If I start renting a second apartment in another EU country and register for residency there too, obtain their tax ID, will there be some reporting between the current and the new countries, if I don't indicate on tax return in the current country that I've moved out, and on the tax return of the new country I won't indicate that I moved there from the current country? Will I end up with two separate tax residencies that won't know about each other? The whole point of this is to obtain two tax IDs.
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Tax residency reporting within the EU?
- Thread starter gnud
- Start date
In theory yes but thats risky thing to do within EU especially if one is sham residency ID. Some British people did this after brexit vote in order to keep their freedom of movement and then returned to UK. However that would be fraudulent behavior. Also normally when you fill in forms for new EU country they often ask for your previous permanent address. So I wonder if there is some basic check done with home EU country to check your status there. Otherwise why do they need your previous residency address - to know where to repatriate your body if you got hit by a bus? 
.
Anyway thats a good question. I would like to know what others think.
.Anyway thats a good question. I would like to know what others think.
You can obtain two tax IDs, no problem. For example, it is a legal requirement to obtain it in some countries when you setup a local company or even just buy a real estate.
The problem is that in the best case scenario you will have to file tax returns in two different countries, and in the worst case scenario pay taxes twice (or manage not to do so after having paid a big legal fees bill).
In theory yes but thats risky thing to do within EU especially if one is sham residency ID. Some British people did this after brexit vote in order to keep their freedom of movement and then returned to UK. However that would be fraudulent behavior. Also normally when you fill in forms for new EU country they often ask for your previous permanent address. So I wonder if there is some basic check done with home EU country to check your status there. Otherwise why do they need your previous residency address - to know where to repatriate your body if you got hit by a bus?
Anyway thats a good question. I would like to know what others think.
You can say you're moving there from Thailand or wherever ... it's not like they require a proof.
As far as I know you can be considered a tax resident in multiple countries in the same year, because requirements are different. Then it depends on the double tax treaty to determine what income belongs to which country. So looks like you can legally have 2 tax ids. I just want to avoid any potential questions by triggering some automatic reporting.
Moreover if you say you moved there on the 1st of January the tax authorities won't even want to know where you were before, because there's no risk of double taxation or tax avoidance.
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I'm also interested to know if there's any check done, preemptively or otherwise, with the previous permanent address.In theory yes but thats risky thing to do within EU especially if one is sham residency ID. Some British people did this after brexit vote in order to keep their freedom of movement and then returned to UK. However that would be fraudulent behavior. Also normally when you fill in forms for new EU country they often ask for your previous permanent address. So I wonder if there is some basic check done with home EU country to check your status there. Otherwise why do they need your previous residency address - to know where to repatriate your body if you got hit by a bus?
Anyway thats a good question. I would like to know what others think.
Tbh i find it difficult that immigration or even taxman calls foreign offices for each immigrant to do background check on their current fiscal status.
However, it is still possible and so it would be great to know what actually happens there.
When I moved from one country to another they didn’t want to see any proof of where I was before or where I’m moving to.
Which ones? I've lived in multiple EU countries and none asked for a proof. There are even some countries that don't ask these questions at all. I could put in those forms whatever I wanted. And I believe if you moved on the 1st of January, there's no need for them to even investigate that since there's no risk of any tax evasion or any other coordination with other countries since it's a dead simple situation. The year before you didn't live there, the current year you'll spend it all there. Officially.
And so you'll end up with 2 tax IDs, and they won't know about each other. But once it'll become known by some chance you'll have to sort out the mess with both the tax authorities. And so simply preemptively you'll start building a case for being a resident of the low tax country. Just in case it will need to be determined at some point in the future.
People own straight up offshore companies, clearly committing tax evasion, whether they know it or not, for years, without repercussions. Many in the UK that has a public register of UBOs. So I'd say this information sharing is not at all impenetrable, it's more like a mine field, you just need to know where not to step.
Once I declared an employment income from one country in another after I moved, and those f*****s would happily tax it if I didn't realize my mistake. They did no checks at all about where the money is coming from, that they were already taxed and shouldn't be again due to the tax treaty. In fact I was not supposed to put it there at all. So I could keep my income from one country, and after move not declare it in the new country. And they wouldn't even know about it.
In fact they requested me to provide them proof that it comes from employment in the other country, when I demanded them to return me the money. So there was no information sharing between them at all.
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When I lived in Europe they did not request proof as I moved between EU countries but they did all ask and want to know last country I lived in. Yes you can write anything down but I was always thinking whether that information was used and why they needed it.
EU countries do share information when it comes to tax and it is clearly explained in DTA between those countries if you read any of them. The foreign and local tax authorities can speak to each other to determine where tax should be paid and if it was paid in one country. But it is a manual process and I don't believe they would do it unless there is significant reason to do so.
EU countries do share information when it comes to tax and it is clearly explained in DTA between those countries if you read any of them. The foreign and local tax authorities can speak to each other to determine where tax should be paid and if it was paid in one country. But it is a manual process and I don't believe they would do it unless there is significant reason to do so.
In order to be registered in Cyprus as person with valid tax ID you need to complete the attached form
As you can see, you need to declare the country you waw previously tax resident (part B)
As you can see, you need to declare the country you waw previously tax resident (part B)
Maybe I'm blind but I don't see it anywhere.
CIVIL REGISTRY AND MIGRATION DEPARTMENT - Migration Section
As you can see you're not obliged to provide anywhere your previous residency.
As I understood that's for exceptional cases where you can't provide any of the above. Once you register with the immigration office you should be able to produce a Cypriot identification number.
Yes but not "exceptional cases". The cases you are referring relates to individuals / legal entities already living or registered in Cyprus.
If you read the various categories, most probable you will fall within the above category (number 5).
Yeah but you'll register yourself with the Civil Registry and Migration Department first, as linked above. You'll obtain your Alien Registration Certificate with your Identification number. And then you'll fill the TD2001 form to obtain your tax id, with your new Identification number.
So that means you can obtain a Cypriot tax ID without being obliged to declare your previous residency at all.
Correct.
However, please note that during your first submission of the tax return, there is a possibility that you need to prove that previously you was not tax resident in Cyprus and you need to explain and/or provide evidence the reason you did not submit last year's tax return. Therefore, indirectly you provide to CY tax authorities details about your previous tax residency.
Please note this information is for general awareness and is not a professional advise.
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