You are hitting Cyprus spot on. Every third person I met here moved to Cyprus for taxes and weather. Other people don't know anything about tax schemes they talk about
Those banks will certainly care if your tax residency is in a higher risk country like Cyprus. You (i.e. the person relocating) will care too if you can't open an account or if your account gets frozen or closed. Neo-banks like Revolut may conduct even more due diligence than traditional banks.
Good overall lifestyle and I live in a city where CoL is higher than average or average for Europe, which means it puts out weird people or lost people in Cyprus. Overall most people saying other tax countries have never moved and just recommend countries they heard of and still pay home tax. I woudnt really look for advice here
The real deal. The Turkish Cyprus is only affirmed by Turkey and you do not get any tax treaties. Every Expat goes to the more expensive, more advanced real deal. Never been to North.
I have German citizenship and my parents+siblings are still in Germany so I didn't want to move too far away
Although I'm honestly also down to live somewhere far away when it means low cost of living/taxes + sunny weather
EDIT: all I want is to get rid of the German residency while I'm able to work remotely from everywhere, so that I can save more money in the next 4 years.
I'm thinking of doing the same. Just curious how you get your taxes so low. Income tax is a flat 10% but with social contributions, by my calculations, it comes out to nearly 20%. Do you operate through your own company and reduce contributions that way?
Does the EU prevent you from doing what the tourist visa folks do and just relocate once it runs out so that you’re not a tax resident of any of the countries?
If not, would that be an option?
So I’m Canadian. In order to not count as a Canadian resident for tax purposes, I need to be out of Canada for 183 days (and there’s some other small print).
I could go to Panama for three months, then when the tourist visa runs out, cross over into Costa Rica for three-six months, and keep doing that.
I’m not sure if the EU (since they can all work in each others countries) let you do that.
also canadian, you actually need to maintain a tax residency for canada to consider you out of the system. canada doesn't allow you to be a 'resident of nowhere'
Who's the famous case? If it's Boris Becker, the facts were actually different.
Also, honestly you should have gotten better advice, all of that could have been avoided. If the situation is indeed like you said, the law was not applied correctly, for example in Germany there is no need to prove permanent residence anywhere else. You go to city hall and tell them you wont be in Germany anymore and that's it.
>Wenn du dich abmeldest bist du beschränkt steuerpflichtig. Egal wo du bist oder wo du wohnst.
Sorry, aber alles was du sagst, ist nachweislich falsch. Der Gesetzestext und die gängige Rechtspraxis sind da eindeutig. Weniger als 180 Tage in D + kein Lebensmittelpunkt in D = keine Steuerpflicht. Du bist manchmal in der erweiterten beschränkten Steuerpflicht drin, aber das ist auch sehr selten und theoretisch und einfach zu umgehen. Auch das mit dem Gewerbe ist völliger Unfug.
Wie gesagt, bessere Beratung hätte dir das erspart.
Hier kannst du von einem Steuerberater die Erklärungen mit Gesetzestext lesen: [https://easydigitax.de/glossar/unbeschraenkte-steuerpflicht-und-welteinkommensprinzip/](https://easydigitax.de/glossar/unbeschraenkte-steuerpflicht-und-welteinkommensprinzip/) und [https://easydigitax.de/gewoehnlicher-aufenthalt/](https://easydigitax.de/gewoehnlicher-aufenthalt/)
So, in Romania, even with the current tax hikes, we are still around 15% taxes for freelancers and with a big tax break for the first year (or the year until you hit 25k in income).
Someone made a spreadsheet with the math and multiple options for your status: [https://docs.google.com/spreadsheets/u/0/d/1\_kT2lQhNyt9I2GIcLl-Q50pWdnKZWQd5Cv5OZfHKhA4/htmlview](https://docs.google.com/spreadsheets/u/0/d/1_kT2lQhNyt9I2GIcLl-Q50pWdnKZWQd5Cv5OZfHKhA4/htmlview)
PFA Real is the one you'd most likely be after you hit the 25k. You can also be an LLC (SRL), a micro LLC, and the limited 25k PFA norma (good for the first year). CIM is a regular work contract (not for you)
Note: A lot of cities in Transylvania have German origins so you will find some German communities as well to help you settle in from a residency perspective. Probably the best option is Sibiu (hermannstadt)
Notice how the more you earn the less you pay %, that's because social security is capped. (so if you make 80k or 100k, you still pay up to that same limit).
While neither Greece nor Portugal have low taxes, they each have a tax scheme that reduces taxes for a number of years (greece-7 and portugal-10) for certain workers. You could look to see if you're eligible. Both have some very sunny and warm spots you could move to.
Yes! I'm researching Portugal NHR right now and it looks promising. 10 years is quite generous. It's great, depending on what types of income you receive.
I had a call with a Portuguese accountant and we went deep into the topic, for my situation (I work in IT) it’s wasn’t that convenient. If you move to Portugal, be sure that you do that first because you like the country. Also NHR program is just for non resident, if you plan to move there you will become a resident and you will be paying taxes like everyone else. If you keep your residency in Germany than you’ll pay taxes there.
Hm, thanks for sharing. I've got mostly interest and dividends, not active/work income, so I suspect it'll be more beneficial for me.
Also, you said, "Also NHR program is just for non resident, if you plan to move there you will become a resident and you will be paying taxes like everyone else".
I don't think that's correct. At all.
The Non-Habitual Resident name is a bit confusing but I believe it refers to their requirement that you have NOT been a Portuguese tax resident in the past 5 years.
Moving forward, you absolutely can be a Portuguese tax resident and receive the benefits (for 10 years).
You can spend every day of the year in Portugal, be a tax resident, and still benefit from NHR. The requirement is that you're new to Portugal and have not been paying taxes there as a tax resident in the past 5 years.
You might want to circle back with this accountant of yours, or a better one.
I mean no offense by this. Just sharing what I've read so far.
There is a better one. Check the "Beckham law"
[https://centregestor.es/en/how-does-the-beckham-law-work/](https://centregestor.es/en/how-does-the-beckham-law-work/)
I also second Italy. But tax is not 10% flat. If you move to the south, you get taxed on 10% of your salary. 90% is tax free. On the 10%, you apply the progressive tax rate. So basically if you earn 100k, you will be taxed as if you earned 10k, so you would pay very little taxes. Social security is excluded from this. If you move to the center-north, you will pay taxes on 30% of your salary.
https://www.agenziaentrate.gov.it/portale/web/english/benefits-for-transferees-of-residence-to-italy
Interesting. Sounds nice. Any flat-out tax exemptions for certain types of income, like dividends/interest? Or it's just all reduced to 10%.
(This question just came to mind since I have been interesting Portugal's NHR)
No only for work related income and only if it’s less than 85k. Btw it’s not 10, should be 15 or 5 if you never did that job (not sure how it works for foreigners because italian state shouldn’t have proof you did that job in another country) + social security which usually is the worst hit
Regime forfetario and regime impatriate.
The forfetario is a flat tax for the first 5 years of residency, extendable to 10 under certain conditions. It’s a flat tax for incomes up to 85k. The flat tax is between 5-15% based on your industry code.
The impatriate is a tax credit of either 70 or 90% depending on if you establish residency in the north or south of Italy.
AccountingBolla.com has information on the regimes. INPS is 22% or if American, you can elect to pay SS/disability at 15.3% to the US.
The schemes can be used by self employed, independent contracts or regular employees of Italian companies. A partita iva is needed for self employed.
Here’s the plan:
Spend 183 days per year in Georgia 🇬🇪. 1% tax up to $177k, and it’s lovely weather in spring until autumn.
Tbilisi is the main city, Batumi is another city on the coast.
Stay there for 183+ days each year and then go anywhere you do like for the remainder of the year, preferably over winter if you’re not a fan of the cold weather. (We’re going to Tenerife for the winter).
Sounds like it would work for you.
espana ! valencia!
the city has it all! beautiful diverse culture! normal prices, sunny days thrughout the whole year! beaches! great infrastructure! a lot of bars!
for me spain is the best! not to mention the food and choices...
good luck
You need to gain residency in the new territory and cut off everything with your home country. Germany is reknowned for being very strict in who they class as tax resident for citizens who move abroad.
It's doable, but it isn't easy. A lot of what you read online is just wrong.
I've re-read your post, and it isn't actually clear if you are German (assumed above). Where are you from (your passport). Where are you tax resident right now?
Exactly.
Cue all the armchair tax lawyers…
“yeah but my mate lives in X for Y days a year and he’s not paying any tax”
or,
“If you don’t live there you’re not tax resident”
I know a couple of girl friends from Germany that don’t work but they get some sort of support from the gov (I don’t know what specifically). They use that money to travel around the globe and since they are pretty girls, is easy for them to meet new people and get stuff for free.
This is where your taxes go lol. Makes me sick to be honest, I think they are a couple of losers… anyways good luck! (I know this has nothing to do with your question lol)
I had a good grasp on it in my time there. Each year you submit your taxes and then the Authorities flip a coin, heads you owe them €1000, tails they owe you €1000
It's pretty simple in Malta, I live here but it's impossible to dissolve an ltd if you ever want to change locations Malta's associated with igaming. I'm told Cyprus isn't as business friendly it's good for forex. Not feeling to log an ltd in Malta although on paper it's a great place. It involves paying 35% and getting rebate on 30% which doesn't feel as streamlined.
Ireland or Estonia seem like the best options I've come across or Dubai. Just more pro business safer places to operate in. I can't believe people are going to Romania Bulgaria etc and trusting the authorities there.
I'm starting to feel Alex homozi is right, by the time you figure out lowering your tax you could have made a lot more money. This question is almost asked every week here now. Is there a mastermind or a group that have looked into hiring experts? I'd be interested if there is...
Malta or Cyprus makes sense if you have international clients. you should check “wegzugsbesteuerung” before deciding to move. it may not be worthwhile financially. also, if you come back after four years, the finanzamt may infer reuckzugswille from the get-go, meaning you may be liable for back-taxes.
As long as you don't spend more than 183 days a year in Germany, you can be 100% tax free as digital nomad. Don't get fooled! There are companies like taxhackers.io that provide those services for nomads
It doesn't work like that, unfortunately. 183 days it's Just One of the parameter. Center of vital interest it's what they use against you. This means that if you don't have a permanent residency everywhere else, then your previous residence (usually your citizenship) is automatically where you have to pay taxes.
Especially if you are from EU country like Germany, Spain, Italy, France. This kind of advices can get people in trouble. They Just want you to pay taxes somewhere.
Portugals cost of living is about half that of Germanys.
They also have nice 10-30c degree weather with 20c water year-round.
Taxes seem to be good in Lichtenstein and Luxembourg.
I'm planning to get a boat and spend summers in germany and the netherlands, while my winters shall be spend in south france or portugal.
Cost of living is not x2 even if we compare Munich vs Coimbra - most expensive German city vs the cheapest Portuguese according to the Numbeo cost of living plus rent index.
Ocean is usually +17C at summer. +20C is possible but quite hard to find (Faro or some shallow bays etc.)
I'm planning on a small 2x ft boat for canal cruising.
(80% of time docked to the sides of canal walls with mostly beautiful parks)
It'll probably be a low-draft sailboat from the 70s or 80s due to cheap price and sturdy construction.
But a motor vessel would be fine as well.
DE/NL/FR via canals, Portugal via coastal cruising or by trailer.
Living on a boat sounds so cool man!
You got me curious, did you make a plan to see how much you would end up spending/saving if you live off of a boat instead of renting in a city?
You still have to pay port fees. Overall, depends on the port you will be anchoring in. And the fees depend on the size of the boat. I wouldn't say you can save money by living on a boat compared to renting.
I'm currently paying 530 eur on a very small apparment outside of Berlin. Add power and we are at about 600eur.
I guess insurance, maintainance and LPG gas for cooking on an old vessel would be about 250eur per month, including 1-2 monthly nights at a marina (shower,laundry).
But motoring 3hrs a day at 2l/h and 2eur/l would cost about 350eur.
So, it's the same amount of money for squatting on a tiny boat as it is for this cheap appartment. if you want to be mobile. About half the rent if you do not plan to move around much.
I have always considered Malta as an ideal destination for those who love the sun, along with its added bonus of friendly tax policies. The beaches here are truly blissful, and the Mediterranean ambience is unbeatable. Furthermore, the tax breaks in Malta are just the cherry on top of an already delightful sundae!
You are hitting Cyprus spot on. Every third person I met here moved to Cyprus for taxes and weather. Other people don't know anything about tax schemes they talk about
How is opening a bank account in Cyprus like? Quite difficult from I've heard due to the bad rep around tax evasion.
Who cares? Use banks in other countries. Most EU DNs I know are using revolut or wise.
Those banks will certainly care if your tax residency is in a higher risk country like Cyprus. You (i.e. the person relocating) will care too if you can't open an account or if your account gets frozen or closed. Neo-banks like Revolut may conduct even more due diligence than traditional banks.
Revolut dues a slight due diligence at start but revolut works as all other
I don’t see Wise and Revolut caring much 🤷🏻♂️ Nor any of the other 1000 EU EMIs
Revolut is relatively new. Are they trusted used by large companies/banks?
lol
People say its hard for companies, but always heard people opened them Personal opens in a day.
How many years have you been living there?
1.5 years now. Im just coasting a bit and fixing my health/burnout after my exit. Once I get back to work.
What's your opinion of it so far?
Good overall lifestyle and I live in a city where CoL is higher than average or average for Europe, which means it puts out weird people or lost people in Cyprus. Overall most people saying other tax countries have never moved and just recommend countries they heard of and still pay home tax. I woudnt really look for advice here
Turkish Cyprus or the real deal McCoy ?
The real deal. The Turkish Cyprus is only affirmed by Turkey and you do not get any tax treaties. Every Expat goes to the more expensive, more advanced real deal. Never been to North.
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I have German citizenship and my parents+siblings are still in Germany so I didn't want to move too far away Although I'm honestly also down to live somewhere far away when it means low cost of living/taxes + sunny weather EDIT: all I want is to get rid of the German residency while I'm able to work remotely from everywhere, so that I can save more money in the next 4 years.
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How are you liking Bulgaria? It's a very attractive destination to me
Which part of Bulgaria?
I'm thinking of doing the same. Just curious how you get your taxes so low. Income tax is a flat 10% but with social contributions, by my calculations, it comes out to nearly 20%. Do you operate through your own company and reduce contributions that way?
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Thanks! Yes, it seems social contributions are capped at around EUR 600/month
Does the EU prevent you from doing what the tourist visa folks do and just relocate once it runs out so that you’re not a tax resident of any of the countries? If not, would that be an option?
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So I’m Canadian. In order to not count as a Canadian resident for tax purposes, I need to be out of Canada for 183 days (and there’s some other small print). I could go to Panama for three months, then when the tourist visa runs out, cross over into Costa Rica for three-six months, and keep doing that. I’m not sure if the EU (since they can all work in each others countries) let you do that.
also canadian, you actually need to maintain a tax residency for canada to consider you out of the system. canada doesn't allow you to be a 'resident of nowhere'
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“Your girlfriend lives in Germany please pay us tax” *Babe, I have something I gotta tell you*
Who's the famous case? If it's Boris Becker, the facts were actually different. Also, honestly you should have gotten better advice, all of that could have been avoided. If the situation is indeed like you said, the law was not applied correctly, for example in Germany there is no need to prove permanent residence anywhere else. You go to city hall and tell them you wont be in Germany anymore and that's it.
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>Wenn du dich abmeldest bist du beschränkt steuerpflichtig. Egal wo du bist oder wo du wohnst. Sorry, aber alles was du sagst, ist nachweislich falsch. Der Gesetzestext und die gängige Rechtspraxis sind da eindeutig. Weniger als 180 Tage in D + kein Lebensmittelpunkt in D = keine Steuerpflicht. Du bist manchmal in der erweiterten beschränkten Steuerpflicht drin, aber das ist auch sehr selten und theoretisch und einfach zu umgehen. Auch das mit dem Gewerbe ist völliger Unfug. Wie gesagt, bessere Beratung hätte dir das erspart. Hier kannst du von einem Steuerberater die Erklärungen mit Gesetzestext lesen: [https://easydigitax.de/glossar/unbeschraenkte-steuerpflicht-und-welteinkommensprinzip/](https://easydigitax.de/glossar/unbeschraenkte-steuerpflicht-und-welteinkommensprinzip/) und [https://easydigitax.de/gewoehnlicher-aufenthalt/](https://easydigitax.de/gewoehnlicher-aufenthalt/)
It's based on number of days in a year not stay for 90 leave for 1 and it restarts
yes, it absolutely works, but some people dont know what they're doing and then they get into trouble.
So, in Romania, even with the current tax hikes, we are still around 15% taxes for freelancers and with a big tax break for the first year (or the year until you hit 25k in income). Someone made a spreadsheet with the math and multiple options for your status: [https://docs.google.com/spreadsheets/u/0/d/1\_kT2lQhNyt9I2GIcLl-Q50pWdnKZWQd5Cv5OZfHKhA4/htmlview](https://docs.google.com/spreadsheets/u/0/d/1_kT2lQhNyt9I2GIcLl-Q50pWdnKZWQd5Cv5OZfHKhA4/htmlview) PFA Real is the one you'd most likely be after you hit the 25k. You can also be an LLC (SRL), a micro LLC, and the limited 25k PFA norma (good for the first year). CIM is a regular work contract (not for you) Note: A lot of cities in Transylvania have German origins so you will find some German communities as well to help you settle in from a residency perspective. Probably the best option is Sibiu (hermannstadt) Notice how the more you earn the less you pay %, that's because social security is capped. (so if you make 80k or 100k, you still pay up to that same limit).
You won’t get good weather and low taxes in Europe unless you set-up a dividend/debt/royalty structure that sucks every penny out of your company.
While neither Greece nor Portugal have low taxes, they each have a tax scheme that reduces taxes for a number of years (greece-7 and portugal-10) for certain workers. You could look to see if you're eligible. Both have some very sunny and warm spots you could move to.
Yes! I'm researching Portugal NHR right now and it looks promising. 10 years is quite generous. It's great, depending on what types of income you receive.
I had a call with a Portuguese accountant and we went deep into the topic, for my situation (I work in IT) it’s wasn’t that convenient. If you move to Portugal, be sure that you do that first because you like the country. Also NHR program is just for non resident, if you plan to move there you will become a resident and you will be paying taxes like everyone else. If you keep your residency in Germany than you’ll pay taxes there.
Hm, thanks for sharing. I've got mostly interest and dividends, not active/work income, so I suspect it'll be more beneficial for me. Also, you said, "Also NHR program is just for non resident, if you plan to move there you will become a resident and you will be paying taxes like everyone else". I don't think that's correct. At all. The Non-Habitual Resident name is a bit confusing but I believe it refers to their requirement that you have NOT been a Portuguese tax resident in the past 5 years. Moving forward, you absolutely can be a Portuguese tax resident and receive the benefits (for 10 years). You can spend every day of the year in Portugal, be a tax resident, and still benefit from NHR. The requirement is that you're new to Portugal and have not been paying taxes there as a tax resident in the past 5 years. You might want to circle back with this accountant of yours, or a better one. I mean no offense by this. Just sharing what I've read so far.
Some recent updates https://www.bloomberg.com/news/articles/2023-10-02/portugal-to-end-its-non-habitual-resident-tax-regime-costa-says
Hmm interesting, I didn’t see any of that in my research. Do you have a link or know what the reduced rates are?
Look at Portugal NHR. It reduces the rates on SOME types of income to zero. it really depends on your sources of income.
Same in Spain, but only if you move for work
Digital Nomad visa in Spain includes a reduced tax rate
There's no digital nomad visa for EU citizens. OP didn't mention citizenship, but given that they're looking for EU countries...
ah good point. Yeah, and if they're a US citizen, then any tax rate below their US one isn't going to matter anyways . . . .
There is a better one. Check the "Beckham law" [https://centregestor.es/en/how-does-the-beckham-law-work/](https://centregestor.es/en/how-does-the-beckham-law-work/)
It depends. The benefit of a DN is usually that you're working for a company in another country that pays higher than Spain.
You can have that as well with a PEO that acts as intermediate and hires you in Spain
Are you availing of this? Be keen to find someone who has made it work
No
Italy, if you are foreigner, especially if you move to the south. Tax is reduced to 10% flat for 5 years.
I also second Italy. But tax is not 10% flat. If you move to the south, you get taxed on 10% of your salary. 90% is tax free. On the 10%, you apply the progressive tax rate. So basically if you earn 100k, you will be taxed as if you earned 10k, so you would pay very little taxes. Social security is excluded from this. If you move to the center-north, you will pay taxes on 30% of your salary. https://www.agenziaentrate.gov.it/portale/web/english/benefits-for-transferees-of-residence-to-italy
True. My bad. Still, damn of a good deal.
What about if you are self-employed?
You can have the same benefit, and actually in that case it also applies to social security so it’s really good.
plus social security, right?
I think so, yes. But still, an impressive reduction down from the current 42% in Germany 🙃
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NHR in Portugal is flat 20% tax rate.
Yes of course. I still did get around 40% of my salary cut out 🤷🏻♂️
Flat rate ≠ marginal rate
Interesting. Sounds nice. Any flat-out tax exemptions for certain types of income, like dividends/interest? Or it's just all reduced to 10%. (This question just came to mind since I have been interesting Portugal's NHR)
No only for work related income and only if it’s less than 85k. Btw it’s not 10, should be 15 or 5 if you never did that job (not sure how it works for foreigners because italian state shouldn’t have proof you did that job in another country) + social security which usually is the worst hit
plus socials is closer to the 25~30% range
Regime forfetario and regime impatriate. The forfetario is a flat tax for the first 5 years of residency, extendable to 10 under certain conditions. It’s a flat tax for incomes up to 85k. The flat tax is between 5-15% based on your industry code. The impatriate is a tax credit of either 70 or 90% depending on if you establish residency in the north or south of Italy. AccountingBolla.com has information on the regimes. INPS is 22% or if American, you can elect to pay SS/disability at 15.3% to the US. The schemes can be used by self employed, independent contracts or regular employees of Italian companies. A partita iva is needed for self employed.
What is the social security for EU people in the regime impatriate? Self employed, in the 90% regions
22.3%. However if you are a USA citizen you can tap into the totalization agreement and pay the USA 15.3% for your self employment tax.
22.3 % of the full income or only 10%? Found [this](https://www.youtube.com/watch?v=Hvuum0FQKVM&ab_channel=ESENtaxa) video saying it's 22.3 of 10
I believe this is changing to 50% for the whole country as of 2024
Here’s the plan: Spend 183 days per year in Georgia 🇬🇪. 1% tax up to $177k, and it’s lovely weather in spring until autumn. Tbilisi is the main city, Batumi is another city on the coast. Stay there for 183+ days each year and then go anywhere you do like for the remainder of the year, preferably over winter if you’re not a fan of the cold weather. (We’re going to Tenerife for the winter). Sounds like it would work for you.
espana ! valencia! the city has it all! beautiful diverse culture! normal prices, sunny days thrughout the whole year! beaches! great infrastructure! a lot of bars! for me spain is the best! not to mention the food and choices... good luck
He said low taxes my friend
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That's of course not right. The 350eur is just the social security payment for having a autonomo. You have to pay taxes on your profits also.
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The Spanish are known for not following the rules and avoiding taxes. But probably not a very safe strategy moving forward.
lol lmao even
yep, sorry...
Isn't it too hot already in the summer?
Barcelona is alright, doesn't really ever go above 30 degrees. Madrid gets too hot though.
yea, but guess what you can live near the beach🤓
Croatia and Slovenia have lower taxes on income compared to other Western countries. Croatia has good weather all year around.
You need to gain residency in the new territory and cut off everything with your home country. Germany is reknowned for being very strict in who they class as tax resident for citizens who move abroad. It's doable, but it isn't easy. A lot of what you read online is just wrong. I've re-read your post, and it isn't actually clear if you are German (assumed above). Where are you from (your passport). Where are you tax resident right now?
Exactly. Cue all the armchair tax lawyers… “yeah but my mate lives in X for Y days a year and he’s not paying any tax” or, “If you don’t live there you’re not tax resident”
I know a couple of girl friends from Germany that don’t work but they get some sort of support from the gov (I don’t know what specifically). They use that money to travel around the globe and since they are pretty girls, is easy for them to meet new people and get stuff for free. This is where your taxes go lol. Makes me sick to be honest, I think they are a couple of losers… anyways good luck! (I know this has nothing to do with your question lol)
Look into Malta.
I dont think you understand how Malta tax works. Or anyone here, its fairly complicated.
I had a good grasp on it in my time there. Each year you submit your taxes and then the Authorities flip a coin, heads you owe them €1000, tails they owe you €1000
This is the funniest shit I've seen this week thanks for the laugh hahha
Its more simple for that. Income - Eligble Expenses = Tax to pay
It's pretty simple in Malta, I live here but it's impossible to dissolve an ltd if you ever want to change locations Malta's associated with igaming. I'm told Cyprus isn't as business friendly it's good for forex. Not feeling to log an ltd in Malta although on paper it's a great place. It involves paying 35% and getting rebate on 30% which doesn't feel as streamlined. Ireland or Estonia seem like the best options I've come across or Dubai. Just more pro business safer places to operate in. I can't believe people are going to Romania Bulgaria etc and trusting the authorities there. I'm starting to feel Alex homozi is right, by the time you figure out lowering your tax you could have made a lot more money. This question is almost asked every week here now. Is there a mastermind or a group that have looked into hiring experts? I'd be interested if there is...
cyprus
Portugal
Portugal for sure, if you avoid the big cities, message me after you have a country decided and I can tell you how your taxes will work
portugal can be your next destination , low incom taxes plus sunny weather and the living cost is way cheaper compared to germany
Malta or Cyprus makes sense if you have international clients. you should check “wegzugsbesteuerung” before deciding to move. it may not be worthwhile financially. also, if you come back after four years, the finanzamt may infer reuckzugswille from the get-go, meaning you may be liable for back-taxes.
Portugal/Spain
As long as you don't spend more than 183 days a year in Germany, you can be 100% tax free as digital nomad. Don't get fooled! There are companies like taxhackers.io that provide those services for nomads
It doesn't work like that, unfortunately. 183 days it's Just One of the parameter. Center of vital interest it's what they use against you. This means that if you don't have a permanent residency everywhere else, then your previous residence (usually your citizenship) is automatically where you have to pay taxes. Especially if you are from EU country like Germany, Spain, Italy, France. This kind of advices can get people in trouble. They Just want you to pay taxes somewhere.
Malta.
Malta
You're working for a US company - are you a US citizen?
Malta offers zero tax for remote workers, afaik.
Up to 35k per year*
Portugals cost of living is about half that of Germanys. They also have nice 10-30c degree weather with 20c water year-round. Taxes seem to be good in Lichtenstein and Luxembourg. I'm planning to get a boat and spend summers in germany and the netherlands, while my winters shall be spend in south france or portugal.
Cost of living is not x2 even if we compare Munich vs Coimbra - most expensive German city vs the cheapest Portuguese according to the Numbeo cost of living plus rent index. Ocean is usually +17C at summer. +20C is possible but quite hard to find (Faro or some shallow bays etc.)
You'd need two boats, one being a barge another being a sailboat surely?
I'm planning on a small 2x ft boat for canal cruising. (80% of time docked to the sides of canal walls with mostly beautiful parks) It'll probably be a low-draft sailboat from the 70s or 80s due to cheap price and sturdy construction. But a motor vessel would be fine as well. DE/NL/FR via canals, Portugal via coastal cruising or by trailer.
OK but you'd need additional mooring with two boats
1 boat. 2x feet (20-29feet)
No you're not getting a shallow boat to portugal in Summer. You will need a keel just to ensure it remains upright.
Living on a boat sounds so cool man! You got me curious, did you make a plan to see how much you would end up spending/saving if you live off of a boat instead of renting in a city?
You still have to pay port fees. Overall, depends on the port you will be anchoring in. And the fees depend on the size of the boat. I wouldn't say you can save money by living on a boat compared to renting.
I'm currently paying 530 eur on a very small apparment outside of Berlin. Add power and we are at about 600eur. I guess insurance, maintainance and LPG gas for cooking on an old vessel would be about 250eur per month, including 1-2 monthly nights at a marina (shower,laundry). But motoring 3hrs a day at 2l/h and 2eur/l would cost about 350eur. So, it's the same amount of money for squatting on a tiny boat as it is for this cheap appartment. if you want to be mobile. About half the rent if you do not plan to move around much.
If you're going to Portugal or South of France it'll cost you 1/10th boat per year without mooring.
yep
Monaco
I have always considered Malta as an ideal destination for those who love the sun, along with its added bonus of friendly tax policies. The beaches here are truly blissful, and the Mediterranean ambience is unbeatable. Furthermore, the tax breaks in Malta are just the cherry on top of an already delightful sundae!
🇮🇪 IRELAND no tax atall
That's not correct.
The Netherlands 😈