The taxation of companies and legal personalities depends on the company headquarters or the place of effective management. In the context of tax optimization, the place of personal tax liability, i.e. income or wealth taxation in the home country, must also be taken into account.
In the ideal case, one can reduce their tax burden to 0%, by incorporating a foreign company, such as a company in one of the freezones in Dubai and the relocation to a country without income tax.
In most industrialized western countries, the cumulative tax burden from the taxation of company profits and personal taxation goes well over 70%, which means that you work for the tax office until September each year. In other words, you have been working for around 20 years of your life to meet tax claims. Not a very attractive idea, but often a disappointing reality.
Countries like the United States, the Philippines and Eritrea tax their citizens on worldwide income based on their citizenship – regardless of their actual place of residence and tax domicile. With citizenship taxation, states try to prevent the emigration of wealthy individuals, although it is difficult to make sense of a tax liability if the taxpayer does not live in the country and therefore receives no services in return for his taxes. A worldwide tax liability based on the passport is also a potential outcome for Europeans. The parliaments from Paris to Berlin are already talking about introducing this type of taxation. With the help of numerous citizenship programs we have the opportunity to legally and officially naturalize our clients in tax-free countries to reduce the risk of taxation based on citizenship.