oldtimer2 said:
So far fingers crossed we still find Georgia is okay as a place to locate a tech software business, but we watch the trends very very carefully and have lots of experience to draw on to try and manage any changes that might occur. We pay tax and probably more than we could - but safe to pay a bit more and avoid any tightening noose than pay less and get flagged. However, seems you also want a great place to raise your children - and you are happy with UK climate - and you are looking at the old model of {Malta - UK non-dom + Italy (your current country) + one other}... and you are hoping this structure stays low tax for some years ahead. (Nobody can promise it will. If you want non-dom with less risks of it being abolished then Ireland and IoM are not making any noises about abolishing theirs.) In other threads there is discussion about keeping your structure simple to avoid too many variables that can bring your plans undone.
The idea of living in a nice boat is not new and many people do it
🙂. ... including my brother did it with his family. But these days - when there is potentially a _lot_ of tax dollars up for grabs - more countries will want to ask about your tax residency unlike the good old days when boat people could just float around in very low tax or even income tax free bliss. Boat people were amongst the first 'digital nomads'. Everything is a compromise eh
🙂.
By IoM I mean capped maximum income tax - not non-dom.
I tend to agree with
Yep. As JohnnyDee has also said... your children will usually thank you for providing them an international upbringing that exposes them to the realities of life more than an upbringing in a safe place in one high end country that might produce closed minds. There is so much more to life... and exposure to foreign cultures is how it's absorbed.. balanced by how you provide stability for the family / partner / kids, as some kids thrive on adventure and others hate change. Like all of this discussion, it all depends on the fine detail specifics of your own personal circumstances and usually advice can only be generalised.
What is your original country of citizenship? What languages do you and your family speak? Does that open any doors or simplify any choices for you?
When considering non-EU countries, especially those that might appear to be outside your comfort zone, then check if they might be able to fall into your personal comfort zone. (by yours I mean you family's.) For example, do they have large expat communities speaking your language that can ease your pathway into that country and culture? Do they have international schools etc etc (or is home schooling your thing)? It's all the usual relation questions / subjects.
Better to throw the net wide but definitely do explore countries that are not already flagged for harsher tax treatment by the countries you will be sourcing money from. Meaning it will be longer before the trend of higher taxes locally or internationally hit those unflagged countries.
A country can be unflagged for all kinds of reasons. For example, the USA has the political strength to get away with lots. Bulgaria has reducing population (especially of young people) and other issues, so the EU will probably allow Bulgaria to stay low tax for some years ahead. In this regards I will mention Georgia again... not everyone's choice at all, but outside the EU and it is still _off_ everyones grey list and is not considered by any tax authority to be running a zero tax or similar haven. From this "not flagged countries" perspective, georgia is an example of the type of country worth a closer look. If you really want to be close to the EU then Georgia is fairly close... again, it's all about your preferences and balancing them for the best compromise result.
And finally remember some countries will no longer give certain tax advantages (like Malaysia and tax free foreign dividends) if the source funds were not already taxed at least a certain amount - can be 15% for some countries, other countries say "if not taxed at similar rates as we tax that type of income". It's the fine details of your money flows that need to be studied and harsher taxation generally is the trend. So best to keep it in mind and try to start with countries and structures that at least currently are not flagged at all (Malta is certainly flagged but still probably an okay choice for a few years to build wealth and then jump to somewhere else) - and Georgia's also probably okay for a few years to build wealth if done carefully - and so are various other countries in the regions JohnnyDee suggested.
Avoid if possible using special status in countries already under risk of known local or international political and tax pressure to change (such as UK non-dom ). Needing to change countries after a few years by choice is better than jumping because the tax man is chasing or about to come knocking on your door.
🙂 . Avoid thinking you can choose one low tax place now and it will still be your low tax home for the next 20 years. I aq, keeping an eye on this thread because it's a very common situation - a person or family on the verge of making their financial breakthrough and how to make trend savvy choices to maximise the benefits.
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