Tax havens Countries and the “The three-country strategy”

The world of tax havens is changing rapidly. More and more countries are introducing taxes where there were none before. Nevertheless, there are still ways to legally reduce your tax burden in 2024.

True zero-tax countries, but do you want to spend the rest of your life there?:

Brunei: A sultanate in Borneo with strict Islamic laws and little cultural diversity.

Monaco: A miniature state on the French Riviera with a high cost of living and limited space, and many of its advantages can be achieved more cheaply elsewhere.

The Gulf States: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE offer more freedom than Brunei, but the cost of living can be high.

For most people, the easiest place to travel would be the United Arab Emirates (UAE). But things are changing there too – the UAE has started charging onshore companies a 9% tax, although free zone companies with qualified income are still exempt from tax under certain circumstances.

In short, the UAE is no longer an easy tax-free option. Moving or starting a business there now more than ever requires holistic offshore and tax planning.

It’s not all bad news in Dubai and Abu Dhabi – with proper planning, it’s still possible to pay low taxes in the UAE and enjoy the benefits of a progressive, business-friendly country with all the modern amenities you need.

Caribbean Islands: Bermuda, British Virgin Islands, Cayman Islands, etc. offer beautiful beaches, but also high costs of living and potential hurricanes. Moreover, if you’re going to invest your money and time in a place like Antigua, you’ll need to enjoy the beach life, otherwise you’ll get island collapse.

Pacific archipelago: Vanuatu, the last paradise on earth, is also plagued by hurricanes, but it offers a large number of protected islands.

Please note:

The list of countries without income taxes is getting smaller and smaller. This is due to pressure from the OECD, which is pushing countries to harmonize their taxes. It is therefore not possible to say with complete certainty that all of the countries that do not levy income taxes today will still be tax-free in 10 years. This should be taken into account when considering emigrating.

Changed framework conditions: In some of these countries, such as the UAE, taxes have been introduced in recent years.

Long-term quality of life: Tax havens are not always the best places to live. Consider the climate, culture and infrastructure.

Territorial tax: In many countries (e.g. Portugal, Panama) only local income is taxed. Foreign income may remain tax-free.

Alternative: Living in a country with territorial tax

Territorial tax countries only tax income earned domestically. Foreign income may remain tax-free.

Example: You live in Portugal and have a company in Paraguay. You do not work in Portugal. The income from your company in Paraguay is tax-free in Portugal.

Conditions:

Avoid having a “permanent establishment” in the country: Do not work locally abroad.
Make sure you have the right company structure and accounting.
Consult a tax expert to understand the complex rules of territorial taxation.

Conclusion:

The options for legally saving taxes are varied, but not always easy. Find out more about the respective countries and the applicable tax laws.

Tax havens: Where your money is king?

40 countries offer tax exemption on foreign income!

Costa Rica, Georgia, Gibraltar, Panama, Paraguay, Nicaragua, Namibia, Taiwan, Philippines, Belize, Cuba, Hong Kong, Macau, Malaysia, Dominican Republic, Angola, Bhutan, Botswana, Congo, Djibouti, Lebanon, Marshall Islands, Zambia, Jordan, Micronesia, Palau, Palestine, St. Helena, Syria, Tuvalu, Tokelau, Guatemala, UAE and many more.

But be careful: tax exemption is not always tax-free!

Uruguay and Moldova do not tax foreign income, but they do levy taxes on interest income and dividends from abroad.

Malaysia: tax haven with restrictions

Malaysia is considered a classic territorial tax country: only income earned in the country is subject to tax.

Income from abroad remains tax-free!

But be careful: transfers to your bank account for living expenses are taxed.

Example: If you have USD 2 million in foreign income and USD 200,000 in remittances, you will pay USD 50,000 in taxes (2.5% effective tax rate).

Tax haven with planning

With clever planning, you can legally pay very little tax in Malaysia.

Alternative: tax exemptions

Switzerland offers wealthy foreigners attractive tax exemptions as part of the flat tax.

Thailand: Here you only pay taxes on transferred income that is used for living expenses. Attention: Since 2024, foreign income will also be taxed in Thailand!

Which country is right for you?

Choosing the right location depends on your individual needs.

Factors:

Tax law & system
Cost of living
Infrastructure & quality of life
Travel options
Personal preferences (climate, culture, language)
Expert advice can help you find the optimal tax haven or alternative models such as the territorial tax.

Conclusion: Tax havens are not suitable for everyone!

Find out more and make a conscious decision about where to best tax your money.

With the right strategy, you can significantly reduce your tax burden and protect your assets.

The three-country strategy: Live like a nomad,
save taxes like a pro

The world is your home: The nomad strategy for a free and tax-optimized life

Do you dream of traveling the world and living in the most beautiful places?

With the three-country strategy you can make this dream come true and at the same time significantly reduce your tax burden.

How does it work?

The nomad strategy, also known as the globetrotter strategy, is based on the principle of living in different countries that offer different tax advantages.

The central idea is:

Avoid being a tax resident in one country for more than 90 days per year and you will not pay any taxes there!

The three basic countries:

Choose three attractive countries with low living costs, a pleasant climate and advantageous tax laws.

Possible examples:

Kuala Lumpur (Malaysia): Low cost of living, vibrant metropolis, diverse culture
Tbilisi (Georgia): Beautiful landscape, low taxes, warm hospitality
Bogota (Colombia): Spring climate all year round, diverse activities, exotic cuisine

Your flexible home: Spend around 90 days in each of your base countries. This way you avoid tax liability and at the same time enjoy the advantages of each location.

Important:

Find out exactly about the tax regulations of the respective countries.
Expert advice can help you implement the three-country strategy and choose the optimal base countries.
The three-country strategy: A life full of freedom and opportunities!

The nomad strategy is an attractive option for anyone who wants to lead a free and self-determined life and at the same time optimize their tax burden. With the right planning and implementation, you can make the world your home and enjoy the advantages of different countries.

Conclusion: Tax havens and alternatives – what you should really pay attention to
Tax havens and countries with territorial tax models lure with tempting promises: tax exemption on income, profits and assets! But appearances are often deceptive.

Not every “tax haven” is a paradise. Cost of living can be high, anonymity can be deceptive and tax laws change quickly.

More important than pure tax exemption is finding a strategy that fits your individual needs and life plans.

Here are some things to consider:

Country tax laws: Find out exactly what the tax regulations and possible changes are in the target country.

Cost of living: Compare the cost of living with your budget.

Infrastructure and quality of life: Check the availability of schools, hospitals, etc.

Travel options: How easy is the country to get to?

Personal preferences: Climate, culture and language play an important role.

Type of income: Passive income such as capital gains is easier to optimize than earned income.

Long-term plans: Do you want to settle down permanently or be a nomad?

Expert advice can help you find the right country and develop an individual tax strategy. Tax havens are not a miracle cure. However, with the right planning and strategy, you can significantly reduce your tax burden and protect your assets.

Don’t settle for vague promises. Invest in sound advice and make a smart decision for your future!

GCI UNIT Worldwide:

Your partner for tailor-made tax and lifestyle strategies

Would you like to use the world as your home and enjoy the benefits of different countries?

GCI UNIT Worldwide supports you with expertise and experience in developing an individual strategy that is perfectly tailored to your needs and goals.

GCI UNIT Worldwide is a division of TCME-Group Worldwide, one of the world’s leading professional corporate investment and foreign trade advisory firms, with a total of 17 divisions in various countries and headquartered in Malaysia.

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Another specialty area of full-service consulting is investment opportunity and solutions in Europe, particularly in the Balkans, Africa, Asia, the United Arab Emirates, the Caribbean and the Pacific.

Since 2016, we have been, among other things, an important mentor for various business groups, economists, financial managers, investment advisors, business leaders, lawyers and notaries in the implementation and development of programs as:

YOUR CHANCE FOR A BETTER LIFE

Global Citizenship Investment (GCI) is a global provider of:

Citizenship programs
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Therefore, we are able to identify rare and exceptional opportunities for our clients around the globe, combining, above all, solid investments that lead to the benefits of permanent residence, passport and citizenship in this country.

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If you would like to discuss your internationalization and diversification plans, book a consultation session* or email us at: [email protected]

*A consultation session is a conversation about your portfolio and goals. It is not legal, financial, tax or investment advice.

GCI UNIT Worldwide Group
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Kuala Lumpur 50450, Malaysia
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