Retiring to a low tax country from the UK.
Keeping Danny in Sandwiches
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Retiring to a low tax country from the UK.
Do any UK taxpayers have any ideas about where to retire which has a Double Taxation Agreement with the UK.
I am looking for
1 Decent place to become Resident and live for at least part of the year.
2 A lower rate of tax than Gordon Brown is presently inflicting on anyone with any half decent pension.
Before I get inundated with "Grand Cayman" or "Turks and Caicos" they are not on the list in the Inland Revenue IR20 booklet.
Any thoughts and advice appreciated.
I am looking for
1 Decent place to become Resident and live for at least part of the year.
2 A lower rate of tax than Gordon Brown is presently inflicting on anyone with any half decent pension.
Before I get inundated with "Grand Cayman" or "Turks and Caicos" they are not on the list in the Inland Revenue IR20 booklet.
Any thoughts and advice appreciated.
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Cyprus was a good deal, but the rules are changing fast:
Less than 5% tax on British pension, but any other income liable to higher rates (what are you Singapore guys doing about that?). Residency requirement from 1 Jan 2003 at least 183(?) days/year. Necessary to own or rent a property. Tougher rules likely to come in with EU membership. In range of Sadaam's Scuds though, and property prices climbing too high.
Croatia looks OK: 0% tax on British pension. One has to own a property, or rent or live on a yacht. No minimum stay requirements. Excellent property prices. Question is - what do they get out of it? Anyone know the catch?
Both cases above max. 6 months in UK, 90 days on average, over 3 tax years.
Campione in Switzerland/Italy looks good as well, just doing the research.
Kazahkstan if you are a keen skier.
Monaco if you're mega well off.
Less than 5% tax on British pension, but any other income liable to higher rates (what are you Singapore guys doing about that?). Residency requirement from 1 Jan 2003 at least 183(?) days/year. Necessary to own or rent a property. Tougher rules likely to come in with EU membership. In range of Sadaam's Scuds though, and property prices climbing too high.
Croatia looks OK: 0% tax on British pension. One has to own a property, or rent or live on a yacht. No minimum stay requirements. Excellent property prices. Question is - what do they get out of it? Anyone know the catch?
Both cases above max. 6 months in UK, 90 days on average, over 3 tax years.
Campione in Switzerland/Italy looks good as well, just doing the research.
Kazahkstan if you are a keen skier.
Monaco if you're mega well off.
Keeping Danny in Sandwiches
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Thanks Capt. Marble,
I am still searching, Croatia sounds interesting - although anything to get away from Mr Brown would do at the present.
I am still searching, Croatia sounds interesting - although anything to get away from Mr Brown would do at the present.
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Campione bites the dust - property too expensive.
Andorra looks excellent - well worth a look at.
Malta?
San Marino?
Belize?
All worth a go from low taxes - you just have to watch the double-taxation agreements with your domicile country (or where you are paid / receive a pension etc.).
Just out of interest, there's a spoilsport organisation called the OECD (see www.OECD.org ) which polices 'rogue' countries, especially those wanting to join the EU, and bullies them to get their act together regarding 'realistic' taxes. Not really sure who they think they are, but a look at their website gives you a clue. They're the ones who muddied the Cyprus deal. They publish the correspondence to the countries they are targeting - well worth a look.
Of course, as soon as you find somewhere really good then there is no point in publicising it, as the UK Inland Rev. just hate these places. Again - see how they are digging into Cyprus.
Marble
Andorra looks excellent - well worth a look at.
Malta?
San Marino?
Belize?
All worth a go from low taxes - you just have to watch the double-taxation agreements with your domicile country (or where you are paid / receive a pension etc.).
Just out of interest, there's a spoilsport organisation called the OECD (see www.OECD.org ) which polices 'rogue' countries, especially those wanting to join the EU, and bullies them to get their act together regarding 'realistic' taxes. Not really sure who they think they are, but a look at their website gives you a clue. They're the ones who muddied the Cyprus deal. They publish the correspondence to the countries they are targeting - well worth a look.
Of course, as soon as you find somewhere really good then there is no point in publicising it, as the UK Inland Rev. just hate these places. Again - see how they are digging into Cyprus.
Marble
Last edited by Capt Marble; 22nd Jan 2003 at 18:18.
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Malta seems to be popular with KLM and other Dutch pilots as a tax refuge, while still working for their repective companies.
The deal is not as good as Cyprus, but the latter's is about to change, I hear. Furthermore Malta is less than 3hrs flight time form UK, with some 30 scheduled flights to London weekly, besides many other flights to all over the UK.
More info on Malta and contact information is available at http://www.gov.mt/index.asp?l=2
Hope you can find what you are looking for.
The deal is not as good as Cyprus, but the latter's is about to change, I hear. Furthermore Malta is less than 3hrs flight time form UK, with some 30 scheduled flights to London weekly, besides many other flights to all over the UK.
More info on Malta and contact information is available at http://www.gov.mt/index.asp?l=2
Hope you can find what you are looking for.
Last edited by Jetset320; 26th Jan 2003 at 19:18.
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Re Malta, there's a thorough 2-page spread in today's UK Sunday Business (the pink one) on Malta - tax, property etc. Should still be around tomorrow (Monday).
Never thought that Cyprus was a good deal for those still working - but OK for retirement (unearned income). Don't a lot of us assume that places like Cyprus (and Malta?) are good places for low tax, but only if one doesn't admit to the host country that one is still working (i.e. earned income). Maybe one feels that host governments are not going to ask - not so with the authorities back home unfortunately.
Marble
Never thought that Cyprus was a good deal for those still working - but OK for retirement (unearned income). Don't a lot of us assume that places like Cyprus (and Malta?) are good places for low tax, but only if one doesn't admit to the host country that one is still working (i.e. earned income). Maybe one feels that host governments are not going to ask - not so with the authorities back home unfortunately.
Marble
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Slightly off thread but please remember that there are places you can retire to where you will not get any increase paid on your State Retirement pension. There are people retired in Canada (among other places) whose UK state pension is frozen at the value paid when they went there in the mid 70s ie not a lot!
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If I was you I would consider "Other Places" Canada may be a good place for UK citizens to receive there pensions but to actually live here is onerous.
I'm planning on leaving for greener pastures in the not too distant future although it would probably work OK if you didn't have to spend to much time here.
I'm planning on leaving for greener pastures in the not too distant future although it would probably work OK if you didn't have to spend to much time here.
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I'm just curious if there's a potential tax advantage for UK citizens who reside in Canada as a result of the tax treaty (I assume).
Would there be reciprocal similar benefits for a Canadian citizen to reside in the UK. (assuming they could)
Would there be reciprocal similar benefits for a Canadian citizen to reside in the UK. (assuming they could)
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I have some time to retirement, but have a quick question, hope you peeps can help. I have a Green Card and live in the US. Thought about retiring to the Turks & Caicos or some such in the Caribb. Moving most investments offshore with intention of avoiding US state and fed taxes on investment income. Would this work?
Ozzy
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I may be wrong on this but I think you have to renounce your green card and even then you're on the hook for US taxes for ten years but with a annual $70K deduction (in some cases).
You probably should consult an expert for this one.
You probably should consult an expert for this one.
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Robert Anthony is a Professor of St Thomas University of Law Miami and Principal Partner of Anthony & Cie Valbonne Sophia Antipolis France. Anthony & Cie are members of MSI, a world-wide association of independent professional firms.
France Can be a low tax jurisdiction!!
France is seldom seen as a low tax jurisdiction - which it can be, provided everything is correctly planned. Certainly the current “earned income” situation in France is not at all attractive.
It should be taken into account that even with a tax level higher than countries like the UK and US, with careful structuring a taxable rate in excess of 54% excluding social taxes can be reduced to between 0 - 10% of taxable income (which is below the rate of Switzerland and the other countries of the European Union!).
When retiring there are several types of income such as investment income and pension income. The question therefore remains: How can one have different sorts of taxable income and still retain a relatively modest tax rate? Obviously, very high net worth individuals may have different problems such as wealth tax. The average person’s wealth, however, is relative and this article is addressed to those with an asset base under 10 million dollars.
How this question of lower taxes can be achieved is not an unsolvable mystery. When one scratches below the surface one finds legislation that enables tax planning which gives a very different result from the initial perception. Correctly structured, retirement in France can be fiscally advantageous. France can even be a low tax jurisdiction - better than any other OECD country in Europe !
France Can be a low tax jurisdiction!!
France is seldom seen as a low tax jurisdiction - which it can be, provided everything is correctly planned. Certainly the current “earned income” situation in France is not at all attractive.
It should be taken into account that even with a tax level higher than countries like the UK and US, with careful structuring a taxable rate in excess of 54% excluding social taxes can be reduced to between 0 - 10% of taxable income (which is below the rate of Switzerland and the other countries of the European Union!).
When retiring there are several types of income such as investment income and pension income. The question therefore remains: How can one have different sorts of taxable income and still retain a relatively modest tax rate? Obviously, very high net worth individuals may have different problems such as wealth tax. The average person’s wealth, however, is relative and this article is addressed to those with an asset base under 10 million dollars.
How this question of lower taxes can be achieved is not an unsolvable mystery. When one scratches below the surface one finds legislation that enables tax planning which gives a very different result from the initial perception. Correctly structured, retirement in France can be fiscally advantageous. France can even be a low tax jurisdiction - better than any other OECD country in Europe !
