Are there 0% tax digital nomad visas with tax residency?

[meze99]

It seems so far there are none, buy maybe you have heard some anecdotal stories that proof otherwise?

For example, what about a renewable annual residence permit in the Bahamas will cost you $1,000 each year or a BVI residence visa as a self-sufficient person? Can one get a TRC there or file some sort of tax returns document that will be accepted in an offshore bank as proof of tax residency?

Last edited: May 12, 2023

 

[Martin Everson]

meze99 said:
For example, what about a renewable annual residence permit in the Bahamas will cost you $1,000 each year or a BVI residence visa as a self-sufficient person? Can one get a TRC there or file some sort of tax returns document that will be accepted in an offshore bank as proof of tax residency?
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Sorry who will be asking you for a TRC and why?

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

 

[meze99]

I guess a decent bank/broker would ask a lot of questions and documents, including TRC, when opening an account for a non resident who claims he has 0% tax residency (I talk about Interactive Brokers and banks in Channel Islands, Mauritius, etc).

 

[Martin Everson]

I have 0% tax residency and have never experienced this. I have been asked to complete CRS Self Certification to declare my tax residency. I have however never ever been asked to produce a TRC.

Financial Institutions tend follow the OECD model for proving tax residency which shows below what proof is required for each country.

https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency/

meze99 said:
I talk about Interactive Brokers and banks in Channel Islands, Mauritius, etc
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Are you sure IB is asking people for a TRC and not just country of tax residency and Tax ID which follows OECD model above?

https://www.interactivebrokers.com/en/general/what-you-need-inv.php

You may be over thinking the situation.

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

 

[meze99]

Thank you for the explanations. So let's take the Bahamas as example.
oecd.org states the following:
For the purposes of the Common Reporting Standard (CRS), all matters in connection with residence are determined in accordance with the CRS and its Commentaries. There are no direct taxation laws in The Bahamas and therefore there are no domestic provisions which define tax residence generally or which provide criteria for determining tax residence.

So how do I prove to a bank/broker outside of the Bahamas that I'm a tax resident there? It seems there is even no tax id and no tax returns.

 

[scooterguy]

meze99 said:
So how do I prove to a bank/broker outside of the Bahamas that I'm a tax resident there? It seems there is even no tax id and no tax returns.
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You prove it with a residency visa and a rental agreement or utility bill.

 

[Martin Everson]

meze99 said:
So how do I prove to a bank/broker outside of the Bahamas that I'm a tax resident there? It seems there is even no tax id and no tax returns.
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You complete a CRS self certification form. Like below for HSBC for example and select reason C on page 4.

https://www.crs.hsbc.com/-/media/crs/pdfs/crs-i_individual_self_cert_form.pdf
I have never encountered the problem you think may exist. You need to provide me a real world example of a bank or broker that is asking for a TRC so I can look further into the issue. Otherwise your just theorizing over what could happen rather than what does happen.

meze99 said:
I guess a decent bank/broker would ask a lot of questions and documents, including TRC
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Don't guess at these things btw 😀

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

 

[Mike Forman]

It seems a common thing here people believing they can obtain a TRC and suddenly all tax or bank challenges disappear . Banks request at most a residence permit, utility bill and local TIN number.

I believe nobody has ever been asked for a TRC and the only situation I can imagine it's useful is when you are challenged by another tax authority and have this as ADDITIONAL proof (alone it doesn't proof you aren't tax resident in the country you are challenged in) with other residency proof (rental contract, gym subscription, flight tickets, immigration stamps, utility bill, employment contract, credit card statements, income tax report,..)

 

[JustAnotherNomad]

Mike Forman said:
It seems a common thing here people believing they can obtain a TRC and suddenly all tax or bank challenges disappear .
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Exactly. People seem to think it's a get-out-of-jail-free card.