Tax expatriation is a process whereby a taxpayer changes their tax residency in order to optimize their tax burden. The goal of tax expatriation is simple: pay less taxes.
While in the past such procedures were reserved for high net-worth individuals only, today they are accessible to all, and you can expatriate to less than two hours away from Paris.
We offer you four different destinations based on your expatriation profile: Belgium, Switzerland, Latvia and Singapore.
Belgium: for those with large estates
Belgium is an attractive tax destination for taxpayers who have large estates and low incomes.
Belgium has the specific advantage of not taxing estates. Unlike France, there is no ISF (“impôt de solidarité sur la fortune”). Taxpayers are only taxed on their income, at normal tax rates (25% to 50%).
Belgium also provides the advantage of imposing no capital gains tax and a low tax rate on financial returns. It can therefore also be an attractive option for shareholders and company owners.
Switzerland: high income individuals
Like Belgium, Switzerland is also attractive for those with large fortunes. However, this country is better suited for those who receive their income from international sources.
Switzerland’s advantage is that it offers a “lump sum taxation” regime.
This fixed tax can allow taxpayers to significantly reduce their tax burden. A taxpayer may reach a fiscal agreement with the tax authorities on the amount of taxable monies to which the normal Swiss tax rate will be applied.
The benefit of the lump sum taxation approach is that it is not based on the taxpayer’s income or estate. Instead, it is based on their expenses and standard of living.
Latvia: for investors
The advantages of Latvia: no minimum residency requirements in the country.
As to Latvia, it is set to become a favorite for investors. Since 2010, Latvia offers a new mechanism for becoming a Latvia tax resident and benefiting from the advantages offered by its jurisdiction: tax residency through investment.
The idea is simple: invest locally to the tune of €150,000 to 300,000, and you can obtain Latvian tax residency.
- a 5-year Schengen visa for non-EU citizens
- attractive tax rate: 26% tax on income, 10% on capital income, and 15% on capital gains
You can also open a company and freely grow your business throughout Europe at an attractive tax rate of 15%.
Singapore: for those doing business internationally
Located in Southeast Asia, Singapore is a very attractive jurisdiction in terms of tax expatriation. Since 2003, Singapore has implemented a special “Not Ordinarily Resident” (NOR) tax scheme. This offers attractive tax rates in a bid to attract talent.
To obtain NOR status, you need only be a tax resident for the current year of the day the request is filed. However, you need not have had this tax residency status for the three preceding years. NOR status is valid for 5 years, during which you are not taxed on the portion of your income corresponding to the time spent outside Singapore during the year taxed. This period must be at least 90 days.
The idea is as follows: conduct your business around the world without having to spend all your time in Singapore.
Generally speaking, becoming a Singaporean tax resident means benefiting from an income tax rate ranging from 0% to 20% and no taxes on capital gains or dividends.
Finally, for entrepreneurs, it holds the advantage of a 17% corporate tax and gives you a gateway into Asia.