Tax Residency for non-U.S.

Discussion in 'Taxes and Accounting' started by rbartell, Mar 10, 2010.

  1. rbartell

    rbartell

    I've tried searching for this online, but it seems like there is so much IRS info + language barriers that I can't find find a lot on tax residency (except for U.S. citizens or foreigners living in the U.S.).

    So here's the hypothetical question:
    If I traded U.S. stocks online, was a citizen of Germany but lived 3 mos in New Zealand, 3 mos in Singapore, 3 mos in the Bahamas, and 3 mos in Hong Kong,
    who would I pay taxes to?
     
  2. moarla

    moarla

    put your residence in a country where you dont pay taxes, you can trvel around how much you like, but important is the residence (with no minimum to stay there)
    Monaco (0%)
    United Kingdom (minimum to stay 90 days/year)
    Malta (~0%)
    Switzerland (lumpsum tax)
    Andorra

    many others outside of europe
     
  3. Bob111

    Bob111

    you should ask german irs,not us. if there is a tax threaty between germany and us-you can pick either one to pay the taxes,but again-if you trying to claim your self as bona fide person-you should consult with german irs\accountant first
     
  4. rbartell

    rbartell

    Thanks.
    The German citizenship was just a hypothetical (substitute any citizenship except U.S. and N. Korea - who tax based on citizenship instead of residency). The example was more to illustrate a scenario where; if you don't really qualify as a resident anywhere, how is your situation treated? Your counterpoint could be that it's all on a case by case basis, but are there any typical rules? Do you have to be considered a resident somewhere (even in an extreme case i.e. if you traveled on a cruise ship out in the ocean all year)?

     
  5. rbartell

    rbartell

    These all have different requirements. For example:
    "To gain residency in Monaco you need to be able to commit yourself to live there for six months a year and as well as having a property deed to show the residency officials a bank certificate from one of Monaco’s banks showing a deposit has been made is also needed."
    http://www.escapeartist.com/OREQ6/Living_In_Monaco.html

    What if you didn't qualify as a resident anywhere?

     
  6. moarla

    moarla

    you can also rent a property.
    Monaco is NOT for poor people :)))
    go to Malta, thats cheap
     
  7. moarla

    moarla

    you have to look at the tax treaties between the countrys where you live and the country from where your passport is. there is explained where you pay taxes.
     
  8. Bob111

    Bob111

    different countries have different laws,but it's doen't really matter..neither residency..what's mater is your citizenship. you may not be resident of whatever countries, but you gotta have a passport,mailing address and citizenship in order to open an individual account. at least at US brokerage firms. then-back to my previous post.

    look for W8 form.either you fill this form or us will tax you @ whatever withholding rate applies.
    bottom line is very simple-you have to report your income somewhere,otherwise-you violate the law
     
  9. moarla

    moarla

    thats only thrue for US (you are taxed on your worldwide income no mather where you live), most other countries are looking at your primary residence, and there you pay taxes.
    In sout americas countrys its different (as in UK and Malta and others - for foreigners): there you pay taxes on your income generated inside the country, the income generated outside is not taxed at all.
     
  10. rbartell

    rbartell

    Thanks.
    From everything else I've read, residency is what matters for tax purposes in most cases (keep in mind I'm excluding U.S. citizens). So in my example, who would you report your income to if you didn't qualify as a resident anywhere? And if it's your country of legal citizenship, do you report to them and then (if they are like most countries that don't make you pay income taxes to them if you aren't a resident) they say "no taxes need to be paid because you didn't live here"?


     
    #10     Mar 10, 2010