Why is it better to live in Dubai/Monaco than in Thailand/Philippines for tax reasons?

DaveFischer

New member
  • Dubai and Monaco have extremely low taxes for everything.
  • Thailand and Philippines have 0 taxes on foreign sourced income.
Doesn't that mean that almost always for tech entrepreneurs, real estate entrepreneurs or even sports superstars, both countries almost wouldn't charge you any taxes on your personal income?
 

Sols

Entrepreneur
There is more than tax to consider.

A big one is costs of living, which in Dubai and Monaco are several times higher than in Thailand and The Philippines.

In addition to other things like language, culture, religion, personal liberty, freedom of speech, corruption, climate, politics, regionality of business, ease of doing business, and so much more, which can influence one's decision of where to settle down.

It can also make a difference how and what type of income you earn. There can be an important difference between personal income (salary), corporate income, and dividends and capital gains.
 

Gediminas

Offshore Tax Advisory
Mentor Group Gold
Commercial Service
Business Angel
Safety for me is a very important factor. If I had to choose only of those, I would never ever go to Thailand or the Philippines.

Also, Dubai or Monaco is a much more business-oriented place rather than the other two.

The better comparison could be Monaco/Dubai vs Singapore (if Asia region matters) because taxes in SG are also source based.

Also, Dubai would be a better fit for the 20s-40s, whereas a Monaco would be a better place for retirement.
 

JustAnotherNomad

Active Member
Be careful with the definition of "foreign-sourced" income. If you work or manage the company from Thailand, it will be local income. Most countries have a similar definition.
 

manwithtoupe

New member
Be careful with the definition of "foreign-sourced" income. If you work or manage the company from Thailand, it will be local income. Most countries have a similar definition.
That implies they have CFC rules in place for individuals. Many countries do not. The gold standard is either:

0% tax

or

Territorial taxation + no CFC rules

or

Territorial taxation + 0/30/60/90 day residency (not 183 days, as that will trigger CFC)
 

Konstanz

New member
Obviously, the real gold standard is 0% income tax.
Do anybody know any decent country options besides UAE and Monaco? I am not talking about some remote Islands in Caribbean or Pacific.
 

JustAnotherNomad

Active Member
You don’t have to live in a country that doesn’t have an income tax. It’s enough to live in a country that has territorial taxation or that lets you receive dividends for free. Then there are suddenly many options. Provided that you set everything up correctly.
 
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Konstanz

New member
Well. usually with Cyprus, Portugal and similar is not that simple.
As you told above, these countries has permanent establishment and the place of effective management rulings.
You have to hire lawyers and structure everything to make sure you have no tax or little tax.
It's not like that you can move to Cyprus, incorporate offshore company in Seychelles and work online with it..
The real peace of mind is 0% income tax :)
 

GrumpyMess

Active Member
Yes, you will need to hire a lawyer
The lawyers are not wizards. In case of Cyprus some rules are not being enforced at the moment, but that doesn't make them reliable. I haven't heard of any options to live in Cyprus tax free legally in 2020. It refers to any other EU country as well.
 

Konstanz

New member
The lawyers are not wizards. In case of Cyprus some rules are not being enforced at the moment, but that doesn't make them reliable. I haven't heard of any options to live in Cyprus tax free legally in 2020. It refers to any other EU country as well.
I totally agree. If it's not proactively enforced now it does not mean that in the future they won't wake up to collect taxes...
To sum up Dubai in reality is not so expensive... Monaco yes, it's more expensive, but for obvious reasons..
 
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