Affordable short-term accommodation abroad, for tax residency

[FriendlyFace]

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!

 

[Tax Cow]

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]

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.

 

[Marc Jacob]

your account will be reported to 4 different countries do you want that hassle?

Correct, not a very good plan ! If you are a EU citizen, you have plenty of options in eastern europe.

 

[FriendlyFace]

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]

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 .

 

[FriendlyFace]

Yes personal tax ID. Have you ever opened a real bank account recently? This is not going to end well for you trust me .

Hi, Martin...

I have not.

But again, may I ask what the issue is?

Thanks!

 

[Martin Everson]

I have not.

Ok I see it makes sense now.

When you have countries in mind, bank and company location I may walk you through issue.

 

[FriendlyFace]

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]

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]

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!

 

[romashkavarashka]

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?

Are you saying that it'll be reported only if one opened an account and provided a bank a local TaxID?

Besides, not all the banks in every country need TaxID.

 

[Martin Everson]

Are you saying that it'll be reported only if one opened an account and provided a bank a local TaxID?

Besides, not all the banks in every country need TaxID.

Yes you will if there is Indicia on the account pointing to another country i.e foreign telephone number, forwarding address etc. a Taxid is a nice to have for CRS but it does not prevent CRS data being exchanged.

 

[romashkavarashka]

Yes you will if there is Indicia on the account pointing to another country i.e foreign telephone number, forwarding address etc. a Taxid is a nice to have for CRS but it does not prevent CRS data being exchanged.

I may use a mobile phone number of a country where I don't live, nor am I a resident there.

For instance, I use my Thai mobile phone number for opening bank accounts in other countries because that
Thai mobile operator has very decent internet dashboard and other benefits.
But I don't live in Thailand, nor do I have a property there. I may spend 1-2 months per year there. That's it.

What's a problem here? They'll report to Thailand about me, so what? I've always been a tourist in Thailand.

 

[Martin Everson]

I have no idea on your particular situation. You jumped my response I gave to another member of the forum and then applied it to yourself like I was talking to about you....lol.

But whatever your situation is then it if works for you then go with it.

 

[romashkavarashka]

You gave that response to me.

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filling the space fdsafd

 

[Martin Everson]

You gave that response to me.

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filling the space fdsafd

Yes in relation to the OP. You quoted a response I gave to the OP and asked a question which would be related to OP. Yet your quick to jump in and start talking about Thailand and mobile phones...lol....very strange way to interject.

 

[romashkavarashka]

But how should've I jumped in? Slowly? With what speed? "Let's talk about Asia. In it Thailand is located". Like this?

 

[Martin Everson]

But how should've I jumped in? Slowly? With what speed? "Let's talk about Asia. In it Thailand is located". Like this?

You start by explaining your situation before applying an answer to another person to your unknown situation. I am always happy to help and answer questions.

 

[andres33]

As well said Martin, with only a company in Cyprus you don't get nothing. Because finally the UBO address will be relevant in the CRS aplication. I think that the best way is to get the non dom residency that it's possible to get througt the company, or by other sistem. Once you get the non dom residency, named the yellow slip, you will get the tax number, and this it will be very important to open accounts in banks. You will need in first instance to get to rent an apartment for one year. After that you will get the yellow slip. After you will get the tax number and finally you will get an utility bill. This will be very important to open an account. Being non dom resident you need to spend only 60 days by year in the island. You can do it in diferents trips. You will need evidently a number phone in the island as a proove of your residence when you will open account bank. You can open account in difrerent countries with all these documents. All this is a suficient residence prooves. And your with your company in Cyprus you will work every were with very low tax. All this residence package is very easy to get with the correct contact. And is not expensif. And as non dom resident you can manage others companies in other countries like seychelles, etc... For individuals there is no CFC rules in Cyprus. And you will no pay tax over dividends made out Cyprus