Can you avoid taxes by linvg in three or more countries?
Apr 29th 2023 | 10:37 pm
#16
Joined: Jun 2006
Posts: 11,231
From: Granada Costa
Re: Can you avoid taxes by linvg in three or more countries?
I was in this situation some years ago. I was about to leave the UK and spend 5 years sailing my yacht around the Mediterranean and beyond. I contacted HMRC to see if I could be classed as non tax resident as I would not be planning to return to the UK. Their succinct answer was " We will not let you off our hook until you can prove that you are on someone else's hook".
Incidentally, UK tax residency rules are draconian and very complicated. It is possible to be deemed tax resident after spending as few as 16 days in the country.
https://www.gov.uk/hmrc-internal-man...asis/rdrm11510.
It is also often forgotten that any income arising in the UK is taxable in the UK irrespective of tax residency.
Incidentally, UK tax residency rules are draconian and very complicated. It is possible to be deemed tax resident after spending as few as 16 days in the country.
https://www.gov.uk/hmrc-internal-man...asis/rdrm11510.
It is also often forgotten that any income arising in the UK is taxable in the UK irrespective of tax residency.
Apr 29th 2023 | 10:59 pm
#17
BE Enthusiast
Joined: Dec 2008
Posts: 835
Re: Can you avoid taxes by linvg in three or more countries?
Even if that hook is a zero tax location, i.e. if you become resident in a location that is zero tax you are OK, but if you are not resident anywhere you may have a problem with HMRC.
Apr 30th 2023 | 3:12 am
#18
Thread Starter
BE Enthusiast
Joined: Dec 2003
Posts: 726
From: Boston / Guipúzcoa
Re: Can you avoid taxes by linvg in three or more countries?
I was in this situation some years ago. I was about to leave the UK and spend 5 years sailing my yacht around the Mediterranean and beyond. I contacted HMRC to see if I could be classed as non tax resident as I would not be planning to return to the UK. Their succinct answer was " We will not let you off our hook until you can prove that you are on someone else's hook".
Incidentally, UK tax residency rules are draconian and very complicated. It is possible to be deemed tax resident after spending as few as 16 days in the country.
https://www.gov.uk/hmrc-internal-man...asis/rdrm11510.
It is also often forgotten that any income arising in the UK is taxable in the UK irrespective of tax residency.
Incidentally, UK tax residency rules are draconian and very complicated. It is possible to be deemed tax resident after spending as few as 16 days in the country.
https://www.gov.uk/hmrc-internal-man...asis/rdrm11510.
It is also often forgotten that any income arising in the UK is taxable in the UK irrespective of tax residency.
Apr 30th 2023 | 3:31 am
#19
BE Enthusiast
Joined: Dec 2008
Posts: 835
Re: Can you avoid taxes by linvg in three or more countries?
The US is even worse. US citizens are taxed on their worldwide income no matter where they live. I have a US citizen friend who has lived in France for the past 20 or so years. He still has to file a US tax return every year. I think with the tax treaties he doesn't actually pay double taxes, though. I'm not sure of the details of that.
Apr 30th 2023 | 4:01 am
#20
Lost in BE Cyberspace
Joined: Feb 2013
Posts: 6,255
Re: Can you avoid taxes by linvg in three or more countries?
The US is even worse. US citizens are taxed on their worldwide income no matter where they live. I have a US citizen friend who has lived in France for the past 20 or so years. He still has to file a US tax return every year. I think with the tax treaties he doesn't actually pay double taxes, though. I'm not sure of the details of that.
Apr 30th 2023 | 4:48 am
#21
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Joined: Mar 2019
Posts: 1,010
Re: 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.
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.
You can spend four months here and there in various different places in a motorhome or otherwise (if France, Spain, Portugal etc you would need an EU passport to stay that long) but HMRC would expect you to submit a tax return and pay your tax in the UK. As far as I know, it's always been like than.
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