Is this a good or bad strategy if you haven't declared anything and want to legalise it all in tax friendly jurisdiction?

[DavidS]

Let's say you got lucky with crypto and stocks and have offshore accounts with plenty of assets that haven't ever been declared or taken out in local country (just shuffled).

What if this person just moves to a tax friendly country, starts living there, gets residency, gets citizenship or tax payer status and reports all the assets there?

Would this work?

Assets are acquired legally. It's just that they have not been declared to local tax man.

So declaring them to new residence jurisdiction and registering everyone with THEIR respective tax man as "I already own this" not "I just sold this, please tax me". Would that work?

Or would they share immediately all the info they get with your original jurisdiction?

 

[CaptK]

Depending on your current country of residence you can move to somewhere like the UAE obtain residency and then cash out from there. Minimum of 6 months but do check with your countries laws.

 

[DavidS]

CaptK said:
Depending on your current country of residence you can move to somewhere like the UAE obtain residency and then cash out from there. Minimum of 6 months but do check with your countries laws.
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Right, but... what if you ALREADY cashed out and have not reported these cashouts (radio silence basically).

And now you would get second passport or residency and what not and declare everything in another jurisdiction as "I already have this" and not "I sold this just now, please tax me".

What would be problems with this approach?

 

[Fred]

There are workarounds in the UAE to cover it as new generated business earnings via going the way with crypto.

As mentioned before you simply move for 1-2 years to the UAE for minimum 6 months per year get your tax certificate and then remit the funds back to your home country and relocate there again.

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[DavidS]

Fred said:
As mentioned before you simply move for 1-2 years to the UAE for minimum 6 months per year get your tax certificate and then remit the funds back to your home country and relocate there again.
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Seems like a good solution for big boys with big money. UAE is not cheap haha

 

[Fred]

DavidS said:
Seems like a good solution for big boys with big money. UAE is not cheap haha
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Sorry can't agree on that.

Setting up company with us in Dubai is 7.000€ one time setup cost and 4.000€ yearly renew including everything that is required to entertain the company with banking and to get you the residence visa.

You get a 90m2 2BR flat by Emaar in Dubai Marina for 1500 EUR month all bills included. You don't have to drive a lamborghini or ferrari in Dubai nobody is forcing you to do so. Just use the taxis they are super cheap and in all areas available.

I mean Dubai makes the marketing very well and I can understand your image you have of Dubai but it's really not the way you think.

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[LiquiditySplash]

Fred said:
As mentioned before you simply move for 1-2 years to the UAE for minimum 6 months per year get your tax certificate and then remit the funds back to your home country and relocate there again.
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I have read on here that it is just 2 days per 6 months required in UAE for tax residency, is this incorrect or am I just confusing different things?

Do people ever have issues sending funds back home from UAE or is it not seen as a high risk country to receive funds from?

 

[Fred]

LiquiditySplash said:
I have read on here that it is just 2 days per 6 months required in UAE for tax residency, is this incorrect or am I just confusing different things?

Do people ever have issues sending funds back home from UAE or is it not seen as a high risk country to receive funds from?
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Yes it is. However if you want to relocate one day to your home country and want to remit significant amount of money back to your home country make sure that you have received 1-2 tax residence certificates. Official you have to be 183 days per calendar year in the UAE but in practice it's more like 1-2 weeks for 3-4 times over the year.

However to keep the residence visa active it's like you mentioned 2 days per year - every 180 days for 1 day.

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[DavidS]

Fred said:
Sorry can't agree on that.

Setting up company with us in Dubai is 7.000€ one time setup cost and 4.000€ yearly renew including everything that is required to entertain the company with banking and to get you the residence visa.

You get a 90m2 2BR flat by Emaar in Dubai Marina for 1500 EUR month all bills included. You don't have to drive a lamborghini or ferrari in Dubai nobody is forcing you to do so. Just use the taxis they are super cheap and in all areas available.

I mean Dubai makes the marketing very well and I can understand your image you have of Dubai but it's really not the way you think.
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Airline tickets, travel expenses, time spent travelling, energy spent. It sums up. It's quite complicated.

If you are in mid 7 digits imo it starts to make sense, not in low 7 digits and there are many unclear things and laws may change.

Dubai make you visit every 6 weeks so you decide to stay there, smart on their side.

And with all that CRS will STILL report you to your original jurisdiction. UAE is part of CRS.

Just not convinced it is the most absolutely optimal strategy.

Surely in some cases it is perfect, but not sure if for average guy who just wants to cash out crypto (legally bought crypto not crime money).

Official you have to be 183 days per calendar year in the UAE but in practice it's more like 1-2 weeks for 3-4 times over the year.
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And this is the problem. If you want to be their tax resident you have to stay 183 days. That is 183 days of expenses according to Dubai prices. Sure, it might work to just spend a few weeks, might work for now, but for how long? As country matures it will become more restrictive.

 

[Don]

DavidS I think you could look into Georgia.
Crypto profits are tax-free and there is a special HNWI regime.
The currency has suffered a lot so the real estate is ridiculously cheap.
Feel free to pm for more information.

 

[DavidS]

Don said:
DavidS I think you could look into Georgia.
Crypto profits are tax-free and there is a special HNWI regime.
The currency has suffered a lot so the real estate is ridiculously cheap.
Feel free to pm for more information.
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Thanks so much! What makes Georgia better than alternatives?
For example:
- Montenegro
- Cyprus
- UAE
- Singapore

 

[Don]

DavidS said:
Thanks so much! What makes Georgia better than alternatives?
For example:
- Montenegro
- Cyprus
- UAE
- Singapore
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It depends on your residency, income level, business, personal preferences, and other factors so hard to say.
I say it's best if you talk with a tax consultant who works with multiple jurisdictions.