Best Country for Trading (Tax efficiency)

[i am nobody]

It need to be a country that is safe for foreigners, low crime rate, clean environment, clean air and water, decent level of health care, good food. Poorer developing countries often does not fill all of these requirements. A few does.

Some countries allow you to extend your tourist visa forever, one can stay as a tourist for serval years. This way of living is called PT (Permanent Tourist or Perpetual Traveler).

If you need visa you do need a passport. If you want a passport you need an official address and country where you are domicilated. That country will taxe you. They will ask you every year to fill in a fiscal declaration. I am not sure that you can open a bankaccount as permanent tourist, they will need some document, probably passport.
In Ukraine you can open an account with the address of your hotel as domicile. But I don't think it is a place that meets your standards. The account can be opened easily, but can be emptied easily too. And not necessarily by you.

 

[bln]

In Stavanger a 65 m² flat costs 400,000 euro if you want to buy it. And $200 for food?????

If you purchase yes, but we are talking about 1 tier rentals (long term contract). General prices in Sweden: 1 room studio ~$480, 1 bed room apt ~$660. Monthly food cost is on average $180 per adult person.

Edit: Norway is expensive due to the oil. 1.5 times more expensive to live there than in denmark, sweden and finland.

 

[i am nobody]

It need to be a country that is safe for foreigners, low crime rate, clean environment, clean air and water, decent level of health care, good food. Poorer developing countries often does not fill all of these requirements. A few does

These things you find in general in countries with high taxes, like scandinavian countries. But if nobody wants to pay these taxes these good conditions will disappear.
Oh, I get it: others should pay it and you want the benefit of it.

 

[luisHK]

If you need visa you do need a passport. If you want a passport you need an official address and country where you are domicilated. That country will taxe you. They will ask you every year to fill in a fiscal declaration. I am not sure that you can open a bankaccount as permanent tourist, they will need some document, probably passport.

I don't think so for europeans, just get a passport in your home country, using for instance your family adress, and spend over 6 months a year overseas and you shouldn't need to fill tax returns if you don't have business interests in your home country.
It's easy in several countries to open a bank account even if you are not a resident, although you will need a passport and often a proof of adress other than the passport, but the adress can be in a third country.

 

[i am nobody]

I don't think so for europeans, just get a passport in your home country, using for instance your family adress, and spend over 6 months a year overseas and you shouldn't need to fill tax returns if you don't have business interests in your home country.
It's easy in several countries to open a bank account even if you are not a resident, although you will need a passport and often a proof of adress other than the passport.

I live in Europe. Everybody over the age of 18 MUST every year file a tax declaration. You can write that you don't have any income in your country. Very quickly you will receive the question: from what money are you living? You cannot live without income. So you will have to give an explanation. If not they will taxe you on indices.
If you answer that you have income from abroad you will have to explain that in detail, because in most countires you are taxed on your worldwide income. The final taxation will be arranged throught bilateral agreements between European countries.

"Resident" and "tax resident" are two complete different things that are mixed up many times by people. "Non resident" does not automatically mean "non tax resident".

What is the 183-day rule?

The so-called 183 day rule relating to tax liabilities rarely exists as a clear-cut rule but is used as a guideline in some circumstances (see our related newsletter).

If you work less than 183 days in many countries you may be considered tax non-resident if certain other criteria are also met. However even as a non-resident you should normally still be paying tax on the revenue you generate in that country.

If you work more than 183 days in most countries, then you will become tax-resident and liable for tax on your worldwide income, i.e. revenue from your work, interest on investments, etc.

The ‘183 day rule’ does NOT automatically mean that you can work for 183 days in a new country without paying tax or becoming tax-resident. However in most situations, particularly if a double taxation avoidance treaty exists between your country of work and your home country, you will not have to pay tax on the same income twice.

 

[Pasternak]

I know people who pay any taxes anywhere. But one day they can have huge problems. In Euope normally you pay where you are domicilated. There are agreements between countries that arrange which country will tax what income. If you move from one country to another you should register in that new country and make a declaration in the country you leave. If you don't do that you can become stateless, which means no rights anywhere.

Many things that I read (also here) are illegal constructions. They work till they don't work anymore. Read what happened to Larry Williams, a trader that cheated. He didn't pay, till the IRS catched him.

The only good solutions are LEGAL solutions.
If you are satisfied with an illegal solution it is very simple: don't pay anything anywhere.

When someone has in writing that Belgian tax authorities have accepted that someone is not liable to Belgian taxes, and at the same time Maltese authorities says a person is a non domiciled tax resident, I would assume this is pretty legal. This is the same as in the UK. Why is a high tax country like UK full of multi millionaires?

 

[bln]

I live in Europe. Everybody over the age of 18 MUST every year file a tax declaration. You can write that you don't have any income in your country. Very quickly you will receive the question: from what money are you living? You cannot live without income. So you will have to give an explanation. If not they will taxe you on indices.
If you answer that you have income from abroad you will have to explain that in detail, because in most countires you are taxed on your worldwide income. The final taxation will be arranged throught bilateral agreements between European countries.

Isn't the opposite? in most countries you are taxed by residency, not by citizenship.

You file a tax declaration IF you have your residency in the home country. But if you have permanently emigrated to an other country, you register the new residency address and file for the first year only and no more. Forward on you file tax declaration in your new home country as that is where you pay your taxes.

 

[luisHK]

I'mNobody, I feel, again, that you are making your life more difficult than it should be.
Pasternak, indeed there are legal set ups wich work in the UK to minimize one's tax on offshore income, especially for (non dom ?) immigrants. Multimillionaires don't flock to a country where they will need to pay 50% on their income, especially their offshore income.

 

[Pasternak]

Every country has its tax loopholes, also Norway. Norway is very nice for capitalists having capital gains and dividend from EU/EEA. No tax at all in a limited liability company, only dividend tax when you pay yourself a dividend many years later.

Of course there is exchange of information between countries, but many ways to do this legally.

I'm a Norwegian living abroad for the 5th year. Unfortunately for me I'm still a tax resident of Norway for one more year even though I don't live there, but next year they can't tax me anymore And then a new world of opportunities....

 

[i am nobody]

Isn't the opposite? in most countries you are taxed by residency, not by citizenship.

My reply was a reaction to the "eternal tourist". The one who tries not to pay anywhere.
He says: spent more than 6 months oversea. He id not say he would leave his country officially and change residence. He wanted to escape taxes without moving his official address.

If you officially live in another country than your nationality, you will pay based on residency. I wrote that earlier already. That is very clear. But you should pay somewhere.