I travel a lot and I wonder how you deal with tax. Do you have your own company, or you just pay a cut of your all incomes?
In my country I have to pay 40% of all income.......that is without company
If I make a company I have to dish out each month 500 to run it and then 20% of all income.
Depending on how much you travel, that alone could give you a good tax break. As in pay 0% in your home country. Many countries (don't know about Austria, but consult with a tax lawyer, and I mean LAWYER, not accountant) have a provision where you don't have to pay taxes if you 1. Spend less than six months/year living there and 2. no longer OFFICIALLY reside there. Meaning you'd have to OFFICIALLY change your country of domicile to another country, preferably a low-tax one.
Find a tax haven county, become citizen, renounce previous citizenship and then pay little to no taxes.
Welcome to the future for internet entrepreneurs.
Easier said than done. Many tax-haven countries require sizeable amounts of money be brought with you ($200K+), or make investments/buy property of at least similar sizes. Which isn't realistic for most IM-ers, sadly.
That being said, there are countries where you can effectively be a perpetual tourist. As in no visa application prior to entry, stay for 90 days, take a day trip to a neighboring country, stay another 90 days, rinse and repeat.
Just register a Hong Kong company, and do all business through that company... the tax rate in Hong Kong for profit earned outside HK is 0%
You then need to only pay personal income tax, but, if you're traveling a lot there's a good chance that you're not considered a resident in any country for tax purposes, meaning you don't need to pay any personal income tax either.
Welcome to the world of 0% tax, 100% legally
Actually that's not entirely true. Sure, HK companies are anonymous (last I heard) and only required to pay tax on revenue generated domestically. However that doesn't mean you don't have to pay taxes in your home country. In fact, many countries will still tax the shit out of you, as long as the work you do is being done from within your country of residence. As in they'll simply ignore the fact that the company being used as a front for your business is based elsewhere and they'll judge the income according to where the profit-generating activities are being performed. I.e. in your mother's basement, in many BHW members' cases.
Also, in the case of the US citizens, they'll pay personal US taxes REGARDLESS of where they reside, as long as they are citizens of the USA. The only way around that is to renounce your US citizenship. And even if you do that I've read about cases where US tax still has to be paid for a number of years after that.
Having an anonymous tax-haven company is simply less risky tax evasion, but it's still tax evasion. Meaning, don't drop the soap if you get caught.
