Why and how to get tax residency in a low tax jurisdiction - Flag Theory https://flagtheory.com/topic/tax-residency/ Passports, Residency, Incorporation, Offshore Banking Wed, 17 Apr 2024 11:56:38 +0000 en-US hourly 1 https://flagtheory.com/wp-content/uploads/2018/07/cropped-favicon-32x32.png Why and how to get tax residency in a low tax jurisdiction - Flag Theory https://flagtheory.com/topic/tax-residency/ 32 32 The present and the future of Territorial Tax countries https://flagtheory.com/territorial-tax-countries/ Mon, 17 Feb 2020 07:41:23 +0000 https://flagtheory.com/?p=186334 The Present and the Future of Territorial Tax Countries How is the source of income determined from a tax perspective?  We often find a number of clients that interpret that income is sourced where the monies for goods and services are paid i.e. the location of the clients. Following this approach, a company that is

The post The present and the future of Territorial Tax countries appeared first on Flag Theory.

]]> Structuring and Taxes for Companies Doing Business in the EU https://flagtheory.com/structuring-taxes-doing-business-eu/ Tue, 11 Jun 2019 05:26:01 +0000 https://flagtheory.com/?p=19666 Structuring and Taxes for Companies Doing Business in the EU The European Union is one of the world’s largest trade blocs, accounting for approximately 15% of world trade. Its domestic common market, with free movement of goods, capital, services, and labor, is also one of the largest worldwide – with more than 500 million consumers,

The post Structuring and Taxes for Companies Doing Business in the EU appeared first on Flag Theory.

]]> Where to set up an Intellectual Property Holding Company https://flagtheory.com/ip-intellectual-property-holding/ Mon, 20 May 2019 09:16:00 +0000 https://flagtheory.com/?p=19588 Where to set up an Intellectual Property Holding Company Utilizing an intellectual property holding company is one of the most common legal tax avoidance strategies out there. However recent measures by the OECD and EU have dramatically changed this landscape. We’ve stayed on top of these changes to empower you to explore and evaluate where

The post Where to set up an Intellectual Property Holding Company appeared first on Flag Theory.

]]> Where to set up a Holding Company https://flagtheory.com/where-to-set-up-a-holding-company/ Mon, 11 Mar 2019 05:58:17 +0000 https://flagtheory.com/?p=19133 Where to set up a Holding Company In the previous letter, we were discussing some of the major benefits of using a holding company and how it can be used for asset protection, risk management, tax planning, and operational efficiency purposes. We also reviewed certain key aspects that one should consider when structuring a holding

The post Where to set up a Holding Company appeared first on Flag Theory.

]]> What you should consider when setting up a Holding Company https://flagtheory.com/holding-company/ Mon, 04 Mar 2019 06:14:53 +0000 https://flagtheory.com/?p=19078 What you should consider when setting up a Holding Company Forming a holding company – an entity that holds and manages equity participations in subsidiaries or investments – may bring a number of benefits, but also has certain caveats and considerations that one should take into account. In this article, we have reviewed potential benefits

The post What you should consider when setting up a Holding Company appeared first on Flag Theory.

]]> Puerto Rico: The most compelling tax residency option for American Entrepreneurs and Investors https://flagtheory.com/puerto-rico-tax-residency/ Wed, 23 May 2018 06:58:38 +0000 https://flagtheory.com/?p=12031 The post Puerto Rico: The most compelling tax residency option for American Entrepreneurs and Investors appeared first on Flag Theory.

]]> Market capitalization, Corporate debt and National debt at record highs. Is a financial collapse coming? https://flagtheory.com/financial-collapse/ Thu, 03 May 2018 05:41:06 +0000 https://flagtheory.com/?p=11709 The next financial collapse may be coming… Are you protected? Flag Theory Weekly Letter – Thursday, May 3rd, 2018 Last Friday I received a charming letter from my bank informing me that starting next month I would be charged -0.6% P.A. (a negative interest rate) on my EUR accounts. This means that I have to

The post Market capitalization, Corporate debt and National debt at record highs. Is a financial collapse coming? appeared first on Flag Theory.

]]> More affordable Second Passports, AEOI and Cryptocurrencies https://flagtheory.com/more-affordable-second-passports-aeoi-and-cryptocurrencies/ Wed, 18 Apr 2018 23:50:30 +0000 https://flagtheory.com/?p=11609 More affordable Second Passports, AEOI, and Cryptocurrencies Flag Theory Weekly Letter – Thursday, April 19th, 2018 It has been a while since I last wrote to you, I have been really busy starting a new project (SelfKey) and making sure that our clients at Flag Theory received the best service. From now on, I will

The post More affordable Second Passports, AEOI and Cryptocurrencies appeared first on Flag Theory.

]]> Where you can establish your tax residency to legally reduce your tax bill https://flagtheory.com/where-you-can-establish-your-tax-residency-to-legally-reduce-your-tax-bill/ Tue, 06 Mar 2018 00:59:18 +0000 https://flagtheory.com/?p=11850 Where you can establish your tax residency to legally reduce your tax bill We spoke about how establishing your tax residency abroad can dramatically increase your net income and some of the factors to consider when designing and implementing your tax residency strategy, and how CFC laws are ultra important in deciding where to be a tax

The post Where you can establish your tax residency to legally reduce your tax bill appeared first on Flag Theory.

]]> What you must know when going offshore…and an offshore salesman won’t tell you… https://flagtheory.com/cfc-offshore-salesman/ Sun, 04 Mar 2018 07:59:11 +0000 https://flagtheory.com/?p=11844 What you must know when going offshore…and an offshore salesman won’t tell you… Today we will talk about one of the more complex topics, one of the things that a salesman won’t mention, but the taxman will and yell ‘gotcha’. Let’s say you’ve set up an offshore company from a high tax jurisdiction (North America, Europe)

The post What you must know when going offshore…and an offshore salesman won’t tell you… appeared first on Flag Theory.

]]> Save thousands of dollars establishing a new Tax Residency https://flagtheory.com/new-tax-residency/ Sat, 03 Mar 2018 07:23:22 +0000 https://flagtheory.com/?p=11839 Save thousands of dollars establishing a new Tax Residency As promised before yesterday, I’m going to explain to you why personal tax residency is the key to reduce your tax burden and have the freedom to choose where you spend your hard-earned money. First of all, I would like to clarify that contrary to what

The post Save thousands of dollars establishing a new Tax Residency appeared first on Flag Theory.

]]> Puerto Rico’s Act 20 amendment https://flagtheory.com/puerto-ricos-act-20-amendment/ Thu, 10 Aug 2017 05:17:31 +0000 https://flagtheory.com/?p=11937 Puerto Rico’s Act 20 amendment We talked about how living abroad and claiming for the Foreign Earned Income Exclusion, you can earn $102,100 foreign-US source income tax-free (and up to $250,000 filing jointly with your spouse and including housing benefits). But FEIE only applies to income derived from wages and self-employment services. US investors may

The post Puerto Rico’s Act 20 amendment appeared first on Flag Theory.

]]> World’s best passports and taxation https://flagtheory.com/world-best-passports/ Thu, 29 Jun 2017 09:20:57 +0000 https://flagtheory.com/?p=7162 How the world’s best passport holders can reduce their tax liability with the proper internationalization strategy Firstly – what makes a passport good? In our opinion, the answer to this question comes down to how much visa-free travel it provides, what the tax situation is in the home country, and what social benefits are obtained

The post World’s best passports and taxation appeared first on Flag Theory.

]]> Automatic Exchange of Information and Tax Residency https://flagtheory.com/automatic-exchange-of-information/ Tue, 02 May 2017 11:58:38 +0000 https://flagtheory.com/?p=6226 How the Exchange of Tax Information works and how to set the proper Tax Residency For some time now, various countries of the world have been sharing information via tax treaties. These tax treaties are typically a dual tax convention (DTC) or a tax information exchange agreement (TIEA) DTC = two countries agree on a variety of factors

The post Automatic Exchange of Information and Tax Residency appeared first on Flag Theory.

]]> Immigrate and Invest in Paraguay https://flagtheory.com/residency-in-paraguay/ Thu, 13 Apr 2017 23:02:15 +0000 https://flagtheory.com/?p=5593 How to get permanent residency in Paraguay, investment opportunities and low taxes Paraguay is a land of opportunities. Often called the heart of America. It is a landlocked country, bordered by Brazil, Argentina, and Bolivia. It has a population of 6.8 million people, of which 60% are in the two main metropolitan areas. Asunción, its

The post Immigrate and Invest in Paraguay appeared first on Flag Theory.

]]> Company incorporation and residency in Costa Rica https://flagtheory.com/residency-in-costa-rica/ Mon, 10 Apr 2017 01:29:12 +0000 https://flagtheory.com/?p=5626 How to get residency, set up a company and investment opportunities in Costa Rica This article was updated in September 2019 to reflect new economic data Located in the continental Caribbean between Panama and Guatemala, with just over 51,000 sq km and almost 5 million inhabitants, Costa Rica is often called the Switzerland of Central

The post Company incorporation and residency in Costa Rica appeared first on Flag Theory.

]]> The world’s best countries to retire in https://flagtheory.com/best-countries-to-retire/ Fri, 31 Mar 2017 23:34:45 +0000 https://flagtheory.com/?p=5503 Top countries to make the most of your retirement (and have a high quality of life) Retirement visa programs, cost of living and taxes Retiring overseas is a growing trend among Westerners. There are several reasons for this; however unsurprisingly, in most cases the one that ends up weighing most has to do with money.

The post The world’s best countries to retire in appeared first on Flag Theory.

]]> Immigrate to Ecuador: Residency, Citizenship, Living, Investment and Taxes https://flagtheory.com/immigrate-to-ecuador/ Mon, 27 Mar 2017 03:36:00 +0000 https://flagtheory.com/?p=5458 How to get residency in Ecuador New immigration law, living, doing business and taxes in Ecuador On January 31st, 2017, the President of the Republic of Ecuador, Rafael Correa, signed the Ley Orgánica de Movilidad Humana (Human Mobility Law). The event was held in Barcelona (Spain), surrounded by more than one thousand Ecuadorian emigrants. The law

The post Immigrate to Ecuador: Residency, Citizenship, Living, Investment and Taxes appeared first on Flag Theory.

]]> Bulgarian Citizenship by Investment, Business Opportunities and Taxation https://flagtheory.com/bulgarian-citizenship-by-investment/ Fri, 17 Mar 2017 03:09:19 +0000 https://flagtheory.com/?p=5380 Fast-track EU citizenship, business opportunities, setting up a company and taxes in Bulgaria Bulgaria is a country with just over 7 million inhabitants. It is located in southeastern Europe, bordering Romania to the north, Serbia, and Macedonia to the west, Greece and Turkey to the south and with coastline on the Black Sea to its

The post Bulgarian Citizenship by Investment, Business Opportunities and Taxation appeared first on Flag Theory.

]]> Complete List of Tax Free Countries for Personal Residency in 2017 https://flagtheory.com/tax-free-countries/ Tue, 21 Feb 2017 10:50:53 +0000 https://flagtheory.com/?p=2684 What are the countries with no taxes? One of the main tenets of Flag Theory is that one should have a second citizenship, as it is an important part of international diversification. But just having a backup passport doesn’t end your tax obligations – far from it. If you are a US citizen, you are

The post Complete List of Tax Free Countries for Personal Residency in 2017 appeared first on Flag Theory.

]]> Incorporate in Hungary https://flagtheory.com/incorporation-in-hungary/ Mon, 30 Jan 2017 06:19:57 +0000 https://flagtheory.com/?p=4935 Is Hungary the ultimate European Corporate tax haven? On 12th December 2016, the Hungarian Parliament approved a bill of Viktor Orban’s Government that reduced the Corporation Tax to a flat rate of 9%. Coming into force on January 1st 2017, the bill marked Hungary’s assumption of the title of EU country with the lowest corporate

The post Incorporate in Hungary appeared first on Flag Theory.

]]> Incorporation, Banking and Residency in Georgia https://flagtheory.com/residency-in-georgia/ Fri, 27 Jan 2017 04:47:29 +0000 https://flagtheory.com/?p=4972 Setting up a company and obtaining residency in Georgia Georgia is a former Soviet Republic, located on the border between Europe and Asia, on the east cost of the Black Sea. It shares borders with Russia to the north, Turkey and Armenia to the south, and Azerbaijan to the southeast. It has a population of

The post Incorporation, Banking and Residency in Georgia appeared first on Flag Theory.

]]> IRS Form 5472 on Foreign-Owned Domestic Disregarded Entities https://flagtheory.com/irs-form-5472/ Tue, 17 Jan 2017 09:03:07 +0000 https://flagtheory.com/?p=4888 IRS Form 5472 − new requirements for foreign-owned US companies An easy-to-understand guide to IRS Form 5472 Despite the political turnaround that took place in The White House at the end of 2016 and the associated geopolitical instability that some would say was caused by it, the United States was, is and will continue to

The post IRS Form 5472 on Foreign-Owned Domestic Disregarded Entities appeared first on Flag Theory.

]]> Tax Residency for Indian-Owned Companies Incorporated Outside India https://flagtheory.com/companies-incorporated-outside-india/ Sun, 15 Jan 2017 00:52:21 +0000 https://flagtheory.com/?p=5343 How Indian citizens can set up an offshore company A summary of the Guiding Principles for determination of Place of Effective Management (POEM) of companies incorporated outside India India has enjoyed a period of steady economic growth over the last decade. The enormous Indian market provides a wide range of great opportunities for both international

The post Tax Residency for Indian-Owned Companies Incorporated Outside India appeared first on Flag Theory.

]]> Tax Residency https://flagtheory.com/tax-residency/ Fri, 12 Feb 2016 06:36:42 +0000 https://flagtheory.com/?p=2719 The second flag of Flag Theory™ is Tax Residency, an ultra important flag to plant, as it is the basis for determining your personal taxation. Most countries tax their citizens on a residential basis - in other words, individuals pay taxes to the country in which they reside. However, there are important exceptions, as you will see below. For example, the United States and Eritrea are the only countries that tax their citizens regardless of where in the world they live.

The post Tax Residency appeared first on Flag Theory.

]]> (Almost) Tax Free in Paradise [Infographic] https://flagtheory.com/tax-free-in-philippines/ Sun, 30 Jun 2013 10:20:06 +0000 https://flagtheory.com/?p=1393 Tax Free in the Philippines Manila. Traffic. Beautiful Beaches. Boracay. Pork Sisig. The Land of Single Mothers. Angeles City. Cebu. Outsourcing. Davao. Spanish Gold. San Miguel. Pinoy. Pinay. Pirates. Palawan. The Last Frontier. The Philippines. I’ve written about the Philippines before, and included a detailed analysis of the tax treaties, and different corporate structures that

The post (Almost) Tax Free in Paradise [Infographic] appeared first on Flag Theory.

]]> Tax Free Company in Paradise https://flagtheory.com/tax-free-company-thailand/ Wed, 01 May 2013 13:08:08 +0000 https://flagtheory.com/?p=1320 How to set up a Tax Free Company in Paradise 2016 Update: The Thailand Board of Investment (BOI) still offers a 0% corporate income tax for up to eight years. This article shows how to structure this as a US person. More information on starting a business in Thailand can be found on SiamStartup.com. Ever dream

The post Tax Free Company in Paradise appeared first on Flag Theory.

]]> Is your Corporation Really Tax Free? Flag 2: Residence https://flagtheory.com/corporate-tax-residency/ Fri, 04 Jan 2013 08:43:54 +0000 https://flagtheory.com/?p=1157 Corporate Tax Residency – Is your Corporation Really Tax Free? Today’s topic should be read by any international entrepreneur who is interested in paying less tax – and staying legal. It concerns mostly the issues of “residence” of a corporation, and it gets tricky. I’ll begin with a question from a reader: “I recently created

The post Is your Corporation Really Tax Free? Flag 2: Residence appeared first on Flag Theory.

]]> Flag Theory Foundation https://flagtheory.com/the-foundation/ Mon, 17 Dec 2012 04:30:46 +0000 https://flagtheory.com/?p=3713 The post Flag Theory Foundation appeared first on Flag Theory.

]]> Tax Free Residency and Citizenship in Uruguay https://flagtheory.com/citizenship-in-uruguay/ Tue, 17 Jul 2012 02:09:27 +0000 https://flagtheory.com/?p=552 Uruguay – A place you can pay NO Taxes and get a 2nd passport… Posh nightclubs, expensive boutiques, 4-star hotels stacked up beside a crowded beach. Europe springs to mind. Miami, Barcelona, Monaco, Ibiza… but for 3 months each summer in December, the rich and almost famous head to see and been seen in Uruguay,

The post Tax Free Residency and Citizenship in Uruguay appeared first on Flag Theory.

]]> John Galt | Obamacare | Why I’m an Expat https://flagtheory.com/john-galt-obamacare-why-im-an-expat/ Tue, 03 Jul 2012 22:36:35 +0000 https://flagtheory.com/?p=509 John Galt | Obamacare | Why I’m an Expat The Patient Protection and Affordable Healthcare Act, also known as ObamaCare, became law on March 23, 2010. With the passing of this act, America took yet another step towards socialism. As if America wasn’t enough of a nanny state already –> over half of all Americans

The post John Galt | Obamacare | Why I’m an Expat appeared first on Flag Theory.

]]> Is your freedom worth more than $50,000? https://flagtheory.com/is-your-freedom-worth-more-than-50000/ Thu, 19 Apr 2012 03:19:53 +0000 https://flagtheory.com/?p=120 Is your freedom worth more than $50,000? That’s how much you need to owe the IRS for your passport to be revoked. First, a historical perspective. In Russia, the government controlled the movement of citizens with a permit called a propiska. It was needed for work, marriage, medical treatment, and is specifically designed to control

The post Is your freedom worth more than $50,000? appeared first on Flag Theory.

]]>