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Image you would have won in the lottery!

wheelspin

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Oct 5, 2020
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Let's start dreaming....

Imagine you win a lot of money. Let's say 50 million €/$. You live in Germany or any country where lottery/gambling profits are not taxed and you are an EU citizen.

What would you do to keep the burden of tax as low as possible?

I have some options in my mind. If you like to join the discussion, feel free!

Presumed I do not start any business because I am not interested in it.

I would try to live off dividends and capital gains, perhaps rental income and enjoy my life for the next years, and I would consult independent wealth management banks in Switzerland to see what they may offer me. Of course, cut all ties to Germany.

Would you move out of the EU to a tax paradise or somewhere else where you easily can claim your tax residency?

UAE: you can get an investor visa for 5 or 10 years. Keep numbers simple, invest around AED 5-10 Mio ( USD 1,25 - 2,5 Mio). You can open a bank account and live there. To claim tax residency, you'll need to stay a minimum of 183 days. It might be you need it only once.

Cayman: buy your tax residency by investing $1,2 Mio, minimum stay 30 days per year. Be there for a short amount of time per year, enjoy the weather and proximity to US / South America. Leave the island during the hurricane season. (Jul - Nov).

There a lot more options like the Bahamas (crime is higher than in Cayman).

I could imagine having my residency as a non-dom in the UK for a few years as I may use their tax remittance system which entitles you to use your clean capital tax-free. Capital gains and dividends stay offshore and would be never brought to the UK. Having a postal address in the UK does not raise eyebrows, Cayman could...

Probably, I would set up a trust or other vehicle to keep my assets protected.

What would you do?
 
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What would you do to keep the burden of tax as low as possible?

Get the hell out and into a tax free country asap. You can move to UAE for under 10k Euros with 3 year residency visa. After spending one fill tax year there then I would start planning how I would spend time in places I would really want to live.

My second option would be to obtain a St Kitts & Nevis passport and move there and again then later move around countries. Cost is under $200k for Citizenship by investment.

More realistically I would stay where I was and use the tax code to reduce my tax burden to the minimum. For example in EU countries where capital gains are not taxed I would move enough money into a fund that produces a annual gain I can live off. Then sell each year a small part of the funds gains tax free to live on.

Otherwise just keep all money in cash and budget 10k a month on living costs. After 50 years you have only spent 6m and have 44m left.

Luckily for me I live in a tax free country anyway :D
 
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You can move to UAE for under 10k Euros with 3 year residency visa
You are talking about the investor / corp visa. What would the corporation there do? Nothing?

My second option would be to obtain a St Kitts & Nevis passport and move there and again then later move around countries. Cost is under $200k for Citizenship by investment.
Sure, one of the easiest jurisdictions to get citizenship by investment and there's no minimum stay to claim tax residency.


Luckily for me I live in a tax free country anyway :D
Do you live on a porch Caribbean island?
 
You are talking about the investor / corp visa. What would the corporation there do? Nothing?

No


AED 7,500 Permit (Annually)
AED 2,000 Establishment Card (Annually)
AED 3,900 Residency Visa (3 years incl. Medical Test, Visa Stamping, Emirates ID Card)
AED 10,000 Private Health Insurance (Annually)
AED 17,000 Studio Apartment (Annual Cost)

AED 40,400 Total (9,300 Euros for 1 year)

Do you live on a porch Caribbean island?

I live in the Bahamas my friend.
 
There is a lot of information about the Bahamas and if it is safe or not (crime) on the internet. How is life?

Not really safe if your a local. Live in a gated community and be happy or wake up with a machete to your throat one day.

Is New Providence considered as good or where would you recommend staying? Which island would you prefer?

New Providence is fine. There are about 3000 islands that form the Bahamas so where do I start?
 

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