can you please kindly let me know how i can do it? this is residency not tax residency, correct? But anyway still interested if you can give me some more info. many thanks
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How to get the easiest formal tax residency? My country asks me to be tax resident somewhere
- Thread starter deamatiz
- Start date
Then you have to be 183 days somewhere! As we all (most) do here! Your country can ALWAYS ask you proofs of staying. Own apartment, transport, expenses with your card, receipts from everything. This is coming globally and happened thanks to a few people that think that been digital nomads are paying tax nowhere. It's not like that! You HAVE to be tax resident somewhere and if you don't want to be found out after 10, 15, 20 years and they will take you everything, you have to plan it properly. Also consider the P/E, place of effective management etc. Even if you are 10 days in a country and you work online, you work on this specific country -> you have to pay tax on this specific country as the work is done there! Because you are physically there. So, check the rules for every country and how it works.
Get your things, move to a 0% region that your country accepts and do it legally!
Most of the countries you mentioned are anyway not accepted by many countries in EU as they are on the list of non-cooperative countries - there are plenty of lists you have to research your self :
https://taxation-customs.ec.europa....nd,implemented within the available timeframe.
https://www.consilium.europa.eu/en/policies/eu-list-of-non-cooperative-jurisdictions/
Etc - do some research.
How do you get to that conclusion?
Because even the tax hell Germany does not require you to prove that you moved your tax residency elsewhere, all you have to do to leave Germany's tax system is to announce that you leave, and cut ties (move out of Germany and terminate your rental contract in Germany).
I was part of this kind of discussion here on the forum a few months ago.
I was also on the side of “you have to be a tax resident somewhere”. The truth probably is, it depends on the country of your citizenship and the country of your previous tax residency. Some countries like in the case of the op specifically demand it, others do not.
Not all the countries YET, but one by one adding.. Australia added it, and more coming.. Also many (not for the current topic) are proposing citizenship based taxation (France).
No because Belarus is not in the EU. But if it was, it has first to be accepted from the country... And EU too.. I think is confusing and more confusing is coming since many countries (including PY) are issuing TRCs without physicall precence of 180 days/yr. People don't understand that if you are tax resident somewhere is not because you want, is because THIS COUNTRY is dragging you to be taxed there. So, how one country can give TRC (0% of course) but you can be living somwhere else and maybe staying more than 180 days there? If you read the Cyprus non dom rules, they strictly say that you need the x days in cyprus but YOU CANNOT Stay in any other country more than 180 days. That invalidates the non-dom.
Summarizing, the digital-nomad-tax-resident-of-nowhere is about to die very very soon... the 7, EU etc, are pushing towards it, you should be tax resident somwhere that you are physically there; that's why you listen serious specialists on this saying "your center of interests". HK same; you can't get TRC if you dont have rental / house, subscriptions / gym etc,. Same in Gibraltar. And the rest of the countries are pushing them to be serious and ensure the resident is really there.
That's why, IMHO, things will change - and are changing - very fast.
*bonus: many countries can look back a few years and change the status so, you might make your income traveling around until the day they will say that you were just traveling around, and now you're back home...
Just find a country you want to live the rest of your life - or next many years and move properly.
No, Australia hasn't added a requirement that one needs to be tax resident in some country outside Australia to get out of their tax net.
Currently Australia has a few tests including the domicile test, which says that one has to have a permanent abode in some country to no longer be an Australian tax resident. It doesn't specify that one has to be a tax resident in the country of permanent abode, but normally (but not always) having a permenant abode somewhere means one becomes tax resident.
For people who have lived long term in Australia and want to leave, the proposed new Australian rules say that:
-if one gets a job that lasts at least 2 years outside Australia, one has accommodation in the place of employment, and one doesnt spend more than 45 days in Australia per year, then one is out of the tax net directly when leaving Australia.
-If one has spent less than 45 days in Australia per year for the two previous years, then one is out of the tax net the third year, assuming one spends less than 45 days that third year too.
In other words Australia never had an explicit requirement to be a tax resident abroad, and with the new rules tax residency abroad is even less of a factor. Note that if you are an entrepreneur and move out from Australia to say the UAE, you will still be an Australian tax resident for 2 years regardless of if you are a tax resident or not in the UAE. And then from the third year you will not be an Australian tax resident, again regardless of if you are a tax resident in the UAE.
This flowchart explains the new rules quite well: https://www.exfin.com/files/general_materials/Proposed New Australian Tax Residency Rules Flowchart.pdf
Im actually not aware of any country that explicitly requires tax residency abroad to get out of the tax net. Possibly Spain is the closest, where i understand that in practice it is likely one has to show tax residency abroad.
But there are many cases where even if you are a tax resident abroad, you are still counted as a tax resident of the country you left. Like all the full on or quasi taxation by citizenship countries, or countries with anti tax haven rules. The by far most common case though is that you can move out, and the country you left doesnt care if you are a tax resident abroad or not.
Some users here also mentioned Italy, Slovakia and some France.
But I think in most cases, nobody cares. But if you are unlucky and get shot on the street just when you visited your mom, you may get unwanted attention and questions. In such a case, it is good to have proof. Maybe the best is go get a job somewhere and pay some tax while being there some time. And have some homeless using your card to pay for some food the other days.
Italy Im familiar with, and in order to register as an Italian abroad (AIRE registry) you have to go to the Italian embassy in the country you moved to, and have some sort of proof of residence - not proof of tax residence though. And it's a one off thing, you dont have to keep proving your residency.
No idea about Slovakia, and any time I want to look up anything about France - despite me speaking the language - it just gives me headaches, always super complicated. Im asking French friends about what it takes to leave the french tax net and never get clear answers, but they do seem to want to get tax residency certificates, but ive never heard France actually asking for one.
Yeah, it's like why not have some proof. I was actually in a situation where it was useful recently. Bought a macbook in Sweden and was claiming back VAT at the airport - would really annoy me to give money to a tax hell country. So I told them I live in this godforsaken country in West Africa and Im flying back there, look here is my flight ticket. And the airport-VAT stuff said, yeah that's not enough, you have to show that you are a resident of this country too, with a tone that they were thinking no way this guy is resident in african shithole country. So I whip up my wallet, bring out a little plastic card where it says Carte Resident, Republique de [Shithole Country] and get my money.
Took 3 years to get the damn card btw because some bureaucrat responsible for printing them pocketed the money, but well, got it at the end. Best part is that on the back it says that my occupation is "Unemployed".
Generally, what you are looking for is to be tax resident of a country that has a Double Taxation Agreement with the country you are trying to escape. The treaty will mean that you can only be tax resident in one of the two countries at a time, and the purpose of the tax residency in low tax country is to take advantage of the DTA.
Technically, you can be tax resident in country A, then still pay tax in country B because you were full-time employed there for 2 months, and country C because you own property there. Even if there are DTAs between all of them every country is allowed to tax income generated there. But your $$$$ business sale would be taxed in country A, your dividends from the micro business you have in country Z would be taxed in country A, etc.
Without country A claiming you under a DTA with your home country, you might be limited to spending as a little as two weeks a year back home. But with country A claiming you under a DTA you might be able to spend 3-5 months safely at home (provided you don't work while you are there) (or keep permanent accommodation there) (or maintain a nebulous centre of interests
).
For OP, at least according to Deloitte's primer, in Belarus for the purposes of the 183 day test, 'a “stay” includes both the actual length of the period during which an individual stays in Belarus, as well as any other period of an individual’s absence from Belarus for business trips, holidays or medical treatment abroad'. So, by my reading of this (summarised, translated sentence that might not reflect the original nuances) he's going to want to show he has a physical home somewhere else and isn't just on holiday. Although I guess that hinges on the exact meaning of 'holiday' in Belorussian law
Is it really a holiday if you leave completely for three years? He said he'd be happy spending zero days home.
https://belgium.mfa.gov.by/uploademb/belgium/publications/foreignnationals_coming_to_belarus.pdf
But having a physical residency is also going to (mostly) protect him from claims from every country he opens his laptop in, which in theory they could chase after him for decades after he visited. (Some countries explicitly renounce the right to tax remote working tourists, as it would be insane to enforce!)
Technically, you can be tax resident in country A, then still pay tax in country B because you were full-time employed there for 2 months, and country C because you own property there. Even if there are DTAs between all of them every country is allowed to tax income generated there. But your $$$$ business sale would be taxed in country A, your dividends from the micro business you have in country Z would be taxed in country A, etc.
Without country A claiming you under a DTA with your home country, you might be limited to spending as a little as two weeks a year back home. But with country A claiming you under a DTA you might be able to spend 3-5 months safely at home (provided you don't work while you are there) (or keep permanent accommodation there) (or maintain a nebulous centre of interests
).For OP, at least according to Deloitte's primer, in Belarus for the purposes of the 183 day test, 'a “stay” includes both the actual length of the period during which an individual stays in Belarus, as well as any other period of an individual’s absence from Belarus for business trips, holidays or medical treatment abroad'. So, by my reading of this (summarised, translated sentence that might not reflect the original nuances) he's going to want to show he has a physical home somewhere else and isn't just on holiday. Although I guess that hinges on the exact meaning of 'holiday' in Belorussian law
Is it really a holiday if you leave completely for three years? He said he'd be happy spending zero days home.https://belgium.mfa.gov.by/uploademb/belgium/publications/foreignnationals_coming_to_belarus.pdf
But having a physical residency is also going to (mostly) protect him from claims from every country he opens his laptop in, which in theory they could chase after him for decades after he visited. (Some countries explicitly renounce the right to tax remote working tourists, as it would be insane to enforce!)
Depending on what your needs and requirements are I would choose Cyprus over Paraguay but that's my opinion you may check with what else is wrote here.
Cyprus has nice weather and it is still close to Europe if that matters, downside, they are part of the EU not the best.
Yeah, but at personal level, it's best to not rely on tax treaties at all, and only be a tax resident in one place (or zero). It's a pain to get tax treaties enforced, and deal with incompetent bureaucrats in two countries.
But how it exaclty works with tax treaties:
For example: If I spent 100 days in the Georgia, have property, business, social connections, home and bank accounts, 500k investment. And I spent 250 days in Belarus with no business, no connections, no permanent home, no bank accounts, no money in the country. According to tax treaty I'm tax resident of UAE. But according to domestic rules I'm a tax resident in Belarus (spent 183+ days) but not a tax resident in Georgia on regular basis, but tax resident on paper so-called HNWI special status.
How is it treated? They will tell to pay taxes in both places?
Because:
1. According to the treaty, must pay taxes in Georgia.
2. According to the domestic laws of Belarus - must pay all the taxes in Belarus, because HWNI status not recognized for treaty.
3. According to the domestic laws of Georgia - must pay taxes in both places.
And almost the same cases in all the countries, specifically the countries that have the centre of vital interests criterion. For example, business in France and 80 days spent in France, business in Germany and 80 days spent in Germany, business in Belarus and 184 days spent in Belarus, and business in Georgia with HWNI status and 20 days spent in Georgia. What will it be?
You have to check the treaty
https://mof.ge/en/5128
Article 4 then states that you are only a resident of Georgia as you only have a permanent home available there. (Not sure why you write UAE.)
But it comes with troubles
Better leave completely and better get a residence somewhere properly.
https://mof.ge/en/5128
Article 4 then states that you are only a resident of Georgia as you only have a permanent home available there. (Not sure why you write UAE.)
But it comes with troubles
- How can you spend 250 days in Belarus without having a home. Do you have receipts for minimum 40 different hotels you stayed at?
- What did you do in Belarus? Visiting friends and family is dangerous as a home will most likely be presumed. Sleeping in clients beds will bring us to the next problem
- There are more articles for self-employment and permanent establishments. Unless you live from interest and dividends, those may catch you.
Better leave completely and better get a residence somewhere properly.
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Hello,
I am not sure your take on the Cyprus option is accurate. The 60 day rule targets exactly persons who are not tax resident anywhere and my understanding from what has been said is that you are not considered a tax resident in Belarus by virtue of spending 183 days there. What they are saying is that if you do not have a tax residency somewhere they will consider you a tax resident there, probably by virtue of your citizenship, centre of vital interests or your failure to terminate your tax residency there by appropriately notifying them and demonstrating tax residency elsewhere. If this is where you stand, then I believe to be able to successfully advice you to secure a tax residency in Cyprus and getting a tax resident certificate under the 60 day rule. Kindly let me know if you are interested and I can send you a DM to take this further.
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