Why do I need ANY tax residency?
- Thread starter Dagobert Duckson
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Your country tax office will ask you 1 question
"Where are you a tax resident of︅ if not here"
If the answer to that is not a SPECIFIC nation, guess what,︆ you are going to pay taxes there. They will not accept the answer you just︇ are not a resident of australia or canada, etc. You must say a specific nation︈ or else forget it.
"Where are you a tax resident of︅ if not here"
If the answer to that is not a SPECIFIC nation, guess what,︆ you are going to pay taxes there. They will not accept the answer you just︇ are not a resident of australia or canada, etc. You must say a specific nation︈ or else forget it.
PT (= permanent traveler/tourist) lifestyle is no longer possible in the EU, unless you are a citizen of Germany, Austria or certain Swiss cantons. All others will run into problems with banks and other financial institutions. As @hernanday explained, at least some countries won't even let their tax slaves go, unless those slaves can prove they are property of another slaveholder.
Being a PT stopped working for me in 2018. After a KYC-runaround, I was kicked out by my online broker. My P.O. Box address wasn't the main issue, but lack of a Tax ID. Banks too were getting impatient. If one wants to have︀ anything to do with EU financial institutions, the only solution is to get a Tax︁ ID.
Being a PT stopped working for me in 2018. After a KYC-runaround, I was kicked out by my online broker. My P.O. Box address wasn't the main issue, but lack of a Tax ID. Banks too were getting impatient. If one wants to have︀ anything to do with EU financial institutions, the only solution is to get a Tax︁ ID.
This is a generalization and not correct for every country. For example the UK does not care where you are as long as you are not uk resident.
Other countries want an address where you︀ move (don't need to be tax resident there) but will not ask where you move︁ after having moved there.
Other countries want an address where you︀ move (don't need to be tax resident there) but will not ask where you move︁ after having moved there.
My country of citizenship's tax office had declared I am no longer tax resident there, so the broker insisted I must have another tax id. In their way of thinking, one must be tax resident somewhere. I may have contributed to my own demise by keeping my address current in their system. But giving obviously false information about one's address & tax ID does not sound like a good long-term solution either.
I will add to this, that KYC also makes︂ it impossible as he explains, it has gotten so bad, that banks no longer want︃ to open accounts for Americans in France because they must maintain your account forever because︄ of facta! I was talking to a French banker friend and he told me this︅ is the reason they don't want to open accounts for Americans. Under facta, if you︆ live $500 in your french account, and leave france for ever, they must report on︇ you until your fees are all overtaken your deposit and maintain the records forever. So︈ itt is just easier to not open an account unless the person is extremely rich.︉
Yes, it is a generalization, there is no way I could give an answer for all 190+ nations in the world.
With the way tax offices are increasingly aggressive, it would not surprise me if the UK follows this path if they have not already.
I would question your interpretation of UK tax law in practice as well. I could be wrong here, I'm not specifically familiar with UK law. However, it sounds very similar to︀ what the other countries claim on paper, but the tax offices interpretation is likely to︁ be different. The law says in Canada, you don't have to pay tax if you︂ are a non-resident (like UK). But the CRA then claims you are a resident if︃ you have a car, house, kids, wife, pets, driver's license, healthcard, all in Canada,even if︄ you didn't step foot in the country for an entire year.
Think of this practically,︅ how are you going to prove to the UK tax office you are not a︆ resident. Do you really think they will accept the answer not UK resident, I'm a︇ perpetual wonderer, I just travelled outside the UK for 365 days a year? I can︈ almost guarantee they won't accept this answer because someone could just sit in the UK,︉ claim they sailed out and sailed in, while living in the uk the entire time︊ and claim not resident and they'd have no way to disprove it. Instead it is︋ a reverse onus, you must prove you were not a resident of UK, or else︌ they will claim you are a "deemed resident". I could be wrong, but I can︍ almost guarantee with 95% confidence, UK government is not going to let you off the︎ hook that easy.
With the way tax offices are increasingly aggressive, it would not surprise me if the UK follows this path if they have not already.
I would question your interpretation of UK tax law in practice as well. I could be wrong here, I'm not specifically familiar with UK law. However, it sounds very similar to︀ what the other countries claim on paper, but the tax offices interpretation is likely to︁ be different. The law says in Canada, you don't have to pay tax if you︂ are a non-resident (like UK). But the CRA then claims you are a resident if︃ you have a car, house, kids, wife, pets, driver's license, healthcard, all in Canada,even if︄ you didn't step foot in the country for an entire year.
Think of this practically,︅ how are you going to prove to the UK tax office you are not a︆ resident. Do you really think they will accept the answer not UK resident, I'm a︇ perpetual wonderer, I just travelled outside the UK for 365 days a year? I can︈ almost guarantee they won't accept this answer because someone could just sit in the UK,︉ claim they sailed out and sailed in, while living in the uk the entire time︊ and claim not resident and they'd have no way to disprove it. Instead it is︋ a reverse onus, you must prove you were not a resident of UK, or else︌ they will claim you are a "deemed resident". I could be wrong, but I can︍ almost guarantee with 95% confidence, UK government is not going to let you off the︎ hook that easy.
When you leave the UK you fill in the P85 form you must specify where you are going too i.e question 12. This is normal you don't vanish without giving info on which country you are going too.
Still owning a UK home that you will use only 30 days in a tax year is enough to remain UK tax resident. You can use the following simply flow diagram below to determine if you will still be considered UK tax resident after leaving UK.
https://home.kpmg/content/dam/kpmg/pdf/2016/01/statutory-residence-test-flowchart.pdf
Still owning a UK home that you will use only 30 days in a tax year is enough to remain UK tax resident. You can use the following simply flow diagram below to determine if you will still be considered UK tax resident after leaving UK.
https://home.kpmg/content/dam/kpmg/pdf/2016/01/statutory-residence-test-flowchart.pdf
Cyprus could be solution to you. It's pretty simple︂ to get residency there. In such case you would have utility bill etc..
Of course︃ it much depends on your personal situation. How much income you get annualy. There are︄ residency programs all around EU: UK non-dom, Portugal, Netherlands, Italy, Monaco, Malta and etc.. They︅ are all specific and it all depends. But if you earn less than ~100k maybe︆ solution would be to get residency in a lower tax country..
Of course︃ it much depends on your personal situation. How much income you get annualy. There are︄ residency programs all around EU: UK non-dom, Portugal, Netherlands, Italy, Monaco, Malta and etc.. They︅ are all specific and it all depends. But if you earn less than ~100k maybe︆ solution would be to get residency in a lower tax country..
The 183 rule is not trivial to prove for many governments, even if they have ID controls, as long as you do live as tourist and do not deal with the local bureaucracy (no salary, no companies, no real state...).
In many EU countries you do not even have have frontiers, so you can literally walk︀ across countries with no trace.
In many EU countries you do not even have have frontiers, so you can literally walk︀ across countries with no trace.
What about︃ "I have income only from outside of your country and I'm not a tax resident︄ in your country"?
What would happen if you give them another EU country, then you go︇ to that country for a few days, but "change your mind" and actually get a︈ residence in a 3rd country without letting the UK authorities know?
What would happen if you give them another EU country, then you go︇ to that country for a few days, but "change your mind" and actually get a︈ residence in a 3rd country without letting the UK authorities know?
Well firstly UK is not in the EU any longer smi(&%. I don't see too much of a problem doing what you say. However you could end up with mail from HMRC that goes missing if your last address given to them is no longer valid. So at least give an address you can retrieve future HMRC communication.
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