Affordable short-term accommodation abroad, for tax residency

FriendlyFace

Active Member
Hello - hope you're well.

As you know, in order to be a tax resident in a specific country, you need to spend at least 183 days of the year there.

For example, let's say you live 6 months of the year (total) in "country A" and 6 months of the year (total) in "country B".

This may be happening intermittently. For example:

- You live in "country A" for 3 months.

- You live in "country B" for 3 months.

- You live in "country A" for 3 months.

- You live in "country B" for 3 months.

This creates a problem:

If you rent an apartment in "country A" for a year, and live there only 6 months of the year, then you end up wasting half your money.

I'm looking into some options like:

- Rent furnished apartments via Airbnb for 3 months at a time.

- Strike an agreement with hotel owners and rent a room long-term, say for 3 months at a time. Sometimes hotel rooms end up not getting rented - so, this is a great way for hotel owners to make sure they at least get some money from what would otherwise be "unused inventory."

- Find someone who owns a block of flats but still has a lot of un-rented apartments and make a deal to live there for 3 months (possibly also repeating this again in the future, at 3-month intervals).

Questions:

1)
Do you have any experience with the ideas above (or similar)?

2) Is it ok if the company has a virtual office, paid-for 12 months of the year, in the country of incorporation, while you live 6 months of the year in ever-changing addresses in that country?

3) Would someone need to declare somewhere (where?) their constant change of address?

Thanks in advance!
 

xzars

Trusted Member
Business Angel
For 1-11 month stays on budget try "apart hotel" service. It's a hybrid of rental condo and hotel.

The main difference is absence of breakfast and nanny room service. Also, you are likely to get weekly room cleaning, linen/towel change in place of daily. You get a proper rental contract which can be useful for bank account openings, subscribing to cellular plans whereas AirBnB booking confirmation e-mails or advertisement screenshots won't be useful for either purpose. You also get your own mail box and keys.
 

Martin Everson

Offshore Consultant
Business Angel
As you know, in order to be a tax resident in a specific country, you need to spend at least 183 days of the year there.
Not entirely true but I get your point.

1) Do you have any experience with the ideas above (or similar)?
Yes and its not compatible with CRS and 2019 banking. Banks need tax ID's. Plus end of year your account will be reported to 4 different countries do you want that hassle?

2) Is it ok if the company has a virtual office, paid-for 12 months of the year, in the country of incorporation, while you live 6 months of the year in ever-changing addresses in that country?
Yes......but offers no tax advantage.

3) Would someone need to declare somewhere (where?) their constant change of address?
You would need to let any bank know.
 

FriendlyFace

Active Member
Thanks for the responses!

For 1-11 month stays on budget try "apart hotel" service. It's a hybrid of rental condo and hotel.
Hmmm… I looked around for "apart hotel" and "hotel apartment" in the country I'm interested in (Cyprus).

Every single result I found comes out to at least double the cost of what I could rent a "normal" apartment for.

To be fair, I understand I'm looking for something that is pretty hard to find.

Even the AirBnB deals I mentioned in my first post are too expensive.

Another thing I'm considering is to find Facebook groups about finding accommodation in Cyprus, and look there. Sometimes, reasonable deals appear.

Another idea: Find a normal-priced apartment for one month. Once I visit Cyprus, then I will look for cheaper accommodation. It's easier to find something when you're living closer.

- - -

Now, at the risk of sounding like a complete idiot in front of everyone, I'll ask the following questions:

Banks need tax ID's. Plus end of year your account will be reported to 4 different countries do you want that hassle?
Thanks for the responses, Martin...

Tax IDs of what specifically? My company and myself? I will provide those. I don't understand the issue there (yet).

May I ask what the 4 countries may be (I live in Greece and will likely be moving to Cyprus)?

If everything is done in a legit way, then there shouldn't be an issue with something getting reported. I'd like everything to be legit (but still "livable").

Correct, not a very good plan ! If you are a EU citizen, you have plenty of options in eastern europe.
Options to do what specifically, if I may ask? And to clarify, the company has already been registered in Cyprus.

Thanks again for all the responses!
 

Martin Everson

Offshore Consultant
Business Angel
Tax IDs of what specifically? My company and myself? I will provide those. I don't understand the issue there (yet).
Yes personal tax ID. Have you ever opened a real bank account recently? This is not going to end well for you trust me :confused:.
 

FriendlyFace

Active Member
Ok I see it makes sense now.

When you have countries in mind, bank and company location I may walk you through issue.
Thanks for the reply, Martin.

I live in Greece.

I have created a company in Cyprus.

I plan on opening a bank account with Alpha bank in Cyprus.

I plan on spending 6+ months per year in Cyprus, and the rest in Greece.

Thanks!
 

Martin Everson

Offshore Consultant
Business Angel
Understand that for Cyprus company registration alone does not make it automatically a Cyprus resident company. However the Cyprus company management and control will be exercised in Cyprus where you will be based so it is in this case a Cyprus tax resident company. So the company will be taxed on its worldwide income as its a resident company.

As you will be living in Cyprus for 183+ days you would be tax resident in Cyprus. You would even be a tax resident of Cyprus even if you spent fewer than 183 days in Cyprus and did not spend more then 183 days in any other state in that same tax year - to name part of the criteria to determine tax residency in Cyprus.

Hence your plan is nothing more than a move to Cyprus to start a business which is normal.
 

FriendlyFace

Active Member
Understand that for Cyprus company registration alone does not make it automatically a Cyprus resident company. However the Cyprus company management and control will be exercised in Cyprus where you will be based so it is in this case a Cyprus tax resident company. So the company will be taxed on its worldwide income as its a resident company.

As you will be living in Cyprus for 183+ days you would be tax resident in Cyprus. You would even be a tax resident of Cyprus even if you spent fewer than 183 days in Cyprus and did not spend more then 183 days in any other state in that same tax year - to name part of the criteria to determine tax residency in Cyprus.

Hence your plan is nothing more than a move to Cyprus to start a business which is normal.
Thanks, Martin!
 

RandaFlores

New Member
For 1-11 month stays on budget try "apart hotel" service. It's a hybrid of rental condo and hotel.

The main difference is absence of breakfast and nanny room service. Also, you are likely to get weekly room cleaning with EMOP, linen/towel change in place of daily. You get a proper rental contract which can be useful for bank account openings, subscribing to cellular plans whereas AirBnB booking confirmation e-mails or advertisement screenshots won't be useful for either purpose. You also get your own mail box and keys.
In fact, it is not complicated to have a clear apartment with EMOP. The thing is that their quality is rather high. So if you are going to pay for their services, you will not have problems with mud and dirty within a month, at least.
 

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