How can you fight against tax hikes with a better tax residency?
Published at: 21/06/2022 10:29 am
You have the right to change your tax residency if the burdens are higher than acceptable for you. You can become a legally and transparently tax-neutral person as well.
Following the turmoils of the Covid and the war, tax rates are increasing fast worldwide. And not only the taxes you or your company pays directly to the state. The higher taxes on business means that the customers must pay these burdens. It's your economic and financial choice to decide if you wish and can move your tax residency to a better place.
Generally, you are a tax resident, where you spend more than half of your year. Or the jurisdiction accepts that you maintain your tax resident status, but you are not there permanently.
What are the requirements to get a low-tax or no-tax residency?
In the post-Covid era, it's not strange anymore that people work from different tax jurisdictions. More than 20 nations try to attract the location independent workforce to spend their money there but do not have to pay taxes. These so-called "digital nomad visas" can be beneficial but only in the short term. If you become a regular tax resident, then naturally, you must share the same burden as the other residents or citizens of the country.
So how can you become a low tax or no-tax, even tax-neutral person?
There are several countries with territorial tax systems. You do not pay tax on your foreign-sourced income (usually if you do not remit it).
Which are the countries with territorial tax systems?
Among others, Costa Rica, Gibraltar, Hong Kong, Malaysia, Nicaragua, Panama, Paraguay, Bermuda, Monaco, the Bahamas, and the United Arab Emirates allow you to pay taxes only on your onshore income if you become a tax resident there.
At Discus Holdings Ltd, we offer you the two best residency programs for wealthy entrepreneurs.
Monaco is a country where income tax does not exist, so you do not have to worry about it. You can choose among citizenship solutions, which guarantee you the lowest available taxation, not only the freedom of travel and a secure future for your family. And there are always more available residency programs in low or no-tax countries. Monaco is one of the most exclusive places globally, and you can become a tax neutral person there. The settlement cost in your new European and noble tax residency is not to invest millions of euros. The objective is to show that you have money to live there and access other funds through a local and foreign bank deposit.
The United Arab Emirates is also an attractive location, and there are no individual or corporate income taxes.
Contact us for a consultation to plan your international tax compliance solutions!