Your Top Tax and Passport Questions Answered ⭐️ | Summary and Q&A

TL;DR

Get answers to common questions on taxes, citizenship by investment, and living abroad from the Wealthy Expat, including tips on avoiding taxes on earnings outside the UK, the timeline for golden visa approval, and the tax-friendliness of banks in Dubai.

Key Insights

• 🎮 Controlled foreign corporation rules apply for earning taxes in highly developed countries.
• 🈷️ Golden visas in the UAE can take around two to three months for approval.
• 👔 It is important to have ties to one country for stability and personal connections.
• 🏦 Dubai banks may require a relationship to process large transactions smoothly.
• ❓ Renouncing US citizenship is required for US citizens to avoid taxes completely.
• 🉑 Some citizenship by investment programs accept crypto as proof of funds.
• 🛂 The timeline for obtaining a second passport through citizenship by investment varies.

Transcript

hey it's the wealthy expat here i asked you questions you'll get my answers both on instagram as well as on youtube i ask you the top questions that you have when it comes to avoiding taxes citizenship by investment living abroad anything that you need help with that i talk about here on the channel let's get to your top questions give you my answe... Read More

Questions & Answers

Q: Do I need to pay tax on earnings made outside the UK if I keep them in a Dubai account?

Yes, if you are living in a developed country like the UK, you may still need to pay taxes on earnings made outside the country. Controlled foreign corporation rules apply, and physical presence in a low-tax jurisdiction is required to avoid tax in the UK.

Q: How long does it take for a golden visa to be approved after purchasing a 5 million AED property?

The timeline for golden visa approval in the UAE varies, but it typically takes around two to three months. Certain aspects, like obtaining the Emirates ID, may be faster, but the overall process usually takes about two months.

Q: What is the plan if circumstances in Dubai turn sour for the Wealthy Expat?

The Wealthy Expat has no emotional attachment or citizenship in any specific country. If Dubai's tax rates increase or adverse situations arise, he would leave Dubai without hesitation. It is important to have one country where you develop ties.

Q: Are banks in Dubai friendly to large transactions?

Friendly treatment of large transactions depends on factors like the length of time the bank account has been open and the source of the money. It is advisable to build a relationship with the bank and communicate the nature of big transactions in advance to prevent suspicious flagging.

Q: As a US citizen, how can I move somewhere to pay zero tax?

Renouncing US citizenship is required to completely eliminate taxes for US citizens. To reduce taxes as a US citizen, starting a company in a low-tax jurisdiction like Dubai and owning it 100% can be an effective strategy.

Q: Can second passport citizenship by investment programs be paid for with crypto?

While not all countries accept crypto as direct payment, there are options available. Some countries like Dominica are developing programs that accept crypto as proof of funds. Brokers and lawyers can assist in converting and transferring crypto for payment.

Q: How long does it take to get a second passport through citizenship by investment?

The timeline for obtaining a second passport through citizenship by investment varies. In the Wealthy Expat's case, it took exactly six months and two weeks from the moment of application to receiving the passport physically.

Q: Is it possible to become a tax resident of Dubai with multiple stays adding up to 180 days?

To become a tax resident of Dubai, the requirement is to be present in the country for a total of 180 days or more. While some gaps between stays are acceptable, the majority of the 180 days should be spent in Dubai without long absences.

Summary & Key Takeaways

• Taxes on earnings made outside the UK while living in the country depend on factors such as the presence of controlled foreign corporation rules. To avoid tax in the UK, physically leave the country and be in a low-tax jurisdiction like Dubai.

• The timeline for golden visa approval in the UAE varies depending on the type of visa, but on average, it takes around two to three months. The process can be faster for certain aspects, such as obtaining the Emirates ID.

• If circumstances in Dubai take a negative turn, the Wealthy Expat is not tied to any specific country and would leave without hesitation. Developing ties to one country is recommended for stability and personal connections.