I had this situation for nine months. Years ago I left Canada for the Cayman Islands and gave up my Canadian residency (no address, banking, healthcare etc in Canada) to get tax-free status in Cayman. Then when I left the Caymans after five years of working there, I lost my residency there because I had no work permit when I left, and spent nine months travelling around Europe; not working, no income, so no tax either. It was amazing- no keys, no bills, total freedom. So I still had Canadian citizenship, but was not resident anywhere.
WG Hill of Scope Publishing introduced this subject back in the 1980s. He called it PT, perpetual tourist. Harry Schultz purportedly promoted this concept in the 1970s but I have no first hand knowledge of that
@@OffshoreCitizen your videos have been great so far so it's hard to say. In relation to this topic of nowhere residency, what if you lived on a boat? I heard about people selling everything to live on cruiseships or yachts. It's been about a year since your personal video about moving to bulgaria and while you've touched upon the good and bad in your comparison videos, it would be great to hear an update on your personal experiences now that you've lived there a while. And pardon me if you've already covered it, but it would be great to hear your opinion about places to relocate for families
All US citizens are liable to tax in the US, wherever they are domiciled. Even if the tax is not applicable where they live. Example; US citizen living in the UK for 20 years. Wins the lottery. NO tax due in UK (it is a tax free win) but liable for tax on that win in the US.
We spoke to HMRC they advised they do not accept 'just travelling' or not being a tax resident of another country as a good enough reason to leave the clutches of the UK tax system.
but someone who isn't a UK citizen or resident or domicile there, that person may be in a different situation than you because the home country rules are different . . . also, there could be a difference for someone who had already become tax resident in another country, abandoned residence and ordinary residence status in UK based on that fact, and then (years later) lost residence in the new country, see what I mean?
I noticed that paraguay permanent residence only needs you there 120 days a year to be tax resident. Not as good as no residency but does give you the other 8 months to travel basically tax free. Is there other countries with very low requirements to be a tax resident and terriotorial taxation?
Gibraltar is supposedly one day per year to be tax resident there! (assuming you are established officially in their system under a proper residence scheme)
I'm about to leave Canada but don't know yet where I'll establish residency (if at all). I called the federal and provincial tax authorities to learn about the process (of breaking the tax tie). One of things they told me is that I have to provide them with a new address else they will keep me on their records (which I find abusive especially as I'm not even Canadian). I'm thinking about giving my parents' address in France, because technically that's where I'll go/reside for a few weeks before moving to other countries. I'd assume this takes care of the Canadian side because they won't come check if I stay for good. However, it's a bit less clear on the French side. If the French tax auth sticks with my last statement a few years back when I informed them that I moved to Canada I should be fine. But if the Canadian tax authority (or the Quebec one) sends this info to the French tax authority and the French auth uses it to update its own records, I'll just recreate the same undesirable situation as the French also require you to be resident somewhere else to break tax residency. Any thoughts?
Excellent decision. Canada is no longer worth it (if it had ever been....). I wouldn't give much details as it's no longer their business especially if you are not Canadian, why would you even want to be bothered with them, once you leave the country ? Disconnect and just come back on vacation if you wish, that's all. Otherwise, it wouldn't be fair to pay more taxes if you make money outside of canada. The less you tell them, the better in my opinion.
you really need to find a third country (not Canada, not France) that has a low tax or zero tax or territorial tax system, and officially establish a residency there by that country's rules . . . this will save you all the trouble
Hey Michael, thanks for all the content! Been following for a while as I work through my ideal tax residence for me & my business as a live as a digital nomad. I see you're from Edmonton? I was born there but grew up in Van. If you ever want to connect, perhaps exchange some marketing advice for some tax advice, let me know! I'm meeting business owners abroad who could benefit from your service.
Criteria to be called tax resident are often not exclusiv in the law, but we can see some case law which set a precedent and recalled tax resident some nationals which did not trigger any criteria of the tax residence because they were no able to prove a tax residence somewhere else with either annual declaration either TRC
I know this video is 2 years old, but is your comment still sage advice? Would it depend on your home country, Italy for example? "You don't even need to meet some standard per se of being tax resident such that they will issue you a tax residency certificate. Usually just being a resident there is good enough."
Hi, thanks for such grate content! Do you know how’s the situation for Ukrainians right now? I’m Ukrainian and digital nomad lately, can’t choose how to arrange my tax situation
Very interesting. Subscribed! Does the UK or Germany have a rule similar to "If you're not tax-resident anywhere, then you pay taxes based on your citizenship" ?
UK definitely not, you're allowed to be resident nowhere. Germany is a little bit more tricky, in theory it's possible though not nearly as straight forward as UK.
Despite having TIN in two jurisdiction I unintentionally became a tax resident nowhere. You named Spain, my home country, and some banks there are very strict. Im required a Government issued TRC, not accepting the Income Tax Return as a proof. Where I live Im an alien resident and just considered resident for local tax purposes, therefore the Gov. issue no TRC for aliens.
On the average, doesnt tax residency rules apply usually if you stay within a foreign country for at least 6mos? If you stay shorter than 6mos, on the average, then you're not liable for taxation?
Yes, this is generally the rule but it’s not the only one to follow. When will a country consider you a tax resident will vary from country to country, and lots of places don’t just look at the amount of time but also your connections in the country , etc.
This is not at all true. Each country has its own rules as to what make you resident in that country. Some places you can be resident there with zero days spent in the country! Be careful and research it out.
True. After being away 11 months. And not having a permanent home in NZ. And you can only go back for something like 40 days in a year. But yes you don't need to be tax resident elsewhere.
Great video. Thanks! Subscribed. Can you establish tax residency in Thailand via an Elite Visa (pay for visa no stay or age or bank account deposit/business requirements) and meet residency test (183 days a year) and then transfer some funds - enough to earn a (small amount of) taxable income. I assume this would work? Asking as An AU p/port holder wanting to avoid resuming immediate tax residence after leaving KSA (zero tax). Thanks
More like, you would need to indicate "tax residence" to open a bank account or accept money as income, and you will perhaps need to lie to them in order to do that business. Banks are regulated businesses.
you don't have to lie about anything . . . the forms ask for residence, not tax residence . . . you can give them the country that you consider yourself resident in, if there is no country that can claim you are a resident . . . in this case, resident is where you are most naturally home, where you have a fixed place of abode, where you have a power or water bill in your name showing this, where you spend the most time that year, etc.
