Advice Needed - Where to Move?

[JustAnotherNomad]

Panama sounds like it wouldn’t be an option for receiving dividends from a foreign company since those would be considered local earned income, right?

No, it’s the other way round. That’s exactly what is not taxed.

 

[JustAnotherNomad]

What is your general input regarding an Estonian e-Residency company?

There is no such thing. There are only Estonian companies. It doesn’t matter if you travel there to set it up or if you do it online.
There is no tax if you pay yourself a salary. The tax is paid where you live. So if you live in a country without taxes, there are none to be paid. But that’s not specific for Estonia.

 

[extremedox101]

it's true that uae is very expensive , not viable option if im looking to save money expect for ballers who works in extremely profitable businesses .
eu is less expensive and easier to live there ,at least some eu countries has sufficient welfare system .

 

[Mr Magoo]

Living in Mexico and having your business and financials elsewhere works OK. Just have a local account maybe for some petty cash although you can just get some MXN from an ATM and for the rest use debit/credit cards. Getting residency is easy. I was advised by a Mexican tax lawyer not to use the Mexican financial system or at least as little as possible and certainly no big amounts in/out. The government is tracking (they say so at least) amounts above 15000 MXN. Government has no time to enforece CFC and they will go after the big fish first.

 

[eRabbit]

No, it’s the other way round. That’s exactly what is not taxed.

Does that mean that if live in, say, Panama and you receive dividends from an LLC no tax is ever paid?

 

[eRabbit]

There is no such thing. There are only Estonian companies. It doesn’t matter if you travel there to set it up or if you do it online.
There is no tax if you pay yourself a salary. The tax is paid where you live. So if you live in a country without taxes, there are none to be paid. But that’s not specific for Estonia.

So, if you live in Panama, have an Estonian company and pay yourself a salary no taxes or social security have to be paid anywhere, is that correct? it sounds like a good solution too.

 

[eRabbit]

Living in Mexico and having your business and financials elsewhere works OK. Just have a local account maybe for some petty cash although you can just get some MXN from an ATM and for the rest use debit/credit cards. Getting residency is easy. I was advised by a Mexican tax lawyer not to use the Mexican financial system or at least as little as possible and certainly no big amounts in/out. The government is tracking (they say so at least) amounts above 15000 MXN. Government has no time to enforece CFC and they will go after the big fish first.

How much is 15000 MXN? I checked on Google and it converts to $677, is that right?

 

[JustAnotherNomad]

I think the Panamanian tax exemption only applies to dividend income, not salaries. But I’m not sure, you’ll want to double check that with a Panamanian accountant.
Also, with a LLC you need to make sure it can pay dividends. I’m not sure if a US LLC can do that since it’s usually taxed on the member level. But otherwise you should be correct.
But again, it probably doesn’t work if you work from Panama. At least in theory. In practice they probably don’t care if all your customers are in other countries.

 

[Mr Magoo]

Yes, 15000 MXN is around 700 US or so but it the is registered for cash deposits. The government says a lot but not sure if they really enforce it. The new government is putting in place more regulations to track suspicious money flows, they even want to tax savings. Years ago I was able to transfer in and out 7 figure numbers w/o problems. So just use a foreign debit/credit card.

 

[eRabbit]

Any thoughts on Malta and Cyprus? I read that corporate tax in Cyprus is 12.5% and in Malta it’s 5%, if you lived in one of those countries and ran an online business, how much tax would you have to pay apart from the corporate tax? Would anyone recommend a setup using one of these companies?

 

[Brianthedog]

anything further on panama and what is, or isn't classed as foreign income?