Question Cheapest incorporation + maintenance offshore company

[itsmemario123]

Hi,

I'm going to move in a couple of months as a digital nomad.

My income is 100% from my country (Spain) and I would like to create an offshore company so I can create invoices and such without the need to have a permanent tax residence, as I'm going to move each couple of months to another country. From time to time I would like to distribute the profits as dividends to my personal account.

The easiest thing I'm reading is just to create an offshore company with a virtual office address and searching in Google I've found some countries that may be a good start, like UAE, Seychelles, BVI and so on. The thing is that I don't really know what is the government cost of creating and maintaining those companies. All the websites I've seen that offer "company creation" don't say if that includes government fees or not, so maybe one of them is cheap, but the fees are really high.

So, what is the cheapest incorporation + maintenance offshore company to have 0% taxes being an IT digital nomad? I accept references for agents or resellers. I'm close but I don't even make 6 USD figures a year, so I prefer to save money when possible, so no unneeded services.

Thank you.

 

[koohl]

I can suggest BVI, Hong Kong, and the Isle of Man.

really, how can you find banking for BVI and IOM ?

 

[Cons Mark]

really, how can you find banking for BVI and IOM ?

As soon as BVI and IOM are kind of white-listed and welcoming jurisdictions, most offshore Banks and Offshore related EMI's are pretty much well with them.

In a conclusion, we can say that there are various options.

 

[joffreylol]

Good luck with your journey and just as a heads up be prepared to change plans. If you went with either Romania or UAE In the last 1-2 years you would have to adapt. Romania used to be revenue up to 1mil EUR and ~6% tax to 500k EUR and ~9% tax. UAE went from having no taxes except VAT to 9% CIT starting in June without clear definition of what qualifying freezone income means (how to keep freezone CIT at 0%) and pretty strict definitions of natural persons being liable for CIT.

 

[itsmemario123]

Good luck with your journey and just as a heads up be prepared to change plans. If you went with either Romania or UAE In the last 1-2 years you would have to adapt. Romania used to be revenue up to 1mil EUR and ~6% tax to 500k EUR and ~9% tax. UAE went from having no taxes except VAT to 9% CIT starting in June without clear definition of what qualifying freezone income means (how to keep freezone CIT at 0%) and pretty strict definitions of natural persons being liable for CIT.

Thank you!!

Reading about this, it seems that over time is going to be harder to optimize. Well, lets enjoy what we can while it lasts

 

[jafo]

First word of advice is to get an actual tax residency somewhere, even if you are moving around,

Two questions:

(1) Don't you lose your residency in a country once you are gone for more than one year?
(2) Is residency and the place you pay taxes the same thing in this scenario?

PS. I tried to set up a residency +20 years ago, but it kept being canceled because I would not return (on the "plantation") within the allotted time. I tried several EU countries and even the US, but once you are gone for over a year, they canceled my residency permit.

If you only need residency (no tax residency certificate), Paraguay is a popular option. You only have to visit once every 10 years or so to keep your residency active. Then you can say you live there, but not spend time there and keep traveling. Just make sure you don't become tax resident anywhere else.
This would be residency only, not tax residency. I believe if you need some tax documents you could try to find some local work or to have rental income, then you could get a tax return for that. But in general, even if you become tax resident, if you don't work from Paraguay, there shouldn't be any tax under their territorial tax regime.
It's a cheap option.

How can I find out more about this?

 

[scooterguy]

Two questions:

(1) Don't you lose your residency in a country once you are gone for more than one year?
(2) Is residency and the place you pay taxes the same thing in this scenario?

PS. I tried to set up a residency +20 years ago, but it kept being canceled because I would not return (on the "plantation") within the allotted time. I tried several EU countries and even the US, but once you are gone for over a year, they canceled my residency permit.


How can I find out more about this?

1. Normally yes, but it depends on the rules of the country. If you set up a residency somewhere, you should commit to follow the rules to keep it.

2. Not necessarily.

You can find more info by reading the specific rules of the countries you are interested in.

 

[jafo]

1. Normally yes, but it depends on the rules of the country. If you set up a residency somewhere, you should commit to follow the rules to keep it.

Is this sarcasm? If it is, you got me.

 

[scooterguy]

Is this sarcasm? If it is, you got me.

How so? I'm just answering your question. Not all countries have the same residency rules, and some don't even require physical presence.

 

[jafo]

some don't even require physical presence.

Where can I get a list of these countries that do NOT require a physical presence?

 

[scooterguy]

Where can I get a list of these countries that do NOT require a physical presence?

I've never seen a BuzzFeed article about it, but off the top of my head you have Vanuatu. You can also buy citizenship there.

You also have countries with minimal presence requirements, such as UAE, which requires you to spend only a day there every 6 months.

 

[JustAnotherNomad]

How can I find out more about this?

Have you heard about Google?

Where can I get a list of these countries that do NOT require a physical presence?

What would be the point?

 

[TheCryptoAnt]

Where can I get a list of these countries that do NOT require a physical presence?

UAE, MX, Hungary amongst others

cmmon g this forum is full of info, use the search function

 

[jafo]

What would be the point?

I travel for my business for almost the entire year, i,e. +10 months out of the year. The 2 months I can be somewhere else I prefer to spend a month with my mom and another with my daughter and they don't live on the same continent.

UAE, MX, Hungary amongst others

cmmon g this forum is full of info, use the search function

UAE = One MUST travel there once every 6 months. Major inconvenience for me. Also not possible due to other travel arrangements.
MX = As far as I read and spoke to a friend who works for MX immigration if I leave for an extended period of time, I will lose my temporary residency.
Hungary = You also have to be there for a specified period of time.
The search function brings up nothing that is of use to me. I'm asking questions because I need a solution for me.

 

[JustAnotherNomad]

Like I said, Paraguay is one every 10 years, as far as I remember. It's an option that is popular with digital nomads for that reason.
UAE is no longer a strict 6 months anymore either. It can be 12 months under certain conditions, I believe for Golden Visa holders.
Not sure why you care about residency so much though. What do you need it for?

 

[jafo]

Like I said, Paraguay is one every 10 years, as far as I remember. It's an option that is popular with digital nomads for that reason.
UAE is no longer a strict 6 months anymore either. It can be 12 months under certain conditions, I believe for Golden Visa holders.
Not sure why you care about residency so much though. What do you need it for?

Thank you for your thoughtful answer. I appreciate it.

The reason I need it is that in the 80s and early 90s, I invented/developed 4 things. I sold all 4 of them. The money was deposited (after splitting them into equal parts) during that time in Swiss banks and Hong Kong banks. In 2007 I sold my last business and then I started traveling and attending Uni in different countries to learn the local languages. Banks have now (end 2022/2023) started to ask for "proof of residency" and where I am "tax domiciled".

 

[JustAnotherNomad]

Yeah, look into Paraguay. But you wouldn't be considered tax resident there. Might be easier to go with UAE if you absolutely need tax residency, check out the requirements for the 12 month thing.