0% tax residency

[jackfrost]

You are right, but i can share some experience:
- so far, i have not seen any bank actually ask for tax residence certificate. Some banks are fine with jsut simple self-certification form (i was always wondering what would happen if one just put any non-crs country info there?). Some go further and ask for residence permit and address proof. My experience does not cover all cases, of course, but it's quite considerable. I'm more interested to see what exactly happens when Tax office of Malta receives via CRS information on, say, someone who has obtained Malta special tax status under Global residence program (i also must point out that of all numerous Malta residence programs only GRP is specifically tax-oriented one) and claimed somewhere else to be tax resident of Malta, but actually isn't.
- I know people who, having maltese residence, did the following: had someone live in their apartment occasionally (to show spending on utility bills), have someone trusted use their maltese bank card in Malta, joined gym, and tax certificated was received without any questions with actual time spent on Malta barely being two weeks in a year.

Good to know and yes that would certainly work on the Maltese side. In general i would not worry about the Maltese side too much except for checking that one fact if you have to stay a certain time (no matter which program) to actually get the certificate. Your solution i would certainly believe to work without a problem as being a Maltese resident and seeing how things work here.

I would rather worry about the origin / citizenship IRS in case you are western European. E.g. spending 100 days in Germany, 7 days in Malta under the program will not fly with Germany even if Malta gives you the certificate as they don't care about the foreign tax certificate or 183 days. All just indicators for them.

Would probably also be careful with France etc. In general European flight passenger data sharing etc. Again Malta will not check this.

 

[GrumpyMess]

i have not seen any bank actually ask for tax residence certificate

May be they are not asking now, but there are OECD proposals to request them if one resides in a blacklisted country.

- I know people who, having maltese residence, did the following: had someone live in their apartment occasionally (to show spending on utility bills), have someone trusted use their maltese bank card in Malta, joined gym, and tax certificated was received without any questions with actual time spent on Malta barely being two weeks in a year.

it's a good idea, but unfortunately not everyone has such trusted friends

I would rather worry about the origin / citizenship IRS in case you are western European. E.g. spending 100 days in Germany, 7 days in Malta under the program will not fly with Germany even if Malta gives you the certificate as they don't care about the foreign tax certificate or 183 days. All just indicators for them.

This creates an interesting situation, there are a lot of treaties, but IRS can just ignore them. If tax certificates are not accepted then the whole concept of paying 25k/y for Malta Residence Programme can be useless. I don't see any benefits of it then, as it's much simpler to rent a flat in Georgia and give it's address to foreign banks.

 

[jackfrost]

They will be accepted and they are a requirement. It is just not that simple. You have to obey the rules of your citizenship / original tax country whatever you want to call it too or any other jurisdiction that you spent time in. Has nothing to do with Malta or Georgia.

If your citizenship country says e.g. you cannot be married to a partner in that country then well of course your tax certificate from whereever in the world does not overwrite that problem. However it is still a requirement and a very important one. Without that and fulfilling all other rules you are still on the hook in your citizenship country or possible other place of residence.

 

[fmfu]

Hi all, I read a lot of post around but there are so many opinions that everything becomes very unclear.
I already went in a few countries for direct intel and next month I will visit also Dubai and after that I will pull a card, hope a good one.
If someone can give me other ideas or more info to help me in my decision I will appreciate.
I am an affiliate of an adult online platform and I want to find a way to receive my payment.
I dont cut invoices don't own a Co and the platform doesn't specify on invoice nothing about adult when sending wire, also I live in Eu.
The amount is around 300k/y, I just want a legal way to pay as little as possible, not so long ago it was easy, now we have to change residence and create companies because the new world order made another step to a total controlled world and things will be even shocking in the near future, but looking around me I see a lot of people opening their eyes and refusing to live as slaves, so if they f**k with us then we'll do the same until the end, we pay indirect tax named vat, property taxes, excises, etc, but the income tax is too much and also not legal. Because the gov is nothing more than a mafia clan that goes to a shop and ask for protection tax, if you don't pay...you know the rest. Gov can make a lot more money investing in internal production for export and local sell not sucking normal people pockets all day long. About the private property, don't pay your tax on the property a few years and you'll see who is the real owner of that property. So we live in a fake free illusionary world. In this conditions what will you do reader? Accept their political view and become a mouse or a dog? Bet a million $ that a lot of the new world order puppets are reading also a lot of what we little and normal people write here. And preparing other laws accordingly, but I tell them just one thing: If you close a door for us, we'll use the windows or we'll wait until other doors will open MO'FO's! Sorry for my long composition but I'm in rage mode right now...

 

[JohnLocke]

So we live in a fake free illusionary world.

second that, couldn't agree more

What's wrong with CCBILL or Verotel to receive the online payments and get them transfered to some local bank account or send them thru Transferwise before they hit your bank account? To find some place to hide your money will be difficult and expensive if not impossible.

 

[fmfu]

second that, couldn't agree more

What's wrong with CCBILL or Verotel to receive the online payments and get them transfered to some local bank account or send them thru Transferwise before they hit your bank account? To find some place to hide your money will be difficult and expensive if not impossible.

Hello and thanks for answering, the problem is that I cannot chose as a method what I want, right now I have only the following methods provided by them to receive the money: wire transfer or paxum and they told me that can make an extra effort and arrange also with cosmopay if I want, but again... the amount cannot be splited and I read a lot of bad reviews about them, so is a bit risky to chose a payment procesor like them, I read hundred of hours about epassport and first choice, so imagine risking to send all amount to one of them and using a card to take that amount, it will take forever, I also read all sites Term of use and privacy conditions, and they cannot be trusted, not even 60%, my eyes are dizzy after all of this reading sessions, the safest is wire transfer, and is the safest way excluding a bail-in procedure, in the future far or near I smell something fishy. Remember Cyprus and look what is happening around the world and I'm not talking about Brexit, something is coming 100%!!!
Repeat again, I don't want to make something illegal, just to find a legal way to pay as little as possible. But here I must underline something, after the " panama papers officials from all over the world, the ones that make the laws " I also find legal as they did to chose a way like offshore because all of us are humans, and we all are equals in the eye of God, so if they do it, we normal people also can....no more coments!

 

[Juoffshore]

On the NHR point for Portugal, while it is complicated, I am not sure it is as restrictive as implied above. There is a good article on this here: NHR: residency in Portugal for foreign nationals - live tax-free in Portugal

However, I am still not clear how all this would apply to income derived from a Cyprus-based company. The article makes an interesting comment on this:

Foreign income from tax havens on Portugal’s blacklist is subject to taxes.

Portugal’s blacklist is very extensive and includes almost all the world’s tax havens. However, a great exception is those tax havens that, although on the blacklist, Portugal has signed a double taxation agreement with.

Ultimately, the following jurisdictions, despite being on the blacklist, are valid, i.e. as an NHR resident you do not pay taxes in Portugal for the dividends coming from them:

• Barbados
• Hong Kong
• Ireland
• Kuwait
• Luxemburg
• Malta
• Macao
• Panama
• Qatar
• San Marino
• Switzerland
• Singapore
• The United Arab Emirates
• Uruguay
• Cyprus

Foreign income from these countries generally has the possibility of not being taxed in its country of origin and, therefore, is also not taxed in Portugal.

 

[jackfrost]

On the NHR point for Portugal, while it is complicated, I am not sure it is as restrictive as implied above. There is a good article on this here: NHR: residency in Portugal for foreign nationals - live tax-free in Portugal

However, I am still not clear how all this would apply to income derived from a Cyprus-based company. The article makes an interesting comment on this:

Foreign income from tax havens on Portugal’s blacklist is subject to taxes.

Portugal’s blacklist is very extensive and includes almost all the world’s tax havens. However, a great exception is those tax havens that, although on the blacklist, Portugal has signed a double taxation agreement with.

Ultimately, the following jurisdictions, despite being on the blacklist, are valid, i.e. as an NHR resident you do not pay taxes in Portugal for the dividends coming from them:

• Barbados
• Hong Kong
• Ireland
• Kuwait
• Luxemburg
• Malta
• Macao
• Panama
• Qatar
• San Marino
• Switzerland
• Singapore
• The United Arab Emirates
• Uruguay
• Cyprus

Foreign income from these countries generally has the possibility of not being taxed in its country of origin and, therefore, is also not taxed in Portugal.

Any work during your physical presence in Portugal and income derived from that is Portugese sourced income (broadly speaking). If you do remote work does not matter, if you sell stuff online does not matter, if you consult over telephone, remote log etc does not matter - your physical presence is the key not where the work is being done at the receiving end.

A Cyprus company managed by you without proper substance (Portugal is fairly strict on everything) will be considered CFC and you will pay taxes in PT both on corporate and private front depending on setup.

 

[Juoffshore]

On the NHR point for Portugal, while it is complicated, I am not sure it is as restrictive as implied above. There is a good article on this here: NHR: residency in Portugal for foreign nationals - live tax-free in Portugal

However, I am still not clear how all this would apply to income derived from a Cyprus-based company. The article makes an interesting comment on this:

Foreign income from tax havens on Portugal’s blacklist is subject to taxes.

Portugal’s blacklist is very extensive and includes almost all the world’s tax havens. However, a great exception is those tax havens that, although on the blacklist, Portugal has signed a double taxation agreement with.

Ultimately, the following jurisdictions, despite being on the blacklist, are valid, i.e. as an NHR resident you do not pay taxes in Portugal for the dividends coming from them:

• Barbados
• Hong Kong
• Ireland
• Kuwait
• Luxemburg
• Malta
• Macao
• Panama
• Qatar
• San Marino
• Switzerland
• Singapore
• The United Arab Emirates
• Uruguay
• Cyprus

Foreign income from these countries generally has the possibility of not being taxed in its country of origin and, therefore, is also not taxed in Portugal.

FYI Malta is no longer on the blacklist.

Any work during your physical presence in Portugal and income derived from that is Portugese sourced income (broadly speaking). If you do remote work does not matter, if you sell stuff online does not matter, if you consult over telephone, remote log etc does not matter - your physical presence is the key not where the work is being done at the receiving end.

A Cyprus company managed by you without proper substance (Portugal is fairly strict on everything) will be considered CFC and you will pay taxes in PT both on corporate and private front depending on setup.

Yes, if you want that your foreign company avoid to be taxed in portugal, you have to show that you are not doing any work from there. You need office, manager, staffs, in your offshore company. Be carrefulif you rent an office in portugal it could be considered as a PE and your cyprus company could be taxed as a PT company.
I think NHR statut is a good choice if you own a real structure in another Europeean country (where there is a DTA with portugal) with Substance and where you are not involved in the daily management

 

[negon]

You want to hire someone that is able to act as "real" director of the company and who is able to sign contracts, pick up the phone and do tasks on behalf of the foreign company!

 

[GrumpyMess]

Repeat again, I don't want to make something illegal, just to find a legal way to pay as little as possible.

That's the exact reason I have created this thread. There are a lot of ways to minimize the corp tax, but they all are useless if your residence requires you to pay more and more. In some countries you even can't be safe if you show large income due to corruption and criminals. And there are so little countries where you can have a good quality of life and not to pay a half your income for it.

 

[jackfrost]

FYI Malta is no longer on the blacklist.
I think NHR statut is a good choice if you own a real structure in another Europeean country (where there is a DTA with portugal) with Substance and where you are not involved in the daily management

this and in a very strict way when it comes to PT. it definitively is not as simple as having a pseudo director somewhere else.

 

[GrumpyMess]

Are there any Europe options with <10% tax left beside of Cyprus and Malta?
Or may be a country where one can have a Belize corp without tax effects and questions asked

 

[Larry]

Are there any Europe options with <10% tax left beside of Cyprus and Malta?
Or may be a country where one can have a Belize corp without tax effects and questions asked

Romania became even more attractive by raising the revenue threshold to 1 million euros and abolishing the 20% limit for consulting services. 1% only applies to 2 or more employees, 2% to 1, 3% to no employee. VAT is obligatory from 50.000€, application requires office and 10.000€ share capital.

 

[GrumpyMess]

Romania became even more attractive by raising the revenue threshold to 1 million euros and abolishing the 20% limit for consulting services. 1% only applies to 2 or more employees, 2% to 1, 3% to no employee. VAT is obligatory from 50.000€, application requires office and 10.000€ share capital.

Romania has the great tax rates, but I simply don't trust poor eastern European countries, especially when company's finance data is exposed to the public like in case of Romania.

 

[void]

I simply don't trust poor eastern European countries

depends which countries are behind your "poor eastern European countries" definition - anyway it's unwise prejudice in general

 

[AND2]

Are there any Europe options with <10% tax left beside of Cyprus and Malta?
Or may be a country where one can have a Belize corp without tax effects and questions asked

Andorra is interesting. But mileage will vary wildly depending on your tax res. and any double taxation agreements etc

 

[Travelasia]

i found thailand is the best place to do it. im not an expert of course.

 

[Mad Dog]

Cyprus, 5000 Euro a year, rest is free..... and EU. Forget ANdorra, 10% and gotta speak the lingo. Malta or Cyprus or Ireland for the tax haven EU, or the usual 0% UAE/BVI/Bahamas etc......... depending on biz requirements.

 

[GrumpyMess]

Cyprus, 5000 Euro a year, rest is free

Do you mean Malta? Cyprus hasn't such scheme