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0% tax residency

GrumpyMess

Entrepreneur
I want to change my residency to a tax free country or a country with <10% taxation in the worst case. I don't want to live in a shithole like Vanuatu just to keep my residency.

I see that the only options available are Monaco, Malta, Cyprus non-dom and UAE. What is the best solution in my case and benefits/downsides of each of these countries? Are there any other solutions?
 

negon

hannibal the cannibal
BANNED MEMBER
I would say Dubai like most people are doing if they want to avoid tax at all! You have 0% income tax, no corporate tax and you have a shitload of good food, housing and all what you need.
 

GrumpyMess

Entrepreneur
I would say Dubai like most people are doing if they want to avoid tax at all! You have 0% income tax, no corporate tax and you have a shitload of good food, housing and all what you need.
Yes, but I have to live there for at least a half year and I don't know if I would like that. I tend to Monaco since renting an apartment and having a bank deposit seems enough to get a residency there. This way I can get around for a time presence requirment since there are no borders across the Schengen area
 

Martin Everson

Offshore Retiree
Mentor Group Gold
Elite Member
I tend to Monaco since renting an apartment and having a bank deposit seems enough to get a residency there.
There is a lot more involved in getting residency if your not going there for work. You won't pass the in person interview without substantial cash or income stream. They are very selective who they let in.

Dubai is good option if you live a clean life but you my lose access to most EU financial services i.e cards, emi's etc.
 

Martin Everson

Offshore Retiree
Mentor Group Gold
Elite Member
Why can I not pass the interview if I fulfill all the conditions regarding cash, income and apartment?
My bad I pre-judged your wealth. How much money do you think you need in reality to become resident?

Are the EU banks known to close accounts when moving residency to Dubai?
Check first you can open or keep open existing bank accounts, cards, EMI relationships etc before you move outside the EU ;).
 

negon

hannibal the cannibal
BANNED MEMBER
Are the EU banks known to close accounts when moving residency to Dubai?
I can connect you with at least 2 people I know very well which are EU citizens, live in Dubai for the last 2 years and keep running their business with foreign bank accounts! It's really not a problem, just do your home work.
 

GrumpyMess

Entrepreneur
My bad I pre-judged your wealth. How much money do you think you need in reality to become resident?
500k deposit, yearly 25k apartment rent and 10k mixed expenses just for residency, without costs for living there. As I understand this price is the twice more than Dubai solution, but with more flexibility since I can remain in Europe

live in Dubai for the last 2 years and keep running their business with foreign bank accounts
May be you know if foreign banks accepted their residency as valid and didn't send the info to their home countries during AEOI
 

negon

hannibal the cannibal
BANNED MEMBER
May be you know if foreign banks accepted their residency as valid and didn't send the info to their home countries during AEOI
There is nothing send to their home country because they live perma in Dubai, they have a house there.
 

GrumpyMess

Entrepreneur
What about Cyprus non-dom? If I move there and Cyprus authorities would receive information based on CRS during previous years which I wasn't Cyprus resident would they start an investigation and send this info to the country of my citizenship?

Does Cyprus tax it's non-dom residents when they are managing for example a Belize corp or the corp profits?
 

negon

hannibal the cannibal
BANNED MEMBER
Cyprus is not Dubai, complete different laws apply here. Also you can not have a non resident company in Cyprus while you live there unless you will appoint foreign nominees and not be an director or shareholder yourself.
 

niggashit

BANNED MEMBER
Try New zealand. 4 year tax exemption on foreign income. You can keep moving more countries. In UK , its like 3 years.
 

Tepesch

New member
So I am Cyprus Non DOm myself the law firm I handled everything for me says its possible to live completely tax free because divdends are tax free for Cyprus Non Doms. It would work like that : You have your residency in Cyprus, you are doing business with a 0% tax offshore corp like Belize and pay dividends to your personal account. These dividends are tax free bc Non Dom, and Non Dom is guaranteed for 17 years. The only possibility would be that your offshore company could be taxed like a cyprus corp ( 12,5%) bc managed in Cyprus. But this almost never happens according to multiple sources. But I am checking back on this with the law firm bc I want to know for myself.

Btw in Dubai you dont have to stay half a year to be tax resident - you just have to stay there 1 day every 183 days. Also residencys with Zero tax on foreign income are Panama, Paraguy, Georgia, Bahamas.
 

GrumpyMess

Entrepreneur
The only possibility would be that your offshore company could be taxed like a cyprus corp ( 12,5%) bc managed in Cyprus. But this almost never happens according to multiple sources. But I am checking back on this with the law firm bc I want to know for myself.
Almost? You won't be happy having discovered a mail from the tax dept that you owe a bag of money for the previous years.
Especially with the new EU regulations regarding CFC. In my opinion cashing out everything from a Belize corp by the end of the year must save one's from a corp tax and cfc, but I don't know how it works in practice. Can you please ask again your law firm and post their answer?

Btw in Dubai you dont have to stay half a year to be tax resident - you just have to stay there 1 day every 183 days.
Yes, but they do issue tax residency certificates only if you live there not less than half a year. Also a valid tenancy contract for the whole year is required.
 

KJK

Entrepreneur
Btw in Dubai you dont have to stay half a year to be tax resident - you just have to stay there 1 day every 183 days. Also residencys with Zero tax on foreign income are Panama, Paraguy, Georgia, Bahamas.
Does anyone have recent experience with these countries? I've heard about all of them but it would be nice to hear from someone with direct experience (most information online is from "consultants" trying to sell you something like this).

I've also been recommended to be very careful about anything related to Belize (except maybe when you're a guy willing to retire there under some special program of theirs)
 

Juoffshore

New member
I want to change my residency to a tax free country or a country with <10% taxation in the worst case. I don't want to live in a shithole like Vanuatu just to keep my residency.

I see that the only options available are Monaco, Malta, Cyprus non-dom and UAE. What is the best solution in my case and benefits/downsides of each of these countries? Are there any other solutions?
Portugal with the the NRH programm should also be a good option for you, 0% tax on your offshore incomes, and 20% on your portuguese incomes. However the law will probably change in 2019 so wait and see..
 
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