Where to relocate to not pay capital gains tax and live cheap

[Cloudbanck]

The devil‌ is in the details regarding "don't tax foreign income". So if you have a foreign‍ business, and run it via your laptop from country X that supposedly doesnt tax foreign⁠ income. Does it a) legally count as local income since you effectively manage the company⁤ from country X, even if you have no office or employees in country X. And⁣ b) even if it legally/technically counts as local income, is it enforced? Also c) can⁢ you make it count as foreign income by having employees/offices in some other country, or︀ even just by having a residence permit or tax certificate somewhere else.

I'd like to︁ see a list of all territorial tax countries, how things are in practice with regards︂ to a) and b). Wonder if such list exist somewhere.

 

[Marzio]

I'm looking for something similar since ages but it doesn't exist.

You can obtain a list of territorial taxation countries and their rules.

https://en.wikipedia.org/wiki/International_taxation
What you don't⁠ get, without direct experience, is how those rules are enforced and IF are enforced.

So for example Panama is a territorial taxation country and managing an offshore company from Panama⁤ theorically should count as local income but, from what i know, it is not enforced.⁣

You need to know both theory and on the ground practice so we should rely⁢ on collective knowledge to compile such list.

 

[Cloudbanck]

The combined experiences of the people⁢ of this forum should go a long way in compiling such a list. A new︀ thread to create such a list maybe?

 

[Marzio]

I guess it would become one of the most valuable posts in the forum.

 

[Cloudbanck]

Thread started here: List of Territorial Tax Countries with formal and‍ de-facto treatment of foreign income

 

[Revoltec]

I am happy that my thread led to this!‍ Cheers!

 

[cjrid]

do you know︃ how this 500 business visa works?

 

[JimBeam]

Just to write a one more idea to your original question.
Maybe paying a fair‌ amount of capital gains tax is better than finding a place where you won't pay‍ any (and then have to live in countries like Paraguay or Malaysia).

For example you⁠ could move to Croatia (beautiful coastline), similar/same language to Serbian and pay just 10% capital⁤ gains tax (still better than Serbia or Montenegro 15%, Slovenia 25% or Sweden 30%).
Another option is Bulgaria with also 10%, somewhat similar language, cheaper than Croatia, but not that⁣ good live style and their sea is a joke.

 

[Marshal]

The last time I checked capital gains tax⁠ rate in Montenegro was 9%, but it was last year. When has it changed to⁤ 15%? This year?

 

[JimBeam]

Some sources say 9% some 15%:
https://taxsummaries.pwc.com/montenegro/individual/income-determinationhttps://taxsummaries.pwc.com/quick-charts/capital-gains-tax-cgt-rates

 

[cryptofriendly]

You pay a travel agency in Vientiane $500, for that they'll get you the documentation (mostly‌ the employment letter solution), one year business visa and work permit card.
You can use‍ this also to open a bank account. Mind that inflation is running rampant in Laos⁠ now and apartments/cost of living are much higher than in Thailand or Cambodia,
and they⁤ have the funny custom of requesting a payment of rent for one year in advance.⁣ Some currency exchange restrictions now because of that weak kip as well.

 

[cjrid]

very interesting thanks, you know why laos is overpriced right now? do︀ you think cambodia or thailand is a better opportunity for doing such thing?
I basically︁ have just a bit of cash and a lot of crypto and I would like︂ to move in Asia

 

[belarus]

what would they be ? and what you consider to be‍ cheap?

 

[Houdini]

Interesting situation, sounds like you’ve thought it through pretty well. If your main income is capital⁣ gains and you want to stay relatively close to Europe, maybe consider Georgia or Montenegro.⁢ Both are affordable, and while Georgia now follows CRS, it still has low tax pressure︀ and no tax on foreign capital gains for non-residents. Montenegro has a low flat tax,︁ and residency is fairly easy to get. Could be worth looking into. Just make sure︂ whatever address you choose is solid enough to satisfy Sweden/Serbia.

 

[OVZA LLC]

If you’re depending on income from an offshore company, then relocating your tax residency to‌ a country with a territorial tax system could definitely work in your favor.

Two cost-effective‍ options you might want to seriously consider are Egypt and Georgia:

Egypt is very affordable⁠ cost of living, no tax on foreign-sourced income if it's not remitted or if structured⁤ properly through an offshore company. It’s fairly easy to get a long-term visa or temporary⁣ residency, and local banks aren’t strict about where your money comes from - as long⁢ as it comes from abroad.

Georgia is known for its low taxes and territorial-like system.︀ As an individual, you can register under the “Small Business Status” if needed, and foreign︁ income isn’t taxed unless it's locally sourced. Residency is also easy to maintain with just︂ property rental or extended stays, and it’s geographically close to Europe.

Both countries don’t have︃ capital gains taxes on foreign assets if your income is routed correctly (e.g., through a︄ company). You could set up an offshore company (Seychelles, BVI, etc.), use︅ it for your investing activities, and draw down money via card or expenses , with︆ no personal tax obligation in the country of residence.