UK resident with clients in the US. What the best setup for a dual citizen?

[CaptK]

Freelance in the UAE︉ in my opinion would suit you best. Plus it allows you to enjoy a nomadic︊ lifestyle.
No tax so your not contributing to anything but of course set up is︋ about 5K so by default your tax.

An apartment will cost you 12K per annum︌ including bills. A one bed in the Marina is a lovely place to live.

 

[saintjohnny]

I'm also going to receive some stock⁣ in one of my client's company. It's a US c-corp. The UAE doesn't excite me⁢ the least bit to be completely honest. I wouldn't go there at all. Any other︀ options?

 

[CaptK]

Yes closer to home are your only other real options in the Carribbean or
Guernsey, Jersey, Gibraltar or Isle of Man.
I still believe that this can work using the‌ DR as the base

Dominican Republic has a territorial tax system, meaning that if you‍ live there, you would only be subject to pay taxes if you had local income.⁠ You can earn what you like outside the country and you don't even have to⁤ declare it, yet alone pay any taxes. This applies to both individuals and companies.

 

[saintjohnny]

Thanks for your reply.

 

[saintjohnny]

Why would I︁ need to open a DR entity if I could just go ahead and open a︂ UK LLP and do my banking via TFW? I only have US clients now that︃ I have dropped all UK ties.

Or that was only an option because I intended︄ to become a UK resident in the past?

Either way, I like both options and︅ could use both if I end up moving to the UK.

Thank you so much.︆

 

[CaptK]

Do both

It will always help to have both in the future.

 

[saintjohnny]

1. Open a new UK LLP to use as my client-facing company.
2. Open a DR SRL and later figure out how to use it. I suppose this‌ will be useful if I move to the UK?

Is that correct? Thank you so‍ much for your help.

 

[CaptK]

Perfect set up.
You could even help us guys here if we ever⁤ needed assistance in the DR. Because you would have been through the process you can⁣ guide us on the best banks and company establishment.

We are all looking for online⁢ account opening especially with the international banks in DR.

Obviously we would all expect mates︀ rates lol.

 

[saintjohnny]

For sure, I'd love to help. I have very good⁣ connections over here, especially for banking.

Thank you so much.

 

[John Andrews]

You could use the DR company as the other partner for the UK LLP, no?‌ That way you get some asset protection as well

 

[saintjohnny]

By the way, the territorial tax ends when you've been⁣ a resident for 3 years, but apparently, the status never ends for companies, foreign or⁢ not.

Thank you.

 

[CaptK]

Bank account would be a nightmare.
Open the LLP in your name for example John⁠ Smith LLP. That way paying into your personal account won't look weird.

 

[John Andrews]

Well are you‌ sure DR treats UK LLPs as companies? If not then you might have to pay‍ tax on this income after 3 years as you say

It would probably be fine⁠ as well but I would personally much rather go with a company as the partner⁤

 

[CaptK]

I was telling you this for a⁣ month lol.
The company is the main thing but by then you would have moved⁢ to the UK by then unless DR tax works out better.

Alternatively it allows you︀ to live a nomadic lifestyle with no issues.

Using your mum would be fine but︁ as @John Andrews said a company is always better.

 

[JustAnotherNomad]

Did you check how they classify foreign source income?

 

[CaptK]

Tax is only levied on capital gains, stocks, bond, shares.
Income derived from business outside‌ the DR is not taxable for the first 3 years for residents and not at‍ all for non residents.
182 days in the DR makes you a tax resident but⁠ for DR nationals the 3 year rule starts from the day you land.

 

[saintjohnny]

This is from a tax code⁤ translation: Corporations and any other for-profit organizations pay a flat 25% income tax on net⁣ taxable income (Art. 297). Unlike in the United States and other countries, in the Dominican⁢ Republic, the tax treatment for corporations, partnerships, and limited liability companies is exactly the same.︀

Yes, you were. I probably looked at your message︅ and googled "territorial tax countries" and DR wasn't on the list... and now I know︆ why.

 

[CaptK]

Exactly because it's not easily found people don't know. Plus if you︆ live there for 2 years is spend 182 days per year there you are automatically︇ eligible for citizenship.

It's a little gem.

 

[JustAnotherNomad]

Yes, my question‌ was if you checked the definition of that.
If you spend >183 years there and‍ especially if you’re a citizen, then they might consider your foreign-registered business as local income.⁠ Or they might not. Worth talking to an accountant about at least.

 

[CaptK]

I checked it's basically the same as Panama and HK⁤ set up. Any funds derived from a DR client or a DR bank account is⁣ taxable. You can run your business from DR but you can not have DR clients.⁢