Proof of residency
- Thread starter ilpablo
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As explained before, this all depends on the rules of your home country. Some countries are OK︀ with you being not in your home country anymore. Others require proof you live somewhere︁ else permanently, i.e. it's not good enough for them if you're a nomad.
You mean income paid by a Danish employer? Because as far as︆ I know, Denmark is otherwise fine with people just leaving. I've met some Danish nomads︇ during my travels and they told me they don't have to pay taxes in Denmark.︈
You mean income paid by a Danish employer? Because as far as︆ I know, Denmark is otherwise fine with people just leaving. I've met some Danish nomads︇ during my travels and they told me they don't have to pay taxes in Denmark.︈
If you leave the country you won't need to pay taxes in Denmark, but that requires that you give up all ties to the country.
I won't be, but the people who interviewed me told me that some who relocate, get into a situation with double tax in their country and end up with up to 70% total tax. I wonder how these countries with high taxes even attract people to move there. Probably the ones who want to relocate on these terms are people from countries where things are so bad that they're trying to at least survive 😳
Do you guys knows where would you pay taxes if you move from a country A (Italy, France, etc) to a country B (Romania, Bulgaria, etc) you get your residency and you open your company there and then after that you move to another country with the digital nomad visa (which say you pay zero taxes in that country because you are supposed to pay them in your country of residence)?
@ilpablo That would depend on the laws of country A and country B. Obviously there's a high chance that country A and C wouldn't care because they think you're paying taxes in country B. And country B may not care because you actually live in country C. But if you ever move back to country A or for some reason, there's an audit in country A (or potentially in country B), then they could demand you pay taxes there, since you didn't pay taxes in country C.
It would depend on the laws of country A, obviously. It's not enough to pay taxes, you also have to pay them to the right country.
Fictitious example. Say the tax laws of country A say: "You cease to be tax resident in country A if and only if you take up permanent residency in and become tax resident of a country that we have signed a tax treaty with. Otherwise you will remain tax resident in country A."
Country A has signed a tax treaty with︀ country B. But country B only considers you tax resident if you spend at least︁ 60 days per year in the country.
Now you move to country B on paper,︂ but you really live in country C.
Country C says "if you are in our︃ country on a digital nomad visa, you cannot be considered tax resident" - and country︄ C also hasn't signed a tax treaty with country A. So country C is out.︅
But country B is also out since you're not spending the required 60 days there,︆ thereby no longer fulfilling the "you are tax resident of a country we have signed︇ a tax treaty with" condition.
So based on that you would remain tax resident in︈ country A and have to pay taxes there.
But that's just something I made up︉ now to illustrate a hypothetical problem. In practice, I cannot imagine this would be an︊ issue. But you should work with tax lawyers from countries A and B to be︋ sure.
Fictitious example. Say the tax laws of country A say: "You cease to be tax resident in country A if and only if you take up permanent residency in and become tax resident of a country that we have signed a tax treaty with. Otherwise you will remain tax resident in country A."
Country A has signed a tax treaty with︀ country B. But country B only considers you tax resident if you spend at least︁ 60 days per year in the country.
Now you move to country B on paper,︂ but you really live in country C.
Country C says "if you are in our︃ country on a digital nomad visa, you cannot be considered tax resident" - and country︄ C also hasn't signed a tax treaty with country A. So country C is out.︅
But country B is also out since you're not spending the required 60 days there,︆ thereby no longer fulfilling the "you are tax resident of a country we have signed︇ a tax treaty with" condition.
So based on that you would remain tax resident in︈ country A and have to pay taxes there.
But that's just something I made up︉ now to illustrate a hypothetical problem. In practice, I cannot imagine this would be an︊ issue. But you should work with tax lawyers from countries A and B to be︋ sure.
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