0% tax residency

[GrumpyMess]

I want to change my residency to a tax free country or a country with <10% taxation in the worst case. I don't want to live in a shithole like Vanuatu just to keep my residency.

I see that the only options available are Monaco, Malta, Cyprus non-dom and UAE. What is the best solution in my case and benefits/downsides of each of these countries? Are there any other solutions?

 

[negon]

I would say Dubai like most people are doing if they want to avoid tax at all! You have 0% income tax, no corporate tax and you have a shitload of good food, housing and all what you need.

 

[GrumpyMess]

negon said:
I would say Dubai like most people are doing if they want to avoid tax at all! You have 0% income tax, no corporate tax and you have a shitload of good food, housing and all what you need.
Click to expand...

Yes, but I have to live there for at least a half year and I don't know if I would like that. I tend to Monaco since renting an apartment and having a bank deposit seems enough to get a residency there. This way I can get around for a time presence requirment since there are no borders across the Schengen area

 

[Martin Everson]

GrumpyMess said:
I tend to Monaco since renting an apartment and having a bank deposit seems enough to get a residency there.
Click to expand...

There is a lot more involved in getting residency if your not going there for work. You won't pass the in person interview without substantial cash or income stream. They are very selective who they let in.

Dubai is good option if you live a clean life but you my lose access to most EU financial services i.e cards, emi's etc.

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

 

[GrumpyMess]

Martin Everson said:
You won't pass the in person interview without substantial cash or income stream
Click to expand...

Why can I not pass the interview if I fulfill all the conditions regarding cash, income and apartment?

Martin Everson said:
but you my lose access to most EU financial services i.e cards, emi's etc
Click to expand...

Are the EU banks known to close accounts when moving residency to Dubai?

 

[Martin Everson]

GrumpyMess said:
Why can I not pass the interview if I fulfill all the conditions regarding cash, income and apartment?
Click to expand...

My bad I pre-judged your wealth. How much money do you think you need in reality to become resident?

GrumpyMess said:
Are the EU banks known to close accounts when moving residency to Dubai?
Click to expand...

Check first you can open or keep open existing bank accounts, cards, EMI relationships etc before you move outside the EU 😉.

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

 

[negon]

GrumpyMess said:
Are the EU banks known to close accounts when moving residency to Dubai?
Click to expand...

I can connect you with at least 2 people I know very well which are EU citizens, live in Dubai for the last 2 years and keep running their business with foreign bank accounts! It's really not a problem, just do your home work.

 

[GrumpyMess]

Martin Everson said:
My bad I pre-judged your wealth. How much money do you think you need in reality to become resident?
Click to expand...

500k deposit, yearly 25k apartment rent and 10k mixed expenses just for residency, without costs for living there. As I understand this price is the twice more than Dubai solution, but with more flexibility since I can remain in Europe

negon said:
live in Dubai for the last 2 years and keep running their business with foreign bank accounts
Click to expand...

May be you know if foreign banks accepted their residency as valid and didn't send the info to their home countries during AEOI

 

[negon]

GrumpyMess said:
May be you know if foreign banks accepted their residency as valid and didn't send the info to their home countries during AEOI
Click to expand...

There is nothing send to their home country because they live perma in Dubai, they have a house there.

 

[GrumpyMess]

What about Cyprus non-dom? If I move there and Cyprus authorities would receive information based on CRS during previous years which I wasn't Cyprus resident would they start an investigation and send this info to the country of my citizenship?

Does Cyprus tax it's non-dom residents when they are managing for example a Belize corp or the corp profits?

 

[negon]

Cyprus is not Dubai, complete different laws apply here. Also you can not have a non resident company in Cyprus while you live there unless you will appoint foreign nominees and not be an director or shareholder yourself.

 

[GrumpyMess]

negon said:
Cyprus is not Dubai, complete different laws apply here
Click to expand...

I understand that, but I'd like to not to deal with Dubai, so I am looking for some alternative solutions

 

[countryfree]

GrumpyMess said:
500k deposit, yearly 25k apartment rent and 10k mixed expenses just for residency, without costs for living there.
Click to expand...

I'm not sure you can rent an apartment for 25K/year in MC. It would be very small, and without a garage.

 

[GrumpyMess]

countryfree said:
I'm not sure you can rent an apartment for 25K/year in MC. It would be very small, and without a garage.
Click to expand...

I want this apartment to get a tax residency certificate, not for a living there permanently

 

[niggashit]

Try New zealand. 4 year tax exemption on foreign income. You can keep moving more countries. In UK , its like 3 years.

 

[Tepesch]

So I am Cyprus Non DOm myself the law firm I handled everything for me says its possible to live completely tax free because divdends are tax free for Cyprus Non Doms. It would work like that : You have your residency in Cyprus, you are doing business with a 0% tax offshore corp like Belize and pay dividends to your personal account. These dividends are tax free bc Non Dom, and Non Dom is guaranteed for 17 years. The only possibility would be that your offshore company could be taxed like a cyprus corp ( 12,5%) bc managed in Cyprus. But this almost never happens according to multiple sources. But I am checking back on this with the law firm bc I want to know for myself.

Btw in Dubai you dont have to stay half a year to be tax resident - you just have to stay there 1 day every 183 days. Also residencys with Zero tax on foreign income are Panama, Paraguy, Georgia, Bahamas.

 

[GrumpyMess]

Tepesch said:
The only possibility would be that your offshore company could be taxed like a cyprus corp ( 12,5%) bc managed in Cyprus. But this almost never happens according to multiple sources. But I am checking back on this with the law firm bc I want to know for myself.
Click to expand...

Almost? You won't be happy having discovered a mail from the tax dept that you owe a bag of money for the previous years.
Especially with the new EU regulations regarding CFC. In my opinion cashing out everything from a Belize corp by the end of the year must save one's from a corp tax and cfc, but I don't know how it works in practice. Can you please ask again your law firm and post their answer?

Tepesch said:
Btw in Dubai you dont have to stay half a year to be tax resident - you just have to stay there 1 day every 183 days.
Click to expand...

Yes, but they do issue tax residency certificates only if you live there not less than half a year. Also a valid tenancy contract for the whole year is required.

 

[KJK]

Tepesch said:
Btw in Dubai you dont have to stay half a year to be tax resident - you just have to stay there 1 day every 183 days. Also residencys with Zero tax on foreign income are Panama, Paraguy, Georgia, Bahamas.
Click to expand...

Does anyone have recent experience with these countries? I've heard about all of them but it would be nice to hear from someone with direct experience (most information online is from "consultants" trying to sell you something like this).

I've also been recommended to be very careful about anything related to Belize (except maybe when you're a guy willing to retire there under some special program of theirs)

 

[Balto]

Malta it's good solution

 

[Juoffshore]

GrumpyMess said:
I want to change my residency to a tax free country or a country with <10% taxation in the worst case. I don't want to live in a shithole like Vanuatu just to keep my residency.

I see that the only options available are Monaco, Malta, Cyprus non-dom and UAE. What is the best solution in my case and benefits/downsides of each of these countries? Are there any other solutions?
Click to expand...

Portugal with the the NRH programm should also be a good option for you, 0% tax on your offshore incomes, and 20% on your portuguese incomes. However the law will probably change in 2019 so wait and see..