0% personal tax country with low requirements for 1 years residency ?

[Piano]

I am just planning to move to a 0% or low tax country in regard to personal taxes for 1 year , the requirements to get 1 year tax residency should be as low as possible , which countries would qualify ?

not Monaca for example 😀

 

[Gediminas]

The easiest option would probably be UAE. Relatively cheap, easy process, and good enough standards for living.

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[glengoolie]

residency(visa/citizenship) and tax residency are two very different things. usually the 183 day rule applies, universally. but some countries might latch onto you for a bit after you leave. so it's more about your current country than the new one.

i don't know about 0% tax country that allows less than half a year presence in order to become tax resident....unless you become a citizen. so for example for 100-150k you can buy caribbean citizenship and essentially you are immediately tax free without need to stay there half a year, just don't stay half a year elsewhere(but the former country latching onto you still applies so check it out beforehand).

 

[Piano]

glengoolie said:
residency(visa/citizenship) and tax residency are two very different things. usually the 183 day rule applies, universally. but some countries might latch onto you for a bit after you leave. so it's more about your current country than the new one.

i don't know about 0% tax country that allows less than half a year presence in order to become tax resident....unless you become a citizen. so for example for 100-150k you can buy caribbean citizenship and essentially you are immediately tax free without need to stay there half a year, just don't stay half a year elsewhere(but the former country latching onto you still applies so check it out beforehand).
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i would stay there for at least 183 days/ year so I would become tax resident there, I guess

can you contact me on [email protected] ? We are both traders so..

 

[Martin Everson]

Easiest is remote worker visa. You might want to see the below thread and work through the list of countries given. Many like Bermdua, Barbados, Cape Verde etc offer tax free income.

https://www.offshorecorptalk.com/threads/countries-with-digital-nomad-visa.32821/

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[glengoolie]

Piano said:
i would stay there for at least 183 days/ year so I would become tax resident there, I guess

can you contact me on [email protected] ? We are both traders so..
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you can find me stocktwits, same nickname

 

[Piano]

Martin Everson said:
Easiest is remote worker visa. You might want to see the below thread and work through the list of countries given. Many like Bermdua, Barbados, Cape Verde etc offer tax free income.

https://www.offshorecorptalk.com/threads/countries-with-digital-nomad-visa.32821/
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Ok, but will my country of residence accept that I have tax residency in 1 of those places ?

 

[glengoolie]

if you get your tax income "certificate" in your tax residence, you should be fine, unless your home country challenges it.
as i have said find out your home country's rules. for example this is UK and you can see that they can latch onto you for a while even if you leave.
https://www.gov.uk/government/publi...ce-note-for-statutory-residence-test-srt-rdr3

 

[glengoolie]

here's USA Substantial Presence Test | Internal Revenue Service

 

[Martin Everson]

Piano said:
Ok, but will my country of residence accept that I have tax residency in 1 of those places ?
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Depends on your country and its tax residency rules. Some countries make it very difficult to have left tax wise. Being out the country even a year may not be enough in some places.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Piano]

Martin Everson said:
Depends on your country and its tax residency rules. Some countries make it very difficult to have left tax wise. Being out the country even a year may not be enough in some places.
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I have no address since 5 years , officially homeless, travelling around , european country

 

[rowena]

Piano said:
I am just planning to move to a 0% or low tax country in regard to personal taxes for 1 year , the requirements to get 1 year tax residency should be as low as possible , which countries would qualify ?

not Monaca for example 😀
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Your best chance is UAE's remote working visa. $611 + health insurance. Apply online. You don't need to deal with third-party introducers/assistance services.

https://www.visitdubai.com/en/business-in-dubai/dubai-for-business/work-remotely-from-dubai

 

[Martin Everson]

Piano said:
I have no address since 5 years , officially homeless, travelling around , european country
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Then you better take up a remote worker visa asap with a country offering tax free earnings. While it is still easy to get such a visa don't waste time.

With no official residency you are storing up big problems for the future when you eventually want to settle down.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[glengoolie]

i think where you filled your tax returns in the recent years is what might matter. if you had no taxes to declare and filed no tax returns you should be fine. in the end, becoming tax resident elsewhere is not a problem. BUT another country, usually your home country, MIGHT challenge you and you will then have to prove where and when and how you got your income and where you filled your taxes and even then they might want you to pay taxes there, as linked above. i think California put some presence test into play that you might become tax liable even if you only visit. so always check out countries where you are and where you were. unless challenged you will be fine. keep in mind there is always chance you will be required to pay taxes in more than one country. there is nothing preventing one country having claim on you if you if you filled taxes elsewhere. also when challenged, usually "center of life" comes to play. so if you decide to move to UAE and pay no taxes but you own a home in UK or have a family in Germany, that will most likely be considered you center of life and you will be paying taxes there.

ps: as posted above by Martin, always have a residency that you can point to and say that is your center of life.

 

[Piano]

Martin Everson said:
Then you better take up a remote worker visa asap with a country offering tax free earnings. While it is still easy to get such a visa don't waste time.

With no official residency you are storing up big problems for the future when you eventually want to settle down.
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do you know which ones offer tax free earnings ?

the Bahamas offer 1 year residency for $1000 with no other conditions

which problems you are thinking of ?

 

[Piano]

rowena said:
Your best chance is UAE's remote working visa. $611 + health insurance. Apply online. You don't need to deal with third-party introducers/assistance services.

https://www.visitdubai.com/en/business-in-dubai/dubai-for-business/work-remotely-from-dubai
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Is that for 1 year ? Any special conditions ?

 

[Konstanz]

1 year residence would not work. You will not prove that your emigration is not fake to your home country. You should emigrate for longer time and with substance

 

[Martin Everson]

Piano said:
do you know which ones offer tax free earnings ?
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i.e Bermuda, Barbados, Cape Verde, UAE etc.

Piano said:
which problems you are thinking of ?
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One example is you said you were officially homeless for 5 years. So lets say you were from UK and wanted to live in Cayman Islands. Caymans ask for a police background check for last few years. Hence UK would need from you the following info before they conduct the check and provide report.

---------

What you'll need​

To apply for a basic DBS check you'll need:

• all your addresses for the last 5 years and the dates you lived there
• your National Insurance number
• your passport
• your driving licence

----------

If you have not registered anywhere you cannot provide this simple info from any country you have resided in. Also if you do provide any info this could trigger tax issues.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[rowena]

Piano said:
Is that for 1 year ? Any special conditions ?
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Yes 1 year and you can get again every year.

Konstanz said:
1 year residence would not work. You will not prove that your emigration is not fake to your home country. You should emigrate for longer time and with substance
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Not correct. It is not a tourist visa, it is a residency visa and works for tax purposes.

 

[Golden Fleece]

Piano said:
i would stay there for at least 183 days/ year so I would become tax resident there, I guess
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Sovereign Man just did an email write-up regarding Puerto Rico. It is a sweet deal if you provide services.

1. Incentives for Export Services (formerly Act 20)​

Act 20 offers tax breaks for companies exporting services from Puerto Rico to other jurisdictions (including the US). Almost any financial professional, internet entrepreneur, attorney, programmer and a wide range of consultants and other professionals, who can work from Puerto Rico, can save a fortune on taxes with Act 20.

And Act 20 is available to citizens of any country, not only to Americans. What's more, Canadians, Australians, Europeans, etc. can all take advantage of this incentive without moving to the island.

Key incentive highlights:

• Act 20 companies only pay a flat 4% corporate tax (and a small municipal tax) to the Puerto Rican government, and nothing to the US federal government.
• Pay 0% tax on dividends that your Act 20 company pays you.
• You ”“ the company owner ”“ still need to draw a “reasonable” salary if you work full-time, and pay Puerto Rican rates on it (comparable to the US).
• Your clients can't be located in Puerto Rico, but most of your business activities must be conducted there. However, you can still travel to the US periodically to meet your clients, attend conferences, etc.
• You will need to employ at least one full-time employee if your company's annual revenue exceeds $3 million. (That employee can be you.)

PLEASE NOTE: You will need legal help to set up your structure, and failing to strictly adhere to the regulations can have disastrous consequences.
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