Tax residency for a true (non-American) digital nomad?

virtusa said:
I had an offshore over 20 years ago on BVI (Tortola, which is full of offshores).
But over time these credit cards and debit cards became a problem.

In Europe many countries analyze all payments done with offshore cards, or even just cards not emitted by the country where they are used. Result is that one of my friends got caught and got in big fiscal problems. These debit cards and credit cards from BVI are no solution anymore as the frequency and amount of payments are registered and analyzed. So even pay in a grocery store or a restaurant on a frequent basis will get you in trouble. Who, living on BVI, where the cards are issued, would buy groceries every week in a country thousands of miles away in another country?
Even withdrawals from ATM's are checked.
I cannot believe that the IRS would be so stupid not to check that.
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This is very interesting. I had no idea Europe was that strict (I guess I will not be getting a European passport at all, and just stick to Schengen 90 days stays). Tracking card spending is super extreme. I am using a South American passport, and no issues. So it looks to be a true tailor made solution for very specific cases. Again, it always comes down to research, and asking questions.

That said, with this costly Pandemic, governments globally, are looking for revenue, and applying extra pressure to offshore centers. Panama is on the EU Black List, and I am frankly surprised why the BVI is not. Thanks for the heads up on the "card tracking" in Europe; I will stay a tourist ;)
 
ChipShotTrader said:
This is very interesting. I had no idea Europe was that strict (I guess I will not be getting a European passport at all, and just stick to Schengen 90 days stays). Tracking card spending is super extreme. I am using a South American passport, and no issues. So it looks to be a true tailor made solution for very specific cases. Again, it always comes down to research, and asking questions.

That said, with this costly Pandemic, governments globally, are looking for revenue, and applying extra pressure to offshore centers. Panama is on the EU Black List, and I am frankly surprised why the BVI is not. Thanks for the heads up on the "card tracking" in Europe; I will stay a tourist ;)
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BVI is on the EU blacklist. At least in March 2019.
2021-01-04 09_08_08.jpg
 
virtusa said:
BVI is on the EU blacklist. At least in March 2019.
View attachment 248027
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This is the latest. The BVI always narrowly escapes it!!!

https://home.kpmg/xx/en/home/insights/2020/10/etf-435-eu-blacklist-update.html

The Magic 12: American Samoa, Anguilla, Barbados, Fiji, Guam, Palau, Panama, Samoa, Seychelles, Trinidad and Tobago, US Virgin Islands, Vanuatu.

Like I mentioned earlier, because of the Pandemic, and the need for government revenue, I do not see this list shrinking.

Btw, you brought back a long lost memory. It was around 2001, and I was in NYC, on a prop trading desk. I was reading the Wall Street Journal, and came upon an article where the US IRS was going to request various credit card companies, especially American Express, the records of non-US based cards, spending inside the USA, especially for extended periods of time. I looked at my co-worker in disbelief. Nothing ever came out of that. I tried to follow the story, but no more articles were ever written about the subject. Looks like Europe is ahead of the game.

The US is at this stage:
https://www.independent.co.uk/news/...-bans-anonymous-shell-companies-b1781380.html
 
Back to topic.

OP read this:
https://www.canada.ca/en/revenue-ag...-moved/determining-your-residency-status.html

....and this:
https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/nr73/nr73-17e.pdf


The most important thing to consider when determining your residency status in Canada for income tax purposes is whether or not you maintain, or you establish, residential ties with Canada.

Significant residential ties to Canada include:

Secondary residential ties that may be relevant include:

  • personal property in Canada, such as a car or furniture
  • social ties in Canada, such as memberships in Canadian recreational or religious organizations
  • economic ties in Canada, such as Canadian bank accounts or credit cards
  • a Canadian driver's licence
  • a Canadian passport
  • health insurance with a Canadian province or territory
To determine residence status, all of the relevant facts in each case must be considered, including residential ties with Canada and length of time, object, intent, and continuity while living inside and outside Canada.

The information above is general in nature. For more information on your residential ties, see Income Tax Folio S5-F1-C1, Determining an Individual's Residence Status.
 
blink18 said:
Back to topic.

OP read this:
https://www.canada.ca/en/revenue-ag...-moved/determining-your-residency-status.html

....and this:
https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/nr73/nr73-17e.pdf


The most important thing to consider when determining your residency status in Canada for income tax purposes is whether or not you maintain, or you establish, residential ties with Canada.

Significant residential ties to Canada include:

Secondary residential ties that may be relevant include:

  • personal property in Canada, such as a car or furniture
  • social ties in Canada, such as memberships in Canadian recreational or religious organizations
  • economic ties in Canada, such as Canadian bank accounts or credit cards
  • a Canadian driver's licence
  • a Canadian passport
  • health insurance with a Canadian province or territory
To determine residence status, all of the relevant facts in each case must be considered, including residential ties with Canada and length of time, object, intent, and continuity while living inside and outside Canada.

The information above is general in nature. For more information on your residential ties, see Income Tax Folio S5-F1-C1, Determining an Individual's Residence Status.
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These are things that apply to most Western countries.
 
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