Tips for living

offshore and saving tax.

Tip 1:

You do not have to be tax resident anywhere. Period. If your income does not bind you to staying most of the year in one place, move around a little, plan carefully and pay much less tax.

Tip 2:

When planning your travel for the year, check if you need to be tax resident and pay tax on worldwide income. Sometimes a few days extra holiday could save you thousands in tax. That's right, you are paid to lie on the beach.

Tip 3:

If you approve of the social spending of our free-market-socialist european governments, you can still go tax free. Instead of paying the tax to the government which will only use a small part for hospitals, education and a social safety net, donate some of your saved tax to charities that do the same thing. You don't have to be an asocial drop out if you don't want to be. You can choose whether the government gets to spend part of your money on wars, beaurocracy and corrupt greedy politicians.

Tip 4:

Use the website of the inland reventue and your local government's tax service. They almost always have all the information you need and it's free. E-books and other pay for play services are not only costly and unneccesary, they're sometimes plain wrong.

Tip 5:

If you are not tax resident anywhere you don't pay tax on ypour worldwide income anywhere so keep money and investments offshore or select countries that won't tax you for keeping your investments there.

Tip 6:

Offshore is used by UK banks as an advertising tool to mask low rates. If you're tax resident and domiciled in the country anyway, offshore often has no advantages to you, you must declare interest income anyway. Do not go for offshore because it has a pretty name, work out if it saves tax and only use it then.

Tip 7:

Do not lie on your tax return. Ever. Also do not hide money offshore and forget to tell the tax man. This is illegal unless you are non-resident or non-domiciled. The big fish get away with millions but your few thousands will cause a big fuss, big fine and if you're unlucky, jail time. This is the dumb way, the smart way is to plan and use the rules to your benefit legally. Always avoidance, never evasion.

Tip 8:

If you are not tax resident anywhere, spread your earnings around a little. Many types of income are taxed locally but the starting rate is usually lower and you often get a tax free allowance as well.

Tip 9:

Make sure you keep your savings in a country where interest income is not taxed for non residents.

Tip 10:

Remember there is no ONE government. If you stay in two differrent countries such as Thailand and Spain , it is only the tax rules of these countries as well sometimes as those of your home country that affect you. There are many people on internet forums and boards who think that the rules of their country (usually the US) apply everywhere. They do not. If you are not a US citizen, never visit the USA and do not have income from there, their rules do not matter to you at all.