Monthly Archives: October 2016

Second Residency in low tax Countries

Check with your Tax Advisor before obtaining residency of one of the Countries listed below. Make sure that any income you earn overseas is not taxable as local source income.

Anguilla is a small player in the world of offshore trusts and offshore banking. Anguilla also offers retirees who purchase property and provide bank statements as evidence of self-sufficiency to obtain residence permission.

Costa Rica has been the second residency of choice for American retirees and investor expats. Requirements have become more stringent in recent years. But, anyone with a monthly income of $2,500 can become a resident. Costa Rica is highly bureaucratic, but is worth considering if you enjoy sandy beaches or tropical jungles.

Georgia is the most underrated country in the world, but is becoming one of the world’s most free economies. The pro-business government slashed the taxes. Rates decrease each year. Income earned outside of Georgia is not taxed in Georgia. although you may need to provide proof. Georgia offers almost all foreigners a 360-day tourist visa. Anyone can open a Georgia company in order to qualify for residence. Buying real estate might also qualify you. If you do invest in Georgia, taxes there usually range from a flat 5-15%.

Gibraltar allows you to become a resident if you have around $3 million. Residents under the territory’s investor-friendly Category 2 visa pay a maximum tax of approximately £29,000 per year in exchange for permission to reside on the tip of the Mediterranean.

Guatemala offers territorial taxation. You can obtain residence in Guatemala if you show proof of $1,000 monthly income. But, you must be willing to live there a good part of the time or they’ll cancel your visa. If you are willing to live in Guatemala full-time, it’s possible to get citizenship after five years.

Macau has zero tax on foreign earnings. Foreign investors can obtain residency by investing 3 million Macau patacas, or roughly $375,000 into the country. However, because Macau is technically part of China’s “one country, two systems” policy, it is essentially impossible to obtain citizenship there.

Malaysia “My Second Home” (or MM2H) program is straightforward. If you’re under 50 years old, you’ll need to show proof of $2,300 monthly income and deposit approximately $70,000 at today’s exchange rates into a Malaysian bank. You won’t be able to touch your money for ten years, or until you cancel the visa, unless you decide to buy real estate. If you’re over 50 years old, the bank deposit is cut in half. Learn more about residency in Malaysia.

Nicaragua is “the next Costa Rica”. It is a great place to have a second residency… if you actually want to live there. Obtaining Nicaraguan residency is easy and only requires proof of income of about $750 per month. However,you must live there for six months each year or else your residence permit, and your territorial tax benefits, will expire.

Panama has the strongest offshore banks and is an open country for immigration, especially for citizens of Western countries. For these citizens, Panama’s Friendly Nations visa program offers instant permanent residence with a low bank deposit of $5,000 and one “economic tie”, usually a Panamanian company or the title deed to real estate. Learn more about residency in Panama.

Paraguay is well-known as a cheap second passport program. It allows foreigners to obtain instant permanent residence with a mere $5,200 bank deposit, and citizenship in three years. However, Paraguay also makes for an attractive second residency with the potential to get a passport later. Taxes on local source income are quite low at just 10%. Foreign source income is typically not taxed. Learn more about residency in Paraguay

Singapore is no tax haven for entrepreneurs. A company in Singapore is more costly to start and maintain than a Hong Kong Company. But, tax rates are 0-17% on corporate profits and a flat 20% on the high personal salary. On another hand, investors with around $4 million to invest can move to Singapore and enjoy no tax on bank interest, capital gains, or foreign profits. Learn more about residency in Singapore.