Nowadays, every government agency you deal with wants to know which country you are resident in. That's why it's important to establish a tax domicile in a tax-free country that won't try to take the money you earn elsewhere.
Moving to a tax-free country and buying a second home can go a long way to helping you get out of your high-tax home country and save you thousands of dollars in taxes each year.
There are several ways to live tax free (and often it is more than just acquiring a second home or citizenship). Each approach involves different countries and unique strategies, in this article we are going to explain 3 tax free countries.
United Arab Emirates
The UAE offers many benefits to foreign entrepreneurs and investors, including dual residency and tax holidays
By setting up a free zone company, a 100% foreign-owned company can be established in the UAE and obtain both a second residency and a tax residency certificate. This increases the flow of foreign investment into the country. You will need to comply with a number of rules and register at least a few times a year to keep your residency active.The cost of incorporating a company is US$4,800. You will also need to have an office in the country, even if it is just a desk in a local co-working space.
Another way to obtain a residency permit is to invest USD 2.7 million in public investments or at least USD 1.36 million in UAE real estate, which must be held for at least three years.
If you are looking for an ultra-cheap residency or offshore solution, this is probably not your best option, but it may work for entrepreneurs looking for a jurisdiction that offers zero taxation on both their business and personal taxes.
The Bahamas
The Bahamas is one of the countries that does not pay income tax, preferring instead to earn money from tourism. Bahamian residents pay no tax on money earned anywhere in the world, inside or outside the Bahamas.
You can enter the Bahamas as a visitor and apply for temporary or permanent residency within two months of arrival. An annually renewable residency permit costs $1,000 per year. And although it is not officially required, it is advantageous to have a home on the island in order to obtain approval.
After 20 years of temporary residency, you can apply for permanent residency or you can speed up the process and get permanent residency immediately by investing at least $750,000 in property or a business that creates at least one local job.
If you want to fast-track your application to receive a guaranteed response from the Bahamas Department of Immigration within 21 days, you can increase the investment amount to $1.5 million and pay a one-time fee of $10,000.
If you then decide to purchase a home on the island, you will be issued with a Home Ownership Card each year, allowing you, your spouse and your minor children to live in the Bahamas.
The British Virgin Islands
This British overseas territory and island nation applies no income tax, capital gains tax, no corporate income tax, inheritance or gift taxes, land or housing taxes, wealth tax, sales tax, or VAT.
While getting a work permit in the BVI can be a rather bureaucratic process, obtaining a residence visa as a self-sufficient person is quite easy and can be obtained in less than a month in most cases.
You simply need to provide bank statements showing that you can afford to live there and pay a $1,000 surety bond.
Nowadays, every government agency you deal with wants to know which country you are resident in. That's why it's important to establish a tax domicile in a tax-free country that won't try to take the money you earn elsewhere.
Moving to a tax-free country and buying a second home can go a long way to helping you get out of your high-tax home country and save you thousands of dollars in taxes each year.
There are several ways to live tax free (and often it is more than just acquiring a second home or citizenship). Each approach involves different countries and unique strategies, in this article we are going to explain 3 tax free countries.
So, if you are interested in finding out more about residency by investment program and its opportunities to develop business, contact us today! Below this article, you will find a link to set up a free fifteen-minute consultation with us to discuss your options further.
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