it seems quite vague to me. for example i live and i'm a citizen in the philippines then i transfer residency to monaco which is a tax haven, how and what "tax rules" apply and can they still tax me even if i already reside in monaco? @ghostofzeus_so if i understand correctly, i must first find out if my country do tax worldwide income of citizens and then i might just lessen my tax burden if i transfer residency?
Other - Taxes - 2 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Many countries tax residents on their worldwide income. Therefore, if you are not resident of country A, then you might diminish your tax liability to country A even though you are a citizen of country A. With respect to Monaco, residents of Monaco are taxed on a maximum income of approximately 80,000 euros -- about 25,000 euros in tax. That is all they pay. To obtain residency in Monaco a person needs to be a high net worth individual (i.e, at least million euros ... 3 million euros is probably needed to live well in Monaco). You have to purchase or lease real estate. The minimum monthly rent is about 4,000 euros and you will pay a 10% VAT on the rent. If you purchase, you will pay a nearly 20% transfer tax on the value of the property at the time of purchase.
2 :
If you do not know what you are doing, it does not work at all. If you are a U.S. citizen, it does not work at all. The U.S. taxes its citizens at the same rate regardless of where they work or live.
