Question German perptual traveler

[lastondkey]

Hi, I am a German Citizen who has been living as a digital nomad for the past 8 years never staying anywhere for longer than 3 months.

My income has been completely from outside the EU, and I have also been staying almost completely outside of the EU.
I still maintain a german bank account though which I am using to get my income (which I haven't been paying taxes on for this period).

I understand that this is legally a grey area and there are different interpretations of the german tax law,
wether I would be still considered a tax resident within Germany by german law.

This is why I am currently considering getting tax residency in another country, I have been reading a lot of posts/forums including this one,
but haven't really found a solution that works for me yet. Basically I would like to maintain my lifestyle where I can move to different countries all the time, but
maintain tax residency in one country with only having to stay there a period that is less than the 180+ days required by many legislations.

I am currently considering Dubai, as this at least is easily accessible by airports from most places in the world,
but unsure if I really only need to stay there a few days per year to maintain a tax residency?

The other places I have seen mentioned often are Georgia/Cyprus/Gibraltar/Monaco/etc which all don't seem so attractive to me because they are hard to reach.

 

[RealDude]

Have you deregistered from Germany and what address did you give the german bank?

 

[JohnnyDoe]

Hi, I am a German Citizen who has been living as a digital nomad for the past 8 years never staying anywhere for longer than 3 months.

My income has been completely from outside the EU, and I have also been staying almost completely outside of the EU.
I still maintain a german bank account though which I am using to get my income (which I haven't been paying taxes on for this period).

I understand that this is legally a grey area and there are different interpretations of the german tax law,
wether I would be still considered a tax resident within Germany by german law.

This is why I am currently considering getting tax residency in another country, I have been reading a lot of posts/forums including this one,
but haven't really found a solution that works for me yet. Basically I would like to maintain my lifestyle where I can move to different countries all the time, but
maintain tax residency in one country with only having to stay there a period that is less than the 180+ days required by many legislations.

I am currently considering Dubai, as this at least is easily accessible by airports from most places in the world,
but unsure if I really only need to stay there a few days per year to maintain a tax residency?

The other places I have seen mentioned often are Georgia/Cyprus/Gibraltar/Monaco/etc which all don't seem so attractive to me because they are hard to reach.

Sorry to ruin your dreams, but not such a thing as a PT or digital nomad exists. You are liable to German taxation until you formally and effectively cut your ties with Germany and establish your residence elsewhere.

 

[fshore]

Malaysia is 90 days from year 4, if that could work for you (182 days the first 3 years).

Cyprus another option, 60 days (with some conditions).

 

[lastondkey]

Have you deregistered from Germany and what address did you give the german bank?

Yes and Tuvalu

Sorry to ruin your dreams, but not such a thing as a PT or digital nomad exists. You are liable to German taxation until you formally and effectively cut your ties with Germany and establish your residence elsewhere.

I don't want to get into this argument from what I understand after consulting with german lawyers/tax experts and people from the ministry of finance,
this would be decided by a judge who would decide if I still maintain some kind of connection to germany,
just my bank account doesn't qualify for that, but other things like me visiting my family might.
Either way since I don't want to roll the dice on a judges decision, I want to change my status soon and this is why I am here.

Malaysia is 90 days from year 4, if that could work for you (182 days the first 3 years).

Cyprus another option, 60 days (with some conditions).

Thanks, thats very helpful.

What is the deal with Dubai, what has the experience been with that for people on this forum?

 

[KDX]

Yes and Tuvalu

I don't want to get into this argument from what I understand after consulting with german lawyers/tax experts and people from the ministry of finance,
this would be decided by a judge who would decide if I still maintain some kind of connection to germany,
just my bank account doesn't qualify for that, but other things like me visiting my family might.
Either way since I don't want to roll the dice on a judges decision, I want to change my status soon and this is why I am here.

Thanks, thats very helpful.

What is the deal with Dubai, what has the experience been with that for people on this forum?

UAE (incl. Dubai) has no tax except VAT and an upcoming 9% CIT for mainland (non-free zone) companies. Very easy to get a visa there under $10K. Plus if you are a "digital nomad" then you can easily get your tax residency there and just make sure to avoid becoming tax resident anywhere else.

 

[CaptK]

Yes and Tuvalu

I don't want to get into this argument from what I understand after consulting with german lawyers/tax experts and people from the ministry of finance,
this would be decided by a judge who would decide if I still maintain some kind of connection to germany,
just my bank account doesn't qualify for that, but other things like me visiting my family might.
Either way since I don't want to roll the dice on a judges decision, I want to change my status soon and this is why I am here.

Thanks, thats very helpful.

What is the deal with Dubai, what has the experience been with that for people on this forum?

Dubai is the easiest and if you are nomad then a great place for a base due to the flight connections.

If you structure it well for the first 6 months and actually try and spend enough time in Dubai for that period of time you can gain personal tax certificate.

Once you do that then you are home and dry. I would move what you have in Germany into savings and pay your UAE company that money. Then pay yourself a salary that will tick all the boxes for the German Authorities.

 

[ExpatsGlobal]

My income has been completely from outside the EU, and I have also been staying almost completely outside of the EU.
I still maintain a german bank account though which I am using to get my income (which I haven't been paying taxes on for this period).

I understand that this is legally a grey area and there are different interpretations of the german tax law,
wether I would be still considered a tax resident within Germany by german law.

This is why I am currently considering getting tax residency in another country, I have been reading a lot of posts/forums including this one,
but haven't really found a solution that works for me yet. Basically I would like to maintain my lifestyle where I can move to different countries all the time, but
maintain tax residency in one country with only having to stay there a period that is less than the 180+ days required by many legislations.

I am currently considering Dubai, as this at least is easily accessible by airports from most places in the world,
but unsure if I really only need to stay there a few days per year to maintain a tax residency?

It is not a grey area, the rules in § 2 AStG and § 34d EStG are pretty clear here. Unfortunately, a mere residence in Dubai equals being a PT in that respect. To make sure that you get out of the scope of the German tax law, you must make sure that your income is regarded as foreign income.

You have basically three choices:
- Keeping it as it is for two more years, until you completed the 10 years abroad (and are out of the scope), and then hope that nobody asks whether your income is regarded as foreign income under § 34d EStG.
- Abolishing the "relevant economic interests" in Germany, in particular the German bank account.
- Setting up a place of business abroad, through which you earn your income.

I made a video on the topic which you might find helpful (in German): Link

 

[cyprus123]

in my personal opinion Cyprus with the Non Dom and 60 day rules is the best option as you get it for 17 years and it is proven concept. Many Germany are relocating to Cyprus these days.

 

[jafo]

Hi, I am a German Citizen who has been living as a digital nomad for the past 8 years never staying anywhere for longer than 3 months.

My income has been completely from outside the EU, and I have also been staying almost completely outside of the EU.
I still maintain a german bank account though which I am using to get my income (which I haven't been paying taxes on for this period).

I understand that this is legally a grey area and there are different interpretations of the german tax law,
wether I would be still considered a tax resident within Germany by german law.

This is why I am currently considering getting tax residency in another country, I have been reading a lot of posts/forums including this one,
but haven't really found a solution that works for me yet. Basically I would like to maintain my lifestyle where I can move to different countries all the time, but
maintain tax residency in one country with only having to stay there a period that is less than the 180+ days required by many legislations.

I am currently considering Dubai, as this at least is easily accessible by airports from most places in the world,
but unsure if I really only need to stay there a few days per year to maintain a tax residency?

The other places I have seen mentioned often are Georgia/Cyprus/Gibraltar/Monaco/etc which all don't seem so attractive to me because they are hard to reach.

Did you ever find a solution to this? I'm very interested.