Because if you can avoid to pay taxes (personal income tax) I find it cheap. If you move from one EU country to another for free just to safe 1% it make not much sense for me.
What country would you choose to relocate to avoid taxes?
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It doesn’t help you much if Andorra considers you tax resident if you don’t spend any time there. You would most likely still be considered tax resident somewhere else. The UAE considers you tax resident if you enter once every 6 months. So what? That doesn’t mean you can avoid paying taxes if your wife and kids live in France or if you own an apartment in Portugal etc. etc. etc.
I thought we had discussed that sufficiently here...
I thought we had discussed that sufficiently here...
- Andorra has 10% CIT
- You're officially considered an active Andorra resident if you spend more than 183 days in Andorra and are liable to 10% PIT. Active self employment residencies are limited (900 per year, I think). You'll have to rent or buy a property of at least 20m2, incorporate your company with 3k€, 15k€ deposit with the the Andorran Financial Authority, you'll need to prove that you earn enough to support you and your dependents (~40k€ + ~13k€ each family member)
- As a passive resident you're only required to spend 90 days in Andorra, different types of requirements depending on the︀ category (i.e. 50k government bond, incorpration in Andorra, >85% of business outside of Andorra, business︁ plan for the next 3 years).
- You're officially considered an active Andorra resident if you spend more than 183 days in Andorra and are liable to 10% PIT. Active self employment residencies are limited (900 per year, I think). You'll have to rent or buy a property of at least 20m2, incorporate your company with 3k€, 15k€ deposit with the the Andorran Financial Authority, you'll need to prove that you earn enough to support you and your dependents (~40k€ + ~13k€ each family member)
- As a passive resident you're only required to spend 90 days in Andorra, different types of requirements depending on the︀ category (i.e. 50k government bond, incorpration in Andorra, >85% of business outside of Andorra, business︁ plan for the next 3 years).
It would depend on the country where the kid is located, probably also on whether you can show you and the mother are no longer a couple etc.
But if you are a happy couple, the kid would probably be enough for most high-tax countries to create tax residency. At least the authorities would probably try to get you that way and then you would have to fight them in court.
But if you are a happy couple, the kid would probably be enough for most high-tax countries to create tax residency. At least the authorities would probably try to get you that way and then you would have to fight them in court.
I know a guy having citizenship of Panama and Slovakia at the same time
also another one having citizenship of Austria, Panama and Paraguay
do they lie?
also another one having citizenship of Austria, Panama and Paraguay
do they lie?
@Marie Manila @void
Panama does not allow dual citizenship by law. Still works in practice. They'll ask for your promise that your previous citizenship will be renounced when accepting theirs, but there's no follow up scrutiny. And thus dual citizenship is achieved by simply not honoring the request to renounce existing citizenship(s).
I do not hold a Panamanian passport but have a little word-by-mouth knowledge of the matter. Double check with a lawyer if you plan to take an action based on this post.
Panama does not allow dual citizenship by law. Still works in practice. They'll ask for your promise that your previous citizenship will be renounced when accepting theirs, but there's no follow up scrutiny. And thus dual citizenship is achieved by simply not honoring the request to renounce existing citizenship(s).
I do not hold a Panamanian passport but have a little word-by-mouth knowledge of the matter. Double check with a lawyer if you plan to take an action based on this post.
No, unfortunately is not possible to get the tax residency without being partner of a company in Andorra. The only people that could do that are the called "professional liberals" that make an activity by their own means and self employment but without having to create a company. But for doing that you have to approve a professional tertiary︀ degree before the Andorran institutions and do some more paperwork, in general it is reserved︁ for engineers, lawyers, etc.
I have heard that Panama published the names of those who acquire citizenship and that other countries’ embassies follow those publications closely - to take away the original citizenship.
There are 2 ways in my opinion:
1) find a country with a general low taxation: Irland (low tax) to stay in Europe, UAE (no tax) as CaptK suggested. I will also check Malta and Cyprus to stay close to Europe. Lituania or Bulgaria have also low cost living expenses and you will be taxed 29-30%.
2) find a country that is not generally low taxation country but your income could be considered exempt and you will pay zero (specific prevision about this in Portugal, or south east asia: philippines or malasya (or here with a business in labuan). In this case you could have︀ also a zero taxation (exemple philippines with rssv).
Disclaimer: just personal opinion. Is not endorsement.︁ Is not advice. Consult your advisors.
1) find a country with a general low taxation: Irland (low tax) to stay in Europe, UAE (no tax) as CaptK suggested. I will also check Malta and Cyprus to stay close to Europe. Lituania or Bulgaria have also low cost living expenses and you will be taxed 29-30%.
2) find a country that is not generally low taxation country but your income could be considered exempt and you will pay zero (specific prevision about this in Portugal, or south east asia: philippines or malasya (or here with a business in labuan). In this case you could have︀ also a zero taxation (exemple philippines with rssv).
Disclaimer: just personal opinion. Is not endorsement.︁ Is not advice. Consult your advisors.
If you acquire Panama or any other citizenship you don't loose your UK, Canadian or US citizenship ever. You have to renounce these citizenships. Some countries allow dual citizenships of only specific countries they have agreements with. India, Nepal, Netherlands, Japan, Singapore etc do not allow dual citizenships. You have to just find out the laws of your country by google search. Some people do carry illegal dual passports.
I am thinking about it:
1 - Staying in the"gray area"by paying some taxes somewhere and living somewhere else.
So, incorporate a company in central europe/eastern europe and living in another closed/neighbor country can be possible, not so risky because of Schengen right?
I mean, if you are taxing tax residency let's say in︀ Hungary or Montenegro : you satisfy all conditions first year and after going to live︁ almost/full-year in another country : Poland for example, it's possible right?
Of course, traveling should︂ not be done by plane I guess to limit risks?
However, I am wondering if︃ country A (Hungary ..) can ask to see your bank statements to be sure you︄ are spending some time in their country? If you pay taxes, they don't care?
If not, I guess we just need to use EMI and never put anything at our︅ name in country B (even I am wondering if take a long term lease flat︆ at your name is really risky, what are the alternatives?).
I mean, it's almost impossible︇ they will detect 'you' or claim something right?
2 - Non-dom island
I guess this︈ setup can't work with an island or low tax country with a great non dom︉ system like Cyprus where you can just stay 2 months (rent a place...)?
Living in︊ Cyprus 2 months
Living in Poland 10 months
This setup is really risky because of︋ traveling by plane, right?
3 - Alternative
Andorra seams a great opportunity with the 90︌ days rule for passive residents.
Basically, you could spend other 9 months in another place︍ (still with EMI ..), right?
Thanks for your feedbacks.
1 - Staying in the"gray area"by paying some taxes somewhere and living somewhere else.
So, incorporate a company in central europe/eastern europe and living in another closed/neighbor country can be possible, not so risky because of Schengen right?
I mean, if you are taxing tax residency let's say in︀ Hungary or Montenegro : you satisfy all conditions first year and after going to live︁ almost/full-year in another country : Poland for example, it's possible right?
Of course, traveling should︂ not be done by plane I guess to limit risks?
However, I am wondering if︃ country A (Hungary ..) can ask to see your bank statements to be sure you︄ are spending some time in their country? If you pay taxes, they don't care?
If not, I guess we just need to use EMI and never put anything at our︅ name in country B (even I am wondering if take a long term lease flat︆ at your name is really risky, what are the alternatives?).
I mean, it's almost impossible︇ they will detect 'you' or claim something right?
2 - Non-dom island
I guess this︈ setup can't work with an island or low tax country with a great non dom︉ system like Cyprus where you can just stay 2 months (rent a place...)?
Living in︊ Cyprus 2 months
Living in Poland 10 months
This setup is really risky because of︋ traveling by plane, right?
3 - Alternative
Andorra seams a great opportunity with the 90︌ days rule for passive residents.
Basically, you could spend other 9 months in another place︍ (still with EMI ..), right?
Thanks for your feedbacks.
You will need to provide evidence you are living in the country so you will have to provide bills, expenses in the country, rent and so on.
Who told you about avoid to flight? do not matters at all (if you don't deduct the cost from your income and you are the one offering those informations to the country), flight or train companies don't exchange those kinds of informations.
Who told you about avoid to flight? do not matters at all (if you don't deduct the cost from your income and you are the one offering those informations to the country), flight or train companies don't exchange those kinds of informations.
On personal or corporate level?
Why and how they will ask?
I mean, you enter the country and you don’t register for residency permit (I am from EU).
I know it’s « bad » but you can live normally with a neobank on daily life without problems no?
Great!
But for countries like Cyprus, I guess︁ they are checking?
I mean, the easy non doms says you need to rent a︂ place full year etc and stay minimum 60 days in Cyprus. So imagine I am︃ staying 10 days, how they can prove it?
Rent is keeping full year in every︄ way so how they really check that? They can’t ask bank statements to see expenses?︅
Why and how they will ask?
I mean, you enter the country and you don’t register for residency permit (I am from EU).
I know it’s « bad » but you can live normally with a neobank on daily life without problems no?
Great!
But for countries like Cyprus, I guess︁ they are checking?
I mean, the easy non doms says you need to rent a︂ place full year etc and stay minimum 60 days in Cyprus. So imagine I am︃ staying 10 days, how they can prove it?
Rent is keeping full year in every︄ way so how they really check that? They can’t ask bank statements to see expenses?︅
They don't have to check it. You are the one that will have to︂ provide evidence a) in order to obtain the tax residences privileges (BTW the 60 days︃ is a special prevision and you need multiple conditions) and from the other country point︄ of you b) if they audit you from the country (the one where you are︅ staying most of the time) you need evidence in order to prove not to be︆ a tax resident of the latter.
Some countries also will consider you tax resident if︇ you were previous a resident of that country and you fail to provide enough evidence.︈
Some countries also will consider you tax resident if︇ you were previous a resident of that country and you fail to provide enough evidence.︈
So you need to provide evidence every year?
I mean if the setup is working the first year, they are not checking after may be?
Yes multiple (not difficult conditions) for Cyprus 60 days rule :
- Staying in Cyprus for 60 days
- Be employed by a Cyprus company (yours for example)
- Have a permanent residence in Cyprus (rent a︀ flat full year)
- Earn enough to live in Cyprus
- And you did not︁ stay anywhere else for more than 183 days in the same year : ok but︂ how they are checking?
Speaking about 60 days is not bad of course but if︃ this is the same scheme for other countries...
Of course but I don't︇ see why the other country could audit you?
I mean, they will normally don't even︈ know you are there (emis, nothing at your name, from EU so Schengen ..).
I mean if the setup is working the first year, they are not checking after may be?
Yes multiple (not difficult conditions) for Cyprus 60 days rule :
- Staying in Cyprus for 60 days
- Be employed by a Cyprus company (yours for example)
- Have a permanent residence in Cyprus (rent a︀ flat full year)
- Earn enough to live in Cyprus
- And you did not︁ stay anywhere else for more than 183 days in the same year : ok but︂ how they are checking?
Speaking about 60 days is not bad of course but if︃ this is the same scheme for other countries...
Of course but I don't︇ see why the other country could audit you?
I mean, they will normally don't even︈ know you are there (emis, nothing at your name, from EU so Schengen ..).
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