Frequently Asked Questions

Yes, tax optimization is completely legal when done properly. There's a significant difference between tax evasion (illegal) and tax optimization (legal):

• Tax Optimization: The legal arrangement of your affairs to minimize tax liability using existing laws, structures, and treaties.
• Tax Evasion: The illegal non-payment or underpayment of taxes by hiding income or providing false information.

We only work within legal frameworks, ensuring all structures are fully compliant with relevant local and international tax laws.

The potential tax savings vary significantly based on:

• Your current tax jurisdiction
• The nature of your business
• Your revenue and profit margins
• Your willingness to relocate or restructure operations

Many digital entrepreneurs can achieve effective tax rate reductions of 15-30 percentage points while maintaining full compliance. During our initial consultation, we can provide a more specific estimate based on your unique situation.

For a estimate of your tax savings, you can try our Tax Calculator.

Not necessarily, though relocation often provides the most significant tax advantages. We offer three main approaches:

• Business Structuring Only: Optimizing your business structure while maintaining your current residency can still yield tax benefits, though they're typically more limited.
• Partial Relocation: Establishing tax residency in a favorable jurisdiction while maintaining homes in multiple locations.
• Full Relocation: Completely relocating to a tax-efficient jurisdiction, which typically offers the maximum tax advantages.

Our recommendations are based on your personal preferences, business needs, and optimization goals.

International tax frameworks like BEPS (Base Erosion and Profit Shifting) and the global minimum tax are evolving, and we stay current with all developments. Our strategies:

• Are designed with these frameworks in mind
• Focus on legitimate business substance and economic activity
• Create structures that will remain resilient as regulations evolve
• Emphasize real operational presence rather than artificial arrangements

We continuously monitor regulatory changes and proactively adjust client structures when necessary to ensure ongoing compliance.

Compliance is at the core of our approach. We ensure ongoing compliance through:

• Regular Reviews: We conduct periodic reviews of your structure to ensure it remains compliant with changing regulations.
• Documentation: We help maintain proper documentation demonstrating the business substance of your operations.
• Substance Requirements: We advise on maintaining necessary economic substance in each jurisdiction.
• Expert Network: We collaborate with local accountants and legal experts in each jurisdiction to ensure full compliance with local requirements.
• Regulatory Monitoring: We actively track tax law changes that could impact your structure.

Our goal is to create structures that are not only tax-efficient but also sustainable and defensible.

Several jurisdictions are particularly favorable for digital entrepreneurs, each with unique advantages:

• Portugal: The Non-Habitual Resident (NHR) program offers significant tax benefits for 10 years.
• UAE (Dubai, Abu Dhabi): Zero personal income tax and growing digital ecosystem.
• Singapore: Favorable tax rates and strategic location for Asian markets.
• Cyprus: Competitive tax rates with European lifestyle.
• Georgia: Emerging hub with simple tax system and minimal bureaucracy.
• Estonia: Digital-first approach with e-Residency options.

The best option depends on your personal preferences, business model, and long-term goals. Our experts can help identify the optimal jurisdiction based on your specific situation.

Changing tax residency typically involves several key steps:

• Exit procedures from your current country of residence
• Meeting the residency criteria of your new jurisdiction (physical presence, center of vital interests, etc.)
• Documenting the change properly for tax authorities
• Obtaining necessary visas or residency permits
• Establishing physical presence in the new jurisdiction
• Managing any exit taxes or ongoing obligations in your former country

We guide clients through every step of this process, working with immigration specialists and local experts to ensure a smooth transition.

Yes, though this requires careful planning. Key considerations include:

• Understanding the specific residency rules of both your home country and new jurisdiction
• Managing physical presence requirements to avoid triggering residency in multiple countries
• Properly structuring ownership of real estate and other assets in your home country
• Considering family ties and how they impact residency determinations
• Navigating tax treaties between the relevant countries

We develop personalized strategies that allow you to maintain appropriate connections to your home country while establishing tax residency elsewhere. The specifics depend on the countries involved and your personal circumstances.

The "183-day rule" is a common but oversimplified understanding of tax residency. While many countries do use physical presence as a primary criterion, the full picture is more complex:

• Different countries count days differently (e.g., partial days, transit days)
• Many countries have additional residency tests beyond physical presence
• Some use "look-back" periods spanning multiple years
• Tax treaties include "tie-breaker" rules for dual residency situations

It's essential to understand the specific residency criteria for all relevant jurisdictions and how they interact. Our approach accounts for these nuances to create legally sound residency arrangements.

US citizens face unique challenges due to citizenship-based taxation, which requires filing US tax returns regardless of where they live. However, several strategies can help optimize the tax situation:

• Foreign Earned Income Exclusion (FEIE): Excluding up to $120,000+ of foreign-earned income
• Foreign Tax Credit: Offsetting US tax liability with taxes paid to foreign countries
• Strategic business structuring: Utilizing appropriate corporate structures
• Treaty benefits: Leveraging provisions in US tax treaties

We have specific expertise in helping US citizens navigate these complexities while remaining fully compliant with both US and foreign tax obligations.

There's no one-size-fits-all solution, as the ideal structure depends on multiple factors:

• Your business model and revenue sources
• Target markets and customer locations
• Personal residency situation
• Growth plans and potential exit strategy
• Intellectual property considerations

Common efficient structures often include:

• A holding company in a tax-efficient jurisdiction
• Operational entities in strategic locations
• Intellectual property held in jurisdictions with favorable IP regimes

We design custom structures based on your specific business and personal circumstances.

"Economic substance" refers to having genuine business operations in a jurisdiction, rather than just a paper company. It's increasingly important due to international anti-avoidance rules.

Key substance considerations include:

• Physical office space
• Local employees or directors
• Decision-making occurring in the jurisdiction
• Genuine business activities matching the company's stated purpose
• Adequate financial resources to support claimed activities

We design structures with appropriate substance requirements in mind, helping you implement and maintain the necessary elements in each jurisdiction.

Offshore companies can be legitimate vehicles for international business when properly structured and operated. However:

• Simply setting up an offshore company without proper substance or structure is rarely effective
• Many traditional "offshore" jurisdictions now have substantial reporting requirements
• Banking can be challenging for companies in certain jurisdictions
• The structure must align with your business reality and personal tax situation

We focus on creating legitimate international structures that optimize taxes while maintaining full compliance and business functionality. This may include entities in both traditional "offshore" and "onshore" jurisdictions, depending on your specific needs.

VAT/GST compliance is increasingly complex for digital businesses serving global customers. Key considerations include:

• Registration Thresholds: Understanding when you're required to register in each jurisdiction
• Place of Supply Rules: Determining which country's VAT/GST applies to each transaction
• B2B vs. B2C Transactions: Different rules often apply depending on customer type
• Digital Services Special Rules: Many countries have specific rules for digital services
• Simplified Registration Schemes: Options like the EU's One-Stop Shop (OSS)

We help implement comprehensive VAT/GST compliance solutions, including registration where required, appropriate invoicing procedures, and efficient reporting systems.

Intellectual property (IP) is often a key asset for digital businesses and can be strategically positioned within your global structure. Considerations include:

• IP Holding Companies: Locating IP in jurisdictions with favorable tax treatment of royalties and IP income
• Patent Box Regimes: Taking advantage of special tax rates for IP-derived income
• Transfer Pricing: Ensuring arm's length royalty rates between related entities
• Substance Requirements: Maintaining sufficient development and management activities in the IP holding location
• Exit Tax Issues: Managing potential tax implications when moving existing IP

We design IP structures that provide both tax efficiency and robust legal protection for your valuable intellectual assets.

Digital entrepreneurs typically need a mix of banking solutions:

• Traditional corporate accounts in key operational jurisdictions
• Digital banking platforms for flexible multi-currency management
• Payment processors optimized for your customer base
• Merchant accounts structured to minimize currency conversion costs

We help identify and establish the optimal banking mix based on your business model, jurisdictional structure, and operational needs. We have established relationships with banks and financial institutions across multiple jurisdictions that understand digital business models.

Banking has become more challenging due to increased compliance requirements, but with the right approach and preparation, it remains manageable. Key factors affecting account opening include:

• The jurisdiction of your company formation
• Your business model and industry
• The bank's familiarity with international structures
• The quality and completeness of your documentation
• Having proper introductions and relationships

We guide clients through the bank selection process, prepare comprehensive application packages, and leverage our established banking relationships to maximize success rates for account opening.

Digital banking platforms can be valuable components of your financial infrastructure, but typically shouldn't be your only solution. Considerations include:

• Benefits: Multi-currency capabilities, competitive exchange rates, integration with business software
• Limitations: May not provide full banking services, potential restrictions for certain business types
• Regulatory Considerations: Some platforms have limitations for companies in certain jurisdictions
• Risk Diversification: Prudent to combine digital platforms with traditional banking relationships

We help clients integrate digital banking solutions into their overall financial infrastructure while maintaining necessary traditional banking relationships.

Our client process follows these key steps:

1. Initial Consultation: We discuss your current situation, goals, and requirements.
2. Analysis & Strategy Development: We analyze your specific case and develop a customized strategy.
3. Proposal & Agreement: We present options and recommendations, then formalize our engagement.
4. Implementation: We execute the agreed strategy, coordinating with specialists in relevant jurisdictions.
5. Ongoing Support: We provide continued guidance and updates as regulations change and your business evolves.

Throughout this process, we maintain clear communication and work collaboratively with you and any existing advisors you may have.

To develop an effective strategy, we typically need to understand:

• Your current tax residency and citizenship
• Your business model, revenue sources, and key markets
• Your current business structure (if any)
• Your revenue and profit levels (current and projected)
• Your goals and priorities (tax efficiency, asset protection, lifestyle, etc.)
• Your willingness to relocate or travel
• Family considerations that may impact planning

Don't worry if you don't have all this information prepared—we can guide you through what's needed during our initial discussions.

Our fees vary based on the complexity of your situation and the scope of services required. We offer several service levels:

• Strategy Consultation: Focused guidance on specific questions or issues
• Comprehensive Strategy Development: Full analysis and customized planning
• Implementation Package: End-to-end execution of the recommended strategy
• Ongoing Support: Continuous guidance and structure maintenance

We provide transparent fee quotes after understanding your specific needs during the initial consultation. Our focus is on delivering value that significantly exceeds the cost of our services.

Implementation timelines vary based on the complexity of your strategy and the jurisdictions involved:

• Basic business restructuring: 1-3 months
• Complex multi-jurisdiction structures: 3-6 months
• Strategies involving residency changes: 6-12 months

We provide detailed timelines during the strategy development phase, accounting for company formations, bank account openings, residency applications, and other components. We prioritize doing things correctly rather than quickly, ensuring sustainable and compliant structures.