How to get the easiest formal tax residency? My country asks me to be tax resident somewhere

[aniglo22]

Paraguay is pretty easy and cheap .
Get temporary residency , then apply for cedula + RUC .
Then pay some taxes , I would recommend more than 800 USD .
Then you can apply for tax residency certificate .

 

[NewHorizonsParaguay]

Paraguay is pretty easy and cheap .
Get temporary residency , then apply for cedula + RUC .
Then pay some taxes , I would recommend more than 800 USD .
Then you can apply for tax residency certificate .

He doesn’t need to pay taxes to be eligable for tax certificate.

// but yes he needs RUC

 

[aniglo22]

He doesn’t need to pay taxes to be eligable for tax certificate.

// but yes he needs RUC

Yes , but they have been declining applications for tax residency certificates , if someone just files 0 every month .

 

[NewHorizonsParaguay]

Yes , but they have been declining applications for tax residency certificates , if someone just files 0 every month .

Empty fillings could be problem, but if you make it zero IVA balance every month (incomes vs expenses) or negative, it’s Ok.

 

[aniglo22]

Empty fillings could be problem, but if you make it zero IVA balance every month (incomes vs expenses) or negative, it’s Ok.

I've heard different things .

 

[deamatiz]

Paraguay is pretty easy and cheap .
Get temporary residency , then apply for cedula + RUC .
Then pay some taxes , I would recommend more than 800 USD .
Then you can apply for tax residency certificate .

It's ok for me to pay some money to the country if they give me paper. Thanks for the advice.

 

[NewHorizonsParaguay]

I've heard different things .

It may very well depend on what officer is looking at it.
The official requirements are:
- Have RUC (tax id)
- Have all your obligations with RUC in order. It mainly refers to have done all the fillings on time etc
- Bring certification of your migratory movement (this also doesn’t say nothing about 120days)

If some officer at SET decides he will deny the request, I guess it’s his right by their internal regulations.
My job is it doesn’t happen to my clients.

 

[PassinBy]

Georgia will disallow time outside the country if it's for business, leisure, or health treatment. I don't know how you're supposed to evidence that, or how flexible they are with it.

 

[OffshoreDude]

Regarding Parguay, please note that Paraguay recently changed their law. According to that, you can be considered to be a Paraguain tax resident, ONLY AFTER you obtained permanent residency. And for that you can apply for only after 2 years of temporary residency (or 3 month before it would expire, if I remember correctly).

So that path would not change your situation in a short period.

However, Paraguay also offers a residency by investment program, and if you fulfill the criteria, you will get immediate permant residency with it, thus entitle you to obtain tax residency, too.

I'm not sure, if there is a (legal) way to go around the 120 days minimum stay requirement, though.

 

[NewHorizonsParaguay]

Regarding Parguay, please note that Paraguay recently changed their law. According to that, you can be considered to be a Paraguain tax resident, ONLY AFTER you obtained permanent residency. And for that you can apply for only after 2 years of temporary residency (or 3 month before it would expire, if I remember correctly).

So that path would not change your situation in a short period.

However, Paraguay also offers a residency by investment program, and if you fulfill the criteria, you will get immediate permant residency with it, thus entitle you to obtain tax residency, too.

I'm not sure, if there is a (legal) way to go around the 120 days minimum stay requirement, though.

Who told you that only permanent residents can become tax residents?

 

[OffshoreDude]

Who told you that only permanent residents can become tax residents?

I'm sure I read it one several websites shortly ago, but as I wasn't able to find them anymore, maybe I confused the new requirement of being a temporary resident first for 2 years, before you can get the permanent residency, with becoming a tax resident.

Because, after all: Why would a country allow new residents 2 years of no taxation (if my claim was true, by not granting them tax residency status for the first 2 years), that would make no sense at all. So for now, I take my claim back, as I said, it looks like I confused residency requirements with tax residency status requirements.

 

[OffshoreDude]

Update, I found this:

"The permanent residence permit is also necessary for the foreign individuals to register as a taxpayer in the RUC and thus liquidate their taxes, according to General Resolution No. 79/2021 issued by the Undersecretariat of State for Taxation (the “Tax Authority” or "SET"). Furthermore, the temporary residence permit cannot be used for registration before the RUC; only the permanent residence permit and the registration with the proof of refugee application serve this purpose."

Source:
https://www.vouga.com.py/en/tax-update/

 

[NewHorizonsParaguay]

I'm sure I read it one several websites shortly ago, but as I wasn't able to find them anymore, maybe I confused the new requirement of being a temporary resident first for 2 years, before you can get the permanent residency, with becoming a tax resident.

Because, after all: Why would a country allow new residents 2 years of no taxation (if my claim was true, by not granting them tax residency status for the first 2 years), that would make no sense at all. So for now, I take my claim back, as I said, it looks like I confused residency requirements with tax residency status requirements.

I ask because I know one law firm that published this kind of "study" in 2022, after the new law was passed. I think they were just confused by the new law. They argued that it is impossible to be a tax resident without RUC (tax ID), and a tax ID is obtainable only with permanent residency.
The practice has shown it is wrong.

That's why I replied to the op. It is more nuanced than what PwC has on its website, and not necessarily his concern unless he wants to become a lawyer in PY.
For example, from a Paraguayan perspective, the whole "tax residency" thing is meaningless because the law says you always pay taxes on local income, and foreign income is not taxed. Tax residency and tax certificates were introduced mainly to satisfy the needs of foreign digital nomads with residency in Paraguay. Spain also pushed PY to do this when the DTA was on the table (IMO).

 

[NewHorizonsParaguay]

Update, I found this:

"The permanent residence permit is also necessary for the foreign individuals to register as a taxpayer in the RUC and thus liquidate their taxes, according to General Resolution No. 79/2021 issued by the Undersecretariat of State for Taxation (the “Tax Authority” or "SET"). Furthermore, the temporary residence permit cannot be used for registration before the RUC; only the permanent residence permit and the registration with the proof of refugee application serve this purpose."

Source:
https://www.vouga.com.py/en/tax-update/

Yeah, it could be them.

Well, it is wrong. Of course, you can get RUC without permanent residency.
It is actually one of the requirements to get permanent residency if you don't have a university degree.

 

[OffshoreDude]

I ask because I know one law firm that published this kind of "study" in 2022, after the new law was passed. I think they were just confused by the new law. They argued that it is impossible to be a tax resident without RUC (tax ID), and a tax ID is obtainable only with permanent residency. The practice has shown it is wrong.

It looks like you wrote your reply while I was writing and submitting my last post above, therefore not noticing it. Is the "one law firm" you are referring to the source I quoted there?

 

[OffshoreDude]

This should be a warning to all of us; Never trust anybodys advice, not even if it is coming from a big law firm! Always do your own research, and double-check.

 

[JohnnyDoe]

This should be a warning to all of us; Never trust anybodys advice, not even if it is coming from a big law firm!

In particular if it’s coming from a big law firm. These “researches” are typically written by the most junior trainee, while the partners are busy charging their clients.

Always do your own research, and double-check.

Not on some website/gpt possibly.
Move your precious bottom, travel and verify by yourself on the ground.
@NewHorizonsParaguay knows his stuff and the right people. He is not just one of the many “experts” giving advice on everything from their parents’ basements. You can easily recognize them with a bit of experience (there are quite a few on OCT).

 

[isyet]

You are missing the main point of the problem.
The issue to be discussed is your current country of tax residence.
You need to spend more than 180 days a year outside Belarus in order to have your tax residence in Belarus deleted.

 

[NewHorizonsParaguay]

You are missing the main point of the problem.
The issue to be discussed is your current country of tax residence.
You need to spend more than 180 days a year outside Belarus in order to have your tax residence in Belarus deleted.

He stated in the first post that he doesn’t live there.

 

[Meta]

My country Belarus asks me to be resident somewhere. I can live there 0 days, and if I can’t present tax residency certificate, then I’m considered tax resident.

“You are tax resident if you spend 183 or more days. You are not tax resident if you spend less than 183 days.
In case you don’t have tax residency anywhere, then you are tax resident in Belarus.”

I’m digital nomad and not residing anywhere for more than 80 days. I’m single. I consulted with Belarusian local lawyers and some told me that any tax residency will work, specifically, Cyprus for 60 days, UAE for 90 days. But for Georgia they didn’t see any cases, however, it should work. I run US LLC and I don’t want to become UAE or Cyprus resident, because those countries enforce their P/E rules.

What I want: to get paper from any state that will state that I’m tax resident there, and Belarus accepts it.

What I’m willing to do: I can afford to buy apartments in the state that I need to obtain tax residency. And can open company with getting some money, to make my economic ties there as well. I don’t have anything (income / property) in Belarus except family.

Why I need that to do: the country likes to take money from its citizens in 5-9 years. And by that time Belarus might get information from CRS, and for sure will chase any chance to get money.

I don’t see any issue just to get paper to get out of it.

What I’m considering now:
1) Georgia HNWI
Extremely good, but not sure if they accept it.
As I think they must accept it, because under domestic rules I’m not resident (less than 183 days, just one rule), and I have country (Georgia) where I chose pay taxes. Georgia accept my taxes and me as their tax resident under their domestic rules.
Local Georgian lawyer said that it’s a nice idea.

2) UAE 90 days
Not good because the country likes to take money if they can. And they can under P/E.

3) Cyprus 60 days
Too many rules, and it’s under pressure of EU.

What do you think, any country where I can establish tax residency by buying property and making business, to make it consider me a tax resident, but not taking my income for P/E rules?

Georgia would need $500k invested in the country to give you that status. Also they sometimes decline to issue residence permits (something that may be useful to get HNWI tax residency) for men from Russia/Belarus on the "national security grounds". I'm not an expert on laws of Belarus, but should work if you get it I believe. Cheers.