Banking in Georgia (country)

[Marko]

Hello everyone!

I'm reading this forum for a while now and finally decided to register. I have a few questions.

I'm a so called digital nomad, working as a freelancer and moving from one country to another every few months. I'm now using Payoneer with my clients and it works fine. I can use their debit card almost everywhere and it's also easy for my clients to pay using their service. However, I have monthly subscriptions for various online services and programs and unfortunately most of them only accept PayPal.

I can't link my Payoneer card to PayPal and pay using this card. I need to link a debit/credit card from a real bank, but since I'm always changing countries, it's a bit tricky.
Btw, I have a citizenship of Croatia (EU) and Bosnia & Herzegovina, and bank accounts opened there. The problem is sending money every month to those accounts so I can continue paying for my subscriptions.

I was thinking about opening a bank account in e.g. Georgia to use it with PayPal, mostly because they have a territorial tax system and wouldn't ask me where that money came from (I'm not earning 50 K per month to be suspicious).
However, I was wondering if Georgia will/can report Croatia's or Bosnia's Tax Office about me having an account there? Do they have any bilateral agreements about this? The last thing I want is getting into trouble with tax offices, especially since I'm not living in these two countries.

Thank you for taking the time to read this and eventually provide a solution
Have a nice day!

 

[negon]

The problem is sending money every month to those accounts so I can continue paying for my subscriptions.

please elaborate, what's the problem?

I was thinking about opening a bank account in e.g. Georgia to use it with PayPal, mostly because they have a territorial tax system and wouldn't ask me where that money came from (I'm not earning 50 K per month to be suspicious).

And what stop you to do so. If you are travelling around anyway, so you may take a few months in Georgia and open the account and hope it will work for you.

If you are travelling around and are not in the same country longer than 180 days so you may not be tax liable in any country! This requires you give up your house, flat or whatever you may have in your former resident country.

Here is what they have agreed to between Georgia and Croatia
MVEP • Overview of Bilateral Treaties of the Republic of Croatia by Country

 

[Marko]

please elaborate, what's the problem?


And what stop you to do so. If you are travelling around anyway, so you may take a few months in Georgia and open the account and hope it will work for you.

If you are travelling around and are not in the same country longer than 180 days so you may not be tax liable in any country! This requires you give up your house, flat or whatever you may have in your former resident country.

Here is what they have agreed to between Georgia and Croatia
MVEP • Overview of Bilateral Treaties of the Republic of Croatia by Country

Thank you for the prompt reply.
So the problem is that I have to send every month money to my relatives so that they can add it to my bank account.
I'm sending via Western Union, but they have high fees and I'd like to avoid them...and stop being a pain for them.

I don't own any estates (house, flat) in any of those two countries. Do you mean I have to give up my residence?
I've been told in Bosnia that I can't be ''homeless'' - not have a residence in any country. Right now I kept the Bosnian residence, but I own passports of both countries (Croatia allows me to keep my passport).

Regarding the link, the first agreement states the following:
''Agreement between the Republic of Croatia and Georgia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital.''
If Georgia has 0 tax for external income, does that mean that my money is still taxed in Georgia, even if it's 0%? Then Croatia can't (double) tax it again?

Btw I forgot to mention that Georgia is just an idea, but as I'm moving across Europe and Asia, Georgia seems like the perfect fit for me since it's in the middle. If you know another place that would work for me, I'd love to hear. Maybe Cyprus?

 

[Mark Rucken]

Why not Serbia? You can get an account easily, given you speak the same language and Serbia is not a signatory of any automatic exchange program.

 

[Marko]

Even though we're neighbors, I didn't know Serbia is a good option. Thanks for the information.
I saw some people here mentioning Serbia, but didn't really think about it. However, there's a lot going on in Serbia lately and as they're planning to enter the EU soon, maybe they will have to implement an automatic exchange program?

I just checked BH's Ministry of Foreign Affairs website and looks like they don't have any bilateral agreements with Georgia. Georgia doesn't even have an embassy there (and vice versa). Does that mean that they probably don't exchange anything?

 

[7889]

Most countries have numerous bilateral DTA agreement, this does not mean automatic exchange. In case of Croatia-Georgia, it mostly applies to croatian residents who had income in Georgia, and to more complicated corporate cases.

 

[Marko]

Thanks for the information. I'll take a look.
Looks like it's maybe the best option then to apply as a Bosnian citizen there?

 

[Spinat]

Thanks for the information. I'll take a look.
Looks like it's maybe the best option then to apply as a Bosnian citizen there?

Take this as a free and kindly meant advise.

Contact a tax advisor or certified accountant in Croatia and ask him about the information exchange between Georgia and Croatia! I would never take anything serious if someone tells me that a bank in 2019 (regardless where it is located) don't report my account activity one way or another or that it would be safe!!

 

[7889]

Take this as a free and kindly meant advise.

Absolutely fair, but i must stress that i specifically mentioned automatic exchange. Of course, case-per-case exchanges are there.

 

[Marko]

Take this as a free and kindly meant advise.

Contact a tax advisor or certified accountant in Croatia and ask him about the information exchange between Georgia and Croatia! I would never take anything serious if someone tells me that a bank in 2019 (regardless where it is located) don't report my account activity one way or another or that it would be safe!!

Yes, I will probably have to do this. Thank you for the advice

 

[Spinat]

Absolutely fair, but i must stress that i specifically mentioned automatic exchange. Of course, case-per-case exchanges are there.

sorry to say so, it's BS - your account will get reported and at some threshold you will hear the knock, knock on your door and have to explain yourself.

 

[Marko]

sorry to say so, it's BS - your account will get reported and at some threshold you will hear the knock, knock on your door and have to explain yourself.

But what is then the purpose of having an offshore account if the native country can know everything? Having an account then there, without a Georgian citizenship is useless?? Or at least a temporary residence?

 

[Spinat]

But what is then the purpose of having an offshore account if the native country can know everything? Having an account then there, without a Georgian citizenship is useless?? Or at least a temporary residence?

I agree, there is no point at all and your Georgia bank will laugh there a*s out loud when they have to close your account because of request by authorities.

 

[happyjohn]

So most of people around back in February may already had accounts at this time, does some of them mind to tell us if they are still happy with banking in Georgia?

 

[JohnSeed]

No one is able to report back if they were able to get an account opened! Personally I have had luck to go there and open an account like a few others with TBC!