Important Points Residence

Important Points Residence | GCI - Global Citizenship Investment. We are the world's leading experts in advising foreign investors on Citizenship & Residency by Investment.

Planning for Residence

The main step for managing your future tax and real estate assets is to scan and identify some particular countries linked to your business or next plans in establishing other location or residence place.

It is quite difficult to point out the perfect place for tax efficiency and considering recent strong imposed tax laws and avoidance tracking measures, changing the residence to a lower tax frame country it is the best solution for any individual interested in preserving his wealth.

The whole process of changing the residence can be a little sensitive for individuals and their families from certain high level taxation countries and also for the ones coming from unstable political or economic states. But once they have the general knowledge of advantages and benefits, they will decide it right away that it is the perfect decision made for them and their beloved families.

Residence and domicile differences

While residing in a country means that you are just living in that place, having the domicile established is a different matter, this means that you intend for a long stay or will have even fixed home for the rest of your life. It is important because its jurisdiction will control your next income or inheritances together with your whole wealth. There are also situations where your origin country will still impose taxation rules on your income or inheritance due to their strong tax policy even if you are residing outside of their territories such as UK or USA.

Residence income taxation general info

In the case of the individual leaving his origin country with the intention of reside in another state; numerous checks will be applied in order to proof the physical presence, accommodation documents and so on. This will conduct to determine if taxes will be applied and the former country will be no longer entitled to tax its citizen.

USA Citizenship procedure for income tax

The most important exception to general rule of taxation is for citizens of United States of America, they are due to pay taxes no matter their place of residency. The state will be entitle to impose taxes even if their domicile is outside of the country and in order to avoid this policy is to relinquish original citizenship and become expatriates.

Real estate Planning and Inheritance Taxations

Having a strong taxation plan by changing the residence and domicile, it is a strong asset for the individual who is wishing to reduce his income and inheritance taxes. Tax legislation limits must be very carefully analyzed; there are situations in which the individual can reside in an area where there are no inheritance taxes but once he passes away, the origin country can claim it back.

Exit Taxes for Immigration

Lately, numerous countries have imposed stronger restrictions to discourage and lower emigration of their own citizens as special emigration or relocation taxes.

Tax Agreements and Rules

There are various tax agreements between the states, stipulating in clear the tie-breaks of residing time frames. Beside this filters can be also other criteria such as close connections or so. A close knowledge of these treaties is crucial for the individual in order to know his rights and restrictions and for establishing which country has the right for the taxation process.

General Situation for Business and family

By changing the residence and domicile, can be a higher important key to ensure a better life for the individual and his family, considering several aspects such as real estate investment planning, lower taxation, security, better environment and hassle free travelling.
This decision should be taken first by analyzing all the aspects of this change and not only because of a less taxation rules, it is advisable that the individual is well informed about all implications and repercussions of this action.

Health Insurance

Even if it is in most of the cases neglected by the individuals and their advisors, health insurance can play a major role also in changing the residence and domicile. Once they move in another country, the health policy might no longer be valid so they need to close up another one available in the new residing country or even with a worldwide cover which can ensure an international flexibility.