Martin... I've been reading your comments in many different threats &︄ topics, its nice you share all experience and knowledge with others.
I have been reading︅ so much that idk what to do, all this Proxy Residence, DUBAI residency w/bank account︆ and 0% tax strategy, USA LLC for investment strategies tax free for non-residents, Georgia TBC︇ account. Andorra 10% tax.
Perhaps you can give me some insides on my scenario below︈ ( THE plan still under development, not there yet.)
I'm thinking about moving to Spain︉ with family (coming from Mexico) (final goal for us is to get the Nationality after︊ the 2yrs period)
My general plan is to set up an offshore account in a︋ SAFE country focused on investment strategies and wealth management (DUBAI), I will be using this︌ account ONLY for Long term compound interest investments, Dividend based investments and Short term investing︍ ( ETFs / VWRL / REITs.. etc.. anything that generate passive income, looking at 8-10%︎ p/year) I will be declaring my accounts and all sources of income, as well as️ filling my taxes every year in Spain, paying taxes as per below:
-Under Spain Tax Code a Resident has to pay 21% tax for income obtained from interest, investments or dividends, when less than <EU$50k... I have no problem with paying this tax. (However the $50k represents ONLY 30% of the total passive generated income)
-The other 70% will stay invested (thus, is not income). In order to take advantage of the following tax code: under Spain Tax Code, taxes can be deferred on Dividends or Interest that are NOT liquidated and immediately put back into the principal, such a Compounded Interest Investments. Thus, there︀ are no taxes to be paid here (yet), until you actually take money from your︁ investment and put it in your bank. Meaning it can remain invested & compounding/growing without︂ paying taxes on it. Obviously I will be declaring my bank accounts and filing the︃ taxes on time every year and living a normal live under the rules.
1. Do︄ you think this scheme will work for this scenario?
2. Which strategy you consider best︅ for a long term investment 8-10% gains p/year. (compounding)? Withdrawing only $50k p/year
3. Based︆ on your experience and taking in consideration this scenario? Do you recommend any better strategy?︇ (taking into account that family is in the equation, paying 21% tax is OK for︈ me, NOT MORE than this%)
*Taking the Residency and Living in Dubai with Family to︉ enjoy the 0% taxes could be a possibility, but I rather leave this scenario as︊ the 2nd option, since Spain checks all the boxes (language, culture, live style, weather), and︋ if my strategy is validated, I would be paying 10k per year in taxes (minus︌ deductions, insurance, schooling, medicals etc. could be 7-8k per year) which I'm OK with that︍ amount.
*I will need an exit strategy, but that will be in the future for︎ whenever I want to liquidate my entire portfolio (once outside Spain), however, since we are️ a young family, we are talking about 20years from now (which means we can leave the investment compounding for that time frame, withdrawing only 50k per year/paying only 21% on taxes p/year while keeping the rest of the passive generated income as and addition to the principal to continue) ( I just read about the 'exit tax' in Spain)
*It scares me to read comments here like: "stay away from EU & Spain" "EU tax hell'.. It might be all true, but if you become wealthy with clean money in Mexico, believe me, you are better off in another part of the world, and if this works, living in Spain paying 10k in taxes per year sounds more like a︀ haven for me.
Really appreciate your inputs and recommendations and thanks again for sharing knowledge,︁ experiences and taking the time to read and write... truly remarkable.
