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Digital nomads tax, how does it work?

 

by @homakov | 6yr  | 63 comments

Is there a lawyer here? Iโ€™m a Russian citizen and the last 2 years Iโ€™m living abroad. Which makes me non tax resident. And while i spend < 3 months in every country I do not owe taxes from my consulting income to any country.

Is there a flaw in this system? Yes I know Perpetual travel doesnโ€™t work for USA citizens, but everybody else here is in similar situation. Do you pay taxes and why?

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@busdriver | 4yr

Yes, HK is a good option. Just getting a bank account became more difficult there over the last years.

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Hong Kong is too much of a pain in the ass. It used to be good, but now itโ€™s difficult to say the least, and woefully inefficient.

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@stewartpatton | 4yr

Agreed @international_man

Here are my thoughts on Hong Kong: http://ustax.bz/want-to-form-a-hong-kong-company-read-this-first/

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@busdriver | 4yr

@StewartPatton - you recommend Belize over HK for โ€œlifestyle businessesโ€, can I say so?
The good thing about HK is itโ€™s possible to open a PayPal account for a company.
I think that would not be possible in Belize, right?

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@stewartpatton | 4yr

Youโ€™re rightโ€“no PayPal in Belize. But,under your Belize company, you can have a US LLC with a US bank account hooked up to a PayPal account.

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@busdriver | 4yr

I guess a UK LLC would do the trick too, right?

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@nomadtax | 4yr

You canโ€™t get a tax residency certificate for an IBC in the country of registration. The whole point of that structure is that it is not a resident for tax purposes.

In my case that isnโ€™t a problem as my IBC does not render services within Europe. Also, I am not European and do not reside in Europe.

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@poppyjikko | 4yr

So to offer professional services to European businesses it probably would be better to use a Hong Kong or UAE businessโ€ฆ

Or a company in a EU country with no WT that would subcontract to an IBC maybe ?

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@nomadtax | 4yr

If you only do business in Europe, it would probably be simpler to register in a low-tax EU country and operate from there. Bulgaria with its 10% flat-rate comes to mind. Estonia is also a good option if properly setup.

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@poppyjikko | 4yr

This was my first idea (plus Iโ€™m in BG right now)โ€ฆ I could still incorporate in HK or UAE when the turnover gets bigger and more internationalโ€ฆ

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@anywow | 5yr

I setup a company in Hong Kong 4 years ago in the exact ways @coffeeshopceo mentions above. I love it and it works great - especially the 0% tax on revenue from outside of HK.

One thing I could never figure out is how to pay myself as an โ€˜employeeโ€™ of the company rather than constantly withdrawing cash straight from the company account. Does anybody have any thoughts/recommendations on this?

Michael Micheliniโ€™s โ€˜Global From Asiaโ€™ has some decent reading on registering in HK if anybody is interested - https://www.globalfromasia.com/

Also, I just listened to this podcast from Tropical MBA on taxes that some folks might find interesting too:: http://www.tropicalmba.com/tax/

Jay

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@whereskristin | 5yr

It really depends on the country that you are from. Iโ€™m not sure about the laws in Russia, but many EU countries have a procedure where citizens can change their tax base after spending 180 days out of their home country. I have many clients who change their tax domicile from high-tax countries like France, Netherlands and Scandinavian countries to one that has lower tax rates or does not tax their income at all. For example, if you are an online poker player, you can live in a country like the UK or Costa Rica that does not tax winnings from online gambling. Itโ€™s best for everyone to check with a certified public accountant in their home country to make sure you avoid fees or fines from an audit in the future. I know people from France for example who thought they were moving to a country where they didnโ€™t owe any tax or where in this in-between, gray area, and it turned out that because they didnโ€™t go through the correct procedures, they owed back taxes in France for many years all at once + fines. Sometimes it makes sense to voluntary pay taxes in a country just to have a history of being a tax resident somewhere in the case that later your home country wants to see this historical pattern. Again, everyone should consult a licensed professional in both their country of origin and country of destination to make sure you are covering all your bases. This is just peripheral, anecdotal information which may apply differently to everyone.

It goes without saying that this doesnโ€™t apply to US citizens being that we are taxed on global income regardless of country of physical presence. Thatโ€™s a completely separate topic for Americans.

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@flyonthewall | 5yr

@international_man What would you recommend as a low cost low maintenance requirement jurisdiction for incorporation? It would be nice if the jurisdiction was also tax efficient and trusted. I suppose all those things are hard to come by togetherโ€ฆ

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@flagtheory | 5yr

Just thought I would chime in again hereโ€ฆ

I agree with International_man that BVI with banking in Singapore is a preferred choice. I wonder if he read this off my website flagtheory.com/singapore-bank-account-bvi-ibc/ :wink:

BVI is a premier choice for offshore, but many different countries have similar options (the legislators literally copy/past the company laws, complete with typoโ€™s and all).

Flyonthewallโ€™s question: "what would you recommend as a low cost low maintenance requirement jurisdiction for incorporation. It would be nice if the jurisdiction was also tax efficient and trusted. I suppose all those things are hard to come by togetherโ€ฆ

We made a company comparison matrix to compare different incorporation options at Incorporations.IO There are several jurisdictions which fit your profile.

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@flyonthewall Sorry for the delay in replying. I donโ€™t have much of a chance to check this forum as often as Iโ€™d like! I donโ€™t think you can beat the BVI, as far as a jurisdiction to incorporate in is concerned (thatโ€™s my personal opinion - others may beg to differ). 0% Tax. Easy and fairly cheap to establish and maintain. No annual filing/audit requirements. Simple. Most banks will still happily work with BVI companies, although banks in Hong Kong are becoming increasingly difficult. Singapore still accepts BVI companies with open arms.

I just recently registered another BVI and had no issues establishing a bank account in Singapore. Also, Marshall Islands companies are becoming quite popular and Singapore banks will happily open accounts for companies registered there (from what Iโ€™ve been told).

Anyway, usual disclaimer: this canโ€™t be construed as tax or legal advice :wink:

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@poppyjikko | 4yr

What kind of financial thresold would apply ? (ability to open the account and to make it cost efficient)

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Approx $50K USD.

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@nicocaramella | 5yr

Hey guys! I just read this entire thread. Iโ€™m actually very curious about peopleโ€™s experience with the Estonian e-visa. Anyone got it already?
I actually need something relatively simple: the possibility to give invoices to european clients and a bank account to get my payments without being in the EU.

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@tkrunning | 5yr

Hi Nico. There are a lot of misunderstandings surrounding the Estonian e-residency. It might still be attractive for you, but you would have to travel to Estonia once to set up a bank account (unless you use a power of attorney or similar, but then you wouldnโ€™t need the e-residency anyway). I just wrote a detailed post with my experiences with the E-residency, which is available here: https://medium.com/nomad-gate/estonian-e-residency-ultimate-guide-banking-taxes-cc27fe39c368

Hope that helps :smile:

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@veggienomad | 6yr

I donยดt know the situation russian, i think US itยดs the only country, which need pay taxes, also if they chanaged the residence country.

European and Asian citizen can move here โ€œresident adressโ€ to a tax free or low tax country. I know itยดs not a problem to be only 2-3x year in dubai, its perfect for perpetual travelers, but company formation in dubai is expensive. I will move my company to ras al khaimah and get my residence visa for UAE.

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@freedomsurfer | 6yr

I donโ€™t understand the hype around Hong Kong Limited companies, they are relatively expensive to run and donโ€™t offer any benefits for most businesses over cheaper structures in Belize, BVI, Samoa, Marshallโ€ฆ Some people say reputation matters but I have a Belize company and had no problem opening a bank account with one of the big banks in Hong Kong and a brokerage account in Singapore. I use a US based merchant account to process credit card payments and when someone sends me a wire they only see that my account is in HK, no mention of Belize. I pay 350$US / year to keep the company in good standing, no audit, no tax return, no paperwork at all. Itโ€™s all about what you do, not where you are registered. Banks will open your business an account if they are satisfied with your activites (and if you meet the minimum deposit requirement of course).

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Little late to the discussion, but I agree with you @freedomsurfer. Personally, I prefer BVI with banking in Singapore. Also, if you really wanted, you could get a virtual office address in either Singapore or Hong Kong to give the impression that the company was based there. I have had both Singapore and HK companies in the past and both were frustrating from a compliance and cost perspectiveโ€ฆ

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@nemrut_dagi | 5yr

Which company did you use to setup your business in Belize and which Bank in HK allowed you to open an account with you Belize business?

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@gogan | 4yr

Thanks for sharing @freedomsurfer. Would you mind to refer me the broker you use to incorporate and maintain the company in Belize? PM is ok

Thanks

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@poppyjikko | 4yr

What about invoicing ?

Iโ€™m selling professional services and my client need invoices and could be audited. They could support witholding taxes in case of โ€œtax havenโ€ payment.

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Setup a virtual office address in Hong Kong or Singapore or anywhere for that matterโ€ฆ

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@poppyjikko | 4yr

I doubt it would be a sufficient proof of tax residencyโ€ฆ

Setup cost or revenue to make it worth it ?

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Deposit and min-monthly balance.

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@nomadtax | 4yr

When you invoice, you list the address of the company (not where it banks). As such, your clients would see your tax haven address.

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@poppyjikko | 4yr

Some countries like Portugal require a tax residency proof otherwise they apply a withholding tax. Other (Franceโ€ฆ) would apply the WT in case of audit.

http://supplynet.autoeuropa.pt/files/Withholding_tax_on_services.doc

Iโ€™m afraid that other countries in EU would follow the same pathโ€ฆ

Only Hong Kong, UAE and maybe Panama? have a lot of DTAs with EU countriesโ€ฆ

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I researched setting up a CFC a while ago. I can say a handy shortlist is:

  1. Hong Kong
  2. Dubai
  3. Malta <โ€” Great for US citizens.
  4. UK LLP <-- Great for Russians. If you have foreign-sourced income, I believe you donโ€™t even need to file tax returns. Donโ€™t quote me on that.

And Iโ€™m jealous because as I understand, banks welcome Russian passports with open arms! :smile:

ะฃะดะฐั‡ะธ,
ะะฝะดั€ะตะน

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@homakov | 6yr

Never heard of UK LLP before, probably thatโ€™s for rich russian millionaires and their blood money, not for freelancers.

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ะŸั€ะธะฒะตั‚ :slight_smile:

Not really. Actually itโ€™s a really affordable option for freelancers moving about the world, but want an EU business identity. Scotland LLP is also similar. A French mate in my Russian class incorporated for about 30 GBP, he told me.

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@flagtheory | 6yr

A good way to approach this is through Flag Theory - which is a 50 year old system for internationalization. This is basically a method to set up โ€œflagsโ€ in strategic jurisdictions.

@homakov - since you are a Russian (and assuming you are not also a resident taxpayer in American, aka greencardholder or American citizen in which this this would NOT be applible)โ€ฆ

Your passport and first flag does not tax you on a worldwide basisโ€ฆ

IF you properly establish a 2nd flag - Residency - in a low tax jurisdiction you can say to mother Russia โ€œIโ€™m a resident of ____ and I pay tax there.โ€ If you want to be 100% certain, talk to a Russian tax lawyer and figure out if there is any tax obligation.

There are many countries like this. Some have low tax (like hong kong, <16>.) Others have 0% income tax - Monaco, Cayman Islands, others.

Youโ€™ll want to find a place that does not have CFC laws, and does not tax worldwide income - only income earned there. Hong Kong, Singapore, Thailand are 3 such places. Youโ€™ll need to examine the details of your personal business and make sure you follow local laws. There are many countries like this. This is very important that you set up this personal residency Flag - the 2nd flag first.

Youโ€™ll then want to establish a 3rd flag - an offshore company, in a tax free jurisdiction. While some others suggest Hong Kong in this thread, that jurisdiction has additional requirements like annual audits. A lower compliance option would be a place like Nevis, Belize, BVI, etc. where annual audits are not required to be considered 0%

That should get you started.

These articles might also be helpful:
Where should the Digital Nomad set up a Company?
How to set up Residency the right way to pay 0% tax

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@reganha | 5yr

What is the easiest country without CFC laws to obtain residency for an EU citizen? By easy I mean, no huge amounts of investment needed and no or few demands to be X times per year or days in the country.

It has been vastly stated that BVI is the way to go, as itโ€™s cheap and effective, but I havenโ€™t seen much discussion on the country of residency without CFC laws, and the former is useless (and potentially dangerous) without the latter.

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@flagtheory | 5yr

We have a button for CFC laws on incorporations.IO so you can check it there.

These are broad interpretation so further research is necessary. Based on your needs, you might look into Panama. If you can qualify under friendly nations visa in Panama - it will require you to only stay there 1 day per year to keep the residency, and open a company with capitalization of 10k, and 5k in a bank account. โ€œCheap and effectiveโ€ location for residency and without CFC laws and an instant permanent residency scheme. After 5 years you can apply for citizenship. If you click โ€œapply for residencyโ€ on passports.IO our team would be happy to assist you.

Obviously you should check the laws from your previous residency to make sure this applies and speak to an accountant/lawyer/priest locally and this is not tax or legal advice.

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@sandy_ | 6yr

Actually Americans CAN be perpetual travelers. There is something called the โ€œForeign Income Exclusionโ€ that you may qualify for. One way to qualify is via the โ€œPhysical Presence Testโ€. If you spend 330 days out of 365 days out of country you do not pay an income tax on up to $100k of your income

http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion

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@lightmotif | 6yr

Sandy, do you know if this is still true if your legal address and bank account, business registration are in the US? Thanks.

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@sandy_ | 6yr

Yes, it is still true. See this answer and read the references taken directly from the IRS website regarding your exact question

Im pretty sure the same applies with business registration although I have not looked that up exactly. I have an LLC which I would use for clients back home and I donโ€™t see it changing anything. Mostly I work as a self employed business and donโ€™t see how it would differ from that in this context.

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@lightmotif | 6yr

Passport stamps too will help, I guessโ€ฆ though it looks like although Costa Rica has been stamping me the past few months, the US has not. (I had to return to the US for 20 days for business travel.)

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@lightmotif | 6yr

Sandy, this information is super helpful. Thank you so much! Iโ€™ve been reading up a lot on the foreign earned income exclusion, and plan to make it so I pass the physical presence test this year. One thing I canโ€™t seem to find is information on how to prove I was outside the US for 330 days. Airline tickets for sure, bank account statements for foreign withdrawalsโ€ฆ I can make sure Iโ€™m keeping my hotel receipts but my latest apartment lease only gave an e-mail receipt. Iโ€™ll ask them for something on letterhead. Any other tips? Have you claimed the foreign earned income exclusion before? I also found out that youโ€™re exempt from paying for Obamacare in this case too โ€“ also a huge plus!!

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@tprophet | 6yr

I am not a lawyer or CPA and this is not legal advice. It is for general guidance only. You should work with an attorney and a CPA for specific professional advice.

If youโ€™re American, this gets really sticky. The US taxes you on your worldwide income. If you have a US corporation, it is also taxed on worldwide income, so it can be double taxed. And foreign corporations in the US are taxed on US-sourced income.

However, there is a loophole. If you own a company outside the US, and the company earns money outside of the US, itโ€™s only taxed in the US when the money comes back into the US. So, many people have companies registered abroad (Hong Kong is a popular jurisdiction) and money earned offshore is accrued in the foreign corporation. Expenses abroad are also paid by the foreign corporation. So, you can effectively avoid the money being double taxed (paying personal income tax only) if you earn money offshore and your offshore corporation pays your salary.

Also, if youโ€™re working abroad, itโ€™s not a vacation. A lot of things you spend money on are legitimately considered business expenses. So, if something is a business expense, pay for it with company earnings that havenโ€™t been taxed.

Now, what about paying income tax in the jurisdiction where you were living abroad? Typically, countries only tax income sourced within the country, and many countries have tax treaties where income is only taxed once. So, for example, if youโ€™re living in China, a country that has a tax treaty with the US, and youโ€™re paid by a company outside of China, and you pay taxes in the US, you donโ€™t actually have to pay taxes in China. Technically you are supposed to file there (at least in Beijing), but this isnโ€™t actually enforced unless youโ€™re on a Z-type visa and you are working for a Chinese company. And, if youโ€™re on a tourist visa pretty much anywhere in the world, you wonโ€™t owe any tax in the country you were visiting. As best I know, no country in the world charges tourists income tax!

One thing that WILL happen if youโ€™re living abroad, and have foreign bank accounts: You will get audited if you claim tax exemptions that apply when you live outside the US. In my case, this came in the form of a letter to my Chinese address which basically said โ€œprove youโ€™re really living in China,โ€ and gave me a list of documents to supply as evidence of same. There was a list of 8 or so things, of which I had to supply 3. I just sent the IRS everything on the list (not only 3 of the things, but all of the things), mailed the package from Beijing, and I never heard from them again. I think they just wanted to make sure I really was living abroad.

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@dansherman | 5yr

As it relates to US citizens, I would add that if your income is earned income, while living and traveling overseas and you are outside the US for more than 330 days out of rolling 365 day period, you can earn up to $100K a year (per spouse if married) and not have to pay any income tax on that amount. You only have to pay FICA and SS.

Itโ€™s called the FEIE and itโ€™s qualifications are here:

https://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion

I use Greenback Tax services as well (mentioned earlier in this string).

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@manu | 6yr

+1 for HKG. Singapore is also possible, but slightly more expensive. Getting a bank account is now harder, but still possible. Malaysia is also starting an offshore tax area, which could be an option in the future.

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@atu | 6yr

So what would be the perfect combo for a European citizen and for an American one ?

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@coffeeshopceo | 6yr

Iโ€™m registered in Hong Kong which has a 0% corporate tax rate for sales made outside of the state.

If youโ€™re an EU citizen earning online and want to avoid taxes, you now need to move offshore as the EU has introduced a law that will tax you on online services and product sales - even when made outside of the country.

Americans may have issue registering in HK thanks to gleeful American tax laws (not to say it canโ€™t be done).

The Hong Kong incorporation process costs a few hundred dollars US per year IF you do it yourself.

I pay a guy (well, incorporation service) around $1,200 to do all the setup paperwork for me and then around $1k/pa to keep on top of it each year.

Slightly more expensive / way more convenient.

If anyone wants more details please feel free to message me, comment in this thread or email me on mcintyre [dot] business [at] googlemail.com

The only thing you will need to do when setting up a business in HK is physically travel to Hong Kong in person and open a bank account. The guy I use also organises this meeting via HSBC with his contact at the bank.

Iโ€™m sure Pieter / levels will back me up if anyone doesnโ€™t think Iโ€™m legit.

Best,
Adam

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@CoffeeShopCEO I wonder if you would mind doing a separate post on this for people like me (also a Brit).

Itโ€™s a huge struggle to find any relevant/specific details for non-American DNs when it comes to a specific offshore company registration etc.

My main queries include:

  1. Finances
  • Personal banking
  • Business banking
  • Paying yourself a salary (offshore account or home account?)
  • Tax implications
  • Accounting
  1. Residency

  2. Benefits of opening up a HK company

My brain is currently spinning from all the info Iโ€™ve read so far.

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@manu | 6yr

@nomadily, you can open 5 threads for this. Here some pointers from me (in the order you wrote them)

##1. Finances

  • There are some discount online banks in Germany and the US, who offer free ATM withdrawals.
  • Business banking can be anywhere, but they should accept your offshore company domicile.
  • Salary is generally no problem or you need a minimum salary for visas anyways.
  • Usually no income tax, while you only stay < 1/2 year and avoid working for local clients within that country
  • Accounting can be done online.

2. Residency

Why do you want that? A few countries in Asia and South America have easy and affordable residency paths, some even leading to a passport. Youโ€™ll need to deposit a few thousand (or thens of thousands) USD and sometimes be older than 35. Starting a company and giving yourself a work permit is also possible. Usually you should have existing business for this. For EU citizens, you can become resident an any EU country. E.g. Malta.

3. Benefits of HK company

  • offshore income is tax free (this will be checked very thoroughly).
  • not as bad as a reputation as other offshore locations
  • great banking options
  • reliable legal system
  • liberal interpretation of what counts as โ€œbusiness expenseโ€

###Downsides:

  • more reporting and accounting requirements than other locations.
  • canโ€™t live there and avoid taxes at the same time.
  • may become less attractive in the next decades, as China shifts its finance to Shanghai.
  • public company registry
  • nominee directors became very expensive recently, if you want one. Needs to be natural person

If you have any further questions that are not relevant for other users, best to ask me privately.

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@tilen | 6yr

@manu Thanks for all the info! Any experience with services like startitup.hk/start-your-company/ ? Any tips on sorting out accounting in HK and any aproximate numbers around costs of setting everything up/monthly/yearly costs of upkeep? Thanks :slight_smile:

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@manu | 6yr

Old-school accounting and audit is around 1500 to 2000 USD/year for a small company with about 100k USD revenue.

If you automate most tasks and keep a good workflow, you can get it down to about 500 USD. This is mostly for the audit and assumes that you can do proper accounting on your own.

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@homakov | 6yr

Setting up a HK company is easy for anyone even for americans Iโ€™m sure. Itโ€™s just a company.

But banking account in HKโ€ฆ I donโ€™t know whoโ€™s your guy but if you donโ€™t have residency permit in HK donโ€™t even try. I walked in 4 different banks hsbc, citi, hang seong etc, itโ€™s impossible now. I got some shitty swiss bank account opened remotely. Nice and legal scheme.

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@coffeeshopceo | 6yr

Iโ€™m not sure on what HKโ€™s relationship with Russia is like, but setting up an account with HSBC for me was easy.

I walked out with a business debit card apt he same day and paperwork filed for a credit card.

Many of my EU+UK friends (who use the contact) received the bank accounts no problem.

When you apply for an HK bank account nowadays, you have to sign paperwork confirming you are not a US citizen looking for a tax haven.

Providing you have enough evidence of consistent monthly income and proof you have a legitimate business (due to HKโ€™s โ€œKnow your customerโ€ policy), you should not have a problem.

An American friend of mine - actually one of my most trusted business friends and peers - opened an HK business a couple of years ago with no issue. This year he applied with a partner to open another business and was cleanly rejected.

From what I hear it has become much harder for US citizens, although I doubt impossible.

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@jb510 | 6yr

These guys: http://www.greenbacktaxservices.com/
did a talk at Hubud around march 2014 and talked about setting up an HK corp (theyโ€™re setup that way). Same story @CoffeeShopCEO relayed above. You had to be physically present in HK to set it up, but otherwise it was pretty ideal for expats, including US citizens. I have no idea about Russians. HK looks better than some of the other offshore tax havens (Panama, Cayman, etcโ€ฆ) which for them as a financial services company was important.

Every time I hear DNs talk about taxes or visas you have to start with the questions: Is your goal to operate a legit business that follows the laws, or are you trying to skirt the laws?

I see nothing wrong with skirting the laws, but realize what youโ€™re forgoingโ€ฆ Namely establishing a business credit history. If your goal is to be a DN for a couple years and then go back home to a traditional life style that probably doesnโ€™t hurt. If your goal is to settle down in another country or three where getting a longer term business visa, and even buying property in the businessโ€™ name would be advantageous then youโ€™re probably hurting your future options by skirting laws.

FWIW, Iโ€™ve never stayed put anywhere long enough to qualify as a bonafide expat in the USโ€™s eyes, but our company is headquartered in Nevada where my business partner lives full time (Dakota and Delaware are 0% corporate tax options for US citizens as well).

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@coffeeshopceo | 6yr

One of the benefits of doing business in HK is that they are still respected and accepted around the world. They still keep your privacy, but they try to keep out the bad guys.

Many banks and (big) businesses will not transfer money between entities located in the likes of BVI, Panama, Seychelles, etc, as theyโ€™re popular with sketchy businesses.

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@marcardar | 5yr

Even if you do everything yourself, donโ€™t you still need a qualified auditor to do the auditing. Something like 5000HKD per year minimum, no?

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Correct, but not sure where you got $5000 HKD from - that seems very cheap indeedโ€ฆ My previous audits have been around $15K HKD. The cost is one thing, but the time lost going back through invoices and expenses to justify everything to the auditor was painful.

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But the 0% tax rate is not a given - you still have to file and run the gauntlet of the whole audit process and provide sufficient documentation to the IRD that those specific transactions should qualify for tax-exempt statusโ€ฆ and you have to do this every year. No thanks. IMHO there are better jurisdictions out there.

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@maebert | 6yr

Hi @homakov, Iโ€™ve got the same situation. I think that technically you do have to pay your taxes somewhere and that most countries can lay claims on taxes on money you earned while being present in their country if you canโ€™t prove that you already paid taxes on that money somewhere else. That said, if youโ€™re living less than 3 months in a country and are on a tourist visa, you will most likely not be in their tax system, so it will never happen. But just saying, it could :smile:

Suggestion: find a nice country that actually does meaningful things with your taxes (ie. investing in education instead of invading their neighbours ;-)) and has a favourable tax rate, pay taxes there, be on the morally and legally safe side.

Of course you could argue that mother Russia already invested in your education and now itโ€™s time to pay back. But thatโ€™s another question.

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@homakov | 6yr

@maebert itโ€™s funny that you called it โ€œmother Russiaโ€. Foreigners are told we always call Russia like this but only older generation does very rarely. Absolute majority of young educated Russians hate this country and want to leave it. And itโ€™s the answer to โ€œalready invested in your education and now itโ€™s time to pay backโ€. Definitely nothing to pay back to that crazy country.

some (european) countries have a rule โ€œbe tax resident somewhere if not hereโ€. In Russian law thereโ€™s no thing like this. Which means No, as long as I donโ€™t have to pay it to Russia nobody else can claim it.

But taking into account latest anti offshore movements http://rt.com/business/208591-putin-anti-offshore-law/ Iโ€™m pretty sure they will introduce worldwide tax very soon :frowning:

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@maebert | 6yr

Haha, Iโ€™m aware of that, I clumsily tried to strike a satirical tone :wink:

Itโ€™s not on russia, but itโ€™s on the other countries you are in. Many theoretically can claim taxes from you if you to billable work while there, but none will actually do so afaik.

Iโ€™d be so happy for a global tax option thatโ€™s not tied to any country, that invests the money where you actually are and partly according to your desires (ie. no military spendings), and doesnโ€™t cost days of your life to file. Iโ€™d be the first one to pay taxes like that. 40% of my income, without remorse.

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@poppyjikko | 6yr

Invest in non profit :wink: Volunteer payment is better than tax/theft.

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@busdriver | 4yr

Problem is, your citizenship country might ask you to pay taxes there if you can proof you are living somewhere else. (see other discussion on nomadforum)
But there are countries where you do not have to pay taxes on income from abroad (Philippines for example).

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@skatkov | 6yr

I would like to use this opportunity and say โ€˜hey guysโ€™ to my country tax offices.

coming back to question, off course Iโ€™m paying all taxes :smiley:

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Read and participate in 14,056 discussions on Nomad List

Suggested topics

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Any nomads in Arizona, US?

 

in Netherlands by @info132 | 4d 3 days ago | 0 comments

Hi guys,

After the Netherlands, the Bay Area, Colorado and being on the van life for 8 months, I am now in Sedona, AZ with a few other digital nomads. We are sharing a home here and are wondering if there are more like minded people in the area.

We do a bunch of hikes and campouts in the northern of Arizona. If you would like to connect with us, please do so :)

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in Portugal by @joelnicholson | 4d 4 days ago | 10 comments

Hi there, title says it all. Canadian nomad hoping to find the city/town in Portugal with great, consistent surfing, a solid coworking spot, and a fun group of young nomads. Please recommend!

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Are there any digital nomads in the Islands e.g Bermuda, Barbuda, St. Kitts and Nevis?


in Antigua, Guatemala by @momo11 | 7d 7 days ago | 0 comments

Does anyone ever travel to any Islands like Bermuda, Barbados, Barbuda and St. Kitts & Nevis?

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Tax advisor for permanent nomads?


by @eljaques | 10d 10 days ago | 1 comment

I'm in need of a tax advisor who understands "our" typical situation. I'm all good on being legal on taxes at this point, but as I'm doing more investing and there's more compliance and KYC and such, it's getting more complicated to deal with this topic. Not living in my country of citizenship, company in another country, resident in yet another country, banking in a different country ... you know how it is, a pile of red flags.

Would be great to find a good tax advisor to sort things in a way that makes my situation as "explainable" and easily dealt with as possible. Any leads?

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How to get into the digital nomad lifestyle?


in Switzerland by @filiptk | 23d 22 days ago | 1 comment

Hi, I've got a question to anyone who had experience with the digital nomad lifestyle. I'm 24, I'm in my last year of university doing computer science, got 3 years of experience mostly doing web development.

I never liked the idea of staying in one place, getting a job and growing roots - hence the will to take the opportunity and travel the world. My main question is โ€“ how do I go about it? Are there any useful resources I could look into?

How do I go about insurance and such once I decide to move. I currently live in Switzerland and do freelance work for one company. It's not a lot, since my studies don't allow me to pick up a full time job, but it allows me to cover simple expenses.

I'd be happy to get some insight into how things work and also happy to network with anyone interested.

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What is the best online insurance for digital nomads ?


by @berberos | 3mo 2 months ago | 4 comments

Hi guys ! hope you are doing well.

I would love to get your feedback regarding the best insurance for digital nomads. i'm traveling around Asia since 1 year and for next 4 or 5 years. Would love to buy an insurance to cover especially :

- health

- laptop, phone ...

- Flights

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How does Ireland tourist visa length and recurrence work?


in Ireland by @nrgetik | 6mo 5 months ago | 2 comments

Iโ€™m planning a stint in Ireland and Iโ€™m wondering about the 90-day tourist visa. Official information just mentions the 90-day limit without elaboration. Is it akin to Schengen where itโ€™s counted against the most recent 180-day period? Iโ€™m asking because I might like to take trips to the continent flying out of Dublin, but I donโ€™t know how I should account for the days Iโ€™m gone if I do that. Do I stop the 90-day clock for Ireland while Iโ€™m away, or should I make sure Iโ€™m gone from Ireland <= 90 days after my initial arrival date, regardless of where else I go during that interval, just to be safe? What have others done?

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Any nomads working on startups?

 

by @mattlock | 6mo 6 months ago | 33 comments

Hoping to see all the cool stuff people are working on while they live an extraordinary life.

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Any Ph.D students dissertating while a digital nomad?


by @larsheather | 7mo 6 months ago | 5 comments

Anyone know of any groups or resources for Ph.D. students working on dissertation while living as a digital nomad? I know there are several virtual writing groups around, but wondered if there were any specifically for digital nomads, particularly those who are dissertating.

Thanks!

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Does international health insurance for digital nomads exist?

 

by @al_steffen | 7mo 7 months ago | 59 comments

Hey Nomads!

Iโ€™m looking for an international health insurance (no travel insurance) for my nomadic life. It should cover the basic services and at least be accepted in the EU (itโ€™s ok if itโ€™s not accepted in the US as Iโ€™m aware they rarely are). Nice to have: enter into a contract online. Anyone got a good experience or a recommendation?

Thanks in advance!

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I dream of being a digital nomad? How do I do it?


by @programmingmark | 8mo 8 months ago | 2 comments

Hello digital nomad!

I dream of being an independent digital nomad. But it feels very elusive & unattainable with my success rate. In full disclosure, whilst I have dreamed about making money online since high school; I have not earned a single cent making money online. $0, nada, zilch!! On the contrary, I have spent a lot of time & money on books, podcasts. Even though I have spent a lot of time reading/listening to others, I do not have anything to show for it!

I have made attempts in the past to start an online business, but these fizzle out quite quickly when I do not see traction especially when the goal I have set myself is too high.

Instead of reaching for the ultimate nomadic lifestyle goal, I want to start much smaller. Really small! I am simply looking to make $50 profit per month from a new online business. Thatโ€™s it.

I need some advice from you please!

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  • What is a good way of achieving this goal?

Thanks
Mark
aka the $0 online business entrepreneur

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How do digital nomads pay tax?


by @rodriigovieira | 9mo 8 months ago | 19 comments

Hello everyone! Iโ€™m new here and probably this is a very newbie question, but it doesnโ€™t leave my head.

How do you, nomads, pay your taxes? I mean, if youโ€™re constantly traveling, how are you going to pay taxes for a certain country if you are going to stay there a short period of time?
Or do you return to your โ€œoriginal countryโ€ and then pay them?

By the way, this forum has very nice cool formatting features! :smile:

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Anyone know an accountant for Canadian nomads/expats?


by @noam_lightstone | 10mo 9 months ago | 16 comments

Hey guys, this was my first year as a Canadian nomad.

As far as I know of, Canadians donโ€™t pay taxes if they do not live in the country for 6 months.

But Iโ€™d like to talk to an accountant or someone who does Canadian taxes specifically for expats and nomads to get clear on the rules and for help on my return coming up.

Does anyone know someone who specializes in Canada who can help? Iโ€™ve seen plenty of US recommendations but none for us canucks.

Thanks guys!

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Best place for Digital Nomad in Latin America?


by @rose_davis | 11mo 10 months ago | 7 comments

Hi!

I am planning to move to Latin America for 3-4 months (Oct-January). Iโ€™ve narrowed down 6 different places that I want to visit before committing to settling down, but Iโ€™d love to get some community input.

Here are the cities Iโ€™m considering:

  • Quito, Ecuador
  • Cuenca, Ecuador
  • Medellin, Columbia
  • Cartagena, Columbia
  • Antigua, Guatemala
  • San Marcos La Laguna, Guatemala

The most important things Iโ€™m looking for:

  • Fast/easily accessible internet
  • Easy to meet other nomads/make friends in general
  • Safe for women
  • Some sort of spiritual community (Iโ€™m also a yoga teacher)
  • Easily walkable city

Anyone have any experience with these places and can give some insight? Iโ€™m also completely open to other recommendations.

Thanks!
Rose

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Where are the nomads in Mexico City?


in Mexico City, Mexico by @shellyfish | 11mo 11 months ago | 9 comments

I just landed as a n00b digital nomad in Mexico City, and I am wonderingโ€ฆ Where are all the international digital nomads hiding around here? I have been to several coworking spaces (Selina etc.) only to find A LOT of local Mexican workers and businesses. Donโ€™t get me wrong, that is all fine, but I was hoping to meet some international nomads! Any advice?

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How do we solve housing for digital nomads?

 

by @levelsio | 11mo 11 months ago | 61 comments

Thereโ€™s been a lot of discussion on this recently.

Nomads usually stay in hostels, hotels and short-term apartments. But itโ€™s all not very optimal.

Iโ€™ve heard people suggest getting funding and building a network of houses you can stay at for a subscription price (e.g. Bruno Haid is working on that).

I donโ€™t want do physical stuff, so Iโ€™m thinking of building a platform around making housing better for nomads.

What are the housing problems nomads face? And how can we solve them with products/services?

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App/tool/service for nomads to bring things from another country?


by @brmolin | 1yr 1 year ago | 4 comments

I vaguely remember hearing about such a service before, but Iโ€™m drawing a blank on the name. Basically I left my tablet on a connecting flight in Europe, right before my main flight to Thailand. They have my tablet and are willing to ship it out for me, but people have warned me thereโ€™s a big risk of it getting โ€œlost in the mailโ€ if I ship something expensive like that to Thailand.

Iโ€™m wondering if thereโ€™s a service or community, where I can find a nomad whoโ€™s in Europe/heading to Thailand soon, so I can have it shipped to them in Europe and pay them to ferry it down here for me? I met someone in Budapest a ways back who had built something for this type of use-case, but I canโ€™t remember the name of it. Any help would be appreciated!

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Are there any nomads from India?

 

in India by @ankitdas123 | 1yr 1 year ago | 56 comments

I have seen a lot of posts from different people across the world, but not even a single post from someone in India, who has been a nomad, either living within the country or traveling to another one.

Would definitely love to hear stories from such people. We are a couple traveling as social nomads who are trying to bridge the gap between the rural and urban societies in India. We have started out very humble and do not have much resources, so looking out for help from the community.

Ankit & Rishika
Around Love and Life

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How is Sicily for digital nomads?


by @gaelm | 1yr 1 year ago | 15 comments

Hi all, I was looking for a cool spot in Southern Europe for winter and Iโ€™m considering Sicilyโ€ฆ Have you ever been there? If yes, how was your experience? If not, why?
thanks!

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How is Bari, Italy for digital nomads?


in Bari, Italy by @mitch_dina | 1yr 1 year ago | 7 comments

Greetings!
Does anyone have experience in Bari, Italy please? We are thinking of going from Dubrovnik, Croatia to Bari by boat in mid-March. Has anyone taken a boat across? Is it nice or can it be choppy? (We are trying to avoid planes, to reduce our carbon footprint, so adding more surface travel.) Also, any info you might be able to offer about Bari and the surrounds? Next step will likely be trains up Italy as the Spring progresses.

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