Never Declared Income - Gotta Start Now
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let's cook it down to the fact that if you have a s**t load of cash and you want to move out of your country you will have to take it out of your country in portions of max 10K euro at a time. Bad s**t if you have millions but that's if you want to be safe.
Please note the word "EMPLOYMENT". As a Romanian tax resident this means that you need a valid work contract abroad, you need to declare your income in Romania and if it comes from a low tax jurisdiction you will have to pay tax too. It does not apply for freelancers because they are not employed.
1. Is most likely false,. Is that usually the actual facts matter, not the formal registration. If OP was actually out of the country and did not register as such, he was actually not tax resident. If he can prove he was outside the country,︀ that's what matters in a court.
From Deloitte Romania 2019
In short : Better play dead, get a tax residency somewhere else and keep your︊ money out the country.
From now on make sure you get a tax certificate each︋ year from the country you pay tax to.
In short : Better play dead, get a tax residency somewhere else and keep your︊ money out the country.
From now on make sure you get a tax certificate each︋ year from the country you pay tax to.
Very true but the problem can most often be that these type of cases can be very expensive and sometimes impossible to prove depending on how "aware" you have been about your situation.
I think you can do that, since you said you never had a lot of money in bank accounts there anyway. If you WANT to live in your country and it is not France, Spain, Sweden (or other countries with income tax above 35%) it is reasonable to do it. Specially if you are earning a not︀ very significant income, lets say 5-7k per month, or up to 10k. If you are︁ making like 20k per month and upwards, it may arise some questions. It depends a︂ lot from the country where you are in.
In Hungary I've been recently advised by︃ an accountant that if you bring up to 100k, in all cases that he has︄ dealt so far, nobody asked anything. Then again, in Latvia I've seen people being chased︅ over 18 euros.... not 18k, 18 euros.
In Hungary I've been recently advised by︃ an accountant that if you bring up to 100k, in all cases that he has︄ dealt so far, nobody asked anything. Then again, in Latvia I've seen people being chased︅ over 18 euros.... not 18k, 18 euros.
May I ask: why do you guys suggest him to get a tax ID in his country of origin?
My advise is: Get registered as resident in Cyprus, the procedure is very smooth for EU passport holders: you show any bank statement showing that you are not poor (the 10k are more than enough), make a minimum health insurance for 140 EUR a year in Cyprus, show any rental agreement and some employment contract in Cyprus and you are officially resident.
In a second step you open a company or sole trading business in Cyprus in order to apply for your Tax ID in Cyprus.︀ Or you just use the employment agreement you needed for residence anyway.
In a third︁ step you can apply for non domicile status to obtain further tax advantages.
Or you︂ just open a company in Georgia with IT zone status (they changed regulations recently for︃ new applications, be aware) and be corporate tax exempt there. In this scenario you can︄ stay digital nomad without any residency.
Important is in my opinion -and I don't know︅ the system in lovely Romania- to be officially de-registered from your country - to proof︆ that you are not living there anymore. So do anything but don't apply for a︇ Romanian tax ID, you want to move completely out of the country, also formally, so︈ make sure you are out. And don't make steps in order to get back in.︉
My advise is: Get registered as resident in Cyprus, the procedure is very smooth for EU passport holders: you show any bank statement showing that you are not poor (the 10k are more than enough), make a minimum health insurance for 140 EUR a year in Cyprus, show any rental agreement and some employment contract in Cyprus and you are officially resident.
In a second step you open a company or sole trading business in Cyprus in order to apply for your Tax ID in Cyprus.︀ Or you just use the employment agreement you needed for residence anyway.
In a third︁ step you can apply for non domicile status to obtain further tax advantages.
Or you︂ just open a company in Georgia with IT zone status (they changed regulations recently for︃ new applications, be aware) and be corporate tax exempt there. In this scenario you can︄ stay digital nomad without any residency.
Important is in my opinion -and I don't know︅ the system in lovely Romania- to be officially de-registered from your country - to proof︆ that you are not living there anymore. So do anything but don't apply for a︇ Romanian tax ID, you want to move completely out of the country, also formally, so︈ make sure you are out. And don't make steps in order to get back in.︉
Well, I said that if he WANTS to live in Romania, he should do it.
First of all, income tax for self employment in Romania is just 10%, it is lower than Cyprus. I have a friend working in the same field as I, in Romania and from Romania. He pays just 10% and would pay just 10%, even if he would earn 10x of what he does.
You can tell me why cyprus? What is the advantage of Cyprus, unless he would have a personal preference for Cyprus over RO?
Moreover, cost of living in RO is much lower than Cyprus. Just the weather︀ is worse in Romania.
First of all, income tax for self employment in Romania is just 10%, it is lower than Cyprus. I have a friend working in the same field as I, in Romania and from Romania. He pays just 10% and would pay just 10%, even if he would earn 10x of what he does.
You can tell me why cyprus? What is the advantage of Cyprus, unless he would have a personal preference for Cyprus over RO?
Moreover, cost of living in RO is much lower than Cyprus. Just the weather︀ is worse in Romania.
Well, I do not want to live in Romania. I am concerned of two aspects:
1. That setting a second residency is too complex and difficult for me, which was proven false.
2. That I still need to renew my passport from time to time. Technically the only time when I’m actually there is for a new passport.
1. That setting a second residency is too complex and difficult for me, which was proven false.
2. That I still need to renew my passport from time to time. Technically the only time when I’m actually there is for a new passport.
1. Extremely easy to do it if you are EU and moving to another EU country (in virtually all cases - I have registered already in 4 EU countries, just one of them actually asked me a bank statement). To other countries fairly more complex, and the complexity actually varies depending on the new country.
2. You don't need to be in Romania to renew your passport. Only you live in another EU country, let's say Cyprus, and you have your residence certificate or card there, you go the Embassy of Romania in that given country and apply/get your RO passport there.
2. You don't need to be in Romania to renew your passport. Only you live in another EU country, let's say Cyprus, and you have your residence certificate or card there, you go the Embassy of Romania in that given country and apply/get your RO passport there.
The easiest would be to buy property in a low tax country which you like, then you will quickly gain tax residence there.
Cyprus may have 12.5% CIT, but the effective rate can be lower. It is a completely different mentality than Northern or East European countries.
Anyway I mentioned Cyprus as place of residency, not for the legal entity. He can use a legal entity somewhere else with even lower tax rates.
Anyway I mentioned Cyprus as place of residency, not for the legal entity. He can use a legal entity somewhere else with even lower tax rates.
http://www.mondaq.com/cyprus/article.asp?articleid=815922
In this article they mention you can claim in Cyprus a 80% reduction on IP rights from the 12.5%, making effectively a 2.5%
In this article they mention you can claim in Cyprus a 80% reduction on IP rights from the 12.5%, making effectively a 2.5%
There is a lot of misleading information in this thread. Either people don't know about Cyprus in real live because they don't have any business there or they read on articles they find on the Internet and mix things a little.
Fact is, there is no tax on dividend. Another fact is, you can do a loan model to zero the tax in your Cyprus company. Fact is, you can offer a loan to your self (it has to be backed up with a lot of docs) so you zero out the personal tax you would have to pay.
Another fact is, a profits received︀ from a Seychelles company into a Cyprus company are tax free!
Fact is, there is no tax on dividend. Another fact is, you can do a loan model to zero the tax in your Cyprus company. Fact is, you can offer a loan to your self (it has to be backed up with a lot of docs) so you zero out the personal tax you would have to pay.
Another fact is, a profits received︀ from a Seychelles company into a Cyprus company are tax free!
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