Question 1

What is tax residency?

Accepted Answer

Tax residency determines which country has the right to tax your worldwide income. Rules vary by country but often depend on physical presence or center of life.

Question 2

How do I change my tax residency?

Accepted Answer

To change tax residency, you usually need to leave your current country, meet residency requirements elsewhere, and follow exit tax procedures.

Question 3

What is an exit tax?

Accepted Answer

An exit tax is imposed when you move your tax residency, triggering taxation on unrealized capital gains or worldwide assets.

Question 4

How can I legally reduce exit tax?

Accepted Answer

Exit tax can be minimized through careful tax planning, treaty benefits, and structuring assets before relocation.

Question 5

Which countries have no income tax?

Accepted Answer

Countries like the UAE, Monaco, and The Bahamas have zero income tax policies, attracting wealthy individuals.

Question 6

Can I live in a country but be a tax resident elsewhere?

Accepted Answer

Yes, through strategies like territorial taxation, tax treaties, or dual residency planning.

Question 7

What is a territorial tax system?

Accepted Answer

In a territorial tax system, only income earned within the country is taxed. Foreign-sourced income is tax-free.

Question 8

Which countries offer Golden Visas?

Accepted Answer

Portugal, Greece, and Spain offer Golden Visas, granting residency in exchange for investment.

Question 9

What is a tax treaty?

Accepted Answer

A tax treaty is an agreement between two countries to prevent double taxation and reduce withholding tax rates.

Tax Optimization

How Digital Nomads Can Legally Reduce Their Taxes to Near-Zero

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