Moving abroad for tax purposes. Advice needed!

Discussion in 'TAX Planning and treaty' started by rsa pgp, Aug 24, 2018.

  1. rsa pgp

    rsa pgp New Member

    I'm busy setting up a business which has the potential of being very lucrative.
    I will open an offshore company, but want to avoid paying taxes. I contemplated to setup the company with a decoy, but but I'm not sure about that atm since it has some potential risks. Either way, if I use my own ID I will probably move abroad due to CRS.

    I'm looking at countries which levies no tax on worldwide income, meaning my income earned abroad is tax free. However getting a resident VISA for one of these countries can be quite difficult (a lot by investment). Are there any smart ways of gaining a resident VISA without investing? Marrying is one for example, but what about working?

    I had the following strategy in mind:
    open offshore company -> hire citizen as director -> hires me and starts the process of issuing a Work VISA.

    Is this even possible?

    Admin likes this.
  2. Martin Everson

    Martin Everson Offshore Consultant Business Angel

    lol at Marrying smi(&%

    1. Where are you from firstly?
    2. Where will your customers be located?
    3. What do you consider lucrative? 2k, 50k 100k a month o_O
    4. What is your general business activity?

    What you can do is move to Tbilisi in Georgia. Depending on where you are from you can enter Georgia and stay for up to one year with no visa, no paperwork no nothing - just your passport, a rented apartment and a plane ticket ;)

    GeoConsul.Gov.Ge - Ministry of Foreign Affairs of Georgia

    Georgia has a territorial tax system where you don't pay tax on money you earn outside Georgia do no not remit into Georgia. In any case even if you earn money within Georgia you don't pay taxes also. Georgia only taxes on profits distributed and then its tax rate is only 15% flat rate. Hence it makes little sense avoiding such a low rate especially when it can be deferred by not distributing profits. If your business offshore goes good during that year then evaluate your options. Account opening outside Georgia with no Tax ID will be biggest obstacle so applying for a residency visa may be a good option unless you can use an EMI that does not require proof of tax residency and accepts Georgia.

    btw. Georgia also has a comprehensive free trade agreement with the EU that covers goods. If you answered above questions I could provide a better answer or suggest more alternatives.
    rsa pgp likes this.
  3. rsa pgp

    rsa pgp New Member

    1. EU
    2. all around the world
    3 50k a month would be considered lucrative. Busy with two business setups currently but have no idea how lucrative the business will be. It definitely has potential.
    4. cannot comment

    Georgia was number 1 on my list indeed. British Virgin Island probably 2nd. My main question will be if the strategy I proposed in the OP is possible?
    Getting 'permanent' residency in countries where a territorial tax system is maintained seems to be quite difficult otherwise. Don't know I I'm correct about this since I'm not very familiar with the applicable rules and laws but it only easy to do by investment or marrying.
  4. Martin Everson

    Martin Everson Offshore Consultant Business Angel

    If you can do the jail time then its your choice.

    Why do you need permanent residence? It does not offer any tax advantage over temporary residency.

    Not quite sure why you keep talking about investment or marriage...lol. You are from EU not Africa or Russia. Forget BVI cost of living is expensive, its island living remember so everything imported.
    rsa pgp likes this.
  5. rsa pgp

    rsa pgp New Member

    I don't think I'm using the terminology in the right way. With 'permanent residency' I just meant temporary residency but one that allows you to stay in a country for more than 183 days. I still have some research to do on this subject I assume. As far as my understanding goes you become tax resident to a certain country when you stay for a minimum of 183 days in one country, is this correct?
  6. Martin Everson

    Martin Everson Offshore Consultant Business Angel

    You can stay 365 days in Georgia if you enter with the right passport as mentioned above. Then take a vacation for two weeks and re-enter for another 365 days. You also have an EU passport can I assume? Hence you can move freely to another territorial tax EU country and take up residency as self employed with very little paperwork. You know EU has free movement right? ;).

    Your over thinking the whole situation I think.
    rsa pgp likes this.
  7. rsa pgp

    rsa pgp New Member

    I thought they would limit the amount of continuous stays to 1 within an X amount of years, so didn't know it was possible to stay for 365 days, leave and stay again.
    Thanks for your answer.
  8. Martin Everson

    Martin Everson Offshore Consultant Business Angel

    Residency is straight forward so you wouldn't need to do that. I mean you move setup business abroad if it don't work out why you staying any longer anyway.
  9. DimensionX

    DimensionX New Member

    Hi, I am also in a similar position. I am looking to move to a territorial tax country and be a tax resident there for 1 year, then return back home and buy property with the income earned.
    In regards to Georgia, what is the minimum time that you need to stay there in order to be considered a tax resident of that country?
    I ask this as I wish to travel during this year as well and not just have to be stuck in Georgia the whole year...
    I know for Panama, once you receive their friendly nations visa, you only need to stay in Panama for 1 day out of the year to maintain tax residency. For Malta it is 6 months out of the year. What is the time requirement for Georgia?
  10. Martin Everson

    Martin Everson Offshore Consultant Business Angel

    183 days in any 12 month period.
  11. countryfree

    countryfree Active Member Entrepreneur

    That's the big problem with tax residency, you're expected to spend most of your time in the country. At least the first year. It means you need to go there first, and see if you'd like to live there for a while.
  12. casper1234

    casper1234 New Member

    What about Bulgaria!? Did you check it?
  13. countryfree

    countryfree Active Member Entrepreneur

    No, not really. I've only been there as a tourist for a few days, but I'll probably go back.
    Somehow, it's a sign of despair, when you think that Bulgaria may be one the best places to do business in Europe. It shows how bad it is nowadays in France or Germany.
    Martin Everson likes this.
  14. Martin Everson

    Martin Everson Offshore Consultant Business Angel

    lol smi(&%

    This is the reality of the average person who is not part of the elitist society.
    1nomad likes this.
  15. marder

    marder New Member

    Oh yes very bad, becomes/is impossible to do small business, you're overwhelmed by taxes, crazy

    @martin, you're quite right
  16. 7889

    7889 New Member

    Under Global residence program in Malta, you can pay flat fee of 15.000 euro per year (give that no money are remitted to Malta), receive residence permit and Tax ID. You don't need to live there.
  17. 1nomad

    1nomad New Member

    He/she is from EU, so using Maltese Ordinary res. program is possible too - no tax at all or 5.000 euro flat tax for earnings higher than 35.000 euro per year