.

In the DTT between the USSR/US, which the US deems applicable to Georgia︁ as well(except Georgia doesn't recognize it), I haven't found any exceptions in the DTT that︂ could make you not be able to claim treaty benefits.

Anyone that has more knowledge︃ about this?

 

[Marzio]

Georgia HNWI program was changed last year.

If you are willing to satisfy the requirements‌ then i guess you could claim treaty benefits since there's no LOB clause in the‍ old USSR-USA treaty so a Georgian tax ID would get the job done.

I would⁠ be cautious in depositing $500K in a Georgian bank tho.

 

[Don]

These days lots of businesses are doing so to buy assets in Russia‌ at discount.

 

[jafo]

Really? Like what type...if you don't mind disclosing.

 

[clemens]

Yeah, that is not the safest place at the moment.

 

[Don]

Try buying‌ anything (properties, companies) from a russian resident, most EU banks would go apeshit. Smart people‍ use foreign banks or even currencies.

 

[jafo]

I wasn't‍ clear...
What type of assets are businesses buying in Russia⁤ at a discount?

PS. If you don't mind disclosing...

 

[Don]

Companies (not a secret,‍ simply google to find more info)
https://www.business-humanrights.or...to-exit-country-according-to-reuters-sources/https://www.themoscowtimes.com/2023...to-buy-discounted-western-companies-ft-a81510https://www.businessinsider.com/rus...s-exit-exodus-asset-bargain-prices-2023-7?amp

 

[jafo]

Nice! Thank you!

PS. I was dreaming of buying a PH in‌ Moscow or St. Petersburg from a scared Westerner at a +50% discount smi(&%

 

[JohnLocke]

If one doesn't deal with this on a daily basis, this is‌ completely new knowledge. Thank you for the links.

 

[Revoltec]

Anyone on the ground in Georgia trying to go this route? Feel free to connect‌ with me

 

[Benzouser]

Im in the same situation "move from Thai" also want to have atleast 180d in‌ EU zone . . . but the thing is u have to register in the‍ EU country u stay more then 90d in, and then IM gussing the tax agency⁠ will trigger some flag and wonders why u aint applying for tax ID "TIN" in⁤ that country.

 

[Revoltec]

I must confess it seems that I was wrong about the Georgian HNWI certificate. It‌ seems like it can be used for tax treaty benefits. The OECD model treaty only‍ excludes residents that are becoming LIMITED tax residents due to income or capital situated in⁠ that country. This is not the case with Georgia, you really do get unlimited tax⁤ liability it seems. Very strange that OECD chose to include this into new tax treaties.⁣ However, I would never go that route anyways

 

[daniels27]

Yes but⁢ be aware that having a certificate from A does mean that B must accept it.︀ They can still investigate further and then find that you spent not enough time there︁ etc.

https://www.ird.gov.hk/eng/tax/dta_cor.htm
This is from Hong Kong, but the rules are the same︇ for any country.

 

[Revoltec]

Yeah, then it is a question about⁠ tie breaker rules for most cases

 

[daniels27]

Yes but not only. The other country can question your presence, the‍ substance of the company etc. That's why Hong Kong started being much more liberal issuing⁠ those certificates in 2023. It is ultimately up to the other country whether your presence⁤ is actually what you claim. And they can request further proof. As a mentioned many⁣ times, those certificates do not guarantee anything.