Nomad Setup
- Thread starter Casper
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A question I always had about cyprus or any other non dom status: let's say you are a digital nomad in cyprus and gain 100 each year. you pay taxes in cyprus on 20 and 80 fall under the non dom status as they are not taxed because they are dividends.
Then you go back to your country, what do they say about the 80? Are they taxed at 0% in cyprus or are they not taxed at all?
In any case it looks like neither Cyprus nor Dubai have a double taxation agreement with denmark, so basically any tax residency certificate is worthless, if they come after you. So basically the idea is never go back home or if you are forced to, never bring any money back home.
So far nobody notices yeah.
Depends on which country you want to live in.
Now getting banking for that Nevis LLC is not impossible but quality is kinda meh and also expensive.
Cyprus and Denmark most certainly have a DTA between them. They are both in EU, even.
About the other question, i don't know if Non-dom status in country B could trigger questions or back taxes request in country A.
@Sols most likely can answer here
youo are right, looked at the wrong page 😀
https://mof.gov.cy/en/taxation-investment-policy/double-taxation-agreements/double-taxation-treeties
for you bulgaria freelance is best (7.5 + capped socials) as cyprus is more like 15%. dont rely on a dubai setup because this is a can of worms and in reality your shell company would have PE in cyprus anyways
bulgaria also has 0 days requirement in country, tax residence certificate comes from renting an apartment
romania is good as well but yeah it has more uncertainty coming up.
if you do your taxes properly and you have an accountant there is a 0% chance you end up in jail for the tax fraud, especially as a foreigner
There should be also a discussion of what constitutes "tax fraud", because in my home country you can go to jail for tax fraud, but countless tv / sports personalities, people who were making millions of euro a year and where declaring residency in Monaco even if they were live from tv studios inside the country each day, were simply fined and then settled in court.
People who are in prison for tax fraud are mostly people who sold goods into the country evading VAT by setting up triangolations with other countries, like some famous mobile phones websites. What constitutes tax fraud is more at the corporate level and related to the internal market, rather than at the personal level. But that also depends on how people in the country perceive the crime, in my home country if you f**k the state, you are a hero, in Denmark I guess it's different. In any case I would agree that I think it's hard to go to jail as a denmark citizen for tax fraud in bulgaria, I would be morw worried about going to jail in Denmark.
While in the USA you definitely go to Jail for tax evasion, it's 5 years.
Hey,
In Cyprus, you report all your worldwide income in a personal income tax return.
You report all amounts of passive income (dividends). So if needed in the future you have proof that all worldwide income was reported correctly in the tax residency country.
Before submitting of the tax return you should obtain a non-domicile certificate (otherwise defense tax would be applied).
As regards Denmark ”“ yes, indeed you should look at local tax residency rules and what they say, i.e. how many days you should be outside the country, how many consecutive years (if any), etc. Because countries do not have a treaty so you can not count on it.
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There is a double taxation agreement between cyprus and Denmark, while there is not between Denmark and UAE. So Cyprus is definitely the best choice here.
https://mof.gov.cy/en/taxation-investment-policy/double-taxation-agreements/double-taxation-treeties
If anything in that video is true it is once of the biggest tax benefits in Europe for entrepreneurs. I would like to double check it with a tax advisor in Germany. I don't think it is that easy.
Why would any entrepreneur in Germany not just setup a company with Substance in Switzerland that is owned by a KG or like in the Video a KG that owns a US LP if you can get the money almost tax free out than. I mean 21% total tax to be paid is nothing!
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He is german Prof. Dr. Christoph Juhn.
That's how it basically works i think. An example with Spain.
Last edited: Dec 3, 2022
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