Offshore Tax Residency in Six Easy Steps

Your existing tax residency status can be either a blessing or a curse. If it results in high tax rates, it is a curse. As a result, those seeking offshore tax residency mostly intend to reduce their current tax rate to what is fair and equitable. If so, we offer the most ideal offshore tax residency programs which can be optimized in your best interests.

When do you need it? Although there is no established benchmark, it goes without saying that those with high tax already know about it. Indeed, under these circumstances we aim to replace your current tax residency with lower tax rates or eliminate your income tax altogether. There is no time like the present, so lets begin.

Our solutions last a lifetime. This is what iGlobal specializes in. We are indeed your one stop shop for financial freedom and global access. Continue reading below to learn more about getting results.   

Four Types of Tax Residency

Which one is yours? Learn the difference and plan the solution. First, let us establish what tax residency actually is. If you have tax residency in a particular country or territory, it means that the government has a tax claim on your income from employment, investments, or property you own locally or internationally.

For better or worse, their tax claim is based on your connection to the country. This connection can come in several different forms which result in different levels of taxation.

  1. No Personal Income TaxSome countries such as St Kitts and Nevis, United Arab Emirates, Bahamas, or Monaco have no personal income tax. If you are so fortunate as to live in a country with no income tax, you are tax free. That is, only if you do not have an additional tax residency or citizenship which may impose tax on you.
  2. Territorial Based TaxIf your income is sourced from within their geographical territory, then you have tax liability to that country. This type of tax residency is pretty easy going because it contains certain advantages if you have offshore income.
  3. Residency Based TaxYour residence inside the country results in tax liability on international and also local income. As a general rule, you become a tax resident after 182 days of residing in the country. Certain offshore income exclusions may apply e.g. Philippines, Thailand.
  4. Citizenship Based Taxation In this situation, your country of citizenship imposes tax on you regardless of where you live. Four countries currently impose this tax system including the United States, Myanmar, Eritrea and Hungary.

Beware of US Citizenship Based Tax Residency

The protocol of United States is most insidious because it imposes a combination of two systems. To be clear, citizenship based taxation is enough, however green card holders that do not even live in the US pay tax on worldwide income just the same as citizens, or even if you are merely a resident there is no escape from the IRS.  

Additionally, US dollar hegemony makes sure all countries are compliant with FATCA reporting. No exceptions allowed. In return, the US will in most situations not bother to reciprocate. In regards to CRS, the US remains as the only non-signatory OECD country.

Using the US as an example, the most compromising form of tax residency, is citizenship based tax regimes. Although the internet is overflowing with tax gurus that claim to have the cure for this, they are at best short term solutions with complex implementation. At worst, they get you in trouble with the tax authorities and possibly land you in jail.

The only practical solution for US citizens is citizenship by investment. Indeed, surging current account deficits, rising interest rates along with fewer and fewer US allies willing to purchase US debt means US citizens need a Plan B more than ever before.

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How Does Offshore Residency Eliminate Income Tax?

It is not necessary to do anything even remotely illegal in order to get a better tax rate. Most countries, with the most notorious exception being the United States, allow their citizens to legally move offshore to a low tax jurisdiction.

So we believe second citizenship is the most effective option. This single solution incorporates multiple factors which are used in combination to establish a nexus to a low tax jurisdiction.

To clarify, there are several ways to do this, but if there was a silver bullet it would be second citizenship. Either way, with an unequivocal connection to an offshore tax haven, you can eliminate taxes that you would normally pay on most if not all of your income sources.

Indeed, with second citizenship elimination of tax is possible even if you do not live in the country. Nonetheless, proper tax planning is essential. However, once your connection is established you can reap a lifetime of rewards. 

Qualify with Real Estate Investment

The most useful means to acquire second citizenship is by investing in government approved real estate. For a minimum investment amount of $200,000 a qualified applicant with a verifiable source of funds, clean background and clean bill of health can acquire lifelong citizenship for their entire family.

But why buy real estate instead of the government donation? For investors who think long term, real estate is the right choice. Here you can examine the multiple reasons why you should choose it.

  1. Right to Sell – Sell the property after the holding period to recoup your capital but retain citizenship in perpetuity. In comparison, the government donation is non refundable.
  2. Local Street Address Get a local street address with your real estate purchase.
  3. 5% Investment Yield – Approved real estate is managed property which produces a tax free local income source. In addition, the potential yield is 5% based on the historical average of 70% occupancy.
  4. Free Use of Property – Stay in the property rent free a minimum seven days per year.
  5. No Expenses There are no out of pocket expenses for you during the holding period. All insurance, maintenance, marketing and tax is included. 
  6. Price StabilityEnjoy level prices when you sell. Note* real estate that is backed with citizenship offers price stability which is not affected when central banks raise interest rates. Global real estate prices drop, while Caribbean real estate prices remain the same.  

Follow Six Steps to Offshore Tax Residency

  1. First StepI need to know your current citizenship, income source and country of tax residency. Also, will your status change after you have acquired second citizenship? So first, you need to answer some questions, then I can tell you the answers. This is how it works.
  2. Second StepAfter learning your personal situation, we are able to match you up with a citizenship program. So now, we establish which investment option best suits your objectives. This step is very important. Obviously, we must select the citizenship program you are pursuing and the means to accomplish it, after which a price quotation is possible.
  3. Third StepA formal price quotation is prepared after I have verified your identity. I will also need to ask you some personal questions to discern if there will be any complications in the approval process. After KYC protocol is completed, the price quotation with payment schedule and client agreement is prepared. These documents will contain all of the terms and conditions and payment timeline.
  4. Fourth Step – We are ready to begin the application process as soon as the commitment deposit is collected. Afterwards the 10% down payment is collected and the purchase and sale agreement is executed.
  5. Fifth Step – All application forms and supporting documents are collected and reviewed by our legal team. After thorough review, the complete application package is submitted to the government CBIU office.
  6. Sixth StepWhen formal approval is received from the government, the final payment installment is collected. In addition, your passports and certificates of naturalization are prepared and sent to you by reputable courier service. With citizenship in hand, we implement your offshore tax residency plan. Time estimate 2-4 months.
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Post Citizenship Services

This is essential for the implementation of your offshore tax residency plan. Supporting documents are collected on your behalf e.g. TIN, Street Address, Driver’s license.

Used in combination with your new passport, the supporting materials will allow you to effectively open offshore bank accounts and establish tax residency in the country of your choice. We will guide you through the entire process.

As a result, you will now begin to reap the benefits of an equitable income tax rate or possibly the elimination of income tax all together. Additionally, you may now experience global access and economic freedom in the truest sense.

Choose iGlobal for Caribbean Citizenship

My partners and I have 35+ years of experience with the Caribbean citizenship by investment programs plus Vanuatu. As a result, we are well integrated with the local real estate developers and government agencies. You can rest assured that we will accomplish your objectives in the most expedient, cost effective manner.

Most importantly, I have walked in your shoes on the path to global access and opportunity. You need an agent with the requisite experience. There is no better solution than following in the footsteps of someone who has successfully accomplished exactly what you aim to do. Time is of the essence, contact me today.

Email: [email protected]
Telegram: +60104689761

Offshore Tax Residency Expert
Edwin Morgan, Managing Director Go Global Corporation PTE LTD