Legal Residency VS Tax Residency (What's the difference?)

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  • เผยแพร่เมื่อ 9 ก.ย. 2024

ความคิดเห็น • 28

  • @kbsltd11
    @kbsltd11 3 ปีที่แล้ว +5

    Welcome back! Thank you for this fountain of forbidden knowledge.

  • @AlpineDividends
    @AlpineDividends 3 ปีที่แล้ว +2

    thank you 👍

  • @jeffocarroll7848
    @jeffocarroll7848 3 ปีที่แล้ว +1

    You're addressing PERSONAL residency as opposed to CORPORATE residency. Let me see if I've got it right. PERSONAL tax residency could include things such as income, dividends, capital gains incl. shareholder dividends due to CFC rules like Forced Repatriation so there's some overlap there. But this doesn't include the residency of the company and the residency of the company income which may or may not be resident in the same country depending where it's set up. Feel I'm starting to confuse myself now.

    • @MichaelRosmer
      @MichaelRosmer 3 ปีที่แล้ว +3

      You've got it right. I did another video a while ago discussing corporate residency in more depth.
      The thing that's useful to know is you can have different corporate tax residency than personal.

    • @jeffocarroll7848
      @jeffocarroll7848 3 ปีที่แล้ว +1

      @@MichaelRosmer Thanks. Looks like the CFC rules pose the main problem if resident in one of these high tax countries like I am in the UK. So is it still possible to avoid or at least defer taxes in this situation?

    • @MichaelRosmer
      @MichaelRosmer 3 ปีที่แล้ว

      @@jeffocarroll7848 yeah it definitely is the biggest question is understanding the nature of the business and size of the business. You've got to watch out for a few sets of rules but UK is not an insane place to do tax planning depending on your scale.

    • @jeffocarroll7848
      @jeffocarroll7848 3 ปีที่แล้ว +1

      @@MichaelRosmer Thanks. We will have to have a talk at some point but I still feel I'm getting my head around things to be in a better position to make a decision. Looks like Dubai takes care of all sorts of problems.

    • @MichaelRosmer
      @MichaelRosmer 3 ปีที่แล้ว

      @@jeffocarroll7848 yeah Dubai is definitely a clean option for many people of they are willing to do it.

  • @VERTICALWisdom
    @VERTICALWisdom 3 ปีที่แล้ว +1

    We are looking at Turkey for CBI in the next few months - but would look for tax residency for us and our company elsewhere. Turkey taxation is pretty high. Suggestion: Go to 4:35 on the video, you are right on topic, then off on a tangent with but could be this or....? Really value you video content and plan to work with you - but the tangents are tough to track.

    • @MichaelRosmer
      @MichaelRosmer 3 ปีที่แล้ว

      Thanks for the feedback I'll see if I can work on that.
      Agreed that Turkey isn't a good tax residency.

  • @chrissellers5825
    @chrissellers5825 3 ปีที่แล้ว +2

    i am a US citizen. However, if i had an additional passport bought through a country that has no personal or corporate taxes, and then used that passport to open a company in Dubai, opened a bank account there with that passport and deposited all of my money there; would the interest earned on that money be taxable in the US?

    • @MichaelRosmer
      @MichaelRosmer 3 ปีที่แล้ว +1

      Personal worldwide income is always taxable unless you're in Puerto Rico.
      Income in foreign businesses owned by Americans can sometimes be reduced but can be complex.
      Foreign trust structures are usually one of the few ways to defer down to zero.

    • @chrissellers5825
      @chrissellers5825 3 ปีที่แล้ว +1

      @@MichaelRosmer Thanks partner. i will be reaching out to you in the near future.

    • @MichaelRosmer
      @MichaelRosmer 3 ปีที่แล้ว

      @@chrissellers5825 sounds great!

    • @Mehedihasan-yt6mx
      @Mehedihasan-yt6mx 2 ปีที่แล้ว

      @@chrissellers5825 dont take us citizenship.they tax you anywhere.

  • @billhennessey6374
    @billhennessey6374 ปีที่แล้ว

    Michael, can a US citizen qualify for the Cyprus Non Dom Program or are we excluded due to citizenship-based taxation in the US? I understood from your video on the Non Dom Program that a candidate can't be a tax resident of another country, which would seem to exclude US citizens. I am watching all of your videos to see which countries are consistent with my goals so that when I am ready I can sign on with you and we can get things done quickly. Thanks!

  • @amir5593
    @amir5593 3 ปีที่แล้ว +1

    Super important video. Thanks a lot. 💚
    If someone deposit 250,000 EUR in Latvian bank and get golden visa and then spend only a week in a year in Latvia will be considered tax-resident in Latvia?

    • @MichaelRosmer
      @MichaelRosmer 3 ปีที่แล้ว +1

      I'll do a video on this but you can be resident there under their golden visa without being tax resident there but you can't get their citizenship that way.

    • @amir5593
      @amir5593 3 ปีที่แล้ว

      @@MichaelRosmer Quite helpful ! Appreciate it.

  • @alexsilva3834
    @alexsilva3834 3 ปีที่แล้ว +1

    Stupid question here: If I have an online business in a tax favorable place (Hong Kong) but I live in a high-income tax country, can I buy a house in another country + bank account + car where you are taxed at a much lower tax rate and then move back to my country? How do they know if I stay in the country?

    • @OffshoreCitizen
      @OffshoreCitizen  3 ปีที่แล้ว

      This is fairly complicated and different countries have different rules but it's all about how residency is determined, what immigration controls are handled. Sometimes you might get away with it though we'd recommend just doing legal tax planning so you don't have to worry. It's a bit more effort up front but then you don't have to worry long term.

  • @wwahyyy2035
    @wwahyyy2035 2 ปีที่แล้ว

    is there a wiki type site for these type of very obscure and confusing info?
    are countries moving toward a modular style of fitting services for nomads based on the nomads needs / requirement rather than the host country's rules?

    • @OffshoreCitizen
      @OffshoreCitizen  2 ปีที่แล้ว +1

      Countries aren't nearly so forward thinking, they don't tend to construct these things in a holistic first principles way. They probably should but it's much more chaotic than that. Heck often you get certain visas administered by say the tourism department instead of the immigration department, which is bizarre

    • @OffshoreCitizen
      @OffshoreCitizen  2 ปีที่แล้ว +1

      Countries aren't nearly so forward thinking, they don't tend to construct these things in a holistic first principles way. They probably should but it's much more chaotic than that. Heck often you get certain visas administered by say the tourism department instead of the immigration department, which is bizarre

    • @OffshoreCitizen
      @OffshoreCitizen  2 ปีที่แล้ว +1

      Countries aren't nearly so forward thinking, they don't tend to construct these things in a holistic first principles way. They probably should but it's much more chaotic than that. Heck often you get certain visas administered by say the tourism department instead of the immigration department, which is bizarre

    • @wwahyyy2035
      @wwahyyy2035 2 ปีที่แล้ว +1

      Whichever country that can become the " apple" like entity that can offer streamlined "citizenship" renting services/environment at a competitive price among peers will win BIG in this century.

  • @sorrowvibes7757
    @sorrowvibes7757 3 ปีที่แล้ว

    Is it possible for a country to ask you for proofs that you're indeed a tax resident in another country?
    Let's say I stay less than 186 days in an European country, while I'm not from Europe. So I'm still tax resident in my country of origin.
    Is it possible in any situation that the European country I'm in asks me for proofs that I'm indeed paying tax in my country of origin?

    • @OffshoreCitizen
      @OffshoreCitizen  3 ปีที่แล้ว +1

      Yes but your question has an inaccurate assumption. You're not necessarily tax resident in your country of origin based on an amount of time spent in another country