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

[polonieth]

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.

 

[Martin Everson]

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.

https://home.kpmg/content/dam/kpmg/pdf/2016/01/statutory-residence-test-flowchart.pdf

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.

https://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)

 

[polonieth]

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.

https://home.kpmg/content/dam/kpmg/pdf/2016/01/statutory-residence-test-flowchart.pdf


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.

https://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.

 

[xipoid]

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.

 

[Spinat]

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?

 

[polonieth]

you don't get taxed on dividends?

Yes you do pay tax on dividends, it's just more efficient than taking a higher salary in most cases. You can take small salary up to the tax free allowance, then the rest in dividends.

However, I would happily become a tax resident elsewhere to pay less.

 

[Marzio]

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?

What about being tax free on Sark?

 

[polonieth]

What about being tax free on Sark?

I have seen that, my first thought was it sounds too good to be true....

 

[JustAnotherNomad]

Forget about Sark, unless you actually want to live there.

 

[Marzio]

my first thought was it sounds too good to be true....

I don't think it's a scam, if you want to know more just contact the guy. He is selling his sark society membership for $1650 and you can pay with PayPal. You can quickly get a refund if you smell something fishy.

 

[Marzio]

Forget about Sark, unless you actually want to live there.

Why? The only requirement is to not stay in any other country for more than 90 days.

 

[JustAnotherNomad]

I explained it over here:
https://www.offshorecorptalk.com/th...-than-3-months-in-a-country.30570/post-145461
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.

 

[Marzio]

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.

 

[Marzio]

Unless Sark has signed a tax treaty, the residency doesn’t help you at all

Isn't the guy a UK resident? I think in his case could work very well.

 

[JustAnotherNomad]

Like I said, if you actually want to live there, go for it. But not if all you want to do is save taxes and not spend much time there.

 

[JustAnotherNomad]

Isn't the guy a UK resident? I think in his case could work very well.

Yes, it can work fine since the UK has such clear tax residency rules. But then it could work just as well with many other places. No need to go for something so exotic. The UK won’t be the issue, but rather the country/countries where he actually spends most of his time.

 

[Marzio]

But then it could work just as well with many other places

I don't think so. In this particular case there are not residency permit to ask, no new bank account opening, no new company formation. He will just relocate and that's it.

 

[polonieth]

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?

 

[Marzio]

Do you live there now?

Nope, i'm moving to Switzerland (probably Geneva) because it suits my situation better.

 

[polonieth]

Yes, it can work fine since the UK has such clear tax residency rules. But then it could work just as well with many other places. No need to go for something so exotic. The UK won’t be the issue, but rather the country/countries where he actually spends most of his time.

Where would you recommend?