No tax residency and no tax owned to any country. Is it a bad thing?

[OffShorian]

Hi all.

I was reading some documents on KYC that banks are require to establish your tax residency now. What happens if you don't have any tax residency, if you legally don't own money to any country?

This is my situation now and it is by design, however I think i will have difficulties opening new bank accounts due to that restriction.

Has anyone been in the same situation?

 

[JohnLocke]

You won't in Cyprus at least. You may explain it simply in a document to them and you will be fine. This is not a new or unique situation for them!

 

[dotbloup]

Hi all.

I was reading some documents on KYC that banks are require to establish your tax residency now. What happens if you don't have any tax residency, if you legally don't own money to any country?

This is my situation now and it is by design, however I think i will have difficulties opening new bank accounts due to that restriction.

Has anyone been in the same situation?

Yes, i have the same situation than you.

I have extensively looked into this issue and understood that no banks had access to databases of tax authorities from any countries in the world. That's important. They can't check any fiscal numbers. No private companies can find information against a fiscal number.

I asked my parents to add my first name on one of their utility bill. A long time ago, in my country they gave me a fiscal number & i used it. Meanwhile, i am not registered in the local tax authority of my country.

For all the banks, evidences for tax residency are always the same, copy of utility bill and fiscal number.

What are the risks? nada.

 

[negon]

What if some use his passport and for the utility bill, bank statement and reference letter simply order fake docs?! I dont think that the majority of banks can check the docs. anyway!

 

[bizworks]

If you bank in an AEOI country they will send the end year balance and account activity to the tax resident country you specify along with your ID / tax number.

The question is, what will the receiving country do with the tax data but, potentially, a tax number that doesn't match up with a traceable person?

 

[mnschwarz]

Not being a resident anywhere is not a smart move. On the surface it may seem like it but in reality you can open yourself up to claims from a lot of jurisdictions without any proof to counter. Most likely if you are legally a resident of nowhere, you are actually a resident of your home country or last legal residence.

An example from myself; I was born and originally a resident of Australia. I have now left but I chose to obtain legal residency in a zero tax jurisdiction because Australia, and others, refuse to acknowledge you as non-resident without becoming a permanent resident elsewhere. What this means is that if I can't prove residency outside Australia, they consider me a "resident of the world", retain my Australian residency and will tax me in Australia. Much smarter to get legal residency in a favourable jurisdiction and be able to prove as such.