Can you avoid taxes by linvg in three or more countries?
 

My understanding is that you have to pay taxes in Spain if you live there for more than 6 months out of the year. I'm assuming other EU countries have similar rules. So I wonder what happens if you lived for less than 6 months in three or more countries? For example, 4 months in Spain, 4 months in France and 4 months in Italy? Then you wouldn't actually be a tax resident of any country.

Practically, it would be a little difficult. If you owned property in those countries, then you'd be liable for taxes. But maybe if you had a motorhome/caravan and just moved that around...? Not that we're actually thinking about doing that. But I wondered about it as I was reading stories of people who travel around Europe extensively in a motorhome.

Re: Can you avoid taxes by linvg in three or more countries?
 

It is not solely about days- it is where you are deemed to have your centre of financial interest. Basically one place will be designated your centre of interest. If married they use your partner or your children. If you have made an application for residency the implication is that is your place of financial interest. This is why Shakira is facing charges for tax evasion in spain.

Re: Can you avoid taxes by linvg in three or more countries?
 

This is a very tricky subject and needs specialist advice as everybody's situation is different. Also you probably would pay some taxes. If you own a property for example. Also some costs would ramp up eg proper medical cover. Also governments are locking down all the time so the low-tax horizon may have a limited timescale.

Finally (or additionally) it may depend on your budget. As ever the super rich have their expert advisors for tax avoidance and using tax havens. E.g I was in Monaco yesterday, but you cant even buy a tiny studio unless you have a healthy 7 figure sum sitting around. Move a short distance from the border and youd get a really nice villa for that! And from there you can still even walk to your favourite Monaco haunts....

Beausoleil for example borders Monaco to the north and higher up, with free escalators and lifts taking you to their centre. Stroll downhill to the casino, blow your load and comfortably return to your far larger home on the escalator..... :)

Going 'Stateless" or "unterhered" or being a "tax nomad" or "digital tax nomad' etc etc is possible but extremely tricky.

However I was interested to hear about these new cruises. 3 years roaming the world, all laundry, food, entertainment included. Even drinks included with food ...... and allowing guests to visit when in port for a couple of days free.... hospital facilities etc etc. All thought out.

With Free wifi, office facilities, Zoom rooms etc etc Fully equipped for the digital tax nomad!! But even this setup insists that you speak to a professional to preplan and maximise your tax benefits. You may have to move your money around a lot too internationally.... Tricky enough these days when there are so many money laundering regs for x-border transfers. The list of concerns and actions gets bigger and bigger.

I was also surprised to hear that the average age was mid-40's too, reminding me that the young-uns really know IT far better and are more able to grasp the opportunities than the average older retiree than me. I always incorrectly thought cruises were for the retired.

I frankly was pleasantly surprised at the cost $30k a year... Not bad when you consider almost all is included and you might have tax benefits. Might have 3 years revenue renting out your home etc. Have medical support.

Ive never been on a cruise, not my thing, but some would love it, and the cost is nowhere near as bad as I would have expected!

But lets not tell Greta, I dread to think what she would say about carbon footprints etc... :eek:

Jon

https://www.travelandleisure.com/thr...r-rent-7152452

https://www.lifeatseacruises.com/

Re: Can you avoid taxes by linvg in three or more countries?
 

I don't know the answer, but think about your financial footprint. Even if you live in a motorhome, unless you are going to carry around your worldly wealth with you, you still need a bank account to pay for things, so immediately you start leaving a trace of where you have been and where you "paid" the bills from. You probably could go underground for tax purposes, but if you started to need three bank accounts and three residential addresses I reckon you'd soon swallow up any tax benefits just in increased living costs. Different situation for the super rich, who can clearly make massive savings from tax avoidance options.

In Spain, there is frequent news about the influencers and gamers who have moved to Andorra and claim that is there residence for tax purposes. Many of those have been caught out by hacienda simply because their spending on credit cards etc has showed they were not in Andorra and were more than sufficient time in Spain to be tax liable.

Re: Can you avoid taxes by linvg in three or more countries?
 

Is your concern becoming a non UK resident and paying tax to a country other than UK? As others have said basically you will need to be resident and paying tax somewhere. If you are planning on staying UK resident and pay tax in UK then yes you can obviously travel around other countries as a tourist spending couple of months here and there either renting or in campervan. You mention 4 months here say Spain 4 months elsewhere etc. Problem with that is the Schengen rules don't allow for that given you can onl spend 90 days in any 180 within the whole zone. I used to know people who split time between Portugal, Spain and UK never spending more than 3 months in either country and retaining UK residency. However that was pre Brexit what they do now I have no idea. To become completely stateless I would think would be very difficult and as others say you would need good professional advice on that.

Re: Can you avoid taxes by linvg in three or more countries?
 

I wouldn't assume this, I suspect some countries have this rule and others don't. The UK certainly doesn't have this rule; it's far more complex and you can be tax resident if you spend a lot less than 6 months in the UK.

The are countries outside the EU you can become resident in and pay no income tax, e.g. various Middle East countries and Malaysia. Within the EU, my instinct is that you couldn't avoid tax by moving between various countries and not spending too long in any one of them, but would need to have a tax base country. I expect this loophole would be well-known (and probably closed) if it existed. However, I'm speculating and professional advice is required.

Re: Can you avoid taxes by linvg in three or more countries?
 

Good point about the health insurance. What happens when you need to go to the doctor or hospital?

Again, we are not considering doing this at all. I was just reading about folks who travel around extensively and thought: what if...?

- Eric S.

Re: Can you avoid taxes by linvg in three or more countries?
 

Health care has nothing to do with taxes. It is all about Social Security payments.

Re: Can you avoid taxes by linvg in three or more countries?
 

Keep in mind, If you have a smart phone, Ipad, Ipod, smart watch or laptop They can tattle on all your locations also. Not to mention most modern automobiles. Unless someone is willing to ditch all their electronics hiding will be difficult. The coming cashless society will make things even more difficult. Oh and lets not forget facial recognition software and the seemingly millions of surveillance cameras in the world. Hiding will not be easy disproving that you were not somewhere will be difficult. The best policy is just pay your taxes, life will be less complicated in the long run.

Re: Can you avoid taxes by linvg in three or more countries?
 

Quite. This is the best advice anybody will ever give you.

As time passes you will surely want to give up your roving ways and settle down, most likely in the country of your birth. Not everyone will do this, but we all have our preferred place in the world. To me this would not be living in a motor home. Not with a partner who collects things and three cats.

Nobody likes to pay tax, but to me it's part of the social contract of being a citizen of any one country. One uses the services of that country and we all have to pay for it. The trick is to legally minimize what tax one has to pay. All the while keeping in mind the fine line between tax avoidance and tax evasion is a very fine one. Reduce what you have to pay but be careful to stay within the law.

As part of your tax planning strategy a 30 minute session with a reputable accountant will repay itself many times. I suggest you should do this. I did, and the advice I was given (and followed) ensured that my income is just below the tax free level in Australia. I still have to lodge a tax return every year and Canberra is automatically informed when I leave the country to travel in Asia, also when I return. There isn't any escaping this, and it's best to just live with it

There is a six months residency clause in Australian taxation law, but as my accountant told me, if you have income in Australia and if it goes above a certain minimum level, you have to lodge a return and pay tax. So however you scheme it, they have you by the short and curlies.

Just my stray thoughts. Plan carefully, stay within the law, minimize your tax legally. You will sleep far better at night...

Re: Can you avoid taxes by linvg in three or more countries?
 

I don't think they'll track you like this - far too much trouble. But if you live full time in the EU, you're either a national or have a residence visa for an EU country, and this country may chase you to submit a tax return. The onus would be on you to show that you're not tax resident, and if this is because of spending the majority of your time in other EU countries, they may ask where you're tax resident (I think you have to be tax resident somewhere even if it's a zero tax country, although I'm not certain of this). However, I suspect that some people do live a nomadic lifestyle, go under the radar and don't pay tax.

I think the starting point is where do you want to live, not where can you pay the least amount of tax. The latter is the tail wagging the dog. I don't understand super rich people who have the financial resources to live a luxurious lifestyle anywhere regardless of tax choosing a location based on paying the least (or at least, a lesser) amount of tax rather than where they can live their best life.

I accept you've raised this issue out of curiosity, not because you're considering doing this.

Re: Can you avoid taxes by linvg in three or more countries?
 

Of course it could end up with several countries claiming that you are tax resident there and you end up with bills from all of them

Re: Can you avoid taxes by linvg in three or more countries?
 

Optimal outcome :thumbsup:

Re: Can you avoid taxes by linvg in three or more countries?
 

Hola,

The answer is in theory, Yes, you can; however there several practicalities to be over come; Remember you will need a TIE or similar to remain within the EU. You may need to prove the number of days you were in each country
Davexf

Re: Can you avoid taxes by linvg in three or more countries?
 

The problem with the 'plan' is that it's entire purpose is tax evasion, which is illegal probably everywhere, whereas properly planned tax avoidance isn't.

Sooner or later somebody will come knocking and when they do it will always be down to you to prove whatever you may claim, not for tax authorities to disprove.