The tax-neutral or offshore person status through second citizenship or residency programs

Published at: 21/07/2021 12:11 pm

The tax-neutral or offshore person status through second citizenship or residency programs

A tax-neutral person means an individual who pays no or only low taxes and respects all related international and national laws. It's good to know that becoming an offshore person is easier than you think through residency and citizenship by investment programs.


How can you become tax-neutral?


First of all, let's review shortly the basics of international taxation. Please, don't forget that before you change your tax residency, resident status or citizenship, always ask for the opinion of an experienced accountant and a legal adviser. We provide this service; ask for a consultation here.


What is tax residency?


The place of your tax residency is the jurisdiction where you have to pay your individual taxes. (corporate taxation is different because your company can be registered in another country or countries and can have other tax liabilities than a natural person, an individual. Usually, you have the right to change your tax residency to countries with lower taxes or without taxes at all (except for you are a citizen of the US or Yemen). 


The most crucial issue is to have a tax residency where either,

  • there is no income tax at all, or
  • there is no income tax on foreign-sourced income.

How can you change your tax residency?


The most straightforward way is to invest in a low or no-tax country's residency or citizenship program. You have to study the relevant tax laws of these jurisdictions carefully and resolve your taxation forever. Without bureaucracy, no hassle but personal and financial freedom. 


Is it possible not to pay taxes at all?


The law of each country obliges you to pay your taxes. If there are no taxes or no state burden on your activity, income or wealth, you don't have to pay taxes. In the countries where foreign-sourced income is tax-exempt, you only have to pay taxes on your local income.  


Each case is different, but these are very simplified bases of international taxation. According to the related laws, you must respect all global tax compliance regulation, but you have the right to lower your burdens. If you decide to make your step, you have to do the maths and research the jurisdictions you will prefer to pay your taxes.


Tax-neutrality through residency and citizenship by investment programs


Each country needs foreign investors who enrich the host country with their money, knowledge and relationships. Some of the countries attract investors (investor immigrants) with low or no taxation. However, even the most developed European countries offer tax advantages for reach foreigners to settle as Switzerland or Malta. Moreover, twenty of the EU's 27 Member States introduced some kind of residency by investment programs. Or take a look at the charming Caribbean islands. Saint Kitts and Nevis, Grenada, Antigua and Barbuda, Saint Lucia and Dominica offer affordable citizenships, providing freedom of travel and low or no taxation. Please take a look at the jurisdictions offered by Discus Holdings Ltd. We are sure that you will find an excellent country to lower your taxes through internationally compliant and transparent structures.



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