What countries make the most sense Tax Wise for my situaton?

[banafinfodafuggiano]

I make 30% of my income through ecommerce and 70% online trading.

Right now I'm paying well over 45% income tax in Canada (plus a s**t ton of other taxes on corporate level, GST, pension etc...).

I want out and be able to pay 0 to 5% max. I can relocate anywhere as long as it's not a s**t hole third world dump or a remote island like the Bahamas literally
in the middle of nowhere.


Where would you suggest to go? Other than Dubai of course, which is my first option unless something else (better) comes up.

Ideally close to, or in, Europe.

 

[Marzio]

70% online trading

Do you need a DTA with US?

 

[Sols]

remote island like the Bahamas

 

[Sigma]

Dubai or Georgia.

 

[banafinfodafuggiano]

Do you need a DTA with US?

No idea what are

Dubai or Georgia.

I heard bad stuff about Georgia (Crime and not so friendly to foreigners).

Dubai is my first choice but wanted something closer to Europe or in Europe.

View attachment 5710

I just can't stand the United States. Miami has nothing to offer for me and my family, and neither the Bahamas other than no Taxes... But thanks for your suggestion.

 

[Sols]

So you want 5% or less tax while living on the European mainland. There aren't a lot of options for that.

Monaco has a simple zero rate. Works best if you're worth a few million.

Cyprus has a 17-year exemption for non-domicile residents, where for example dividend income is not taxed. So if your income is from a foreign company that's not tax resident in Cyprus, you would have no income tax or capital gains tax scope, only Gesy (capped at around 4,800 EUR/year).

If your income is dividends, Greece might be worth exploring. 5% tax on dividends income.

Andorra could also be worth looking into.

UK non-domicile might work.

Many of these don't work if you are also running a business yourself, as the company then may become tax resident. Cyprus notoriously doesn't really check, and a lot of people live there while paying themselves dividends from foreign companies that they own/control themselves. Enforcement is a very low priority.

 

[Marzio]

No idea what are

Do you receive dividends from US?

If yes then you are looking for a country with a double tax treaty with US to lower withholding taxes on US dividends.

 

[banafinfodafuggiano]

Do you receive dividends from US?

If yes then you are looking for a country with a double tax treaty with US to lower withholding taxes on US dividends.

Nope, I have nothing to do with the USA luckily

 

[JohnLocke]

Many of these don't work if you are also running a business yourself, as the company then may become tax resident. Cyprus notoriously doesn't really check, and a lot of people live there while paying themselves dividends from foreign companies that they own/control themselves. Enforcement is a very low priority.

Cyprus has always been really good in terms of taxation, even after the turmoil in recent years. One thing is what is written in black and white, and another thing is what is done in practice, and here Cyprus has several times proven (from what I have experienced) that it is something completely different.

 

[Cloudbanck]

So you want 5% or less tax while living on the European mainland. There aren't a lot of options for that.

One way is to have multiple home bases on the European mainland, so you dont spend enough time (and avoid to create ties / "centre of vital interest") to be a tax resident in any one European country. You can be a resident in the UAE, have your official address there, and spend some time in Dubai during the winter. Then the rest of the year you can split it between 2-4 countries in Europe. How long you can stay, and what you need to avoid to not get tax residency, depends on each country.

And it is a nice lifestyle regardless of tax benefits.

 

[Sols]

And it is a nice lifestyle regardless of tax benefits.

I must be getting old. That just sounds exhausting to me.

But you're right. With a carefully chosen set of jurisdictions, this could work.

 

[Marzio]

That just sounds exhausting to me

Because it is, at some point you'll want to settle somewhere where you are comfortable.

 

[Mercury]

I must be getting old. That just sounds exhausting to me.

So do I.
I thought the point of reaching a certain wealth was about being able to mitigate constraints to the max.
AFAIC freedom of movements at anytime and without counting days is priority #1, but that's just me.

 

[Cloudbanck]

Because it is, at some point you'll want to settle somewhere where you are comfortable.

I don't know man, my grandpa got a house in south of Spain, spent all the winters there the last 20 years of his life, and enjoyed it very much.

If everything is set up, so you can travel with hand luggage between homes, it's not so exhausting.

 

[Marzio]

my grandpa got a house in south of Spain, spent all the winters there the last 20 years of his life, and enjoyed it very much

That's very different from what we are saying here.

One thing is to spend all the winters in the south of Spain because you WANT TO and not because you HAVE TO.

If you have to move when you don't want to because there will be tax consequences if you don't then you are not free.

 

[scooterguy]

That's very different from what we are saying here.

One thing is to spend all the winters in the south of Spain because you WANT TO and not because you HAVE TO.

If you have to move when you don't want to because there will be tax consequences if you don't then you are not free.

But there are always constraints outside of your control.

For example, if I could, I'd live in my home country, but politics, taxation, etc. have pushed me away, and other countries make more sense to me financially and politically.

Am I free in that case? Or not? Sometimes we have to make choices based on the best possible outcome for our specific situation or long-term plans.

 

[Dandyline]

So you want 5% or less tax while living on the European mainland. There aren't a lot of options for that.

Monaco has a simple zero rate. Works best if you're worth a few million.

Cyprus has a 17-year exemption for non-domicile residents, where for example dividend income is not taxed. So if your income is from a foreign company that's not tax resident in Cyprus, you would have no income tax or capital gains tax scope, only Gesy (capped at around 4,800 EUR/year).

If your income is dividends, Greece might be worth exploring. 5% tax on dividends income.

Andorra could also be worth looking into.

UK non-domicile might work.

Many of these don't work if you are also running a business yourself, as the company then may become tax resident. Cyprus notoriously doesn't really check, and a lot of people live there while paying themselves dividends from foreign companies that they own/control themselves. Enforcement is a very low priority.

Yes, because they are nothing without expats. Do they typically declare the dividends in Cyprus as well?

 

[Sols]

Do they typically declare the dividends in Cyprus as well?

AFAIK, most do.

 

[Cloudbanck]

That's very different from what we are saying here.

One thing is to spend all the winters in the south of Spain because you WANT TO and not because you HAVE TO.

If you have to move when you don't want to because there will be tax consequences if you don't then you are not free.

Well, the premise of the question was that the original poster wanted to spend time on continental Europe. Some people - not all - have a preference for splitting the year in multiple home bases. So in case one has this preference, one can have a multiple home base lifestyle, and also get the tax benefit.

 

[Cabin14]

The Malta Global Residence Program (GRP) is available to you. You get a permanent residence in Malta (but you do not need to spend any time there), you get a tax ID (which solves for the issue of the Canadian tax office still coming after you to pay taxes if they discover you have no tax residence), there is no income tax and no capital gains tax payable if you don't repatriate any money. You pay 15,000 Euro a year as "pre paid tax" and you must buy or rent a property. The only restriction is that you cannot spend 183 or more in any other single other country. It's a great option if you have the right income level, I have been in the GRP for about 3 years now and saved a literal fortune on taxes that I would normally pay in Aus.