Strategies for getting back on-shore

[disagree]

Hey,

I'm very curious about this topic lately: I have a completely tax-free life right now, but as you guys know this sometimes is not easy when it comes to dealing with banks and stuff because you're perceived like "out of the system".

So I started thinking: what if, let's say in 10 years, I want to go back "on-shore", return with my tax residency in my home country (that is pretty tax-aggressive in Europe) and just buy a house?

Let's say you've been a resident in Paraguay for 10 years, and you have 3 million on a solid off shore personal account like HSBC or stuff like that...

I think that if you go back to the home country, there is a high chance they will ask you where that money is coming from... so how you prove this?

 

[JohnnyDoe]

You must have had a bad sleep last night.

 

[Mercury]

So I started thinking: what if, let's say in 10 years, I want to go back "on-shore", return with my tax residency in my home country (that is pretty tax-aggressive in Europe) and just buy a house?

In what?

 

[disagree]

You must have had a bad sleep last night.

For sure.

But I think it's a pretty fair question to ask.

In what?

Let's say for some reason you have to go back to the "normal" life... And you have to go back to Spain residency, for example.

Let's say you need to buy a house with that money.

How would that work?

 

[JohnnyDoe]

For sure.

But I think it's a pretty fair question to ask.


Let's say for some reason you have to go back to the "normal" life... And you have to go back to Spain residency, for example.

Let's say you need to buy a house with that money.

How would that work?

Simple: be prepared to surrender all your belongings and to be enslaved. That’s what the EU wants from its subjects and it will obtain it, one way or another.

 

[Mercury]

Let's say for some reason you have to go back to the "normal" life... And you have to go back to Spain residency, for example.

Let's say you need to buy a house with that money.

How would that work?

This is a very speculative bet to think you would be able to live a "normal" life in Spain/Europe in 10 years.

 

[disagree]

Simple: be prepared to surrender all your belongings and to be enslaved. That’s what the EU wants from its subjects and it will obtain it, one way or another.

This is a very speculative bet to think you would be able to live a "normal" life in Spain/Europe in 10 years.

I totally agree with you guys, and for this reason I'm not planning to do so. But let's say this happens and in 10 years the situation is the same of today. Pure speculation I know.

I'm just curious to know how this would work in terms of how to make that money come in the new tax-heavy country without raising problem.

 

[Dandyline]

I totally agree with you guys, and for this reason I'm not planning to do so. But let's say this happens and in 10 years the situation is the same of today. Pure speculation I know.

I'm just curious to know how this would work in terms of how to make that money come in the new tax-heavy country without raising problem.

Just have SoF available in form of proof of dividends/salary.

 

[JohnnyDoe]

I'm just curious to know how this would work in terms of how to make that money come in the new tax-heavy country without raising problem.

Problems will arise no matter what you do.
You are planning to show up before the most powerful, nasty and greedy criminal gang and display your money. How do you think the gang members will react? Do you think they will be kind with you?

 

[scooterguy]

The idea is crazy but I also think about it sometimes. Ideally, you don't want to go back to a tax hell, at least not permanently, but sometimes life operates in mysterious ways and you may find yourself going back home eventually.

I don't think there should be any issues. You went abroad and made money. Now you're back. There's a small chance you'd be audited and asked where the money came from but in most cases it should be relatively easy to prove you were absent, especially if you were registered in foreign consulates.

In the case of Spain, you can consult a few Spanish tax lawyers; they might have experience with similar real cases.

 

[disagree]

The idea is crazy but I also think about it sometimes. Ideally, you don't want to go back to a tax hell, at least not permanently, but sometimes life operates in mysterious ways and you may find yourself going back home eventually.

I don't think there should be any issues. You went abroad and made money. Now you're back. There's a small chance you'd be audited and asked where the money came from but in most cases it should be relatively easy to prove you were absent, especially if you were registered in foreign consulates.

In the case of Spain, you can consult a few Spanish tax lawyers; they might have experience with similar real cases.

This came to my mind thinking about all those types of residence like Paraguay or other complete 0% tax setups where it's very hard to get a paper proving that those money "entered the system" you know?

If you have a 0% tax residency with territorial taxation + an LLC like a lot of people in Paraguay or Malta or Cyprus, etc... and you have 1 million on a HSBC Expat account let's say... I see that money a potential problem when entering the system.

 

[disagree]

Problems will arise no matter what you do.
You are planning to show up before the most powerful, nasty and greedy criminal gang and display your money. How do you think the gang members will react? Do you think they will be kind with you?

You're right. That's exactly why this question came to my mind... I was talking to a guy that had to do this for parents that were heavily sick and he couldn't find any other ways for himself.

I feel like they will always try to grab a huge chunk of that money.

 

[JohnnyDoe]

Permanence for documented medical reason does not establish tax residence. I am not sure if this can be extended to parents though.

 

[Sols]

Living tax free shouldn't preclude you from having documentation to prove where your money came from. Just show them your own and your businesses' tax returns. If you don't have that already, now is a good time to start.

 

[disagree]

Living tax free shouldn't preclude you from having documentation to prove where your money came from. Just show them your own and your businesses' tax returns. If you don't have that already, now is a good time to start.

Let’s you have 0% personal income tax in Paraguay + LLC…
How should you provide this proof?

 

[JackAlabama]

Let’s you have 0% personal income tax in Paraguay + LLC…
How should you provide this proof?

paperwork from LLC payouts.

 

[Sols]

Let’s you have 0% personal income tax in Paraguay + LLC…
How should you provide this proof?

The LLC should be submitting annual reports (state and federal) and have accounting records.

IIRC, even if you don't owe any tax in Paraguay, you can/should file taxes in Paraguay. The tax returns will just show that you don't have any taxable income to declare. Keep those tax returns.

 

[disagree]

The LLC should be submitting annual reports (state and federal) and have accounting records.

I have a US LLC (disregarded entity). It's not a C corp. How should I do this?

 

[diro]

I'm just curious to know how this would work in terms of how to make that money come in the new tax-heavy country without raising problem.

If you have the money on an offshore account say HSBC you can prove that you have paid in the money there over the 10 years from whatever salary you got. Can't be that difficult.

 

[GPT]

It doesnt have to be too complicated. One solution could be;

Purchase an insurance product that distributes periodically an amount to you.
Register (again) in the country of your choice and pay the owed taxes on the received distributions as they come.

When properly structured (using a lawyer etc) your name then only shows up as beneficiary.