Where to relocate to not pay capital gains tax and live cheap

[Revoltec]

Hello everybody! Im in a difficult situation and need to find a new country to have a permanent address in and preferably not pay any capital gains tax on my investments from now on.

My situation:
I made some errors on my investment accounts in Sweden and instead of paying a version of low wealth tax I had to pay 30% on my profits. I made money on Bitcoin and almost the entire value is made of profits. Also, I made the transaction when Bitcoin was 2x higher the price than it is today, so I decided to not pay the tax (not illegal to have a debt to the state) and wait for the statute of limitations to cancel the debt after 5 years. I owe around $29k and my net worth is $120k. I have no assets or connection to Sweden anymore and have not had it for the past 2 years.

I have a Swedish and a Serbian passport and I have only capital gains as I invest. I need to find a new country where I should pay my taxes (or no taxes). Both Sweden and Serbia are happy if I can show proof of a registered address for more than 6 months. There is no requirement legally that I have to be a tax resident of the new country but in practice they always ask for it which would simplify the process.

Do you have a recommendation of where I can try to get my permanent address of at least 6 months a year? It would be very good if I could find a country that have no capital gains tax or very low. Also it need to be easy for me to get residency there or be allowed to get an adress for 6 months at least. Switzerland is too expensive for me based on my net worth I think. I would prefer if the new country is geographically close to Europe.

I have been thinking about Jamaica but it is a bit far away for me to travel. I have also been thinking about countries that have territorial tax system like Thailand or even Lebanon in case it is possible (I am not sure if this would solve the problem if my investments are abroad?). I also like to travel so I do not plan to spend the actual 6 months there but just have my permanent home there, so cheap countries are preferable.

Thanks in advance.

 

[JackAlabama]

Revoltec said:
Hello everybody! Im in a difficult situation and need to find a new country to have a permanent address in and preferably not pay any capital gains tax on my investments from now on.

My situation:
I made some errors on my investment accounts in Sweden and instead of paying a version of low wealth tax I had to pay 30% on my profits. I made money on Bitcoin and almost the entire value is made of profits. Also, I made the transaction when Bitcoin was 2x higher the price than it is today, so I decided to not pay the tax (not illegal to have a debt to the state) and wait for the statute of limitations to cancel the debt after 5 years. I owe around $29k and my net worth is $120k. I have no assets or connection to Sweden anymore and have not had it for the past 2 years.

I have a Swedish and a Serbian passport and I have only capital gains as I invest. I need to find a new country where I should pay my taxes (or no taxes). Both Sweden and Serbia are happy if I can show proof of a registered address for more than 6 months. There is no requirement legally that I have to be a tax resident of the new country but in practice they always ask for it which would simplify the process.

Do you have a recommendation of where I can try to get my permanent address of at least 6 months a year? It would be very good if I could find a country that have no capital gains tax or very low. Also it need to be easy for me to get residency there or be allowed to get an adress for 6 months at least. Switzerland is too expensive for me based on my net worth I think. I would prefer if the new country is geographically close to Europe.

I have been thinking about Jamaica but it is a bit far away for me to travel. I have also been thinking about countries that have territorial tax system like Thailand or even Lebanon in case it is possible (I am not sure if this would solve the problem if my investments are abroad?). I also like to travel so I do not plan to spend the actual 6 months there but just have my permanent home there, so cheap countries are preferable.

Thanks in advance.
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If it costs you "only" 29k to be done with this issue forever, id pay it . Its too low of an amount to run around the globe in circles.

 

[TheCryptoAnt]

Use the search function brother this gets asked very week at least twice.

 

[bigdaddyleon]

JackAlabama said:
If it costs you "only" 29k to be done with this issue forever, id pay it . Its too low of an amount to run around the globe in circles.
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I agree

Revoltec said:
Do you have a recommendation of where I can try to get my permanent address of at least 6 months a year? It would be very good if I could find a country that have no capital gains tax or very low. Also it need to be easy for me to get residency there or be allowed to get an adress for 6 months at least. Switzerland is too expensive for me based on my net worth I think. I would prefer if the new country is geographically close to Europe.
Click to expand...

thought about UAE?
Dubai is probably out of the question price-wise, the cheaper Emirates should be feasible.

 

[Clank]

JackAlabama said:
If it costs you "only" 29k to be done with this issue forever, id pay it . Its too low of an amount to run around the globe in circles.
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If he has already spent 2 years abroad because of this and doesn't plan to go back for a while maybe it's the best option.

 

[JohnnyDoe]

You will regret the good old times when you worried for just $29k 😉

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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 

[Revoltec]

JackAlabama said:
If it costs you "only" 29k to be done with this issue forever, id pay it . Its too low of an amount to run around the globe in circles.
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In some way yes, but I already cut my connections with Sweden 2 years ago. It might be only 29k but at the same time it is almost 25% of my net worth. It would have much bigger impact on my lifestyle than continuing to travel on a cheap budget and invest. I have made 10x the money in my last 3-4 years and expect to have similar results in the future so this capital is of much use for me.

bigdaddyleon said:
I agree


thought about UAE?
Dubai is probably out of the question price-wise, the cheaper Emirates should be feasible.
Click to expand...

Of what I know it is easy for remote workers and people that open a company but not for my case. Also they seem to cancel your visa if you leave UAE for more than 6 months, and Im looking for getting a permanent address and travel around.

 

[Alonzo]

Revoltec said:
Hello everybody! Im in a difficult situation and need to find a new country to have a permanent address in and preferably not pay any capital gains tax on my investments from now on.
Click to expand...

You will get exit taxed. You will pay Swedish CGT for 10 years meaning you need to wait 10 years before selling tax-free (unless there is a DTA).

Revoltec said:
Also, I made the transaction when Bitcoin was 2x higher the price than it is today, so I decided to not pay the tax (not illegal to have a debt to the state) and wait for the statute of limitations to cancel the debt after 5 years. I owe around $29k and my net worth is $120k. I have no assets or connection to Sweden anymore and have not had it for the past 2 years.
Click to expand...

You won't get away like that. They can extend the statue of limitations

bigdaddyleon said:
thought about UAE?
Dubai is probably out of the question price-wise, the cheaper Emirates should be feasible.
Click to expand...

Dubai has no DTA with Sweden.

JackAlabama said:
If it costs you "only" 29k to be done with this issue forever, id pay it . Its too low of an amount to run around the globe in circles.
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Indeed. Get over with it and pay that 29k. 91k Net worth is too low anyways

Revoltec said:
In some way yes, but I already cut my connections with Sweden 2 years ago. It might be only 29k but at the same time it is almost 25% of my net worth. It would have much bigger impact on my lifestyle than continuing to travel on a cheap budget and invest. I have made 10x the money in my last 3-4 years and expect to have similar results in the future so this capital is of much use for me.
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Idk but I think you're trying to commit tax evasion

 

[Revoltec]

GHD999 said:
You will get exit taxed. You will pay Swedish CGT for 10 years meaning you need to wait 10 years before selling tax-free (unless there is a DTA).

You won't get away like that. They can extend the statue of limitations

Dubai has no DTA with Sweden.

Indeed. Get over with it and pay that 29k. 91k Net worth is too low anyways
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1. Exit tax is only valid for Swedish stocks (always) and foreign stocks you acquired during the time you lived in Sweden, and not at all for crypto. So as long as I do not buy any Swedish stocks in the future, this has no impact on me.

2. They can extend it but it doesn't make much change because I have cut all ties and will make sure I have no assets in Sweden/EU in the future. Even if they come after me in 10 years, these 29k will be much smaller % of my net worth and with all the inflation added to it.

3. There is no need for a DTA if you are not subject to tax to Sweden anymore. That is only for persons that are taxable in both countries to avoid double taxation.

4. It would be tax evasion if I wouldn't report it or they wouldn't have any information about it. Now that they have, it is simply a failure to pay the taxes which will convert into debt. I cannot get convicted for tax evasion at this point.

Last edited: Mar 27, 2023

 

[Alonzo]

Revoltec said:
1. Exit tax is only valid for Swedish stocks (always) and foreign stocks you acquired during the time you lived in Sweden, and not at all for crypto. So as long as I do not buy any Swedish stocks in the future, this has no impact on me.
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I'm pretty sure they will treat crypto gains as "securities"

 

[Revoltec]

GHD999 said:
I'm pretty sure they will treat crypto gains as securities
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In Sweden crypto falls under the category of 'other assets' if kept in cold storage. They are subject to capital gains tax of 30% but are not covered by the exit tax, just as paintings etc.

 

[JackAlabama]

Revoltec said:
In some way yes, but I already cut my connections with Sweden 2 years ago. It might be only 29k but at the same time it is almost 25% of my net worth. It would have much bigger impact on my lifestyle than continuing to travel on a cheap budget and invest. I have made 10x the money in my last 3-4 years and expect to have similar results in the future so this capital is of much use for me.


Of what I know it is easy for remote workers and people that open a company but not for my case. Also they seem to cancel your visa if you leave UAE for more than 6 months, and Im looking for getting a permanent address and travel around.
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Paraguay is a very good option for people with your budget. There like having a 29k more or not makes a huge difference whereas in places like Dubai 29k does not.
Paraguay is far away and not the fanciest place but it is what you make it out of it and quite good value for the cost.
The place is also chill with taxes, you can get a real esidency etc but they can give shove it up your *** with their aml squad, but you might find ways to deal with it.

 

[Nomader]

JackAlabama said:
Paraguay is a very good option for people with your budget. There like having a 29k more or not makes a huge difference whereas in places like Dubai 29k does not.
Paraguay is far away and not the fanciest place but it is what you make it out of it and quite good value for the cost.
The place is also chill with taxes, you can get a real esidency etc but they can give shove it up your *** with their aml squad, but you might find ways to deal with it.
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what do you mean AML squad? of Paraguay or of Sweden?

 

[JimBeam]

I guess that all these capital gains come from crypto trading.

Honestly, 120k is not a lot of money so saving money on taxes is probably not the most important thing.
It's focusing on making more money and just paying.

Here's the full list of countries by their capital gains:
https://taxsummaries.pwc.com/quick-charts/capital-gains-tax-cgt-rates
If you don't do stocks (just crypto) you could live in Serbia as you have a passport, keep a low profile (no fancy cars, no crazy IG profile etc), exchange crypto for cash and just not pay the capital gains tax.

 

[JackAlabama]

Nomader said:
what do you mean AML squad? of Paraguay or of Sweden?
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paraguay: I link these here. SEPRELAD

funny enough almost never mentioned. But it needs to be handled appropriately. Over 5 digits it starts to get funny with them.

JimBeam said:
I guess that all these capital gains come from crypto trading.

Honestly, 120k is not a lot of money so saving money on taxes is probably not the most important thing.
It's focusing on making more money and just paying.

Here's the full list of countries by their capital gains:
https://taxsummaries.pwc.com/quick-charts/capital-gains-tax-cgt-rates
If you don't do stocks (just crypto) you could live in Serbia as you have a passport, keep a low profile (no fancy cars, no crazy IG profile etc), exchange crypto for cash and just not pay the capital gains tax.
Click to expand...

Prob by far the best solution.

 

[Nomader]

JackAlabama said:
paraguay: I link these here. SEPRELAD

funny enough almost never mentioned. But it needs to be handled appropriately. Over 5 digits it starts to get funny with them.


Prob by far the best solution.
Click to expand...

I was thinking the same even before you mentioned this info. Sure the 10% corporate tax plus 5% dividend tax sounds good on paper, but maybe they can find something that may or may not be there which may or may not be unseen depending on how you may or may not wish to deal with the situation. doesn't sound good.

 

[Revoltec]

JimBeam said:
I guess that all these capital gains come from crypto trading.

Honestly, 120k is not a lot of money so saving money on taxes is probably not the most important thing.
It's focusing on making more money and just paying.

Here's the full list of countries by their capital gains:
https://taxsummaries.pwc.com/quick-charts/capital-gains-tax-cgt-rates
If you don't do stocks (just crypto) you could live in Serbia as you have a passport, keep a low profile (no fancy cars, no crazy IG profile etc), exchange crypto for cash and just not pay the capital gains tax.
Click to expand...

Thanks for the link. I have stocks as well. Im also looking at countries that do not tax capital gains for long term hold, turns out Slovakia do not tax gains on stocks that are held over 1 year. In that case I would keep a low profile with my crypto. Anyone have opinions on Slovakia or any other recommendation on a cheap country that dont tax capital gains on long term hold of 1 year or less?

 

[JimBeam]

Nomader said:
I was thinking the same even before you mentioned this info. Sure the 10% corporate tax plus 5% dividend tax sounds good on paper, but maybe they can find something that may or may not be there which may or may not be unseen depending on how you may or may not wish to deal with the situation. doesn't sound good.
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You can get 10% corporate and 5% dividends in Bulgaria.
No need to go from Sweden to Paraguay to achieve that.

 

[cryptofriendly]

Cabo Verde.

 

[aragon]

I didn't see anyone suggest Georgia. Territorial tax regime, so no capital gains on foreign capital. Still cheap to live there, although I think less so in Tbilisi since the Ukraine conflict. Has direct flights to the EU.

Maybe Malta too. Non-dom tax regime. Less cheap than Georgia, but arguably a better lifestyle.