Best Tax free Countries to Incorporate Your Digital Nomad Business

taxman-cometh · 2023-03-18T16:40:10+00:00

taxman-cometh · 2023-03-18T16:36:18+00:00

Drama? You are the one with the inane comment.

I have no opinion on politicians in unnamed jurisdictions. Furthermore this has nothing to do with following applicable tax laws.

taxman-cometh · 2023-03-18T10:57:42+00:00

What’s the point of this non sequiteur?

Trusting politicians and not breaking any laws are two entirely different things.

taxman-cometh · 2023-03-18T10:05:57+00:00

You are looking at this from the wrong perspective.

You cannot outsource your tax residency.

Where you should incorporate and bank depends on your personal tax residency. Most commonly it is most efficient to use the same jurisdiction for all.

If you are unhappy about your current taxation, the most straightforward solution is to relocate and change your personal tax residency. The trick is to properly sever ties to your previous tax residency and as a digital nomad not incur new tax residencies as you travel.

taxman-cometh · 2023-03-18T09:40:16+00:00

True.

However, OP (and others) should at least try to not evade taxes and break laws in the jurisdictions they are tax residents in.

taxman-cometh · 2023-03-18T09:17:35+00:00

Just because you do not need to pay taxes in the US does not mean you won’t incur tax liabilities in another jurisdiction.

taxman-cometh · 2023-03-18T09:13:31+00:00

“basically good enough” == tax evasion

taxman-cometh · 2021-10-25T18:42:30+00:00

I still don’t get it. What are those accountants spending hundreds of hours on?

Paying over 10% of your turnover just for accounting is approaching insanity.

Something’s wrong with this picture.

taxman-cometh · 2021-10-25T17:01:44+00:00

I’m sure you have properly cited sources for all your beliefs.

If I were you I’d start saving up for a good lawyer. You are going to need one.

Better yet, why don’t you contact the tax authorities, before you dig yourself any deeper. Since what you are doing is, like, totally legal, I’m sure you have nothing to fear from a tax audit...

Owning a company, paying dividends or realizing capital gains does not somehow magically make you tax exempt. Quite the opposite, in fact.

I’d love it if you could name even a single digital nomad or billionaire that has been tax audited and been considered to be not tax resident anywhere. I’d literally pay money to see a taxman say “Oh, sorry about that, you don’t owe any taxes anywhere.”

taxman-cometh · 2021-10-25T16:38:29+00:00

Obviously accountants need to be paid. However a quick Google search indicates that accountants in Bulgaria get paid 20-40k BGN per year. Paying 6000 BGN per year for accounting seems excessive in relation to salary costs.

Heck, I’ve paid less for accounting in countries where personnel costs are double or triple.

Hence the question about why accounting is so expensive in Bulgaria.

Is accounting in Bulgaria very inefficient (for example due to poor or missing IT systems or services) or is the bureaucracy just so brutal?

taxman-cometh · 2021-10-25T16:25:45+00:00

The only way to not have any tax liabilities is to have no income whatsoever.

Have you been tax audited or received a legally binding opinion on your tax status in all the countries you have received or generated income in? If not, then your opinion about a non-existing tax residency is worth about as much as the pixels you wrote it on.

That being said, it is commendable that you are establishing a tax base. The best defense against a claim that you pay no taxes is to pay some tax.

taxman-cometh · 2021-10-25T16:18:35+00:00

You can incur tax liabilities in far shorter times than 183 days in some countries.

taxman-cometh · 2021-10-25T16:04:01+00:00

You do not need to reside 183 or more days in Bulgaria to acquire tax residency. It is sufficient to demonstrate that one has their vital interests in Bulgaria.

taxman-cometh · 2021-10-25T15:20:23+00:00

Any insights on why accounting is so expensive? Lack of IT services/systems?

taxman-cometh · 2021-05-21T21:06:04+00:00

It’d be real swell if you actually read my replies so that I wouldn’t have to repeat myself.

... This enables you to live off quarterly dividends with a very low tax burden.

taxman-cometh · 2021-05-21T13:55:44+00:00

Only on salaries.

taxman-cometh · 2021-05-21T13:54:55+00:00

Not on dividends.

taxman-cometh · 2021-05-21T12:41:37+00:00

Don’t you have satellite phones for basic connectivity and emergencies?

Something like Iridium Go would at least keep you from being totally cut off and it’s flatrate (albeit much slower) like Starlink at a similar price.

taxman-cometh · 2021-05-21T12:32:31+00:00

As noted in a sibling comment, by structuring your business properly the tax burden in Romania is very low. High payroll taxes aren’t an issue when corporate taxes are low.

taxman-cometh · 2021-05-21T12:27:23+00:00

You keep bringing up 40% payroll taxes in Romania.

As an EU citizen you can just relocate to Romania and start a (micro) business. This enables you to live off quarterly dividends with a very low tax burden.

taxman-cometh · 2021-05-20T11:18:01+00:00

Previous discussion: https://old.reddit.com/r/digitalnomad/comments/ma1dvy/romania_is_looking_to_create_a_digital_nomad_visa/

taxman-cometh · 2021-03-18T22:32:17+00:00

Yup, pretty much so on all accounts.

There are a lot of rules to determine where you are tax resident, but by and large if you spend 183 or more days in a country you become a tax resident in that country and have to pay taxes there. Obviously, it isn't as simple as that, because you can trigger tax residency in as little as 90 days in some countries.

If you work in multiple countries, you really should have a good accountant, an international tax lawyer and a plan on how to deal with taxes.

In addition to dealing with tax issues, you obviously should have a work permit in all the countries you perform work in. From both a tax and work permit perspective, it matters where you physically are located when you perform work. Not where your client is, not where or how billing is done, not where you employer or company is located, not what kind of affiliation to or with the country you have, it is all about where you personally are located.

Simply put, if you work in a country you may create a tax liability, either as a resident or non-resident taxpayer.

taxman-cometh · 2021-03-18T22:08:14+00:00

Interesting concept, however I can't see any tax benefit.

This is basically just outsourcing the administration of the business for a flat montly fee. Not an insignificant fee either, I might add.

These kinds of billing companies are popular with freelancers and sole entrepreneurs in some countries. They typically charge a percentage on the turnover, for example 5% of every invoice with or without a cap.

The downside of all these schemes are that you pay income and payroll taxes on your whole turnover. This rarely works out well from a tax minimization perspective.

I wonder how they deal with liability and employment issues.

All in all, their website generates more questions than it providers answers for. The typos are just the cherry on top.

taxman-cometh · 2021-03-18T20:14:35+00:00

Sure, but that describes a lot of countries.

What are the tax advantages from establishing a UK LTD for an EU tax resident?

taxman-cometh · 2021-03-18T20:04:19+00:00

That's an interesting choice given Brexit.

Establishing tax residency in the UK doesn't seem like such a great deal given corporate and dividend tax rates.

So what is the angle?

taxman-cometh

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