Hey yall. Looking for a nomad tax professional to help me craft an international/offshore banking solution. I have US and EU citizenship if that helps you recommend.

Israel Tax Opportunities Summary 🇮🇱

Met with the head of one of Israel's top law firms today. Here is a summary of the conversation:

Overall it is a high tax country, with some tax benefits

Personal: up to 48% tax, plus surplus that has been extended for the last years
Corporate: 23%, dividend rate depends if under 25% shareholding. Dividend tax 25-33%

Benefit 1: Rentals
Rental income 10% gross tax at personal level for residential properties, not commercial. If you have many expenses on a year, you can elect to tax on the profits only for that year = no tax

Benefit 2: Creating real business in the country
If investing in Israel with employees and keeping know-how locally - corporate tax rate in single digits, dividends for non-residents 15%

Benefit 3: Law of Return
For descendants of Jews that want to move to Israel, not only you get citizenship, but also 10 years exemption on all foreign incomes for returning jews who become Israelis, for incomes established before they become israelis.

Counts if transfer for asset purchase was initiated before. Doesn't get cancelled if you move out after. Counts EVEN for israeli investment if it was done before they move.

Example 1: Client moves to Israel. In the following year, he starts the purchase of a property. He will pay tax on this rental, even if the property is abroad

Example 2: Client moves to Israel. In the year before, he transferred the money to a Portuguese bank account. The purchase of the property occurs after he becomes Israeli. Rentals are not taxed

Example 3: Client invests in an Israeli startup before he becomes Israeli. Tax benefits of the law of return still apply even if he becomes Israeli.

Benefit 4: No inheritance tax

So main targets:
Investors for real estate
Invest in startup
Jewish law of return
Die in Israel and avoid inheritance tax

Also - higher income exemption amount for retirees and disabled

There is an exemption on first home sale of 1.5 million usd

Company opening takes 3 days

Registered address planning is very important for companies, tax compliance is stricter or more relaxed depending on municipality

For inquiries/consultancies of specific questions, makes sense to get confirmation with local tax authorities to protect against criminal issues

Israel is VERY strict against fraudulent expenses for business, its worse than not declaring income. declaring false up to 15 years in jail, not declaring usually up to 3-10.

Israel can go back the last 4 years of declarations for tax matters, but up to 10 years for criminal matters (such as money laundering, fraud)

I want to drop here the strategy I use (applicable only if you do software development).

I live in 🇦🇲Armenia.
As IT business, making <285K€ in revenue we qualify for a simplified tax regime.
This allows us to be taxes at 1% on turnover.

I have a solo entrepreneurship (IE) with 1% turnover tax + social and military tax (<2% in total); I do a gun for hire software development here.
I also have an LLC with partners with 1% turnover tax + we have to have a salaried director (20%/PIT, we pay higher than minimum salary) + 20% taxes on a set of expenses + 5% on dividends (total tax burden <13%, but can be less than 10% total)

AMD is good currency, but if you want to get the money out add some 2-2.5% for SWIFT and currency conversions if you do not use crypto on top.

It is quite a simple system here.
They have tax residencey based on centre of vital interests OR 183+ days, meaning you do not have to spend 183+ days here if you do not want to, you just need a good essay on how your CVI is in Armenia.
Banking was easy to get at Ardshinbank (top bank with relatively little requirements).

Armenia does not tax your stonks income if earned abroad.

P.S. We tried to get things going in Georgia, but it all broke down when we figured out that Google does not support merchant accounts from Georgia. In addition to that, we found their tax treatment of Virtual Zone companies scary, same with SBS; in general lawyers and accountants in Georgia spoke more in terms of probabilities, in Armenia in terms of rules; locals are way friendlier in Armenia too; but Armenia is admittedly more boring and less diverse.

So overall recommend Armenia as a base, gonna stay here for 2-3 years.
Check this out: https://woodscenter.am/en ; visited over 20 coworkings, the best one till far found in Armenia.
Thesis over.

Looks cool, thanks for sharing.

Hey Alex! In this answer did you have in mind as well the ausencias esporádicas?

I wasn’t familiar with this term, but quick research suggest that ausencias esporádicas is in fact the opposite of what I wrote, as this is spanish tax resident that occasionally leave spain, withough loosing spanish tax residency status.

Anyone here working with a US company as a contractor and resident of India. My company issued stock options when i joined as a contractor but now they seem to be stuck because of Indian laws. As per FEMA/RBI it is not allowed to hold stock options in foreign company as a contractor/sole proprietor. Anyone here dealt with something similar or exercised their vested amount?

Hey guys! I'm planning to "slowmad" and the advice I've received is to get a UAE personal tax residency, to stay above board, get a TRC. So I'm planning to move my business (currently a UK Ltd Co.) to the UAE and spend 90 days a year there to meet their tax residency requirements.

Anyone have a similar experience? If so would love to hear how you've done it!

make sure you have all the little details figured out in advance when it comes to moving your business. Banking, payment processing in particular

If you want a TRC make sure to spend 183 days. It’s risky with less than that

Hey, anyone doing / has done the 60-day residency setup in Cyprus?

Pls DM🙏🏻

Hey guys, is there any residency similar to UAE with easy to meet requirements? Unfortunately, I'm not able to apply for UAE visaas and looking for similar alternatives

ntgkgjmpqcky 90 days TRC will not work in double taxation avoidance agreement

Need 183 days TRC last year I got that from UAE if you need any details happy to share .

Anything important to know other than just staying there 183 days or more?

I'm also very interested to read about this.

Interesting, can you tell me more about where you got this from and which country's Double Taxation Agreement (DTA)?

When I was looking on the UAE MOF's website, I couldn't find a difference between what a 90d or 183d TRC could be used for. But it seems like what is relevant is the content of the DTA in case it specifies that you need 183 days in the UAE. For example, the UK-UAE one seems to use this definition for residency in Article 4 ("Resident"):

"any individual who under the laws of the United Arab Emirates is domiciled in the United Arab Emirates or has his habitual abode or centre of vital interest in the United Arab Emirates;"

So it seems like you'd be covered under the 90d TRC here (unless obviously you also meet the UK's statutory residence test by having close connections there or staying there for more than 90 days etc) if you have a business and long-term lease on an apartment?

Would love to be corrected if I've misunderstood something 😅

Right now no.
But if you have anything in mind let me know I will add that.

If you’re not a uk tax resident you can easily bring your UK Ltd profits to zero via bonus or salary so you don’t pay UK corporate tax (only applies to income after becoming a non UK tax resident). You don’t need to move your company or get another tax residency to reduce UK taxes… it’s advisable to do but the UK law is straight forward for minimising tax exposure there

I used that in india.

As far as I know for india 90 days one will not work.

DTAs are mostly used for disagreements between countries and to offset taxes paid in one jurisdiction. Focus on not being a tax resident where you don’t want to pay taxes

you need to pay tax on your salary in UK

If you are a tax resident of the UK, yes

I am non tax resident and was still paying PAYE

You have a bad accountant then

yeah, I was using Ember and they weren't focusing on non-residents

anyway, I am in the process of shutting it down

Is anyone here an eCommerce specialist?
I’d like to ask a few questions about tax residency in Paraguay and selling in Europe through my LLC on Amazon.

That is factually try, however, need to check if your non UK residency country will treat your UK LP as tax resident itself under local jurisdiction. Most likely it will, so local corp tax laws will apply. (This would apply for UAE residents as well)

Ah didn't know that was possible. Would definitely help keep things simple. Thank you 🙏