There are several European countries which offer no or law tax solutions for the applicants with their citizenship or residence permit in exchange for investment, flat-tax or bank deposit.
Naturally the international or national tax and compliance rules are complicated questions and each individual or legal entity must study in detail the financial issues before taking the decision. Low-taxation is only one of the reasons to get a European citizenship or residency permit. However if your objective is not only to travel free but to do business, it is more than essential to settle in a low-tax country and evade a hefty burden.
Before we take a closer look at the tax issues related to citizenship or residency by investment programmes, it is good to know that our colleagues at Discus Holdings Ltd have more than 25 years of experience in the creation of international tax structures. Ask us for a free consultancy to understand the best solutions for you!
Residency in Monaco for Financially Independent Applicants
The Principality of Monaco does not have a personal income tax at all. Also, there are no capital gains and wealth taxes. However the rented properties are taxed at 1% of the annual amount of tax. General corporate tax does not exist as well. Wealthy applicants can become residents of Monaco through bank deposit.
Malta Individual Investor Programme and Indefinite Residency in Malta
Any person who is ordinarily resident in Malta but not domiciled in the island nation is taxable only on income arising in Malta and on any foreign income remitted to Malta. So these tax residents are not taxable in Malta on income arising outside, which is not received in Malta and on capital gains arising outside Malta, regardless of whether they are received there. You can become a citizen of Malta and the European Union through the Individual Investor Programme. However, Malta offers several residency solutions as well through investment or by paying an annual flat-tax. Discus Holdings is an official agent of Malta citizenship by investment program.
Andorra Passive Residency Program
Andorra does not levy sales tax and owns the lowest VAT system in Europe (general VAT rate is 4,5%). The basic personal income tax rate in the Principality is ten per cent for resident individuals. Nonresident individuals are taxed only on Andorra-source income. You can obtain the residence permit of Andorra by investing in state bonds.
Montenegro Citizenship by Investment Program
Resident individuals are taxed on worldwide income; nonresidents are taxed only on Montenegro-source income. Discus Holdings is one of the only three official agents of the Montenegrin passport scheme. Ask us for detailed information!