Citizens are taxed in a number of different ways. We are taxed when we earn. We are taxed when we spend. We are taxed when we die.
Its been said that only two thing in life are certain: death, and taxes.
Tax has become an increasingly complicated and intricate affair as individuals and businesses seek to avoid taxes which is completely legal.
Courts have repeatedly ruled that tax evasion is a crime. But that tax avoidance isn’t. It’s well within your rights to pay only the amounts required by law, and nothing more.
Most countries (except the US and Eritrea) tax their subjects on a residential basis. This means that if you change your residency, it’s possible to change your tax status.
There are mainly two legal strategies that you can adopt so that you can pay zero tax based on residency:
- Become a resident of a tax free country that does not impose income, dividends and capital gains taxes, then move that income from the corporate to the personal level, tax-free.
- Become a resident of a territorial tax country that imposes only income taxes and other taxes on the income you earn within its borders (and that doesn’t have controlled foreign corporation (CFC) law, so you can retain profits within a corporation outside its borders, legally.
Compare jurisdictions to immigrate and get tax residency at residencies.io.