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What country would you choose to relocate to avoid taxes?

Admin

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Staff member
Elite Member
The problem, of course, is that you have to make an absurd deposit to the andorran government of 15.000€ to get the residency by opening a company, but it's a great option anyway.
If you can get tax resident in Andorra by simply pay this 15K euro while you setup a company anyway, it may not be expensive but bery cheap. I think there is some misinformation and it can't be the whole thing??
 

JustAnotherNomad

Entrepreneur
If you can get tax resident in Andorra by simply pay this 15K euro while you setup a company anyway, it may not be expensive but bery cheap. I think there is some misinformation and it can't be the whole thing??
Why would it be cheap? In most other countries, it doesn’t cost anything?
 

Admin

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Staff member
Elite Member
Why would it be cheap? In most other countries, it doesn’t cost anything?
Because if you can avoid to pay taxes (personal income tax) I find it cheap. If you move from one EU country to another for free just to safe 1% it make not much sense for me.
 

JustAnotherNomad

Entrepreneur
It doesn’t help you much if Andorra considers you tax resident if you don’t spend any time there. You would most likely still be considered tax resident somewhere else. The UAE considers you tax resident if you enter once every 6 months. So what? That doesn’t mean you can avoid paying taxes if your wife and kids live in France or if you own an apartment in Portugal etc. etc. etc.
I thought we had discussed that sufficiently here...
 

antrock333

Mentor Group Gold
- Andorra has 10% CIT
- You're officially considered an active Andorra resident if you spend more than 183 days in Andorra and are liable to 10% PIT. Active self employment residencies are limited (900 per year, I think). You'll have to rent or buy a property of at least 20m2, incorporate your company with 3k€, 15k€ deposit with the the Andorran Financial Authority, you'll need to prove that you earn enough to support you and your dependents (~40k€ + ~13k€ each family member)
- As a passive resident you're only required to spend 90 days in Andorra, different types of requirements depending on the category (i.e. 50k government bond, incorpration in Andorra, >85% of business outside of Andorra, business plan for the next 3 years).
 

JustAnotherNomad

Entrepreneur
It would depend on the country where the kid is located, probably also on whether you can show you and the mother are no longer a couple etc.
But if you are a happy couple, the kid would probably be enough for most high-tax countries to create tax residency. At least the authorities would probably try to get you that way and then you would have to fight them in court.
 

CaptK

Company Formation, Bank Account, Real Estate
Mentor Group Gold
UAE is perfect for him. No dependants or spouse.
Only have to be in the country once every 6 months.
No questions asked.
 

xzars

Entrepreneur
@Marie Manila @void

Panama does not allow dual citizenship by law. Still works in practice. They'll ask for your promise that your previous citizenship will be renounced when accepting theirs, but there's no follow up scrutiny. And thus dual citizenship is achieved by simply not honoring the request to renounce existing citizenship(s).

I do not hold a Panamanian passport but have a little word-by-mouth knowledge of the matter. Double check with a lawyer if you plan to take an action based on this post.
 

LiberJoseph

New member
If you can get tax resident in Andorra by simply pay this 15K euro while you setup a company anyway, it may not be expensive but bery cheap. I think there is some misinformation and it can't be the whole thing??
No, unfortunately is not possible to get the tax residency without being partner of a company in Andorra. The only people that could do that are the called "professional liberals" that make an activity by their own means and self employment but without having to create a company. But for doing that you have to approve a professional tertiary degree before the Andorran institutions and do some more paperwork, in general it is reserved for engineers, lawyers, etc.
 

JustAnotherNomad

Entrepreneur
I have heard that Panama published the names of those who acquire citizenship and that other countries’ embassies follow those publications closely - to take away the original citizenship.
 

LiberJoseph

New member
No, unfortunately is not possible to get the tax residency without being partner of a company in Andorra. The only people that could do that are the called "professional liberals" that make an activity by their own means and self employment but without having to create a company. But for doing that you have to approve a professional tertiary degree before the Andorran institutions and do some more paperwork, in general it is reserved for engineers, lawyers, etc.
Well, our you could get a job, that is also difficult anyway
 
There are 2 ways in my opinion:

1) find a country with a general low taxation: Irland (low tax) to stay in Europe, UAE (no tax) as CaptK suggested. I will also check Malta and Cyprus to stay close to Europe. Lituania or Bulgaria have also low cost living expenses and you will be taxed 29-30%.

2) find a country that is not generally low taxation country but your income could be considered exempt and you will pay zero (specific prevision about this in Portugal, or south east asia: philippines or malasya (or here with a business in labuan). In this case you could have also a zero taxation (exemple philippines with rssv).

Disclaimer: just personal opinion. Is not endorsement. Is not advice. Consult your advisors.
 

Davis123

Active Member
If you acquire Panama or any other citizenship you don't loose your UK, Canadian or US citizenship ever. You have to renounce these citizenships. Some countries allow dual citizenships of only specific countries they have agreements with. India, Nepal, Netherlands, Japan, Singapore etc do not allow dual citizenships. You have to just find out the laws of your country by google search. Some people do carry illegal dual passports.
 

Davis123

Active Member
If you acquire Panama or any other citizenship you don't loose your UK, Canadian or US citizenship ever. You have to renounce these citizenships. Some countries allow dual citizenships of only specific countries they have agreements with. India, Nepal, Netherlands, Japan, Singapore etc do not allow dual citizenships. You have to just find out the laws of your country by google search. Some people do carry illegal dual passports.
 

dziter

New member
Either way, I think I agree with what you’re saying: Get a tax residency in a country with low taxes and a good reputation, maybe pay some tax there, then live somewhere else. Especially within the Schengen area, the chances of being caught are extremely low.
I am thinking about it:

1 - Staying in the"gray area"by paying some taxes somewhere and living somewhere else.

So, incorporate a company in central europe/eastern europe and living in another closed/neighbor country can be possible, not so risky because of Schengen right?

I mean, if you are taxing tax residency let's say in Hungary or Montenegro : you satisfy all conditions first year and after going to live almost/full-year in another country : Poland for example, it's possible right?

Of course, traveling should not be done by plane I guess to limit risks?

However, I am wondering if country A (Hungary ..) can ask to see your bank statements to be sure you are spending some time in their country? If you pay taxes, they don't care?

If not, I guess we just need to use EMI and never put anything at our name in country B (even I am wondering if take a long term lease flat at your name is really risky, what are the alternatives?).
I mean, it's almost impossible they will detect 'you' or claim something right?

2 - Non-dom island

I guess this setup can't work with an island or low tax country with a great non dom system like Cyprus where you can just stay 2 months (rent a place...)?

Living in Cyprus 2 months
Living in Poland 10 months

This setup is really risky because of traveling by plane, right?

3 - Alternative

Andorra seams a great opportunity with the 90 days rule for passive residents.
Basically, you could spend other 9 months in another place (still with EMI ..), right?

Thanks for your feedbacks.
 
You will need to provide evidence you are living in the country so you will have to provide bills, expenses in the country, rent and so on.
Who told you about avoid to flight? do not matters at all (if you don't deduct the cost from your income and you are the one offering those informations to the country), flight or train companies don't exchange those kinds of informations.
 
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