Where to move for tax purposes as a non-US citizen

#1

I am a New Zealander looking to travel for a couple of years in different countries. For this purpose I would ideally like to shift my company to a lower tax territory where I will live part time, as I am currently taxed at roughly 33% in New Zealand, however it’s closer to 40% when I add in all the hidden taxes.

With a move I won’t be living in NZ so I’ll no longer be obliged to pay any tax after 320 days.

I ideally would wish to be a tax resident of the country I incorporate in. What country is easiest to do this through? A large chunk of my business relies on PayPal which requires your bank account to be from the same country your company is registered. Thus I can’t do anything such as BVI or small islands.

Tbh my best bet looks to be Dubai Free Zones at this point and I can do some travel in europe from there.

#2

I incorporated in Gibraltar, but you can’t benefit from they offshore 0% tax rate if you live there as well. They have a local bank where you can open your Company Account (and despite some confusing information having Gibraltar Bank account will not make you subject to Gibraltar tax anymore). I’m still waiting for the account details (takes 6 weeks to open the account).

Gibraltar has solid reputation and does not suffer from tax-haven stigma.

I did everything remotely, costed me a bit less than 1500 EUR to incorporate.

Another option is Bulgaria and Romania, they have reasonable CIT’s and PIT’s, You might also check for preferential taxes if you’re in IT. They have solid corporate and accounting services.

Dubai is awesome, but living there can cost you 3-5 times more than in Europe.

When researching taxes, you should also research double-taxation-avoidance agreements with New Zealand and check social contributions laws, as they can be separate, and as painful as taxes in some countries.

#3

Thanks for the info. I’m not sure about Bulgaria as it is an EU country and they are apparently requiring you to pay tax on all online purchases?

Will you be living in Gilbratar? I am thinking Dubai because I can come and go from there, and apartment hotels are relatively cheap for month stays compared to my income. I also want a high quality of life and some of gilbratar apartments honestly seem more costly than Dubai.

#4

Russia. (why not?)

  1. PayPal has an official presence as a Russian company so it is easy to have legal PayPal business

  2. to register as an Individual Entrepreneur costs almost nothing (just 12 USD official government fee + some bank fees that can be also zero). Modern banks help to generate all documents so you will just have to bring them to the government office then after 3 working days you are incorporated

  3. tax for Individual Entrepreneur is just 7% of income (you must have a permanent address in Russia to be able to register as an Individual Entrepreneur but you don’t need to be a permanent resident yourself, temporary resident is enough for that)

  4. social contribution payment is around 500 USD yearly but it is deductible from the tax that you paid so, in reality, you still pay just 7% total.

  5. you don’t need any accountant if you use one of the modern banks that is friendly for Individual Entrepreneur and help to send the tax report to the government directly from their internet banking, so your maintenance cost is also very cheap, maybe 50 USD / month for bank fees or less.

  6. you don’t need any nominee director because as an Individual Entrepreneur you are still just a person but just allowed to do the business officially

  7. after getting the income to your bank account you can immediately take all your money if you need that is very convenient compared to the Limited Liability Company (OOO) where you must pay salary even to yourself (with more than 50% tax+social contribution total) and you cannot take other money except paying dividends to yourself only once a 3 months.

  8. life in Russia is cheap if it is not Moscow. If you don’t like winter you could be based in some southern city like Sochi. Let me give you some price examples. My hometown is Nizhny Novgorod, ~400km from Moscow. Fast speed train to Moscow (with its 3 international airports) takes only 3.5 hours (less than 20 USD) or flight is 45 min (50 USD). Apartment (1 bedroom + kitchen) right in the city center costs around 400 USD, 30 min from city center 150-200 USD. Other things like food, entertainment are also cheap.

  9. girls in Russia are beautiful and they like foreigners :wink:

Language and residency status could be a barrier though, but solvable. You can read more in google by searching “how foreigner can register individual entrepreneur in russia”.

Good luck!

#5

Paraguay will likely be my choice: As a resident, you are only taxed for income made inside Paraguay - whatever you earn outside Paraguay isn’t taxed at all. You don’t even need a house or apartment in Paraguay, so there are no recurring costs. As a legal resident you get a “cedula”, which works like an identity card: You can use it instead of your passport for most Mercosur member states.