Specific issues with PT
Hello All, and thank you for your replies. I had kept my first post short because I wasn't sure of the interest in the PT topic on this forum. Here are some more details of what my questions are about:
Being a perpetual traveler for me is both about 1) Traveling, which I enjoy and 2) Not having to pay taxes anywhere.
So, I am trying to identify the countries for my "five flags", you can read more about it here:
PT - The Theory. For my purpose, I only need about 3 flags, here is how:
Flag 1, Citizenship:
Canada will be my country for passport. I plan on leaving Canada for good. I do not want any ties pointing back to Canada, which can get me in some soup down the road. Canada doesn't require a citizen to file taxes if they don't live in Canada AND if they don't have any ties to Canada.
Flag 2/3, Domicile/Playgrounds:
I plan on living in US for 4 months, Panama for 5 months, and 3 months a year in other places (Bahamas, Bermuda, Aruba or a mix of a bunch of different countries).
I would avoid substantial presence on any of these countries by doing that. I have done my math on this (if anyone is interested, I will post specific information on substantial presence test for US/Panama and other countries). But basically, I will live in such a way that I will not be considered a resident for tax purposes in any country.
Flag 4, Business Base:
Since most of my business has to do with Online marketing and the Internet, I can form a company in a tax haven.
Caymand Islands has no
No corporate income tax, personal income tax, employee taxes etc. So this is where I would incorporate a company.
Cayman Islands Tax Rates
Flag 5, Asset Repository:
This is the one I am confused about. Where do I keep my money, and in what. There are tax implications on this, even if I am a non-resident for tax purposes. For example, if I own real estate in the US, and if I earn income through rental properties, I have to pay 30% taxes on that. I think the same applies to stocks I own on any major index, there is a withholding and taxes have to be paid later.
Since I am trying to make it so that I don't even have to file taxes anywhere, my specific question is about investments which will be inherently tax free. For example, are there any tax havens where real estate has no capital gains tax and no income tax has to be paid on rental income?
Sorry about the long post. I wanted to share my thoughts so far, and please, feel free to poke holes in this. I would rather learn now than later when I have gone too far!
Andrew