Hidden SECRETS to pay ZERO TAXES | Thanks to tax havens | PART TWO
In the previous episode of this mini series we talked about total tax havens.
Today we will talk about countries that behave like tax havens, but only for all those who earn exclusively from foreign sources, as happens for many people who have lucrative digital businesses, and receive annual dividends completely exempt from taxation.
In these countries you are taxed only on the earnings you generated because you worked directly in that country, for example by opening a shop and selling to the people who live there.
If, on the other hand, all your earnings come from abroad, you will not pay any taxes.
This system is found, for example, in countries such as Panama, Costa Rica, Hong Kong, Seychelles, and Singapore.
However, you must consider that the income must not involve any local business.
For example, you could not start a consulting business that is 100% managed in Panama, and claims that the income generated does not have to be taxed in Panama.
In these cases, planning requires an additional step, such as setting up a company operating in a tax-free third country, which pays you earnings that can be configured as tax-free foreign income.
Note that some of these jurisdictions, such as Panama and Gibraltar, require companies to decide from the time of incorporation whether or not they are authorized to carry out local business or only business overseas; and in the second case, they will be exempt from taxation.
In the next installment, we will look at low-tax countries, and why these can in some cases be even more convenient than total tax havens.
If you need specific advice, you can contact us.
Remember that laws change all the time; therefore it is essential to check the law in force when you decide to relocate or move abroad.
It is also very important that you speak to your international tax attorney before starting any type of tax planning or relocation of your business.
If it is your first time, here are some examples of the results our tax lawyers can help you achieve:
- international tax optimization, to cut down your taxes (even to zero)
- analyze your specific situation and your business situation to help you choose the best country/countries for your specific needs, which guarantees you both tax savings and everything you wish for;
- protect your assets, making them "untouchable";
- become an international / global entrepreneur, able to use all world regulations and tax advantages to your benefit;
- making you profit using tax havens;
- acquire multiple residences;
- acquire new passports;
Check our main page now and contact us https://yourinternationaltaxlawyers.net