Proper scheme

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thirtyniner

Mentor Group Gold
Well, I have made a post last Wednesday, but by some reason it was not published!

The admin can feel free to move the topic to
Mentorship gold if it is not suitable.

Imagine the following:

EU citizen from one of the PIGS countries. Companies in HK, Dubai and on that PIGS country. Want to relocate to a nearby country where full benefit of the tax residence can be achieved (half-year + 1 day). Biggest goal is to reduce tax burdain and maximize tax efficiency. Second is 2/3 hours flight. Willing to make a holding company to secure companies from these 3 locations.

All businesses are legit and legal. No crypto, NTF or “whatsoever future is about”!

Dubai is not an option by many reasons. Can recall countries/places as:
A) Gibraltar;
B) Malta;
C) Luxembourg;
D) Switzerland;
E) Madeira Island;
F) Cyprus;
G) Andorra;
H) UK or any of the attached islands/territories
I) Monaco

What would be your best choice and why?

Thanks
 

azb1

Mentor Group Gold
Without any doubt... Monaco is the best place If you have sound many. Other jurisdiction is tricky. Not as simple as Monaco
 

Sols

Staff member
Mentor Group Gold
A) Gibraltar;
Boring, inconvenient, and expensive. The only people I know who have lived in Gibraltar have been very happy to relocate elsewhere after just a few years.

B) Malta;
Popular and with good reason. Especially if you only spend six-seven months a year there. That makes it feel less cramped.

C) Luxembourg;
Boring. No huge tax savings for most people in most cases.

D) Switzerland;
Not exactly a tax haven but taxes are usually below average compared to Europe. However, a good chunk of those savings are lost to significantly higher costs of living.

E) Madeira Island;
Small and remote. Can be boring and isolated.

F) Cyprus;
Same as Malta, but bigger (less cramped) and life in general is slower and quieter.

G) Andorra;
Can feel isolated, being at least 2+ hours drive away from nearest airport.

H) UK or any of the attached islands/territories
UK can be very attractive if you qualify as non-dom. Isle of Man, Jersey, and Guernsey are boring and small, without anything besides low taxes to make up for it.

I find Monaco boring but there's no denying lots of people like it.

What would be your best choice and why?
Travel around, spend some time there, and then pick your favorite.

I would add Ireland to your list of considerations. Since you included Luxembourg and UK, I'm guessing all year mostly good weather isn't a prerequisite. Ireland has relatively low taxes, business friendly climate, English speaking, and decent flight connections to Europe and even US/Americas.
 

thirtyniner

Mentor Group Gold
Well, thanks for the feedback Sols.

My first option was Malta, but I’m totally unaware of the tax policy of each of the locations. I just know the basics from what people speak. I always tended to go as far as possible from home, since I never thought of really relocating.

Now I have this possibility, since I cannot accept anymore the situation of my country. So, and since I have a dependent, I need to be near “home”.

P.S. Madeira I have been a few times there. It is quite nice to live, and good option to explore in terms of Hospitality industry if you have some money in your pocket to invest.
 

marzio

Mentor Group Gold
There are a lot of elements in choosing the best location for an holding. The general advice would be to avoid like the plague the EU because of DAC6 (EU directive on cross border tax arrangements). If you just consider this, plus consider countries without CFC rules you are left only with a handful of options. Switzerland could be an option but also San Marino could work well depending on your setup.
 

thirtyniner

Mentor Group Gold
There are a lot of elements in choosing the best location for an holding. The general advice would be to avoid like the plague the EU because of DAC6 (EU directive on cross border tax arrangements). If you just consider this, plus consider countries without CFC rules you are left only with a handful of options. Switzerland could be an option but also San Marino could work well depending on your setup.

Well, I would say my set of requirements would go as bellow (more important to less important):
1) Near my actual home (2/3 hours flights). All jurisdictions I mentioned above are within 4 hours flight;
2) Tax efficiency on the above mentioned structure and scheme;
3) Safety;
4) Nice quality of living;
5) good weather part of the year;

Without any doubt... Monaco is the best place If you have sound many. Other jurisdiction is tricky. Not as simple as Monaco

Can you mention why you say so? Thanks
 

Sols

Staff member
Mentor Group Gold
what are the advantages for personal taxation in Ireland?
They have a non-domicile status setup where you are taxed on a remittance basis, foreign capital gains can be remitted in without tax, and a few other advantages. Not quite as permissive as for example Malta or Cyprus, but worth looking into.
 

JimBeam

Entrepreneur
Sols has explained it very well.

If you don't want a boring country: Habibi come to Dubai LOL.

Monaco would be my #1 choice if I had the money for it as you can always drive out of it an spend a day in France or some city in Italy that is near by. The thing you don't have in Malta or Cyprus or Dubai.
 

gh71

Mentor Group Gold
I would choose UK/London non domiciled as it’s a great place to live as a foreigner, not feeling like an outsider. Especially if you have a chunk of money that you bring with you when you move there to live off for a few years, if could then be tax free if you keep all your income abroad. Obviously make sure you are not controlling the companies from UK soil. After 7 years it starts becoming less attractive tax wise. Maybe move to Monaco at that point…

Number 2 for me would be Italy, but only if your income is high enough to justify paying 100k Euro flat tax.
 

JohnnyDoe

Mentor Group Gold
The non som status is not so straightforward… most importantly, if you move with the intention of move permanently you can’t claim a non dom status. (Same for UK and IE)
 
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