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What are the best offshore options for UK resident running a UK ltd?

polonieth

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Aug 11, 2017
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Hi,

What are some good options for a UK resident running a UK limited company, but with no real need to live or work in the UK? In terms of moving tax residency etc.

50% owner of UK Ltd Company. Just me and business partner.
No huge ties to UK other than being a tax resident. Not property owner, no kids, etc. So I can travel pretty freely.
Would only need to return a few days a year for family stuff.

Should I look into becoming a tax resident somewhere other than the UK? Ltd company needs to be kept as business partner will be staying in the UK.
 
Should I look into becoming a tax resident somewhere other than the UK?

Yes if you want to save taxes and UK will no longer be centre of your life. Many UK citizens take this route each year.

You can clarify your UK residency status and whether you will be subject to tax after leaving UK by taking the below test quickly.


What are some good options for a UK resident running a UK limited company, but with no real need to live or work in the UK? In terms of moving tax residency etc.

The natural option for most is simply to vanish to Dubai for complete tax freedom or go to a Ireland or Malta as a resident non-domicile where you will not pay tax on overseas income from UK that you keep offshore. It would be wise to just remove yourself as director (if you are) but maintain 50% shareholder. You have more flexibility in your new country if your income from UK company is passive in terms of just being dividends. You will not have to battle with CFC regulations etc. Moving to Ireland or Malta until end of brexit transition period is straight forward due to freedom of movement.

For Dubai you would need to register as self employed (just to get a residency permit and nothing else). I give below the rough cost of setup and living there if you become self employed via gofreelance.ae.


AED 7,500 Permit (Annually)
AED 2,000 Establishment Card (Annually)
AED 3,900 Residency Visa (3 years incl. Medical Test, Visa Stamping, Emirates ID Card)
AED 10,000 Health Insurance (Annually) (or Essential Health Care circa AED 562 annually)
AED 17,000 Studio Apartment (Annually)

AED 40,400 Total (9,300 Euros for 1 year)
 
Yes if you want to save taxes and UK will no longer be centre of your life. Many UK citizens take this route each year.

You can clarify your UK residency status and whether you will be subject to tax after leaving UK by taking the below test quickly.




The natural option for most is simply to vanish to Dubai for complete tax freedom or go to a Ireland or Malta as a resident non-domicile where you will not pay tax on overseas income from UK that you keep offshore. It would be wise to just remove yourself as director (if you are) but maintain 50% shareholder. You have more flexibility in your new country if your income from UK company is passive in terms of just being dividends. You will not have to battle with CFC regulations etc. Moving to Ireland or Malta until end of brexit transition period is straight forward due to freedom of movement.

For Dubai you would need to register as self employed (just to get a residency permit and nothing else). I give below the rough cost of setup and living there if you become self employed via gofreelance.ae.


AED 7,500 Permit (Annually)
AED 2,000 Establishment Card (Annually)
AED 3,900 Residency Visa (3 years incl. Medical Test, Visa Stamping, Emirates ID Card)
AED 10,000 Health Insurance (Annually) (or Essential Health Care circa AED 562 annually)
AED 17,000 Studio Apartment (Annually)

AED 40,400 Total (9,300 Euros for 1 year)
Thanks for the info.

I'm certainly a UK tax resident at it stands. I've paid tax in the UK for the last 10 years or so. Currently, take a small salary and the rest paid by dividends.

Thanks for the Dubai info, the tax aspect and cost is appealing, but not sure I would want to live there.
 
Moving to Ireland or Malta until end of brexit transition period is straight forward due to freedom of movement.

Ireland will continue to be possible indefinitely thanks to the CTA. There are a few less conditions (like minimum residency) than is the case with moving to other EU member states by the end of the transition period.

On the other hand, the weather sucks.
 
I'm certainly a UK tax resident at it stands. I've paid tax in the UK for the last 10 years or so. Currently, take a small salary and the rest paid by dividends.
you don't get taxed on dividends?
 
I explained it over here:

Unless Sark has signed a tax treaty, the residency doesn’t help you at all. Then you might as well go for some other tax residency like Georgia or Panama or no tax residency at all.
 
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Also even staying there could have some secondary positive effects. Have you ever had problems with connecting with "normal people" that go to work everyday and that don't see other ways to make money? This was always something depressing for me. What kind of people do you think relocate to Sark? Pretty much people that have some kind of business so i would say generally "interesting" people.
 
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Also even staying there could have some secondary positive effects. Have you ever had problems with connecting with "normal people" that go to work everyday and that don't see other ways to make money? This was always something depressing for me. What kind of people do you think relocate to Sark? Pretty much people that have some kind of business so i would say generally "interesting" people.

Do you live there now?
 

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