Citizenship with Tax Benefits

Having a second passport can be really helpful, especially for your finances and taxes. Some countries offer significant tax advantages and don’t tax certain financial aspects, but there are conditions you must meet to get their passport. In this article, we will explore these top 5 countries that can offer you Citizenship with Tax Benefits. That optimises your financial situation, looking at the financial opportunities you will be eligible for and, most importantly, paying less taxes.

Countries like Canada, the U.S., the U.K., Australia, and Norway make it very challenging for citizens who want to stop paying taxes to their home countries even if they don’t live there anymore. The U.S., more specifically, requires the person to renounce their citizenship fully if they want to stop paying taxes.

Going to tax-free countries and getting a second residence goes a long way in getting your home country off your back while saving you thousands of dollars in taxes yearly.
Getting a second citizenship means you won’t face hefty taxes. It offers better financial security and makes it easier for you to access and keep your money.
Before looking at the list of tax-free countries, it would be helpful to understand what a tax-free country is so that you can decide which of the countries mentioned below best fits your financial needs.

What are Tax-Free Countries?

There are many ways to live without having a lot of tax pressure. By finding a new tax home, you can create a plan that allows you to structure your lifestyle and business to follow you wherever you go while allowing you to pay the amount you are comfortable with. Each route involves different countries and unique strategies. Below, you will find a list of tax considerate countries:
Zero-Tax Countries: Become a tax resident of a zero-tax country that does not impose income taxes or capital gains taxes,
Territorial Tax Countries: Become a resident of a territorial tax country that only imposes taxes on the income you earn within their borders. The system functions by exempting or deducting taxes from international earnings.
Lump-Sum Tax Countries: Become a resident of countries that only charge an annual lump-sum tax. These are technically not tax-free countries, but you can view the flat tax as a government fee for your second residence, allowing you to live tax-free for the rest of the year.
Exemptions and Non-Domiciled Countries: Become a resident of a country that usually has high taxes but then apply for an exemption or special status as a non-domiciled resident, allowing you to live in the country tax-free for a set period.

Top Countries for Tax Benefits:

Antigua & Barbuda: Antigua & Barbuda does not have any existing policies or laws on taxing wealth, inheritance, dividends and capital gains. 

The VAT in Antigua & Barbuda is 15%, which applies to most goods and services within the country, including imported goods. 

Antigua and Barbuda proposed their International Business Corporations (IBC) Act, attracting companies to register and operate within the Twin Islands. These businesses don’t have to pay income tax and tax on real estate, securities and other assets for fifty years. 

St. Kitts & Nevis: Out of the five Caribbean countries that offer citizenship by investment, the St. Kitts & Nevis program provides the strongest and most desirable passport. Applicants don’t have to pay taxes on capital gains, inheritance, and wealth taxes. 

Non-tax residents are not obligated to pay taxes on income or inheritance for residents and non-residents when they are not working for a local company.  

Taxation of individuals employed by a local Saint Kitts company:
3.5% between $370 to $2,405,
10% between $2,405 to $ 2,960
12% over $2,960 per year. 

For wages earned in Saint Kitts and Nevis, there is a 5% social contributions tax. There is a withholding tax of 15% when a non-resident receives dividends, interest, and royalties from sources within the country. 

All tourism-related activities have a VAT of 10%, while 17% for other VAT items in Saint Kitts. Companies have a 33% tax rate on their worldwide profit. Corporations that work exclusively abroad can be exempt for up to fifteen years.

Malta: Malta’s Naturalization Program allows citizens to become tax residents in low-income tax countries and apply for a special tax residence status, known as the Global Residence Program (GRP). 

People who apply for the GRP plan will expect a tax rate of 15% on foreign income remitted to Malta, with a minimum tax liability of €15,000 per year. The program is open to EU and non-EU citizens meeting specific criteria.
GRP Eligibility:
Not be a Maltese national.
Not have been a resident of Malta for the previous five years;
Have a minimum annual income of €100,000 or hold assets worth at least €500,000.
Purchase or rent a property in Malta.

Greece: In addition to Greece’s Golden Visa program, the Non-Domiciled program is a special tax incentive for people looking to invest. The program is designed to motivate wealthy individuals to further contribute to the Greek economy. 

The Non-Dom program gives eligible individuals a flat tax rate of €100,000 per year on their foreign income, including income from sources such as dividends, interest, and capital gains. External income is not subject to Greek income tax only if the income is earned in Greece. 

Portugal: Portugal offers the Non-Habitual Residence (NHR) program that can reduce taxes significantly for non-EU residents. 

Eligible investors under the NHR program will benefit from a flat income tax rate of 20% on specific types of income, such as foreign pension, capital gains, and particular employment and self-employment income. The NHR also provides exemptions for investors from high-value-added and scientific and technological activities.

The person must spend more than 183 days per year in Portugal or have a house or apartment in Portugal that is considered their habitual residence. 

If you need more information about getting citizenship through investment or if you want to understand the tax advantages of having a second passport and which country suits your financial needs best, our knowledgeable team at Fast Passport Boutique is here to help.


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