Current situation:
Interested in a legal option for lower tax (I started thinking: for this amount of tax, living in Monaco would possibly be cheaper!), and trying to understand valid and more cost efficient patterns with minimal residency requirements (as planning to move often, spending less than 3-6 months in each country). For the short-term, willing to experience somewhere new - especially if that helps us in the longer term. Longer term, would like to be resident some place with nature, like Panama, Costa Rica, etc - in case we (me and my lady) want to spend >6 months in one place.
My sketch of a plan (work in progress”¦):
Does the above plan make sense? The ultimate object is to minimize tax burden, be resident in an interesting country, be able to invoice clients from a company in a reputable country, and have few constraints on needing to e.g. stay half a year each year in any one place.
I'm assuming: there's probably a simpler way? Could we e.g. just go directly to Panama, and set up a UK LLP, or USA pass-through LLC?
Are there significant costs I'm not considering such as e.g. social insurance costs, or the need to maintain an apartment or employees, etc? Will I have issues using e.g. Transferwise, Interactive Brokers etc from Panama / UAE / or alternative country suggestion?
Advice greatly appreciated - I'm very motivated to understand the steps needed to improve on my current situation.
- Resident in Cyprus (non-dom) for several years
- Company in Cyprus (selling IT services which is the majority of revenue + physical products, but products stored in other EU countries + USA)
- Company has VAT registrations for several EU countries
- Paying 12.5% corporation tax + 2.7% dividend tax on first 180k EUR / year
- Receiving a small salary from the company, and the rest as dividends
- Earning mid 6 figures EUR per year
Interested in a legal option for lower tax (I started thinking: for this amount of tax, living in Monaco would possibly be cheaper!), and trying to understand valid and more cost efficient patterns with minimal residency requirements (as planning to move often, spending less than 3-6 months in each country). For the short-term, willing to experience somewhere new - especially if that helps us in the longer term. Longer term, would like to be resident some place with nature, like Panama, Costa Rica, etc - in case we (me and my lady) want to spend >6 months in one place.
My sketch of a plan (work in progress”¦):
- Move (with my partner) to Dubai with the new "remote-working visa"
- When resident in Dubai, corporate income tax on Cyprus company would be 0%, based on what I read here: "A non-resident company is a company where the management and control is exercised outside of Cyprus”¦ A non-resident company is taxable at 0% on its worldwide income" - a saving of high 5-figures EUR per year, and freedom to travel elsewhere from here.
- In Dubai, we could set up a freezone company, and move my main clients to invoice from here. If needed, create some substance in UAE (e.g. buy some rental property, or add a local 'manager'?).
- Later, in a year or so, set up a company in Panama and acquire permanent residency in Panama using Friendly Nations Visa, but still receive most income through dividends from UAE freezone company - 0% tax from UAE and Panama?
Does the above plan make sense? The ultimate object is to minimize tax burden, be resident in an interesting country, be able to invoice clients from a company in a reputable country, and have few constraints on needing to e.g. stay half a year each year in any one place.
I'm assuming: there's probably a simpler way? Could we e.g. just go directly to Panama, and set up a UK LLP, or USA pass-through LLC?
Are there significant costs I'm not considering such as e.g. social insurance costs, or the need to maintain an apartment or employees, etc? Will I have issues using e.g. Transferwise, Interactive Brokers etc from Panama / UAE / or alternative country suggestion?
Advice greatly appreciated - I'm very motivated to understand the steps needed to improve on my current situation.