Where Am I tax resident?

[Isedo]

Hi folks, complicated question here. So it's been 10 years now I'm travelling a lot. I do not have a fixed rent in any country and I'm out of the country where I'm resident for more than 183 days a year. I own an Ltd in UK and a Company in Lituania. I live few years in Thailand, Brasil, Poland, etc because my job allowed me to work with my laptop which is great.

I was wandering where I'm tax resident as person. Any tip on how to work it out?

 

[The Byre]

An Irish architect who lived in Germany but worked for a London architecture company once asked me that question. According to his employer, he was not in the UK but in Germany and was therefore not liable for UK income tax.

According to UK law, you pay tax there where you do the work. According to German law, you pay tax at the registered office of the employer (with some exceptions, of which 'architect' was not one). I told him to ask the German tax office (Finanzamt).

So he toddled down to his local Finanzamt and asked the official behind the desk if he was liable for German income tax.

"It is of no interest to us what an Englishman earns in England." was the reply.

He was about to argue that he was in fact Irish when he spotted the silver lining within that dark cloud of being called 'English' and he held his beak shut. For safety's sake, he banked his income in Luxembourg and kept his beak firmly closed for the next 25 years.

 

[Isedo]

An Irish architect who lived in Germany but worked for a London architecture company once asked me that question. According to his employer, he was not in the UK but in Germany and was therefore not liable for UK income tax.

According to UK law, you pay tax there where you do the work. According to German law, you pay tax at the registered office of the employer (with some exceptions, of which 'architect' was not one). I told him to ask the German tax office (Finanzamt).

So he toddled down to his local Finanzamt and asked the official behind the desk if he was liable for German income tax.

"It is of no interest to us what an Englishman earns in England." was the reply.

He was about to argue that he was in fact Irish when he spotted the silver lining within that dark cloud of being called 'English' and he held his beak shut. For safety's sake, he banked his income in Luxembourg and kept his beak firmly closed for the next 25 years.

This is one of the most epic and clear answers I ever received on this topic. Thanks mate.

 

[Deleted member 335660]

Yes a lovely answer by @The Byre .

I would just make some minor points.

I bought a property in Spain and you have to pay tax on any income earned in Spain. We then moved to Spain and as I was UK pensioner could take advantage of their health system.

So it may be prudent to consider how you will fund pensions and health when your less able to work. EU pensions tend to be better than UK.

 

[JEREMY HAWKE]

If your in business I would aim for an EU base

 

[Spur Support Services]

Each country has it's residency laws which may mean that your worldwide income becomes taxable in that country.

Nomad tax rules for those constantly moving between jurisdictions are one of those areas that I carefully try to keep away from, but if you are constantly moving then you should have a look at them.

When considering "The Byres" response, consider that if you aren't contributing to the country you live in then you may also be missing out on benefits and support, that you would otherwise be entitled to, whether this be pensions, unemployment or other aspects.

Talk to a tax advisor if you a settled in one particular country.

 

[Kitsunae]

It’s not as simple as 183 days - it depends on your travel each year and you need to check all the rules in each country you live in. You can possibly not be tax resident in any country. (Your companies of course can’t.)

 

[Isedo]

Each country has it's residency laws which may mean that your worldwide income becomes taxable in that country.

Nomad tax rules for those constantly moving between jurisdictions are one of those areas that I carefully try to keep away from, but if you are constantly moving then you should have a look at them.

When considering "The Byres" response, consider that if you aren't contributing to the country you live in then you may also be missing out on benefits and support, that you would otherwise be entitled to, whether this be pensions, unemployment or other aspects.

Talk to a tax advisor if you a settled in one particular country.

THis is why I'm asking. I feel like i want to be part of "something" but can't understand of what since I'm really moving all the time for 10 years now.

 

[Kitsunae]

THis is why I'm asking. I feel like i want to be part of "something" but can't understand of what since I'm really moving all the time for 10 years now.

This is a different question - long term financial planning. Tax residency is only part of that. You really need a financial advisor.

 

[Isedo]

This is a different question - long term financial planning. Tax residency is only part of that. You really need a financial advisor.

Yeah I guess yes. This is why I started asking my self when I'm tax resident...ok thanks folks for your positive point of view and help

 

[UK Contractor Accountant]

What Country were you last resident and had ecomic ties such as bank accounts register with Doctors surgery etc.

 

[The Byre]

THis is why I'm asking. I feel like i want to be part of "something" but can't understand of what since I'm really moving all the time for 10 years now.

Given that you are Russian, perhaps you should pick somewhere where the people are similar to Russians and where you will feel at home. As my aunt, grandmother and cousin were/are Russian and I've met a few Russians along the way, I have a sketchy idea of what Russians are usually like.

Charming, friendly, very resourceful, loyal, hard-working, drink too much and are completely mad.

Most nationalities fulfill three or four of those seven characteristics. For example, Germans are loyal, hard-working, they drink too much, but mad? No. A very conservative lot are the Germans. The English fail on the hard-working and mad qualities. I tried working with Italians and gave up. They and the Spanish are just chaotic. Charming, but disfunctional!

And then it dawned on me! Of course! I know the very place for you! A bonkers tax system means that there are loads of tax loopholes too! The very place! And unlike most places like England and Germany, not overcrowded either. OK, it's not empty like Karelia, but the countryside is nice.

They are charming, friendly, the weather makes them resourceful, like the Russians, they are loyal once they know you, they work hard and they play hard, they definitely drink too much and they are all completely eccentric.

The Highlands of Scotland!