How to be tax resident in no country and pay 0% tax

[@johntheaccountant5594]

I expect the UK to introduce World Taxation for its citizens over the next 5 years like the USA does and hence the reason so many Americans revoke their nationality. France has just announced it is going to introduce World Taxation so expect all western countries to adopt this tax policy. The reason being is that many wealthier citizens are leaving the UK and therefore the government has been losing tax from them.

[@JoshuaTharby]

Yes i can certainly see something like this on the cards

[@globalbridges8570]

@@JoshuaTharby Do you use Family Investment Companies with Trusts, so you own nothing but control everything? If not check out Terra Mural Crown

[@microfarming8583]

France is mooting the same thing. All western countries will implement this in coming years due to ageing populations and the resulting necessity for much higher taxes

[@bonditltd5346]

Suggested video - How is it possible to become non U.K. domicile ? As I understand it, you can be non resident, but some tax such as IHT still applies. So you could be in Dubai for >5 years and still be hit with IHT

[@legacydesignagency]

hey man! Great content! i am looking to leave the uk as a tax resident this coming tax year, when filing for the non DOM status with HMRC do i need to do any prepping with my current and previous tax years accounting? i am still unsure which is best... to setup within UAE with your service or to float about every 3 months between Thailand, Bali and UAE. I have pretty much done this for the last 3 years and love the lifestyle. So im thinking why not get the benefit of 0 taxes aswell haha

[@jonathanwarrenberg9260]

"This can allow you to travel the glove with months in each location." I have no desire to travel the glove.

[@JoshuaTharby]

Fair enough!

[@vasilydenegin2454]

completely nonsense. germany is practicing different now - if you are not tax residence in Germany, you have to PROOF that you ARE tax residence somewhere. otherwise Germany consider you nomad and charge you german tax. welcome to new world.

[@JoshuaTharby]

This isn’t the case in the UK which is where our clients come from?..

[@microfarming8583]

Yeah but pretty sure most of the viewers on this english speaking channels re not German. So only you talking nonsense

[@p.m.8316]

Same in the netherlands.

[@liquid_metal]

This concerns UK tax residents, not German. Welcome to United Kingdom my kraut friend.

[@internetfreeforever2046]

@@JoshuaTharby I understand this is for UK. Other countries, it will be safer to have a tax resident somewhere that is 0%. I don't want anyone on my ass...

[@Julia1ko]

Very good video and great topic! Its UK unique and very few people talking about this. We are wondering about this too actually - what happens if you sell your existing investments e.g. ETF, whilst being a non UK resident and not being a resident anywhere? For example, if you have ISA and General Account holdings, made whilst you were a UK resident, do they continue being UK assets with capital gains tax paid to the UK upon sale, if upon sale, you've left the UK but not yet become a resident anywhere? I recall getting the impression that investments made whilst a UK resident continue being taxed in the UK upon leaving, but can't find this info again so not sure.

[@liquid_metal]

I'm quite sure cgt on UK property is payable to HMRC no matter where you're tax resident. For investment profits, interest and dividends, it's taxable under your current tax residency. If you have no tax residency then under the SRT you pay no income tax. However, there's the 'temporary non resident rule' meaning if you return to the UK within 5 years of any taxable disposal and become tax resident again, the gains are taxable in the UK as if you had never left.

[@Thaitanium73]

HMRC says British citizens have to be resident somewhere for tax purposes

[@daomingjin]

if you are not a tax resident in the UK, and let's say you move to China and work remotely, you are not a tax resident of China either. The only way to be required to pay tax in China is if a domestic Chinese company hires you and arranges a work visa. Outside of that, you're just a glorified tourist in terms of visa status.

[@Thaitanium73]

@@daomingjin If a British citizen who only holds British citizenship does not pass the threshold required to become tax resident in any of the countries they have stayed in throughout the tax year, including the UK, and therefore appear as 'non-resident for tax' in all countries based on each country's residency test (including the UK, and including the UK's RDR3 Statutory Residency Test).Then the default position of HMRC is that such a person would fall within the UK tax jurisdiction on account of British citizenship alone, and the burden then falls on the British citizen to show residency elsewhere. A British citizen who holds only British citizenship (non dual nationality) is not able to be a tax resident of 'nowhere'.

[@liquid_metal]

@@Thaitanium73 That is not correct. The SRT is very clear-cut and there is no ruling from HMRC that requires a former tax resident to be tax resident elsewhere to escape UK taxation. If what you are saying is true - and I am happy to be wrong about this - then please link the HMRC help page about this ruling? Make sure your comment posts because YT often blocks comments that contain links so perhaps remove some dots and www.

[@francescostefanodalio1994]

I am not a tax resident for tax purposes based on the number of days spent and ties. However, when I fill in my tax return, there s a section asking which country I am resident in. If I don't put a country code I think I LL get on trouble. Where would financial investments be taxed? Would I be taxed solely on real estate income?!

[@francescostefanodalio1994]

Sorry I meant I am not a UK resident for tax purposes based on ties and number of days

[@LucidAmethyst]

While it's possible to achieve this, it depends on a number of factors, including where you source your income, what is your nationality and what you have declared to the revenue in your citizenship country. However, you don't have to be tax resident to owe the country money, simply stepping off a plane and earning money whilst in a country can sometimes be enough. If not planned correctly, depending again on the source of income, you could go to a 0% tax country like Dubai, and potentially still end up owing tax to another country. As I have pointed out on other similar videos on here, you should take this advice with the disrespect it deserves, and seek the advice from a professional before attempting anything like this.

[@JoshuaTharby]

I am a professional.

[@Inspire-Mind-Success-Happiness]

Amazing value as always. One little issue with the free training though, once it starts about a few seconds in your voice starts for a second time leading to you talking over yourself. Really hard to hear and understand what you are saying.

[@JoshuaTharby]

Sorry about that, will get that sorted!

[@ThriveTrack-Finances]

If you can't claim tax residency anywhere in the world. This is a good case where your country where you are a citizen can argue you should pay taxes in the country you're from... And especially if you have revenue or assets generating revenue from that country...

[@JoshuaTharby]

Well the US certainly do that!

[@vasilydenegin2454]

exactly!

[@MB-iw6gu]

What about someone who has citizenship of two or more countries?

[@JoshuaTharby]

@@MB-iw6gu You would need to consider each countries laws. But this is correct for the UK

[@Thaitanium73]

@@MB-iw6gu Look up HS302

[@marcophuket2182]

Bank want your tax residence to open an account or keep one . With the OECD CRS AEOI u need to be tax resident somewhere in order banks to exchange your account information with the related Tax Authorities . This unless u hv bank accounts in non OECD countries but a few left or almost none wich r trusted. So yes you could be Stateless Apolide but difficult to manage your money . This is my opinion. Please correct me if i am wrong . 🙂

[@jackworth2981]

Open variety muIti currency modern accounts whiIe you are a resident and open accounts in pIaces Ike BVI, BeIiz, Bahamas, SwitzerIand, Iuxembourg, Cook Isiands and then become stateIess. If banks enquire you can state your address in the country or residency in UAE. And continue your 4 seasons - 4 Iocations rotation.

[@JoshuaTharby]

@@jackworth2981 Exactly this!

[@daomingjin]

Bitcoin solves a lot of these problems. You could also just open a bank account in the u.s., you are not required to be a tax resident to have a u.s. bank account.

[@novaxtube]

Hi Joshua. I am a UK citizen and tax resident, if I was to buy property in Dubai with crypto (without converting to fiat) would HMRC consider that a disposal of my assets and as such would I be liable to pay UK taxes?

[@JoshuaTharby]

Yes they would, the moment you exchange the crypto would be a chargeable event in the UK

[@novaxtube]

@@JoshuaTharby thankyou

[@globalbridges8570]

@@novaxtube You can get a loan against your Crypto, make the loan out to a non-UK company to buy the property outside the UK.

[@ryanmitch86]

​@JoshuaTharby what if crypto was purchased in the UK, and then sold/exchanged in Gibralter?

[@michaeltaylor3473]

Can you pay yourself salary from your UK limited company and not pay income tax and NI? Or must it be dividends to avoid tax?

[@liquid_metal]

Only if you are non-tax resident and there is also the 'temporary non resident' rule where if you become tax resident again in the UK within 5 years of becoming non-tax resident, HMRC will treat it as if you never left and you will have to backpay all relevant income taxes. That's unless you are tax resident somewhere that has a DTT and you can prove you did pay income tax (at the same or higher rate). If you paid less than the equivalent taxes in the UK, then you would pay HMRC the difference.

[@AnzacBedouinLisbonese]

Dangerous and incorrect advice being given. Outright wrong. Your country of nationality will claim you as a tax resident if you are tax resident nowhere. This sort of advice should be illegal.

[@JoshuaTharby]

Wrong!

[@juribastiaans3824]

The Netherlands does this indeed. You need to show a certifícate of your new tax residency before they let you go.

[@charlesfarran1717]

This is dangerous information.

[@liquid_metal]

Why - and are you a UK tax resident?

[@jonathanwarrenberg9260]

@@liquid_metal Probably works for HMRC

[@AnzacBedouinLisbonese]

Dangerous and incorrect advice being given. Outright wrong. Your country of nationality will claim you as a tax resident if you are tax resident nowhere. This sort of advice should be illegal.

[@liquid_metal]

You are wrong. What you have said is not true in the UK for former UK tax residents, which has very clear cut "tests" under the SRT about whether you are tax resident or not. If you pass the SRT, you are not tax resident in the UK. HMRC has no ruling or requirement that you are tax resident in another country, therefore meaning you can escape income tax completely if you bounce around on tourist visas. As an example of what you have described, countries like Australia have far more stringent "tests", including proof you have a long term rental or mortgage abroad - meaning Airbnb would not cut it - if you cannot provide proof, you are Australian tax resident, even if you haven't been in the country for years. It's absurd, but that's the rule! Not so for the UK tax authorities.

[@AnzacBedouinLisbonese]

Dangerous and incorrect advice being given. Outright wrong. Your country of nationality will claim you as a tax resident if you are tax resident nowhere. This sort of advice should be illegal.

[@JoshuaTharby]

Still not true..

[@Thaitanium73]

@@JoshuaTharby If a British citizen *who only holds British citizenship* does not pass the threshold required to become tax resident in any of the countries they have stayed in throughout the tax year, including the UK, and therefore appear as 'non-resident for tax' in all countries based on each country's residency test (including the UK, and including the UK's RDR3 Statutory Residency Test).Then the default position of HMRC is that such a person would fall within the UK tax jurisdiction on account of British citizenship alone.

[@JoshuaTharby]

@@Thaitanium73 That is simply untrue. I have read every element of the RDR3 and all supporting HMRC guidance many times over and not anywhere does it state this.

[@liquid_metal]

@@JoshuaTharby I have also checked not only directly with HMRC and they too have confirmed what you said @joshua; but also with various tax advisors. I think the people commenting this is wrong/dangerous/illegal are p*ssed that their own country doesn't allow for this; are loathsome that someone else could avoid taxation where they are probably being hammered; and don't understand you are talking SPECIFICALLY about the UK/tax residents and not any other tax jurisdiction.

[@AnzacBedouinLisbonese]

Dangerous and incorrect advice being given. Outright wrong. Your country of nationality will claim you as a tax resident if you are tax resident nowhere. This sort of advice should be illegal.

[@JoshuaTharby]

It really won't, it might be the case in some countries such as the US but this 100% is not the case in the UK!!