Getting residence in Uruguay

[Redondo]

Most countries will tax your worldwide income, if you're a resident of that country. Exceptions that I'm aware of include Panama, Singapore, Costa Rica, and a number of countries in the Carribbean. I'm sure there are tax haven countries in Europe (Channel Islands for example) closer to your home, too, that don't tax worldwide income.

If your company is a separate legal entity, like a corporation, then the list of countries would be larger. Many countries won't tax your foreign corporation's income, although they may tax dividends or salary that you receive from the corporation.

Also, regardless of whether your company is a separate legal entity, many countries would allow you to use taxes paid to the Dutch government on your income in the Netherlands as a tax credit when you file your tax return, so you could avoid double taxation.

You need a good Dutch tax lawyer or accountant who knows something about working with expatriates, I think. And also a tax / immigration expert in the country where you plan to reside.

Thank you first.

I don't care if it's closer to home, for the next 3 to 5 years I plan to be in Argentina or at least latin America, so I don't really care where the residence is. Uruguay is perfect for me.

It's a cooperation and I don't receive a salary and my dividend is going to an account from my personal holding. This is not taxed untill I take money out, which I don't plan to do for the coming years.

I am no specialist on double taxation, but if I am correctly the Dutch state can't tax income-tax if there is no arrangement with that country. If I am correctly Holland does not arrangement with Uruguay.

I plan to talk to some specialist when I return home, but this is just to get some pointers

[Tiny12]

Most countries will tax your worldwide income, if you're a resident of that country. Exceptions that I'm aware of include Panama, Singapore, Costa Rica, and a number of countries in the Carribbean. I'm sure there are tax haven countries in Europe (Channel Islands for example) closer to your home, too, that don't tax worldwide income.

If your company is a separate legal entity, like a corporation, then the list of countries would be larger. Many countries won't tax your foreign corporation's income, although they may tax dividends or salary that you receive from the corporation.

Also, regardless of whether your company is a separate legal entity, many countries would allow you to use taxes paid to the Dutch government on your income in the Netherlands as a tax credit when you file your tax return, so you could avoid double taxation.

You need a good Dutch tax lawyer or accountant who knows something about working with expatriates, I think. And also a tax/immigration expert in the country where you plan to reside.

[Redondo]

No, as long as the company doesn't do business in Uruguay.

That's not the case.

Are there countries in the world that tax it?

[Tiny12]

I know that my company is subject to Dutch taxation, but I would like to know if it's possible for Uruguay to also tax it?

No, as long as the company doesn't do business in Uruguay.

[Redondo]

I am a Dutch national.

I know that my company is subject to Dutch taxation, but I would like to know if it's possible for Uruguay to also tax it?

In Holland the income tax (above 19.000 euro) is 1,2% and that's the main reason I am looking to move.

Does anybody know if you need to rent / own a property to get residence in Uruguay?

Does anybody know for 100% if you won't get in trouble if you don't live in Uruguay but do have residence there?

[El Perro]

OK. Clarified. I thought you were one of them whack job neo cons who don't think you can be a resident of another country unless you renounce US citizenship. Suerte.

[Tiny12]

My question was about renouncing US citizenship though.

You don't have to renounce U. S. Citizenship to become a resident of another country, of course. The reason you'd do it -- say you're a U. S. Citizen and most of your income is from other countries. You have to pay tax to the IRS, unless you can offset the tax with credits for taxes paid to the foreign countries. Often, you can't do that. Also, when you have businesses in other countries, the IRS makes you jump through hoops like a trained seal in order to keep from paying the majority of your income out in taxes. The paperwork and accounting and legal fees are ridiculous. And sometimes the tax rates still end up being extortionate.

What's the "expat tax situation"? If it's setting up foreign bank accounts and not declaring them to the U. S. Or setting up dummy foreign shell companies, it's illegal. The penalties can be severe -- a maximum $250,000 criminal penalty and 5 years in jail and civil penalty of $25,000 for failure to declare a bank account for example. I think that's $25,000 per year per account, but am not sure.

[El Perro]

I am absolutely sure the U. S. Government taxes you on your worldwide income as long as you're a U. S. Citizen. You're entitled to an exemption from tax on the first $82,400/ year of income, provided you earned it from personal services performed abroad and provided you stay outside the U. S. Most of the year. I don't think this would help Redondo, if he's a U. S. Citizen.

My question was about renouncing US citizenship though.

[Tiny12]

Are you absolutely sure of this?

I am absolutely sure the U. S. Government taxes you on your worldwide income as long as you're a U. S. Citizen. You're entitled to an exemption from tax on the first $82,400/ year of income, provided you earned it from personal services performed abroad and provided you stay outside the U. S. Most of the year. I don't think this would help Redondo, if he's a U. S. Citizen.

[El Perro]

If you are a U. S. Citizen, you will have to renounce your U. S. Citizenship and become a resident of Uruguay

Are you absolutely sure of this? This business of having to renounce USA citizenship to become a resident of another country rears it's ugly head frequently, and is usually just flat wrong. If you are alluding to renouncing citizenship to avoid taxes on USA income, why would you do that? Just take advantage of the expat tax situation. Somebody with more expertise on this than me can ring in.

[Tiny12]

Redondo, I looked at Uruguay for similar reasons. They elected a left of center government a few years ago. There was talk that the country would start taxing worldwide income, but it did not, although Uruguay did introduce a personal income tax that taxes only income generated inside Uruguay. If you are a U. S. Citizen, you will have to renounce your U. S. Citizenship and become a resident of Uruguay (although not necessarily a citizen of Uruguay -- you could become a citizen of a 3rd country) in order to get the benefits you're seeking. I don't know about other countries besides the U. S., but most will stop taxing your worldwide income if you're a resident of another country without making you give up your citizenship.

You are not going to avoid taxes on a business in the U.S. or Europe --you'll have to pay taxes in the country where the business is domiciled. With respect to interest, I can only speak to the U.S. If your income or net worth were above certain levels when you expatriated (renounced your U.S. citizenship), then you will have to pay income tax on any interest income from the U.S., I think for a period of 10 years. Otherwise, your interest income and capital gains from the U.S. from holdings like C.D.'s, treasury bills and stocks would be tax free.

As far as the Uruguayan taxing authorities are concerned, they don't care how many days per year you're in Uruguay -- they're not going to tax your income outside the country period. However, the country where you hold citizenship may indeed have some required time period that you must reside elsewhere in order to avoid paying tax.

Regarding your question about Argentina, if you don't live in Argentina over half the year, I don't think you're liable for Argentine tax on your worldwide income. It's possible your country of citizenship could require that you spend a minimum number of days per year in a particular country (like Uruguay), in order for you to claim that you're no longer resident (and subject to taxation) in your home country.

[El Perro]

Well, you know, I never go anywhere without Mrs. Palmer and her five daughters in tow, so I guess I'm OK from that angle.

I'm not sure I can envisage living just north of Punta del Este, on the ocean, and having to face Ms. Palmer and her wore out dedos forever and a day! I also don't want to have to trek back to BA or Montevideo to get laid. There's the rub.

[StrayLight]

The drawback seems to be the need to have a chica "in tow".

Well, you know, I never go anywhere without Mrs. Palmer and her five daughters in tow, so I guess I'm OK from that angle.

[El Perro]

That's an excellent website, and one of the ones I was referring to below. It's actually got me thinking about relocating to Uruguay at some point down the pike (at the point that even Viagra loses its magic. LOL!

Right, I have had the same thoughts, though haven't explored Uruguay "by foot" enough at this point. The drawback seems to be the need to have a chica "in tow". Never my strong point.

[StrayLight]

Try this:

http://uruguaydreaming.com/index.php

That's an excellent website, and one of the ones I was referring to below. It's actually got me thinking about relocating to Uruguay at some point down the pike (at the point that even Viagra loses its magic. LOL!)