Where to live with max 0-5% total tax

[khinkali]

@aceupsleeve you're obviously thinking a lot about lifestyle. People don't pay enough attention to that when looking for a place to live.

What do you like about Budapest but not Cyprus? If Cyprus is boring then I guess that Jersey and Isle of Man won't work either. I like made the move from Thailand to Georgia and am 100% happy with the move (ignoring virus issues), but it's really down to personal taste.

 

[Jonny Cage]

Georgia seems an obvious choice. Foreign income is not taxed (passive income is considered as foreign), not far from Europe, not EU member

 

[Sols]

Wouldn't the company have to pay 10% tax in Gibraltar then?

It depends, but a wiser choice might be Isle of Man where the CIT is 0% in any case, just to avoid having that 10% Gib tax risk in the back of your head.

is that true, it is personal tax income that apply right?

Personal income tax is not applied to income received as dividends.

 

[fshore]

It depends, but a wiser choice might be Isle of Man where the CIT is 0% in any case, just to avoid having that 10% Gib tax risk in the back of your head.

What does it depend on?
Isn't a Gibraltar company that is managed from Gibraltar always taxable in Gibraltar?

 

[Sols]

What does it depend on?
Isn't a Gibraltar company that is managed from Gibraltar always taxable in Gibraltar?

The company is tax resident in Gibraltar, yes, but the tax basis is not calculated just on residence. It's a system comparable to the territorial systems in for example Hong Kong and Panama.

The taxable in Gibraltar income is income accrued from within Gibraltar. Unless you run a regulated/licensed business (for which income is always deemed to be accrued in Gibraltar), there is room for creative interpretations of where the income is accrued.

So you can have a company tax resident in Gibraltar but which has zero income accrued in Gibraltar and thereby not subject to the 10% tax rate.

 

[aceupsleeve]

@aceupsleeve you're obviously thinking a lot about lifestyle. People don't pay enough attention to that when looking for a place to live.

What do you like about Budapest but not Cyprus? If Cyprus is boring then I guess that Jersey and Isle of Man won't work either. I like made the move from Thailand to Georgia and am 100% happy with the move (ignoring virus issues), but it's really down to personal taste.

Exactly.
- so there are things to do in Tbilisi?

- Are there any tax benefits for sole traders?

- how does free zones work there?

- Is foreign income not taxed even if I still actively run the company from Georgia as a resident?

Any info from someone who lives there will be great, thanks

 

[khinkali]

A micro business is 0% tax for turnover under 30k GEL (about $10k) per year, with tight restrictions on business activity. A small business pays tax at 1% to 5% for turnover under 500k GEL (about $150k), also with tight restrictions.

Normally it's 20% income tax. Or 15% company tax + 5% dividend tax.

Virtual zone (exporting IT services from Georgia) avoids the 15% company tax. After 20% tax on salary, profits can be taken at just the 5% dividend tax. Free zone experiences vary; some people seem to like them, other say it's a hassle. Banking seems very difficult for a FZ company.

There are interpretations of the Georgian tax code that say crypto trading profits are tax free (for individuals, not companies unless FZ). I plan to submit a small tax return and see what the Revenue Service actual do.

- Is foreign income not taxed even if I still actively run the company from Georgia as a resident?

If the company is run from Georgia then its income is not foreign income. It's probably taxable Georgian income. Also if work is done in Georgia for a foreign managed company then some profit taxes can be due because of the Permanent Establishment.

so there are things to do in Tbilisi?

Yes. Local food and wine are good, but you don't get fine dining like in London or Paris. Plenty of the great outdoors nearby. But really it depends what you like to do. I know people who like Tbilisi but found Malta too boring (I like both). Other people don't like the lack of modernity when it comes to roads and pavements, occasional electricity and water outages, etc. Internet is better than in much of the UK.

 

[aceupsleeve]

A micro business is 0% tax for turnover under 30k GEL (about $10k) per year, with tight restrictions on business activity. A small business pays tax at 1% to 5% for turnover under 500k GEL (about $150k), also with tight restrictions.

Normally it's 20% income tax. Or 15% company tax + 5% dividend tax.

Virtual zone (exporting IT services from Georgia) avoids the 15% company tax. After 20% tax on salary, profits can be taken at just the 5% dividend tax. Free zone experiences vary; some people seem to like them, other say it's a hassle. Banking seems very difficult for a FZ company.

There are interpretations of the Georgian tax code that say crypto trading profits are tax free (for individuals, not companies unless FZ). I plan to submit a small tax return and see what the Revenue Service actual do.


If the company is run from Georgia then its income is not foreign income. It's probably taxable Georgian income. Also if work is done in Georgia for a foreign managed company then some profit taxes can be due because of the Permanent Establishment.


Yes. Local food and wine are good, but you don't get fine dining like in London or Paris. Plenty of the great outdoors nearby. But really it depends what you like to do. I know people who like Tbilisi but found Malta too boring (I like both). Other people don't like the lack of modernity when it comes to roads and pavements, occasional electricity and water outages, etc. Internet is better than in much of the UK.

Thanks for the thorough reply, it's great help. I'll probably be visiting tbilisi soon to feel the vibe myself.

you wrote about FZ company "After 20% tax on salary, profits can be taken at just the 5% dividend tax"

If I'm the sole owner and only take dividends, then what salaries?

 

[khinkali]

If I'm the sole owner and only take dividends, then what salaries?

If you don't need a residence permit then I don't know if you will need any employee to maintain a FZ company. Not that a little tax at 20% will matter much after licensing costs etc.

If you want to go that way you're going to need professional help.

 

[aceupsleeve]

If its possible that total tax will be 5% with no employees and I'll like the city
Then im there

thanks for being so helpful, final question turn, do you know any reliable English speaking lawyer/accountant that might consult on available options?

 

[khinkali]

I'll be looking myself in about two months, the consultant I hired isn't around now. But @Jonny Cage had a good review on here recently if I remember correctly.

 

[aceupsleeve]

I'll be looking myself in about two months, the consultant I hired isn't around now. But @Jonny Cage had a good review on here recently if I remember correctly.

Thanks a lot for your help
So far the most concrete assistance I got as far!

Cheers

 

[Konstanz]

What is your citizenship? Is it EEA? You can live in Europe with UAE residency. Don't register yourself in Europe country and just live with UAE residency
Other structures in Europe are possible to have 0% income tax, but it's expensive. O you can move to eastern europen countries. They have lower income taxes
There are UK non-dom program, Cyprus non-dom and other less-known programs.

 

[aceupsleeve]

What is your citizenship? Is it EEA? You can live in Europe with UAE residency. Don't register yourself in Europe country and just live with UAE residency
Other structures in Europe are possible to have 0% income tax, but it's expensive. O you can move to eastern europen countries. They have lower income taxes
There are UK non-dom program, Cyprus non-dom and other less-known programs.

Georgia sound good cause its in EU area but not part of EU
If I'll like the place and can super minimize tax i prefer to pay this minimal tax rather than have 0% tax.

it seems the world forcing banks as hard as possible not to accept Money from no tax jurisdictions nevermind how much legal it is So I prefer to pay something and just have them leave me alone I can live with up to 10%total, preferably 5

 

[Konstanz]

Georgia is not in EU "area". It's in Asia. London - Tbilisi fligh time is around 5 hours. Almost the same as to Dubai...
I have been there. I can tell you its a s**t hole. No offence If you are planning to live in Europe like lifestyle you won't find it there
If you don't tell you citizenship it's hard to recommend you anything
I expect you are Ukrainan, so you can easy get Dubai residency, spend some time in Ukraine, spend some time in Europe, winter in Dubai

 

[Jonny Cage]

Georgia is not in EU "area". It's in Asia. London - Tbilisi fligh time is around 5 hours. Almost the same as to Dubai...
I have been there. I can tell you its a s**t hole. No offence If you are planning to live in Europe like lifestyle you won't find it there
If you don't tell you citizenship it's hard to recommend you anything
I expect you are Ukrainan, so you can easy get Dubai residency, spend some time in Ukraine, spend some time in Europe, winter in Dubai

Not gonna argue about the location of Georgia. Weather it is Europe or Asia is long time debate. Probably it’s both.
But seems like you have completely different understanding of what Europe like lifestyle is. Different from the big community ox expats I know in Georgia.
Just for those who don’t want to rely on only one source I’d like to share website that might be helpful to get an idea of life in Georgia.
I have nothing to do with them, just read several blogs and liked.

Travel to Georgia - Complete guide on places, tours, experiences

everything about travelling in Georgia - destinations to visit, restaurants, accommodation, hiking, nature and finest travel experiences all in one.

georgiastartshere.com

 

[Konstanz]

Georgia is much like that:

If it's what you a looking for. Then go on.

If you want high quality lifestyle I suggest Dubai+Europe

 

[Jonny Cage]

Georgia is much like that:

If it's what you a looking for. Then go on.

If you want high quality lifestyle I suggest Dubai+Europe

Really, Bald and Bankrupt? The guy who travels around the soviet countries to find the ruins of soviet past? You could not post video more biased than this.

again not to rely only on one source: here’s more neutral video.
I stop here, not to flood any more

 

[Konstanz]

Really, Bald and Bankrupt? The guy who travels around the soviet countries to find the ruins of soviet past? You could not post video more biased than this.

again not to rely only on one source: here’s more neutral video.
I stop here, not to flood any more

Man, have you been there?

 

[georgio]

I'm thinking of moving my residency in Cyprus, living there 1-2 months, and then living for lifestyle in Barcelona (6-8 months) and the rest traveling. I don't think anybody would check if you overpassed 1 or 2 months your stay in an EU country.