Thinking about ways of living in the EU with a low profile and getting benefit of the 183 days rule in order to avoid tax residency status. Let's put a concrete example of one possible strategy:
Bob is a citizen of a high-tax large EU country (A). He moved to another EU country (B) for job reasons during several years, being able to move its tax residency status legally from country A to B.
Bob had no economic activity in country A for 3+ years, no passive income from there, no properties etc. At some point, he moves from country B to live in different EU countries avoiding become tax resident in any of them while being near tax-free in terms of income by using different structures outside EU.
Considering many EU countries has open frontiers with no ID controls, how could different governments know where Bob actually lives more than 183 days (or less) if the following conditions are met:
- Bob has no real state properties in any country.
- Bob has no registered car in any country.
- Bob has no passive income from any specific country.
- Bob has no registered rental contracts in any country.
- Bob is not married and has no children.
- Bob is not legally working nor carrying any specific business activities anywhere.
- Bob is not receiving any subsidies of any kind from any government.
Now, let's assume Bob follows these life style rules strictly:
- Rents properties using Airbnb, Booking or similar.
- Rents long-term properties using family or friend with no direct economic relationship.
- Covers daily life costs using a debit card from an offshore jurisdiction with no CRS.
- Moves across EU countries with a rented car hired by a friend.
- Uses mobile SIM cards registered by family or friends.
- Does not use any bank account in EU countries for income and payments.
Do you believe it is a solid strategy? If not, which red flags would be highlight?
Do you think it's a doable and relatively solid plan if consistently executed?
Moreover, let's assume Bob may spend more than 183 days in country A under these strategies:
- How could country's A government discover or prove Bob was actually living there for 183+ days?
- How could a government trace him for tax residency purposes, if any?
Thank you!
PS: this is nothing about anything dark or criminal, this is merely curiosity and challenge of finding ways where normal people still not trapped by the system can maximize its freedom by using fine-grained life-style changes.
Bob is a citizen of a high-tax large EU country (A). He moved to another EU country (B) for job reasons during several years, being able to move its tax residency status legally from country A to B.
Bob had no economic activity in country A for 3+ years, no passive income from there, no properties etc. At some point, he moves from country B to live in different EU countries avoiding become tax resident in any of them while being near tax-free in terms of income by using different structures outside EU.
Considering many EU countries has open frontiers with no ID controls, how could different governments know where Bob actually lives more than 183 days (or less) if the following conditions are met:
- Bob has no real state properties in any country.
- Bob has no registered car in any country.
- Bob has no passive income from any specific country.
- Bob has no registered rental contracts in any country.
- Bob is not married and has no children.
- Bob is not legally working nor carrying any specific business activities anywhere.
- Bob is not receiving any subsidies of any kind from any government.
Now, let's assume Bob follows these life style rules strictly:
- Rents properties using Airbnb, Booking or similar.
- Rents long-term properties using family or friend with no direct economic relationship.
- Covers daily life costs using a debit card from an offshore jurisdiction with no CRS.
- Moves across EU countries with a rented car hired by a friend.
- Uses mobile SIM cards registered by family or friends.
- Does not use any bank account in EU countries for income and payments.
Do you believe it is a solid strategy? If not, which red flags would be highlight?
Do you think it's a doable and relatively solid plan if consistently executed?
Moreover, let's assume Bob may spend more than 183 days in country A under these strategies:
- How could country's A government discover or prove Bob was actually living there for 183+ days?
- How could a government trace him for tax residency purposes, if any?
Thank you!
PS: this is nothing about anything dark or criminal, this is merely curiosity and challenge of finding ways where normal people still not trapped by the system can maximize its freedom by using fine-grained life-style changes.
