Best 1st world countries with low to zero income tax?

[jafo]

Welcome to tax hell

Brazil introduces individual income tax bill affecting taxation of foreign investment income

According to the new bill, starting from 1 January 2024, foreign investments by Brazilian residents will be reported annually and at tax rates range from 0% to 22.5% based on annual income. Profits of entities controlled by Brazilians abroad would be taxed annually, starting from 1 January 2024...

www.ey.com

Not abroad! That's a whole different game. For example, people earning dividends from BVMF: PETR4 are NOT taxed. (PetroBras traded on B3, formerly Bovespa)

Those who own NYSE: PBR.A or PBR are fvcked on their dividends and what you posted applies to them. The former is STILL tax-free. (PetroBras traded on NYSE)

Both same company.

There is a distinction that is easily solvable in Latin America. Very very easy to solve in Latin America. Almost too easy.

PS. With the right connections (you have to speak the language fluently) you can easily trade on B3 in Brazil. Also, anyone can get a CPF. If you are from Europe, Latin America easily has you covered. Use Google Translate (unless you also speak Portuguese: Compre um juiz por R$ 750 ). The article explains a lady who bought a judge for less than €150. Latin America is huge and they do NOT need Europe or USA. They have access to food, water etc etc. They just don't give a fvck! Of course, for those who are troublemakers, this cuts both ways.

 

[Amandograde]

Welcome to tax hell

Brazil introduces individual income tax bill affecting taxation of foreign investment income

According to the new bill, starting from 1 January 2024, foreign investments by Brazilian residents will be reported annually and at tax rates range from 0% to 22.5% based on annual income. Profits of entities controlled by Brazilians abroad would be taxed annually, starting from 1 January 2024...

www.ey.com

does this apply to all the people living and working in these nice suburbs starting with a F too?

 

[JimBeam]

With 19500 Euro I barely buy any food for my family.


It was my choice but then they introduced those stupid Tax laws.

Yes but that's tax your base salary that's tax free. The tax kicks in from that amount.

But the better and more common way is to pay yourself dividends from your company and pay just 2.65% healthcare contribution and there you go. Your effective personal income tax is around 2% or even less.

 

[Marzio]

But the better and more common way is to pay yourself dividends from your company and pay just 2.65% healthcare contribution and there you go

Why don't you factor in the 12.5% CIT?

I understand this is a corporate tax but nevertheless it will impact on his income.

 

[Don]

Why don't you factor in the 12.5% CIT?

I understand this is a corporate tax but nevertheless it will impact on his income.

Maybe he is just trading shares of companies for income, and it's not relevant for him since it's generally a tax-exempt activity.
Otherwise, you are right, and Cyprus is expected to raise CIT to 15%.

 

[backpacker]

The question of the OP:

The new country must have all of these requirements:

- Zero to max 15% income tax
- Does not consider foreign companies a local resident company for Tax purposes when the Director is a tax resident

Your recommendation:

Egypt

Study the tax code of Egypt first before recommending the country in this context!

 

[CyprusLawyer101]

Check the Cyprus and Malta non dom options. Also look at some territorial countries in Asia.

 

[Don]

The question of the OP:

Your recommendation:

Study the tax code of Egypt first before recommending the country in this context!

This recommendation was based on "be near Europe or near Asia". (Not Europe or Asia)

If you are hinting that they don't have the best tax code, I can agree that it might not be the best jurisdiction for tax residence, but for partly staying there it might not be too bad tax wise.

According to the PWC:
Foreign executives and technicians are taxed only on income from Egyptian sources and income received against work provided for Egypt (regardless of the source of payment) and not on their worldwide income (as long as Egypt is not the centre of their commercial or industrial activity).

 

[Macky]

Just an update on this:
- Dividend witholding tax rate in Slovakia went up from 7% to 10% since the beginning of 2024.
- Romania might be a good option with only 1% tax rate on yearly micro-company turnover tax. However there are many conditions AFAIK so better check that.
- Cyprus has a good climate and nice tax regime too

 

[GrumpyMess]

But the better and more common way is to pay yourself dividends from your company and pay just 2.65% healthcare contribution and there you go. Your effective personal income tax is around 2% or even less.

I've been in this community for a few years and have seen dozens of discussions of Cyprus, and there were no 100% foolproof schemes to get that tax rate. It all boils down to the fact that at the moment the tax department doesn't hang on to foreign companies. But there is no guarantee under the law that they can't do so, including retroactively.

Get a non dom in Cyprus, a company in BVI and live tax free? Seems like a miracle in 2024

 

[JimBeam]

Why don't you factor in the 12.5% CIT?

I understand this is a corporate tax but nevertheless it will impact on his income.

Yes, that's correct.
Buy you could write off bunch of things to lower your effective tax rate.

I've been in this community for a few years and have seen dozens of discussions of Cyprus, and there were no 100% foolproof schemes to get that tax rate. It all boils down to the fact that at the moment the tax department doesn't hang on to foreign companies. But there is no guarantee under the law that they can't do so, including retroactively.

Get a non dom in Cyprus, a company in BVI and live tax free? Seems like a miracle in 2024

I had a company in Cyprus for number of years so I can speak from my experience.
The tax is 12.5% if you pay one year in advance (prepay based on your assumption) - otherwise if you pay it after you submit the audit there is an extra 1% on top so it comes to 13.75%.
They want to bring it up to 15% as that's proposed as global minimum and that's also fine I guess. They'll look less dodgy in eyes of the world.

But on personal level it's great as no cpaital gains tax (you can trade stocks/crypro/forex etc) and and also dividend tax is low.
So, I doubt it can be any better than that right now in EU-rope.

 

[Marzio]

Foreign executives and technicians are taxed only on income from Egyptian sources and income received against work provided for Egypt (regardless of the source of payment) and not on their worldwide income (as long as Egypt is not the centre of their commercial or industrial activity).

Good catch!

 

[backpacker]

Good catch!

No, it's not. Check my earlier posts about Egypt.

This recommendation was based on "be near Europe or near Asia". (Not Europe or Asia)

If you are hinting that they don't have the best tax code, I can agree that it might not be the best jurisdiction for tax residence, but for partly staying there it might not be too bad tax wise.

According to the PWC:
Foreign executives and technicians are taxed only on income from Egyptian sources and income received against work provided for Egypt (regardless of the source of payment) and not on their worldwide income (as long as Egypt is not the centre of their commercial or industrial activity).

Unfortunately, PWC still publishes this as a 1:1 translation. Definition is different. Contact a tax lawyer in EG, or PWC themselves, and they will open your eyes.

If we put taxes aside, Egypt is a top choice. You won't find any other country with a combination of low prices, excellent infrastructure, welcoming people and nice housing. Just choose the right place within the country and you will never want to leave again.

 

[jafo]

I'm looking to relocate from Canada to a new country. The new country must have all of these requirements:

- Zero to max 15% income tax
- Does not consider foreign companies a local resident company for Tax purposes when the Director is a tax resident
- Low to zero capital Tax gains a bonus
- Not crazy expensive to rent a house/villa/townhouse (Dubai is a bit out of our range $15,000 for a house in the middle of nowhere)
- Be near Europe or near Asia
- Generally safe, I said first world year. Definitely not Mauritius and not crazy expensive Monaco either



It seems like East Europe or Asia can have great options but what countries are not crazy expensive and also have low taxes in these areas?

A = Zero to max 15% income tax
B = Does not consider foreign companies a local resident company for Tax purposes when the Director is a tax resident
C = Low to zero capital Tax gains a bonus
D = Not crazy expensive to rent a house/villa/townhouse (Dubai is a bit out of our range $15,000 for a house in the middle of nowhere)
E = Be near Europe or near Asia
F = Generally safe, I said first world year. Definitely not Mauritius and not crazy expensive Monaco either

A =

Country	Last	Previous	Reference	Unit
United Arab Emirates	0	0	Dec/23	%
Saudi Arabia	0	0	Dec/23	%
Qatar	0	0	Dec/23	%
Oman	0	0	Dec/23	%
Kuwait	0	0	Dec/23	%
Cayman Islands	0	0	Dec/23	%
Brunei	0	0	Dec/23	%
Bermuda	0	0	Dec/23	%
Bahrain	0	0	Dec/23	%
Bahamas	0	0	Dec/23	%
Guatemala	7	7	Dec/23	%
Montenegro	9	9	Dec/22	%
Serbia	10	10	Dec/22	%
Romania	10	10	Dec/23	%
Mongolia	10	10	Dec/22	%
Macedonia	10	10	Dec/23	%
Libya	10	10	Dec/23	%
Kosovo	10	10	Dec/23	%
Kazakhstan	10	10	Dec/23	%
Bulgaria	10	10	Dec/23	%
Bosnia and Herzegovina	10	10	Dec/23	%
Uzbekistan	12	12	Dec/23	%
Tajikistan	12	13	Dec/22	%
Moldova	12	12	Dec/23	%
Macau	12	12	Dec/23	%
Russia	13	13	Dec/22	%
Bolivia	13	13	Dec/23	%
Belarus	13	13	Dec/22	%
Sudan	15	15	Dec/22	%
Sierra Leone	15	15	Dec/23	%
Seychelles	15	15	Dec/22	%
Mauritius	15	15	Dec/23	%
Iraq	15	15	Dec/23	%
Hungary	15	15	Dec/22	%
Hong Kong	15	15	Dec/23	%

Source: List of Countries by Personal Income Tax Rate
Note: Andorra and Monaco were NOT included in this list for whatever reason. I didn't make the list.

B =
A cursory search brought up these: 7 Countries Without CFC Rules - Www.libertymundo.com

C = A search returned the following:

1. Andorra
2. New Zealand
3. Bahamas
4. Bahrain
5. Barbados
6. Belize
7. Bermuda
8. Belgium
9. Brunei
10. Cayman Islands
11. Dominica
12. Grenada
13. Hong Kong
14. Kuwait
15. Maldives
16. Malaysia
17. Monaco
18. Oman
19. Qatar
20. Saint Kitts and Nevis
21. Saint Lucia
22. Saint Vincent and the Grenadines
23. Singapore
24. Switzerland
25. Thailand
26. Turks and Caicos Islands
27. United Arab Emirates

etc. etc.

D

E

F

You need to find A ∩ B ∩ C ∩ D ∩ E ∩ F

It will look something like this:

Good luck, @banafinfodafuggiano

PS. If it were me? I'd go straight with Monaco. I wouldn't d1ck around with it, but that's my personal choice since I am a misanthrope. The fewer people, the better I feel and think.

 

[Marzio]

Unfortunately, PWC still publishes this as a 1:1 translation. Definition is different.

If that's the case it's not the first time PwC publishes incorrect informations that could end up costing a lot if not double checked with local lawyers.

 

[jafo]

it's not the first time PwC publishes incorrect informations that could end up costing a lot

It's NOT a bug or syntax error...
It's the main feature responsible for large incoming revenues

 

[Don]

If that's the case it's not the first time PwC publishes incorrect informations that could end up costing a lot if not double checked with local lawyers.

True!
I actually once pointed out to a government official that they are spreading incorrect information on their website. The officials response was that they had ordered this tax guide from PWC.

 

[backpacker]

If that's the case it's not the first time PwC publishes incorrect informations that could end up costing a lot if not double checked with local lawyers.

Unfortunately.
As you can see in my earlier posts, I am partially active in Egypt. I was wondering about their statement, even though it does not affect me. It is a copy/paste advise and they did not amend the text for many years, despite the Ministry of Finance having issued a clarification.
My local tax advisor also warned that what is published in the PWC brochure is outdated in many cases.
Note that the Egyptian tax code undergoes frequent modifications currently. So, it is paramount to check it regularly.

To everyone who is interested in this beautiful country (Egypt) and wants to be active their: Contact at least two reputable local tax advisors before settling down. Do not rely on "internet information".

 

[Sigma]

I'm looking to relocate from Canada to a new country. The new country must have all of these requirements:

- Zero to max 15% income tax
- Does not consider foreign companies a local resident company for Tax purposes when the Director is a tax resident
- Low to zero capital Tax gains a bonus
- Not crazy expensive to rent a house/villa/townhouse (Dubai is a bit out of our range $15,000 for a house in the middle of nowhere)
- Be near Europe or near Asia
- Generally safe, I said first world year. Definitely not Mauritius and not crazy expensive Monaco either



It seems like East Europe or Asia can have great options but what countries are not crazy expensive and also have low taxes in these areas?

Have you looked into Georgia? Cities like Batumi and Tbilisi…

 

[stivemoose]

Just an update on this:
- Dividend witholding tax rate in Slovakia went up from 7% to 10% since the beginning of 2024.
- Romania might be a good option with only 1% tax rate on yearly micro-company turnover tax. However there are many conditions AFAIK so better check that.
- Cyprus has a good climate and nice tax regime too

Are you sure about Slovakia?