The residence permit in Europe and taxes.

When choosing a European residence permit, I often meet such request from a client - I need the cheapest one, just a D visa.?

Dear gentlemen, the cheapest one is with the requirement of permanent residence, and if you comply with it, you become a tax resident, and this is sometimes up to 50 percent on your global income, on your factories, steamships and yachts.?

Investment schemes for obtaining residency still do not require you to live most of the year in the recipient country, and therefore do not imply tax residency.

?I have noticed, working at QuazarHouses & MalachiRealty that the tax component and obligations, not only rights, the owners of newly acquired residence permit do not always remember.?

And this is a very important point.?

Golden visa Spain, FIR Residence program for entrepreneurs in Portugal, Golden visa Portugal does not require living most of the year in the country that issued a residence permit.?I

t is also worth paying attention to a number of European countries with a special tax regime, I will tell you more about them.?

Greece: non-dom regime for investors

- Duration: 15 years

- Do not be a tax resident of Greece 7 out of the last 8 years

- Can be used for family members (+EUR 20,000 per year per person)

- Fixed tax payment of EUR 100,000 per year + invest from EUR 500,000 in the local economy

All foreign income and assets are tax free. Greek income - at standard tax rates.

Ireland: non-dom regime on bank transfers for non-residents

- Duration: indefinitely

- Does not apply to family members?The tax applies only to the amount that the foreigner transfers to Irish bank accounts. In order to retain the tax exemption, it is necessary to confirm that Ireland is not the person's main place of residence.

Italy flat tax rate EUR 100,000 per year

- Duration: 15 years

- Not be tax resident in Italy for 9 out of the last 10 years

- Extends to family members (+EUR 25,000 per year per person)The EUR 100,000 lump sum applies to almost all categories of income outside Italy. The gift or inheritance of foreign assets is also tax-free. However, capital gains from foreign shares for the first 5 years do not fall under this scheme and must be declared.

- The annual additional payment is EUR 5,000

Tax is only payable on Maltese sources and foreign income which is transferred to local accounts.

Switzerland: lump sum taxation for residents who are not in employment- Duration: indefinitely

- Not be a Swiss tax resident for the last 10 years

- Family members can formalize the preferential tax treatment on their ownThe amount of tax depends on the expenditures of the wealthy foreigner and his family living in Switzerland and is calculated according to standard federal and cantonal rates.

The exact amount is usually agreed with the authorities in advance.

?Monaco: abolition of income tax for residents

The Principality of Monaco does not levy income tax on residents.

The Monaco residence permit exempts all global income from tax. However, you must purchase real estate and spend more than 186 days a year in the Principality.

Andorra: low tax rates

The fixed tax on foreign income is 10%. To get a residence permit, it is enough to rent a property for a long period of time and confirm solvency.?

There are other options for tax residency, for example, in Cyprus, in the UAE, but about this another time.