Legal Residency VS Tax Residency (What's the difference?)

Today we are going to clarify different types of residency: Legal residency, Tax residency, and also Domicile residency as well as E-residency.

Residency in general terms mean having a right to live in a certain country. But does this automatically mean that you have to pay taxes in that country? Actually, no. And that's where Tax residency comes to play.

What does this mean for you, and can you avoid paying taxes in the country where you live? You will find out today.

Who are we and what do we do?

We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.

We have lots of interesting articles on different topics, we have relevant information up to date.

Author: Michael Rosmer

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[kbsltd]

Welcome back! Thank you for this fountain of forbidden knowledge.

[VERTICALWisdom]

We are looking at Turkey for CBI in the next few months - but would look for tax residency for us and our company elsewhere. Turkey taxation is pretty high. Suggestion: Go to 4:35 on the video, you are right on topic, then off on a tangent with but could be this or....? Really value you video content and plan to work with you - but the tangents are tough to track.

[amir]

Super important video. Thanks a lot. 💚
If someone deposit 250, 000 EUR in Latvian bank and get golden visa and then spend only a week in a year in Latvia will be considered tax-resident in Latvia?

[jeffocarroll]

You're addressing PERSONAL residency as opposed to CORPORATE residency. Let me see if I've got it right. PERSONAL tax residency could include things such as income, dividends, capital gains incl. shareholder dividends due to CFC rules like Forced Repatriation so there's some overlap there. But this doesn't include the residency of the company and the residency of the company income which may or may not be resident in the same country depending where it's set up. Feel I'm starting to confuse myself now.

[chrissellers]

i am a US citizen. However, if i had an additional passport bought through a country that has no personal or corporate taxes, and then used that passport to open a company in Dubai, opened a bank account there with that passport and deposited all of my money there; would the interest earned on that money be taxable in the US?

[billhennessey]

Michael, can a US citizen qualify for the Cyprus Non Dom Program or are we excluded due to citizenship-based taxation in the US? I understood from your video on the Non Dom Program that a candidate can't be a tax resident of another country, which would seem to exclude US citizens. I am watching all of your videos to see which countries are consistent with my goals so that when I am ready I can sign on with you and we can get things done quickly. Thanks!

[alexsilva]

Stupid question here: If I have an online business in a tax favorable place (Hong Kong) but I live in a high-income tax country, can I buy a house in another country + bank account + car where you are taxed at a much lower tax rate and then move back to my country? How do they know if I stay in the country?

[wwahyyy]

is there a wiki type site for these type of very obscure and confusing info?

are countries moving toward a modular style of fitting services for nomads based on the nomads needs / requirement rather than the host country's rules?

[sorrowvibes]

Is it possible for a country to ask you for proofs that you're indeed a tax resident in another country?
Let's say I stay less than 186 days in an European country, while I'm not from Europe. So I'm still tax resident in my country of origin.
Is it possible in any situation that the European country I'm in asks me for proofs that I'm indeed paying tax in my country of origin?