List of expat-friendly countries with no capital gains tax AND low physical presence requirements for Tax Residency?

Finances šŸ’µ
#1

Does anyone have a list of expat-friendly countries with no capital gains tax AND low physical presence requirements for Tax Residency?

I will define low physical presence as requiring Tax Residents to only stay in the country for 1 month or less each year.

Iā€™m only aware of the Cayman Islands and Antigua.

As far as I can tell, most of the countries with no capital gains require you to live in the country for more than 1 month in order to be deemed a Tax Resident. For example Singapore (183 days), Monaco (6 months), Dubai (180 days). Anguilla (45 days). Feel free to correct me if Iā€™m wrong.

Does anyone know the tax residency requirements for Bermuda, Vanuatu, Antigua, St Kitts and Nevis?

Thank you

#2

Iā€™m curious - what are you hoping to achieve by having tax residency elsewhere? Tax residency is typically not mutually exclusive, and being a tax resident in multiple places seems like an undesirable situation.

#3

I live in Bermuda.
Not entirely sure what you mean by ā€˜tax residentā€™.

From a Bermudian perspective, Bermuda imposes no income or capital gains taxes. Most taxes are based on employment income, so you need to be employed. If you are not Bermudian you will need a work permit. These can be difficult to obtain unless you have a required skill not available locally.

You can stay in Bermuda on a tourist visa for ā€¦ 30 days (??) The rules keep changing. This can be extended for a very limited period. Other jurisdictions would not consider you ā€˜tax residentā€™ in Bermuda if you are here on a tourist visa. You will be taxed based on a substantial presence test and may in fact be a tax resident of more than one jurisdiction. They will look at where do you spend your time, where you have your assets (house, car, bank etc) where do you maintain your social ties etc.

You can also get a visa to reside in Bermuda if you are independently wealthy - and trust me, you will need to be. But then, you wouldnā€™t be seeking advise here if you were.

1 Like
#5

Iā€™m retired and my goal is to be able to travel around the world on tourist visas, never spending more than 3 months in any one country.
Itā€™s my understanding that in order to open a bank account, I will need a home address.
I do not want to maintain a residence in my country of citizenship as that will subject me to taxes (eg. capital gains taxes).
I feel like it would be best to simply own a home in a tax free country and open a bank account using the address in this tax free country.
That will allow me to enjoy capital gains without being taxed on them. Is there a simpler solution?

1 Like
#6

cool. Iā€™ve got nothing for you on that one though - Iā€™d be calling a specialist to figure out how to make that work without getting nailed. YMMV obviously. :slight_smile:

#7

I was looking about a similar thing,and Belize was on the list,as there is no need to make the Visa ā€œgoldenā€.A certain time of presence in the country per year is needed,and visa can be extended monthly I think,for 50$,which adds up to get residency after 5years.Not sure about the numbers,but its an option of planning to cruise,per boat for example,and hurricane season has to be passed in a ā€œsafe havenā€ anyway every year.

1 Like
#8

I think you will find the issue is not so much the jurisdiction you want to move to but the jurisdiction you are moving from. Most western countries have a substantial presence test in addition to a physical presence test. Without making a definitive and absolute move to another country it is going to be difficult to convince the tax authorities in your country that you are no longer tax resident there. Buying a house to live in for a couple of months and setting up a bank account in another country are not likely going to be convincing. The tax authorities will look at things like who issues your driving license, where are your social connections, friends, family, club memberships, how often you return, do you keep the same doctor, retail store accounts etc. They want to keep you as a taxpayer and they work hard to do so.

I know Canada for one, used to have a policy that, even if you moved completely out of the country and established yourself elsewhere, if you returned within 3 years you were deemed to have been tax resident the whole time. That was quite a few years ago and may have changed now.

Wherever you are, itā€™s worth spending a few thousand dollars to meet with a tax consultant on how to properly structure your affairs. You may find that at the end of the day, it costs more in dollars, time and stress trying to avoid paying the last dollar of tax, than itā€™s really worth.

1 Like
#9

yes,returning before,lets say 5 years passed by is always a reason for the gov to look into taxes to be paid.
As a Swiss citizen,I have to take my certificate of homeland and deposit in the tiwn or community where I reside,if this is outside Switzerland and Liechtenstein,I am officially out of the country.Driving license has some expiring date,renew it in the country of residence is easier than make a new one lets say,in Belize.Officially,privacy protection doesnt allow the gov to check which doctor you use etc,beside the fact that its possible to travel to visit the doc you are happy with.Nobody can know this and its not legal to use the information.

1 Like
#10

I read https://www.sovereignman.com/ and http://internationalman.com/ for this kind of info.

1 Like
#11

I believe Gibraltar does not require a minimum stay to be a tax resident however there are other requirements, I think a residence is one, even if youā€™re never there. Gib is 0% capital gains tax.

1 Like
#12

The way you think about this is wrong. Itā€™s not only about the country you are going to, but also about the home country you leave. If you travel, 4 countries a year for 3 months each you will avoid paying tax. Mainly because the countries you visit will see you as a tourist who stays just 3 months. They will not come after you. And if you travel all the time they also will not have your address.

The main rule is that you have to pay tax in the country where you have your main presence. That is why most countries require you to stay for 6 months + 1 day.

If you leave your home country but keep a house there, you car, your medical insurance, bank account and other things and you come back after some years of travelling there can be a bad surprise for you.

I would concentrate on the requirements of your home country, not on the requirements of the countries you are travelling to.

I live in Thailand. Thailand has a visa for retired people over 50 years old. It is easy to get. In Thailand you do not pay tax on income from abroad if it is brought into the country the year after you made the money (or later). So not in the same year. In for example Bangkok you can rent a condo for about USD 300 a month with a 1 year contract. It allows you to have a permanent address. It is easy to get health insurance, a driving license. And with a 1 year rental contract it is also easy to open a bank account. Bangkok has a great airport with airplanes leaving to almost all destinations, and it can be a good hub to explore the countries around.

I believe that Cyprus also has an interesting program for people moving there and starting a company. The first x years are almost tax free, and you do not have to stay as long as in other countries to be a tax resident. I forgot all details. But I am sure you can find that online.

3 Likes
#13

Which country you are from plays a big role as there are a few that will still come after you regardless of where you go.

As @Dimitri_Visser said, Thailand is a very good example of a country that you could find useful. Also take a look at the SRRV in the Philippines, MM2H in Malaysia and temporary residency in Mexico. You donā€™t need to buy a home to get residency in any of these countries but you still can if you want. You also can spend as little time as you feel like in any of them.

Thailand offers retirement visa for a select group of countries. Vietnam offers 12 months tourist visas only to Americans. The Philippines is open to all countries but will require all who work/earn online to register and pay tax while in The Philippines. Consider Panama if you fall into their friendly nations list.

1 Like
#14

Hi Bob,

It would help to know which country you are currently resident in and where these assets that are giving you capital gains reside. You may be over complicating this. Some countries let you become non tax resident by filling out a form and staying away. There are lots of ways your taxable assets can be held offshore and then since you donā€™t stay permanently in any country long enough to become tax resident you become a citizen of the world and a tax resident of nowhere.

#15

Are you still interested? I can send some information and thoughts on it. Good for retirement but depends on your budget and liquid assets.