Top countries for tax migration in 2021

There are some peculiarities of tax migration that every taxpayer should be familiar with. To clarify the nuances of change of location and specify what documents you need to prepare to transfer your company to another country, contact our experts at IT-OFFSHORE.

The concept of migration

Tax migration is defined as a change of taxpayer's location. As a result of a change of location, a transfer is made from one tax office to another. In some cases such actions are treated negatively by the tax authorities and there is a risk of a tax audit. At the same time, not always the change of payer's position means that he or she is hiding from taxes - often it is an objective necessity.

The problem of choosing a low-tax jurisdiction in 2021 to relocate and develop entrepreneurship and optimize tax payments is popular. When moving, some businesspeople do not consider the requirements of the laws of their country, which can subsequently lead to fines and other penalties.

After obtaining a long-term visa or residence permit, a citizen must notify his or her state. Russian citizen's tax resident status will be retained if he/she stays abroad for less than 183 days per year. Otherwise, he becomes a non-resident and his tax obligations will change. The tax base will be determined differently, rates will change, and deductions will be lost.

Choosing the country for tax migration of the company - TOP 5

The choice of the country for tax migration requires a very careful approach. When choosing the appropriate country, tax implications, optimization of payments, residency requirements for businesspeople, availability of human resources on the labor market of the country, etc should be taken into consideration.

British Virgin Islands

This jurisdiction is a profitable place to register a company. It is most advantageous to open an international company in the country. It is not difficult to open an account for a BVI company. A beneficial owner’s declaration will be required to set up a company. Requirements for economic presence must be considered, there is an exchange of financial information, which is automatic.

Denmark

This country has a high standard of living, the conditions for setting up a business are relatively uncomplicated. It is possible to register a company in just a few days, and there are no strict requirements regarding the citizenship of the executives. Taxation can be favorably optimized.

Norway

This country has a strong economy. In most cases communication with the government is conducted remotely in a digital format. Opening a company is fast. The country is optimal for creating a business online, especially because there are qualified specialists in the labor market. There is a high quality of life and a possibility of lowering the tax burden.

Singapore

This state is respectable and has exceptional trade and investment opportunities. The country is great for permanent residence, as it is one of the richest has a stable political situation and a favorable geographical location. There is no need to pay taxes on dividends and capital gains.

Canada

In this country, it is profitable to develop innovative businesses. Higher education is considered one of the best in the world, and the cost of living in the country is relatively low. It is possible to get a tax credit, good relocation conditions are offered, and the country is favorably located, allowing to work in the markets of Asia and the EU.