Malta it's 5000€ flat fee if your foreign income is over 35K + anything that you bring in the country (even paying with a foreign debit card)
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Best 1st world countries with low to zero income tax?
- Thread starter banafinfodafuggiano
- Start date
Malta it's 5000€ flat fee if your foreign income is over 35K + anything that you bring in the country (even paying with a foreign debit card)
Yes, it's possible if you don't remit income to Malta.
Malta structures can provide a 0-5% total tax rate.
It's, however, not so good for personal tax residency.
Locally sourced income might be taxed at a higher rate of 35%.
If you are a resident of Malta and spend most of your time there, then there's a higher chance it's perceived as locally sourced income (depending on the substance).
Note that corporate tax and personal income tax are separate matters.
You can also set up your business structure in Malta but reside somewhere else where this income is not taxed.
From a tax perspective, branches of overseas companies are only taxable in Malta on income arising in Malta and on income arising outside Malta but received in Malta.
Assuming you qualify as a Maltese domiciled tax resident and your income is not considered as sourced from Malta, and company has no PE or become Maltese tax resident. And then you still have to pay some minimum level of tax 5k eur.
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List just go on. Hot girls, cheap, low tax, near Europe etc etc. What else? Tropical climate, not island etc etc 
List just go on. Hot girls, cheap, low tax, near Europe etc etc. What else? Tropical climate, not island etc etc
Classic "troubled soul", countless accounts looking for impossible solutions for likely fictitious problems.
Estonia and Latvia sound ok.
Exactly.
There are only a handful of countries that don't care like Panama for example so his requirements should be really filtered by which countries don't care about people creating a PE in their country.
Based on his requirements, San Marino is the best option.
This is interesting,Exactly.
There are only a handful of countries that don't care like Panama for example so his requirements should be really filtered by which countries don't care about people creating a PE in their country.
Based on his requirements, San Marino is the best option.
what is foreign sourced income though?
Is ecommerce from sales from Canada foreign income if I manage all the companies from within San Marino?
If OP receives only dividends, why not consider Slovakia, which has a withholding tax (WHT) rate of 7%? If dividends are received without any active involvement from OP in Slovakia, they may be exempt from Corporate Income Tax (CIT).
Hello @Don, in the scenario you provided, could you clarify the specific reasons for recommending Kosovo or Bulgaria over Slovakia?
I see some Canadians are happy in EU-Bulgaria, which now likely partially also becomes EU-Schengen zone in March at least for air and sea travel (aka Air Schengen). Fixed rate to Euro, could get Euro in 2025. 10% income tax, 5% dividend tax through company setup. As freelancer 6% income tax for authors or royalties, 4% for farmers. Possibility to receive dividend pre-payments throughout the year and live on them. Major cities like Sofia and Plovdiv are decent, Varna on the black sea has the climate and little snow. Neighbor Romania also has a lot to offer. With steady income relatively easy to obtain residence visa for Canadians.
Just my 2 cents re: Bulgaria/Kosovo/Slovakia. Local languages there are a disaster for an average Canadian and % of locals speaking decent English (or French ) is low. In addition, Bulgarians use non-Latin (Cyrillic) alphabet and (geo-)political situation in Kosovo is IMO also of concern.
) is low. In addition, Bulgarians use non-Latin (Cyrillic) alphabet and (geo-)political situation in Kosovo is IMO also of concern.
I might be a little biased, but hear me out:
If he keeps the Canadian business setup its probably best to move residency to a jurisdiction which has a (non-shitty) DTT with Canada to avoid double tax residency.
I would then choose the one with lowest withholding taxes and narrow it down to the jurisdiction that applies the lowest total taxes on dividends.
Canada - Corporate - Withholding taxes
Detailed description of corporate withholding taxes in Canada
taxsummaries.pwc.com
Amongst those I would choose the one which has great tax planning options, flexible to qualify as tax resident and easy residence options. I also can't blame OP for his personal preferences.
Slovakia might be great for passive income, but not so good for new business setup (21% CIT + 7% WHT).
As Estonian resident he would pay 5% WHT on dividends only in Canada and 0% in Estonia (in Cyprus/Malta 15%).
Estonia can also provide opportunities for future business setups with much lower overall tax rate (e.g., 0%-5%).
A rather unique benefit of Estonia is that it doesn't have in its laws management and control test for determining corporate tax residence, so its less likely that Estonia would go after a foreign corporate structure.
Tax residency doesn't require any physical stay offering maximum flexibility.
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As a non-resident of Canada, you pay tax on income you receive from sources in Canada. The type of tax you pay and the requirement to file an income tax return depend on the type of income you receive. Generally, Canadian income received by a non-resident is subject to Part XIII tax or Part I tax.
Non-residents of Canada - Canada.ca
Information about the income tax rules that apply to non-residents of Canada.
I am not sure if this applies to you. Is your e-commerce connected to Canada?
Perhaps this doesn't apply to his situation, and I could be mistaken, but based on my understanding, if someone has an LLC partnership in Delaware and receives dividends, they would only incur a 7% tax rate in Slovakia. In Bulgaria, the tax rate would be 10%, and Bulgaria is in the non-Schengen area.I might be a little biased, but hear me out:
If he keeps the Canadian business setup its probably best to move residency to a jurisdiction which has a (non-shitty) DTT with Canada to avoid double tax residency.
I would then choose the one with lowest withholding taxes and narrow it down to the jurisdiction that applies the lowest total taxes on dividends.
Canada - Corporate - Withholding taxes
Detailed description of corporate withholding taxes in Canadataxsummaries.pwc.com
Amongst those I would choose the one which has great tax planning options, flexible to qualify as tax resident and easy residence options. I also can't blame OP for his personal preferences.
Slovakia might be great for passive income, but not so good for new business setup (21% CIT + 7% WHT).
As Estonian resident he would pay 5% WHT on dividends only in Canada and 0% in Estonia (in Cyprus/Malta 15%).
Estonia can also provide opportunities for future business setups with much lower overall tax rate (e.g., 0%-5%).
A rather unique benefit of Estonia is that it doesn't have in its laws management and control test for determining corporate tax residence, so its less likely that Estonia would go after a foreign corporate structure.
Tax residency doesn't require any physical stay offering maximum flexibility.
Thats Slovakian WHT rate you are referring to. This also might be reduced by a treaty.
SMLLC will not have tax residency in US so it is highly likely to qualify as Slovakian tax resident and be exposed to CIT in Slovakia.
Doesn't matter for OP. OP has Canadian and Spanish passport (if my mind doesn't betray me)
Can’t go wrong with Thailand
Bangkok / Phuket is akin to first world for most things - and to be blunt, the areas it isn’t work to your advantage.
Then ask yourself - what is first world - as the UK is 12-18 hrs for A&E these days, the US banking system is broken, the European Union is rife with mafias and Islamic terrorism, they are all broken systems breaking down.
From East Africa through to the pacific the monsoon region specifically in the Indian Ocean is at peak productivity by age demographics which will result in an economic boom and a “great wash of opportunities and wealth creation” will result in infrastructure and private enterprises coming into build these countries out to akin to what the west had and threw away.
Thailand doesn’t have interest in taxing overseas companies / operations that are completely outside of Thailand - I had that discussion around the new tax set up with the revenue department myself - so as long as you are just a director and are not operating a company on the ground they are not interested.
Any income you make if remitted would be taxed through - with all the deductions you can make it doesn’t work out too bad.
Savings are still tax free if from before 2023 tax year when remitted.
Bangkok / Phuket is akin to first world for most things - and to be blunt, the areas it isn’t work to your advantage.
Then ask yourself - what is first world - as the UK is 12-18 hrs for A&E these days, the US banking system is broken, the European Union is rife with mafias and Islamic terrorism, they are all broken systems breaking down.
From East Africa through to the pacific the monsoon region specifically in the Indian Ocean is at peak productivity by age demographics which will result in an economic boom and a “great wash of opportunities and wealth creation” will result in infrastructure and private enterprises coming into build these countries out to akin to what the west had and threw away.
Thailand doesn’t have interest in taxing overseas companies / operations that are completely outside of Thailand - I had that discussion around the new tax set up with the revenue department myself - so as long as you are just a director and are not operating a company on the ground they are not interested.
Any income you make if remitted would be taxed through - with all the deductions you can make it doesn’t work out too bad.
Savings are still tax free if from before 2023 tax year when remitted.
Thailand if you like Asia, Spain if you like Med. With 1.2 mil NW your tax liability will be very limited anyways and with 4% withdrawal you will get around 50k per year - that a very comfortable living in Thailand even in expat populated areas and a decent life in south Spain. I would say Thailand will give you more run for your money so it all goes down the lifestyle you are after. Maybe do a year in Thailand, see if you like it and if not - you can always come back to Spain.
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