Best Residency in EU that makes the most sense Taxationwise?

[banafinfodafuggiano]

I'm already a EU citizen, living outside of Europe since 2013.

I now figured out after many years of travelling, that only a handful of countries have a truly high quality of life (EU, AUS, CA, SG, etc..)

I'm about to set up a company infrastructure in HK/UAE to minimise my corporate tax, and I'm looking to live in Europe 6 months a year.

What would be the best country in Europe to settle my own Tax personal residency in that is not going to financially rape me?
(I'm looking for good services, clean, safe, high quality housing so therefore not Italy or Bulgaria).

 

[Don]

banafinfodafuggiano said:
I'm already a EU citizen, living outside of Europe since 2013.

I now figured out after many years of travelling, that only a handful of countries have a truly high quality of life (EU, AUS, CA, SG, etc..)

I'm about to set up a company infrastructure in HK/UAE to minimise my corporate tax, and I'm looking to live in Europe 6 months a year.

What would be the best country in Europe to settle my own Tax personal residency in that is not going to financially rape me?
(I'm looking for good services, clean, safe, high quality housing so therefore not Italy or Bulgaria).
Click to expand...

You might want to look at Estonia.
It's a pretty flexible jurisdiction, and you could even pull off living there without becoming a tax resident. It is possible to achieve 0% or a very low effective tax as both a resident and non-tax resident.

• Quality of life is rated 11th in the world
• Tax system rated best in OECD for last 9 years
• you can easily get by with English
• Winters are severe, but this is the best time to stay in the UAE anyway
• Great tax planning opportunities, but not super straight-forward to achieve 0%
  • Dividends received from resident companies are exempt from tax
  • Dividends received from resident companies are exempt from tax, if income tax was paid on the share of profits out of which the dividends were paid or if income tax on the dividends was withheld in a foreign country
  • profits attributable to a foreign PE are generally exempt from tax
• Corporate tax is not payable until profit distribution (indefinite deferral)

Last edited: Oct 24, 2023

 

[Marzio]

Don said:
You might want to look at Estonia
Click to expand...

• stunning chicks

 

[Don]

Marzio said:

• stunning chicks

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lol

Certainly, there is more choice than in UAE, where you have 70% male (vs Estonia 48%). It can indeed affect one's wellbeing.

However, according to a trusted source, they might not talk on the first date (Estonian Brides - Meet Hot Estonian Women for Dating & Marriage)

Estonian Women Looks

 

[JohnnyDoe]

Marzio said:

• stunning chicks

Click to expand...

Like everywhere, and there are also many fridge-like-built women.

Don said:
in UAE, where you have 70% male
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And a good part of the remaining 30% are dudes posing as females

banafinfodafuggiano said:
I'm already a EU citizen, living outside of Europe since 2013.
Click to expand...

Stay wherever you are now. Things have changed, for the worse, in the last 10 years.

banafinfodafuggiano said:
I now figured out after many years of travelling, that only a handful of countries have a truly high quality of life (EU, AUS, CA, SG, etc..)
Click to expand...

EU AUS and CA? ns2 Really?

banafinfodafuggiano said:
I'm about to set up a company infrastructure in HK/UAE to minimise my corporate tax, and I'm looking to live in Europe 6 months a year.
Click to expand...

It won't work.

banafinfodafuggiano said:
What would be the best country in Europe to settle my own Tax personal residency in that is not going to financially rape me?
Click to expand...

None.

banafinfodafuggiano said:
(I'm looking for good services, clean, safe, high quality housing so therefore not Italy or Bulgaria).
Click to expand...

Italy and Greece are the only possible choice with the flat tax.

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[crassus54]

Don said:
You might want to look at Estonia.
It's a pretty flexible jurisdiction, and you could even pull off living there without becoming a tax resident. It is possible to achieve 0% or a very low effective tax as both a resident and non-tax resident.

• Quality of life is rated 11th in the world
• Tax system rated best in OECD for last 9 years
• you can easily get by with English
• Winters are severe, but this is the best time to stay in the UAE anyway
• Great tax planning opportunities, but not super straight-forward to achieve 0%
  • Dividends received from resident companies are exempt from tax
  • Dividends received from nonresident companies are exempt from tax, if income tax was paid on the share of profits out of which the dividends were paid or if income tax on the dividends was withheld in a foreign country
  • profits attributable to a foreign PE are generally exempt from tax
• Corporate tax is not payable until profit distribution (indefinite deferral)

Click to expand...

What are other good places in Europe where one can live and not be a resident? I am going to be living without residence in Mexico and having residence in Puerto Rico next year.

 

[JohnnyDoe]

ccm27 said:
What are other good places in Europe where one can live and not be a resident?
Click to expand...

None, you can't live *legally* in a place without being a resident.

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[Don]

JohnnyDoe said:
None, you can't live *legally* in a place without being a resident.
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I must respectfully disagree with your perspective since there are exceptions.

Living in a country typically refers to the state of residing within a specific geographical and political territory that is recognized as a sovereign nation or state. Let's disregard legal residency for one moment since you might still have a legal basis to stay in the country (e.g. if you are in prison).

According to domestic legislation, most jurisdictions consider you a tax resident if you stay there >183 days. Still, for EU citizens, it is, in some cases not enforced if they don't register their place of residence in the same jurisdiction.

It might not necessarily even be illegal. As an example, Americans can live 365 days on a visa in Estonia and work full time, and in such cases, it's actually impossible for them to get an Estonian tax residence certificate while reaping the benefits of a GILTI-free structure.

This is because Estonia would consider a double tax treaty in determining the tax residence of such persons in case of potential dual residence.

People staying in the country with a visa can't register their place of residence (which automatically means they can't get tax residency) and are not considered as living in the country, and nobody really bothers them. You might still have a legal right to work - e.g., it is an often underestimated benefit of a digital nomad visa.

The same applies to specific investor residence permits where you don't have to register your place of residence. You have a right to live, yet you don't have a place of residence.
Your place of residence and centre of vital interests is in the other jurisdiction where you want to be a tax resident. The centre of vital interests is deemed to have arisen in the country with which a person has more personal and economic ties (e.g. family and social relationships, workplace, political or cultural activities, etc.). Consider UAE for example.

There are some living examples who have done this for 10+ years.

This is in general tricky topic so I would advise carefully planning this with immigration and tax advisers.

Last edited: Oct 18, 2023

 

[Konstanz]

Don said:
I must respectfully disagree with your perspective since there are exceptions.

Living in a country typically refers to the state of residing within a specific geographical and political territory that is recognized as a sovereign nation or state. Let's disregard legal residency for one moment since you might still have a legal basis to stay in the country (e.g. if you are in prison).

According to domestic legislation, most jurisdictions consider you a tax resident if you stay there >183 days. Still, for EU citizens, it is, in some cases not enforced if they don't register their place of residence in the same jurisdiction.

It might not necessarily even be illegal. As an example, Americans can live 365 days on a visa in Estonia and work full time, and in such cases, it's actually impossible for them to get an Estonian tax residence certificate while reaping the benefits of a GILTI-free structure.

This is because Estonia would consider a double tax treaty in determining the tax residence of such persons in case of potential dual residence.

People staying in the country with a visa can't register their place of residence (which automatically means they can't get tax residency) and are not considered as living in the country, and nobody really bothers them. You might still have a legal right to work - e.g., it is an often underestimated benefit of a digital nomad visa.

The same applies to specific investor residence permits where you don't have to register your place of residence. You have a right to live, yet you don't have a place of residence. Your centre of vital interests is in the other jurisdiction where you want to be a tax resident. The centre of vital interests is deemed to have arisen in the country with which a person has more personal and economic ties (e.g. family and social relationships, workplace, political or cultural activities, etc.).

There are some living examples who have done this for 10+ years.

This is in general tricky topic so I would advise carefully planning this with immigration and tax advisers.
Click to expand...

Have you been in Estonia in late autumn, winter, early spring? Weather is almost always bad. Foggy, dark, no sun. Really depressing this part of world. Even in summer can be cold and rainy. Realistically you have 2 months good weather per year and 10 month bad weather
Also it's not English speaking country, not so many expats. Even though people know English.
The advantage is that Estonia don't really check if you really lived there. You can have registration/tax certificate and come sometimes to hang around etc

 

[crassus54]

Don said:
I must respectfully disagree with your perspective since there are exceptions.

Living in a country typically refers to the state of residing within a specific geographical and political territory that is recognized as a sovereign nation or state. Let's disregard legal residency for one moment since you might still have a legal basis to stay in the country (e.g. if you are in prison).

According to domestic legislation, most jurisdictions consider you a tax resident if you stay there >183 days. Still, for EU citizens, it is, in some cases not enforced if they don't register their place of residence in the same jurisdiction.

It might not necessarily even be illegal. As an example, Americans can live 365 days on a visa in Estonia and work full time, and in such cases, it's actually impossible for them to get an Estonian tax residence certificate while reaping the benefits of a GILTI-free structure.

This is because Estonia would consider a double tax treaty in determining the tax residence of such persons in case of potential dual residence.

People staying in the country with a visa can't register their place of residence (which automatically means they can't get tax residency) and are not considered as living in the country, and nobody really bothers them. You might still have a legal right to work - e.g., it is an often underestimated benefit of a digital nomad visa.

The same applies to specific investor residence permits where you don't have to register your place of residence. You have a right to live, yet you don't have a place of residence.
Your place of residence and centre of vital interests is in the other jurisdiction where you want to be a tax resident. The centre of vital interests is deemed to have arisen in the country with which a person has more personal and economic ties (e.g. family and social relationships, workplace, political or cultural activities, etc.). Consider UAE for example.

There are some living examples who have done this for 10+ years.

This is in general tricky topic so I would advise carefully planning this with immigration and tax advisers.
Click to expand...

My case is trying to live in Europe while having residency in Puerto Rico, which requires no other tax home in another country.

 

[Don]

Konstanz said:
Have you been in Estonia in late autumn, winter, early spring? Weather is almost always bad. Foggy, dark, no sun. Really depressing this part of world. Even in summer can be cold and rainy. Realistically you have 2 months good weather per year and 10 month bad weather
Also it's not English speaking country, not so many expats. Even though people know English.
The advantage is that Estonia don't really check if you really lived there. You can have registration/tax certificate and come sometimes to hang around etc
Click to expand...

I'm almost never happy with the weather, but there are very few places in the world with stable good weather year-round. Really thinking to check out French Polynesia (tnx JohnnyDoe)

For a happy life, it's probably better to go to Finland, which is in the same region.
The weather doesn't seem to make people happy. I mean what's the point of good weather if you are surrounded by grumpy people?

https://www.cnbc.com/2023/06/30/im-...six years in a,happiest country in the world.https://theconversation.com/why-fin...ountry-in-the-world-an-expert-explains-203016

 

[crassus54]

Don said:
I'm almost never happy with the weather, but there are very few places in the world with stable good weather year-round. Really thinking to check out French Polynesia (tnx JohnnyDoe)

For a happy life, it's probably better to go to Finland, which is in the same region.
The weather doesn't seem to make people happy. I mean what's the point of good weather if you are surrounded by grumpy people?

https://www.cnbc.com/2023/06/30/im-...six years in a,happiest country in the world.https://theconversation.com/why-fin...ountry-in-the-world-an-expert-explains-203016
Click to expand...

Don't the finns have the highest rate of suicide?

 

[uranium]

Estonia ex ussr
Basically all eastern Europe countries are way behind western Europe
I would vote for Andorra at 10% personal tax since you want Europe

 

[crassus54]

uranium said:
Estonia ex ussr
Basically all eastern Europe countries are way behind western Europe
I would vote for Andorra at 10% personal tax since you want Europe
Click to expand...

Western europe is about to be Africanized. The only "Civilized" culture left is going to be in eastern europe.

 

[uranium]

ccm27 said:
Western europe is about to be Africanized. The only "Civilized" culture left is going to be in eastern europe.
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AFAIK eastern Europe is ex ussr poor countries who suck Europe blood
Compare salary between Germany and estonia. Poland. Czech. You will get my point

 

[TheCryptoAnt]

uranium said:
Compare salary between Germany and estonia. Poland. Czech. You will get my point
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That plays in your favor tho

 

[uranium]

TheCryptoAnt said:
That plays in your favor tho
Click to expand...

Not at all
Low wages = low standards of living = crime

 

[Don]

uranium said:
Estonia ex ussr
Basically all eastern Europe countries are way behind western Europe
I would vote for Andorra at 10% personal tax since you want Europe
Click to expand...

Check San Marino, Liechtenstein, Monaco

Under the constitution, Mount Athos (Greece) is also exempt from paying taxes or tariffs to the Greek government.

uranium said:
AFAIK eastern Europe is ex ussr poor countries who suck Europe blood
Compare salary between Germany and estonia. Poland. Czech. You will get my point
Click to expand...

It's going to be interesting if Ukraine joins EU. They will suck much more blood than some small baltoids.

Salary alone don't show much.

George Friedman argued in his book "The Next 100 Years,” which was published in 2009, that Poland would become a dominant power in Continental Europe in the coming decades - and this is not too far off.

Wealth levels have pretty much evened out in EU compared to few decades. You may have differences in salaries, but as I remember from the user 369 who posted the median net asset figures of the people in EU, accordingly people up to 34 years of age in Estonia actually have twice as much net assets compared to the counterparts in Germany, although in early 90s average German earned 20x more.

Last edited: Oct 19, 2023

 

[banafinfodafuggiano]

Don said:
You might want to look at Estonia.
It's a pretty flexible jurisdiction, and you could even pull off living there without becoming a tax resident. It is possible to achieve 0% or a very low effective tax as both a resident and non-tax resident.

• Quality of life is rated 11th in the world
• Tax system rated best in OECD for last 9 years
• you can easily get by with English
• Winters are severe, but this is the best time to stay in the UAE anyway
• Great tax planning opportunities, but not super straight-forward to achieve 0%
  • Dividends received from resident companies are exempt from tax
  • Dividends received from nonresident companies are exempt from tax, if income tax was paid on the share of profits out of which the dividends were paid or if income tax on the dividends was withheld in a foreign country
  • profits attributable to a foreign PE are generally exempt from tax
• Corporate tax is not payable until profit distribution (indefinite deferral)

Click to expand...

Estonia is a no no... I don't want to pay income tax in Estonia, otherwise I'd just live in Dubai.

How difficult is it to be a resident of San Marino though... Monaco is out of my range. Liechestain people are too racist lol.

 

[Don]

banafinfodafuggiano said:
Estonia is a no no... I don't want to pay income tax in Estonia, otherwise I'd just live in Dubai.

How difficult is it to be a resident of San Marino though... Monaco is out of my range. Liechestain people are too racist lol.
Click to expand...

Well you wouldn't pay any tax on directors fees that you receive from UAE, or in certain case the taxed profits from UAE. In quite many cases tax residents with foreign source income pay no local tax at all.