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Offshore options for a brazilian software dev

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iusesemicolons

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Jan 27, 2021
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Hello there,

I have a company here in Brazil (microempresa-simples) and doing software development services only to foreign clients. My main clients are from US, Canada and EU. I do invoice them through my company, receive my payment through payoneer and in total pay around 10% here in Brazil, including pension contributions. I pay around 8000-9000 USD yearly on taxes.

I'm looking to live like a nomad for some time and looking some offshore options to move my company and myself. I searched some options like Estonia, US LLC but didn't find any benefit I'm looking for. The most promising one was Dubai freelance visa which is around 2000 USD yearly but it's still risky due to it has a yearly fixed price instead of % of invoiced amount. I don't mind visiting a county once a year/6 months to keep my tax residency.

I also look to find a more financially liberal country to keep my savings in USD (maybe with a interest rate) as in Brazil current interest rate on brazilian reais is a total joke (2%). Also it's extremely painful to receive foreign currency to the country. I sometimes needed to use crypto just to do that and I'm still afraid if they can tax me for this.

Currently researching about Panama, Paraguay or Portugal but seems like all countries has some issues? Also Georgia or Ecuador look like they have good interest rates for USD. What would be the recommendations?

I can travel to any country to open a business and bank account. Thanks in advance.
 
I can only speak for︋ what you have mentioned about Dubai.

Don't forget for the freelance VISA you need to︌ have a profession that you already conduct before under your personal name and need to︍ proof it. For sure you will get the Visa but when it come to banks︎ it's not that easy without a reliable history that you already provided the profession before️ in Brasil.

If you are willing to travel go for a Dubai company with Visa‌ (3 years validity) and open a business bank account in name of the company always‍ better to use a separate legal entity. The business bank account doesn't require proof of⁠ address with right structure and bank you simply need to be in the country every⁤ 180 days for 24 hours.

Cost will be 50% of what are you paying currently⁣ yearly taxes and doesn't grow in case the business grows.

As you have mentioned interest⁢ rates I think they are pretty everywhere a joke right now but you have the︀ possibility to open an Interactive Brokers account under the company name. With investing in passive︁ index funds you can make ~8% yearly.

Regarding the freelancer Visa there are crazy horror︂ stories from UK people got jailed from HMRC because of conducting all the business in︃ personal name. Maybe Brasil have lack of enforcement compared to UK but keep this in︄ mind.
 
Would you like to come to Sri Lanka for doing business. I am running an‌ IT startup and hope we can do some progressive work while having some solutions for‍ your Tax Concerns. Thanks.
 
Hi, have you considered the︋ option of Cyprus? Your line of work seems that it could potentially fall under the︌ Cyprus IP Box regime - this allows for income deriving from certain qualifying IP Assets︍ (you can get an official tax ruling on this from the Cyprus authorities) is taxed︎ at the extremely low rate of around 2.5%. Cyprus has very attractive tax incentives.
 
Hello,

I'm brazilian too and︋ I've studied the subject extensively.

Your case looks to be easy to solve. It just︌ needs to be done in steps.

1. Move to Paraguay. Brazilians can get permanent residency︍ in Paraguay in a week. You don't even need a passport. All you need is︎ your national ID (RG), and clean crime records.
2. Get fiscal residency there, make the️ brazil tax exit.
3. Paraguay tax redency is easy to keep. You don't have to‌ do anything. Hire a local agent once you are there and pay him to do‍ your personal taxes every year.
4. You don't need a company. Paraguay doesn't tax personal⁠ income from overseas. You never have to go back to Paraguay.
5. You will only⁤ need to form a company if you can't get a bank acount under your name.⁣

Now for the shitty part:

You have to take care where you go. Most countries⁢ will consider you tax resident if you stay longer than 6 months. Thus, you need︀ to take care not to overstay anywhere and stay on the move always.
 
The idea is good, but this will︆ only work if he lives permanently in Paraguay, correct?
If he wants to live in︇ Brazil, even with the tax exit, he would have to pay taxes here in Brazil.︈
 
No, it is⁠ not like that.

He doesn't need to live in Paraguay. He can live anywhere in⁤ the world. But if he becomes tax resident anywhere else, he would have to pay⁣ taxes there.
The trick is to be careful and not to become fiscal resident anywhere⁢ else.

Brazil is the worst place for him to live. Brazil can consider him tax︀ resident even if he doesn't live in Brazil.
If he has an empty home, or︁ pays rent in Brazil, he will be considered fiscal resident there.
He can stay outside︂ of Brazil for years, but still would have to pay taxes.

That is why it︃ is important to sever economic ties with Brazil.

It is ok to visit family and︄ friends once a year, and stay here for a short time.
But it is not︅ ok to rent or own an empty home waiting for your return there.
 
Would be interesting to find out if he wants︄ to do all that to save USD9k a year.
 
Yes, it is because he is a Brazilian national.

Brazilian law treats foreigners and nationals‌ differently:

If you are a Brazilian national, the criteria are subjective.

If you are a‍ foreigner, the criteria are objective.

For foreigners:

You'll be considered a fiscal resident of Brasil⁠ when:
a) you hold a permanent visa and *enter* Brasil. (not that you can have⁤ the visa and not visit the country).
b) you hold a temporary visa and, *enter*⁣ Brasil stay for more than 182 days per year.

You'll lose your fiscal residency when:⁢
a) you exit the country and fill out the fiscal exit form.
b) you exit︀ the country and stay away for more than one year.

Buying property in Brasil is︁ a bad idea, but for other reasons.

Rent has withheld taxes, and it is 27.5%.︂ Rent laws disproportionally favor the renters. Sometimes evictions can linger for years. Etc. Buy property︃ elsewhere. You can rent here. Renting here is great.
 
So, if I buy a beach house in Jurerê, but I⁠ do NOT rent it to anyone. In essence, I lock it up until my next⁤ visit, it's still a bad idea to buy property in Brazil?
 
What happens if your house gets robbed, or if the grass gets too tall? Or‌ if a squatter gets in? If you can take care of that, great.
It might‍ be a good idea to buy property in a gated community, or maybe an apartment.⁠ But that costs a premium.

Airbnb is great in Florianopolis. Have you checked it?

If find out that there are squatters on your property, you are required to take action⁤ immediately to remove them. If you do not, you'll have to follow "due process".. There⁣ are plenty of accounts where squatters take years to get evicted.
 
No, it is not like that. You sign the exit and go away, you can have︃ an apt there as an investment with no problem.
Where did you read this? Cuirous︄ if you ar you Brazilian and had such bad experience
 
I'm Brazilian, and I had a few bad experiences managing real state here. I can't‌ imagine managing property from overseas.
 
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