Nevis tax residency
Many people who contact us want to know how to pay less tax legally. Luckily, it's still possible to reduce one's tax burden through financial mechanisms like headquarters, free zones, tax relief policies, etc. However, one of the main strategies is to get tax residency to reduce taxes and thus prevent erosion. This article is about how to get tax residency in Nevis, one of the best countries for data privacy and asset protection.
What you need to know about getting tax residency in Nevis
Tax reduction mechanisms are usually seen as shady or immoral practices; however, this is nothing but a misconception. The principle of this concept, for example, is based on shifting your tax residency to a new jurisdiction with friendlier tax policies.
Nonetheless, acquiring tax residency is more than doing a simple procedure and acquiring a certificate. Thus, if you're thinking about getting tax residency to reduce taxes, here are some points that you must consider.
Tax residency in Nevis, a jurisdiction with no worldwide income taxation
If you want to know how to pay less tax, you'll find this section useful. One of the main advantages of the Nevis jurisdiction is that this is one of the few countries in the world that doesn't tax worldwide income.
This is an amazing opportunity as you can have literally millions of dollars in investments like crypto or real estate abroad and pay no tax in the jurisdiction of Nevis. But things are not as simple as they sound and to access this benefit you need to consider many factors.
How to pay less tax? Structure your assets accordingly
The first thing you must think about is how you structure your wealth. Most of the territorial tax jurisdictions do apply taxes for the income derived inside the country. Logically, you have to live in the country which means paying bills, tuition fees, rent, etc. Moreover, you need to have a certain income in the country or receive it from abroad which means this will be subject to taxation. In other words, the power of this structure lies in the fact that you keep your major assets abroad in order not to pay tax and bring to the country the minimum that you need for your daily life, investments, business, etc.
Another option is to pay for everything with a foreign credit card, but this has some limitations. Firstly, not all places accept this payment method, and secondly the credit card fees can be expensive.
What we’ve learned here is that the question is how to pay “less”tax, but not necessarily ‘how to reduce the tax burden to zero’. Paying zero tax is almost impossible but this strategy surely helps you save a considerable amount of money.
Minimum stay requirements
What many people don't know is that in order to get legal tax residency in a country you have to spend some time living there, which is never less than six months a year. The government will ask for proof, for example, grocery bills, rental agreements, utility receipts, bank statements, etc. This means that there is no way to fake a tax residency.
Living in a country for six months every year needs a certain amount of organization as you need to consider your children’s school, your work, your business management, the place where you’re going to live, and other similar factors.
Another key aspect is that in most countries you are considered to be a tax resident automatically by spending more than six months in a given year. To illustrate this point, we’ll use a hypothetical case.
Let's imagine a businessperson named John, from country X. He does all his homework and organizes his affairs to live for six months in Nevis every year. In the meantime, he has placed his investments in a foreign jurisdiction and arranged for a small percentage to be sent to him to the island of Nevis, where he will pay taxes for this amount.
However, if John shall be in his home country to see his family and overstays his visit for longer than 6 months, he will automatically be a tax resident in country X again.
Also, some countries have specific requirements. In Argentina, for example, you’re considered a tax resident if you spend 90 days in the country and, if you have assets or family living in the country, you won’t be able to shift your tax residency to another jurisdiction.
Another point worth mentioning is that countries that tax worldwide assets will always try to claim you as their tax resident. Naturally, the same works the other way around: territorial taxation countries are very strict when it comes to issuing a tax resident certificate, and applicants must comply with all the requirements.
Getting tax residency to reduce taxes in Nevis is an excellent strategy and brings many advantages. However, one must organize finances and travels according to this. Luckily, Mundo experts have plenty of experience in establishing tax residencies and we'll be happy to help you.
How to get tax residency in Nevis
Getting tax residency in Nevis is a complex matter. Luckily, our experts have a lot of experience when it comes to such procedures. Nonetheless, these types of products are hard to standardize as the situation changes according to the circumstances. The variants are many and include country of origin, line of business, amount of freedom to move across countries, etc. Hence, if you are interested in how to get tax residency in Nevis, the best you can do is talk with our experts. Get in touch with your Mundo representative and get the solution that you seek.
Get a tax residency to reduce taxes with Mundo
Mundo is an international publication in four languages that reach many markets. Our parent company is a prestigious corporate group with offices in many parts of the world. They also offer investment migration services and are one of the leaders in the Caribbean region.
We have many partners in different parts of the world but are particularly proud of this group that boasts an impeccable reputation. This is why we trust in our Nevis services including banking, company incorporation, investment citizenship, and tax residency to reduce taxes.
The journey is not easy but the reward at the end of the road is worth the effort. Moreover, you'll have your Mundo expert to support you every step of the way. Contact us now and start protecting your wealth for future generations.
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