DIGITAL NOMADS FINANCE Editor’s Preface
“Financial independance makes the world go round”. However, managing your money wisely while you move around the world has its own pitfalls and issues. The articles of this summer number should give you an overview of all the key topics regarding expat destination countries of free or lowest tax, finance, offshore companies advantageous for remote workers, mostly self-employed, freelancers, entrepreneurs, the wealthy people…. Our CITINAVI magazine includes review on alternative residence and citizenship, taxation and property, as well as living expenses and financial planning. In particular, The United States is the only major country in the world that taxes the income of its citizens and permanent resident status holders regardless of where they live (German citizens have a taxation burden for 10 years). the Foreign Account Tax Compliance Act (“FATCA”) went into full effect on July 1, 2014., U.S. citizen expats sleepless nights in anticipation of a notice from the IRS asking why they have not been filing U.S. tax returns or reporting all their non-U.S. assets. This law impacts directly 4.8 million American Digital Nomads and the number of US citizens renounciating US citizenship escalated since then. . When it comes to living abroad, there are special considerations to be aware of depending on your nationality and circumstances and individual finance solutions whether retirement or other financial goals. There are also matters that need to be examined when it comes to the jurisdiction of entry. Firstly, the
investment in alternative residence and citizenship programmes does not automatically lead to obtaining tax residence in that jurisdiction. The main criteria is for a country to impose a tax liability on an individual, apart from source, is principal residence (the number of staying dates per year). For the entrepreneur nomads or the wealthy people, the importance of obtaining tax advice at every step of this process cannot be underestimated. Although often associated with tax evasion, offshore banking can be a perfectly legal way to make managing your money more convenient and flexible while you are abroad. When you move abroad, you may be faced with paying various kinds of tax in several countries. The overview of UK gift tax article helps you make sense of the UK tax system in your new home away from home. Many an expatriate might first start thinking about financial planning, pension provisions. A dream to depart for Nomads’ freedom without a plan remains a dream.
Editor in chief Dr. Juerg Steffen Hyong-Jin KWON CEO Henley & Partners IMC Geneva Polo club 2nd Quarter 2019 - 3
