OVZA
New Horizons Paraguay
Ticker tape by TradingView

Do short term tax residency certificates work at all?

Status
Not open for further replies.
P

PinkCat

🗣️ Active Recruit
Dec 20, 2022
429
0
36
If you get tax residency like the 2 weeks one in Barbados or 90 days one of UAE, but still stay 6+ months in your home country, will that tax residency help like AT ALL?
Or as long as you are 6+ month in your home country they will demand taxes no matter what obscure tax residency certificates you show them? 🙂
 
Many countries doesn't even care about the certificate at all, and isn't even requesting it.‌
 
Most of the time they only care when you want‍ to have withholding tax waived (dividends, royalties, interest). And I think in any case when⁠ they care, they don't rely on the certificate but perform additional checks themselves.
 
Just for the avoidance of doubt a foreign tax residency certificate has no meaning in‌ your home country. If you meet the requirements for being considered tax resident in your‍ home country then a foreign tax residency certificate has no meaning in helping to avoid⁠ tax in home country. Only a DTA between your country and the foreign country may⁤ help in such a situation.

I must also add you can be considered tax resident⁣ in more than one country at the same time and some people are. Even the⁢ CRS forms allow for specifying multiple tax residencies. Tax offices have their own rules related︀ to days present, center of activity etc and a foreign piece of paper showing tax︁ residency in another country does not prevent you from still being considered tax resident in︂ your home country while also being tax resident in the foreign country.
 
so what exactly i should do to not be considered tax resident in my EU‌ country?

Everybody says severe ties, but nobody explains what ties means exactly and how they‍ interpret it.
I've never been employed in my home country and own minimal stuff under⁠ my name. Just mortgaged apartment.
Most assets are held through a company that is owned⁤ by a foreign company that might be owned by me.

Also with EU borders open,⁣ how do they know exactly how much time i've spent here?
 
Leave formally.

Each country has different definition of ties. You⁣ need to examine your countries requirements for being considered a non-resident and follow them.

Tax office can look at your phone signal and see︀ when you were roaming and when you were resident. They can look at your digital︁ transactions to see where they took place or where money was being spent, doctors visits︂ etc to name a few. You would need to go off grid and live on︃ cash. You maybe be able to fly below the radar but at some point you︄ may slip up.
 
are there any precedents where they did infact examine mobile phone data?

p.s. note to‌ self, transfer your mobile phone contract to someone else.
 
https://blog.monaeo.com/when-the-tax-auditor-subpoenas-your-cell-phone-records

Also UK has many ways to find you and Germany and Netherlands‌ and other countries in Europe have similar tools and methods that go beyond phone records.‍

https://www.kinsellatax.co.uk/12-ways-hmrc-can-find-out-if-are-a-tax-evader/

However phone records in general (calls, location data, phone number or IMEI from handset)⁠ are one of the biggest crime fighting tools governments have. They can track you as⁤ in the case of knowing everyone that attended a protest. Or in case of Sarah⁣ Everard killing in UK where they were able to place the phone signal at the⁢ scene of the crime and convict the police officer of killing that poor woman.
 
Yes. It doesn't always happen in every case but there is very little‌ a tax authority can't do if they decide to pursue someone. They have enormous investigative‍ powers.
 
Once you're on their radar, proving innocence becomes increasingly tough. I've seen them conduct extensive‌ forensic investigations on suspects' devices, so their research isn't limited to just asking telcos for‍ data. These are typically extreme cases, but if they think you're worth the effort, they'll⁠ go all out.

It seems like you're trying to find a quick fix to cash⁤ out and stay where you are. But that might not be legal.

If you share⁣ more about where you pay taxes, you might get better advice. But no matter where⁢ you live, if you want to use your money wisely, you need a long-term plan︀ + legal advice. Especially since you've kept this 'secret' for so long.
 
it depends on country, but having such certificate is better than not︄ having. But it just one document of package of many other documents (flight tickets, credit︅ card statements, rent agreement, electricity etc etc)
if you can't even produce certificate it's unrealistic︆ to prove residence I think
 
If you meet the tax residency requirements of⁤ your residing country (as in case of OP) then that tax certificate is 100% worthless.⁣

Ask Shakira who obtained Bahamas tax residency and Spanish tax man laughed at her as⁢ they nailed her to the cross naked.

https://www.forbes.com/sites/kellyp...minute-agreement-in-spanish-tax-evasion-case/

---- quote start

Shakira’s residence was precisely︀ the issue in her tax matter. Shakira had previously resided in the tax-friendly Bahamas. According︁ to Spanish authorities, she continued to claim Bahamian residency for tax purposes until 2015, when︂ she changed her official residency to Spain. Because of the difference in residence for tax︃ purposes, the authorities had accused Shakira of failing to pay more than 14.5 million euros︄ ($15.8 million U.S.) in income taxes between 2012 and 2014.

Spanish tax authorities, however, claim︅ that she was a resident of Spain, not the Bahamas, from 2011 through 2014. In response, Shakira reportedly paid more than 20 million euros ($21,891,300 U.S.) to settle part of︆ her alleged tax debt while not admitting that she owed tax.

--- quote end
 
Exactly.
As said in another thread – Move to UAE, wait 6 months⁠ and cash out tax free, is it that simple?: Unless you share your current⁤ tax residence, this discussion is near to worthless. (I understand that you might not want⁣ to do it publicly, so you can go to the Mentor Group for this discussion.)⁢ I repeat: maybe a surprise for someone but tax rules differ a lot across the︀ EU!
Just an example, e.g owning a mortgaged apartment is pretty enough to be considered︁ tax resident in some countries and quite unimportant in other ones.
 
I want to add a little to the recommendations mentioned above. Please note that︀ this is just a small addition, and not the main recommendations for proving that you︁ are not a tax resident in your EU country.

You write that you have an︂ apartment with a mortgage. Are you registered in it or in any other housing in︃ your EU country? If yes, then you need to register your departure from your place︄ of residence in your EU country. But be careful, it might affect your mortgage agreement.︅

In the country where you plan to have tax residency instead of your EU country,︆ you should go to the consulate of your EU country and register there. Get a︇ certificate from the consulate that you have registered as a citizen of your EU country︈ permanent living in this country. Register at your place of permanent residence in your new︉ country. Usually, this happens in a special unit of the local police or migration service.︊ Very likely that the consulate asks this local registration of your local residence for registering︋ you as the citizen of your EU country permanent living in this country.

If a︌ change in your tax residence will result in a change in the returns you file︍ with the tax authority or a change in tax rates, I recommend that you submit︎ a formal question to the tax authority through your account on the tax authority's website️ or about how it works in your country. You can formulate the question in the‌ format of a notification of changing your tax residence.
 
Status
Not open for further replies.

JohnnyDoe.is is an uncensored discussion forum
focused on free speech,
independent thinking, and controversial ideas.
Everyone is responsible for their own words.

Quick Navigation

Forums

User Menu

Login
Community platform by JohnnyDoe © 2025 JohnnyDoe
Top Bottom