Georgian Bank Account, UK Tax Resistant (Digital Nomad), Wyoming LLC. Tax Liabilities.

[rondopapi]

This is my first post here so do go easy on me.

I’m a U.K. citizen but going “digital nomading” in June and want to setup my life structure in the most tax efficient way, so let me share with you my thoughts.

I’m thinking to setup a Wyoming LLC (digital marketing business) and then setup a Georgian bank account.

The profits from the Wyoming LLC would be tax free (as it’s an online marketing business) and then pay a salary in the Georgian bank account.

Would this work and would I be liable from tax on the Georgian bank account?

The other option would be to setup a LTD and pay into the Georgian bank account but such setup would be subject to corporate tax and potentially incoming tax in the U.K.

I’ve read numerous articles about taxes on Georgian bank account but they don’t mention tax on income earned outside of Georgia.

In addition to this, as I won’t be spending more that 183 days in U.K. (or own any property in the UK).

Would I be liable for tax there?

Or, if anyone can open an alternative solution, I would be open to ideas.

It’s a shame Panama changed the residency requirements otherwise I’d have got on a plane and gone straight there.

 

[Mssquirrel]

This is my first post here so do go easy on me.

I’m a U.K. citizen but going “digital nomading” in June and want to setup my life structure in the most tax efficient way, so let me share with you my thoughts.

I’m thinking to setup a Wyoming LLC (digital marketing business) and then setup a Georgian bank account.

The profits from the Wyoming LLC would be tax free (as it’s an online marketing business) and then pay a salary in the Georgian bank account.

Would this work and would I be liable from tax on the Georgian bank account?

The other option would be to setup a LTD and pay into the Georgian bank account but such setup would be subject to corporate tax and potentially incoming tax in the U.K.

I’ve read numerous articles about taxes on Georgian bank account but they don’t mention tax on income earned outside of Georgia.

In addition to this, as I won’t be spending more that 183 days in U.K. (or own any property in the UK).

Would I be liable for tax there?

Or, if anyone can open an alternative solution, I would be open to ideas.

It’s a shame Panama changed the residency requirements otherwise I’d have got on a plane and gone straight there.

If you are a UK citizen living in UK you should check the rules of ties and all that bs, I think it you were tax resident for the last 2/3 years that 183 rule is not valid and you are considered a tax resident if you stay more than 3 months or something. I am not from there but I have a friend that was thinking about it and then find out it was not that easy. Do your research but you are probably not getting rid of it this year if you leave in June.

Panama is harder but Paraguay is still easy and you can get TR for two years and tax residency pretty easy and cheap you just need to be careful as is lots of scammers around. I wouldn't rely on Paraguay banking tho, I am dealing with that and is worse than I expected.

 

[Rome]

In your case, I believe you do not have to pay Georgia taxes. Please confirm this with a tax professional.

However, due to recent money laundering cases involving Russian oligarchs who used Georgian banks to avoid sanctions, Georgia is on the fast track to a bad banking reputation.

Furthermore, if you do not reside in Georgia, your bank account may be closed without notice. However, you won't lose the money as far as I know

 

[Barney2201]

Essentially you need to leave the UK and plant a flag in another country. Yiu will then be subject to the UK ties rules which means you cannot spend more than 90 midnights per tax year in UK.

I would look for a low tax country which has easy visa entry and rent a studio to give you a residence, bills etc then inform UK gov you have left the country.

I’m also UK citizen but moved away 4 years ago to lower my tax bill.

With Brexit it’s tricky as we can just pitch up in Europe anymore, everything requires a visa. Hence I now rent a cottage on the island of Sark (tax free) and travel lots…..

 

[khinkali]

If you are just paying a salary into the Georgian bank account then (depending on other circumstances) you should be OK. Georgian banks routinely close accounts for people conducting offshore business, but a single salary source coming in and then day to day spending going out should be fine. If you pay for Bank of Georgia SOLO or (my preference) TBC Concept then you can chat to your relationship manager who can also check with real bankers when needed. For example if you have a large payment going in or out or you have significant crypto related transactions.

If you work in Georgia then either you or your offshore company will probably be due Georgian taxes. If spending some time in the UK then I advise not logging in to the website from the UK. Banks and brokers can get edgy if they see you log into their system from your passport country.

One problem with nomadding can be a lack of documentation for KYC. I've generally found that a bank reference or statement works OK (though it takes some effort to get a genuine looking document from a Georgian bank. In one case I've been asked for documentation to show taxes paid, which I can't get. With some small Georgian source income you could submit a tax return and enhance your Georgian proof of residence.

Essentially you need to leave the UK and plant a flag in another country. Yiu will then be subject to the UK ties rules which means you cannot spend more than 90 midnights per tax year in UK.

This was true until 6 April 2013. Now there is a statutory residence test so the number of days varies anything from 16 to 182 depending on your situation.

Various accountants have provided nice flowcharts, for example:
https://assets.kpmg.com/content/dam/kpmg/pdf/2016/01/statutory-residence-test-flowchart.pdf

 

[rondopapi]

Thank you for your knowledge. The KPMG sheet shared was really useful.

 

[Expatas]

This is my first post here so do go easy on me.

I’m a U.K. citizen but going “digital nomading” in June and want to setup my life structure in the most tax efficient way, so let me share with you my thoughts.

I’m thinking to setup a Wyoming LLC (digital marketing business) and then setup a Georgian bank account.

The profits from the Wyoming LLC would be tax free (as it’s an online marketing business) and then pay a salary in the Georgian bank account.

Would this work and would I be liable from tax on the Georgian bank account?

The other option would be to setup a LTD and pay into the Georgian bank account but such setup would be subject to corporate tax and potentially incoming tax in the U.K.

I’ve read numerous articles about taxes on Georgian bank account but they don’t mention tax on income earned outside of Georgia.

In addition to this, as I won’t be spending more that 183 days in U.K. (or own any property in the UK).

Would I be liable for tax there?

Or, if anyone can open an alternative solution, I would be open to ideas.

It’s a shame Panama changed the residency requirements otherwise I’d have got on a plane and gone straight there.

Hi Rondopapi, Bulgaria has only 10% tax and it is rather uncomplicated to register there.