Our clients have discovered the secret to living in Europe with all comforts and without paying taxes or reducing them by at least 70%. And you may wonder, is this legal? Is this real? Yes, it is 100% legal and 100% real to decrease taxation and move to Europe to have a much more comfortable life, especially if you are at a stage in your life where you’re considering leaving the single life of traveling the world or settling down with a family.
However, we are certain that you have recently wondered: How will I travel when I have a family? Do I have to give up all my hobbies when my children arrive? If you want more information, keep reading.
To make it much simpler, let me explain while telling you a story from a few months ago when a very special client, like you, contacted us with the same questions: How will I travel when I have a family?
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Traveling with Family: The Beginning of a New Adventure
The story begins not just with the arrival of a client, but actually with practically four individuals trusting me and our legal team. It was quite a challenge considering the expenses involved in maintaining a family, yet we managed to find a great solution tailored to their particular circumstances.
This special case involves a Canadian family. This unit had lived and worked their entire lives in Canada, and like many of us, they only longed for the freedom to explore the world constantly, at least three times a year, diversify their investment portfolio, and of course, save a lot on taxes.
The family consists of 4 individuals: the father, a director of a company related to online service sales, the mother, working as an online salesperson on commission for a company in Ontario. Both are responsible for supporting two beautiful daughters by their side.
If you’re seeking more information on how to set up a company in Romania and change fiscal residence, our blog provides detailed insights on obtaining your fiscal residence quickly and easily in Romania. Click here.
Their adventure began with a bold two-year journey, traveling from one country to another, spending quality time in each place to find their perfect haven. Besides seeking a new fiscal residence to lower taxes, they were also looking to diversify their passport portfolio. Clearly, they wanted a long-lasting solution, especially as the parents aimed to provide stability and a source of income for their daughters.
It’s no secret the socio-political instability we’re experiencing nowadays, so one of this couple’s clearest goals was a long-lasting solution that could provide stability for their daughters and opportunities for growth in the future.
What real needs do I have when traveling with family?
The needs of this couple were clear, however, in cases where children are involved, it’s always best to take things slowly and seek appropriate guidance to make the right decision while meeting objectives without failing in the attempt.
To provide a bit of context, I recall summarizing their needs primarily into three: finding a place in Europe with excellent infrastructure, having access to top-tier schools. And… to facilitate the adaptation process, they needed a population that fluently spoke English.
The man and the woman hoped to leverage tax planning to establish a new network of professional contacts to support their various businesses. Meanwhile, the girls naturally showed interest in taking advantage of Europe’s multicultural environment.
If you’re looking for new growth opportunities in the European Union, we can connect you with a international tax advisor who can address all your queries and prepare all the necessary documentation to embark on your venture.
If you need more information on obtaining a fiscal address abroad for your company in Montenegro, Romania, or Cyprus, feel free to contact us.
After two years of traveling, the family felt the need for a home, a place that not only offered tax advantages but also provided a sense of stability for the girls to start feeling at home.
Having spent two years essentially as digital nomads, moving from one place to another, the children were not prepared for prolonged travel. They needed to feel peace and live the experiences that the old continent offers to Americans.
Identifying Individual Objectives When Traveling as a Family
To assist them, we needed to identify their objectives, which required engaging in lengthy conversations, exploring options for countries, researching the best educational systems in Europe, and seeking a location with low crime rates where the girls could feel safe in any environment.
In addition, our team of tax professionals analyzed all potential income opportunities in countries with attractive tax reduction schemes, whether through benefits for specific activities or what is known as territorial taxation.
Furthermore, we took into account the implications that such opportunities have on the lifestyle of these countries. In other words, the greater the tax incentives available, the more interest there is from foreign capital, which can only improve the quality of life for residents and attract both small and large investors considering these destinations for migration.
What are the best countries to travel to with your family and pay low taxes?
At the time, they bombarded us with questions, which we answered clearly. The main topics they touched upon were how to understand the processes in each European country and even options in Latin America such as Paraguay.
They opted for a temporary solution in Latin America, obtaining temporary residence in Paraguay, which they would only maintain by spending a day every 2 years… but being clear about their needs, as English is not commonly spoken on a daily basis in this country. Also, although it is a low-tax country, they wanted to live in Europe.
Therefore, we addressed the first point here: temporary residence in Paraguay could provide them with a second passport in the medium term. But… for the short term? They would have to seek a second residence.
With this overview, we considered three incredible options: Portugal, Malta, and Cyprus. Three countries with significant economic growth opportunities and peaceful family living.
Each of these countries, like everything in life, has its own advantages and disadvantages compared to the other countries we evaluated. However, they all share a common characteristic.
These countries offer very attractive residency and citizenship programs for foreign investors, with minimal requirements and maximum benefits.
The best country to travel to with your family around the world
Finally, they chose Cyprus, the island in the Mediterranean Sea, after much deliberation: mainly for its stable economic environment, essential factors for a family. And then for the impressive quality of life it offers to families, entrepreneurs, and investment opportunities.
It is important to highlight that, in Cyprus, they could become tax residents with just 60 days of residency on the island. Compared to various countries similar to Cyprus, this is a quite easy and quick requirement to fulfill.
Most countries or regions require 183 days to obtain tax residency. It is worth noting that, while in Cyprus, they would also benefit from double taxation treaties with another 60 countries.
But that’s not all, besides detailing the advantages, we also meticulously restructured their income, ensuring that they would not have to pay unnecessary taxes.
If you’re looking for more information on how to create bank accounts without exchanging information (CRS), click here.
How to change tax residency when traveling with family?
With all this work accomplished and finalized, the family and their dreams of growing in Europe landed in Cyprus, solidifying their work as solid as a rock. And in addition to their work, they also solidified their happiness; it seemed like a dream to enjoy this island without any tax pressure that suffocates you and threatens your financial stability.
As if that weren’t enough, things continued to improve for this family, as once settled and they spoke with their suppliers and employers, they were more than happy and willing to pay them anywhere abroad. So while diversifying their income, they also had the possibility of continuing to receive a good source of income from their remote jobs.
Making progress in these lands is quite simple and quick, as within about three months, this family had already managed to diversify their investment portfolio, generate multiple sources of income, and reduce their tax burden.
So, is it possible?
This option they chose under our guidance was mainly due to its stable economic environment, essential factors for a family. However, you always have to remember that not all cases are the same, so your particular circumstances need to be analyzed.
At Normad Tax, we will personally assist you and provide you with the best options tailored to you. Contact us.
If you were wondering at the beginning of this text how you would travel when you have a family, how you would make your money stretch to not neglect your adventurous life and cover family expenses. Everything you’re looking for is possible; however, you need our guidance with a personalized plan.
It’s important to highlight that these tax solutions are not just for families; we can handle all kinds of cases, such as a single man or a childless couple, a single father, among many others. This story was taken from real life, recounted so that if you have any doubts, you’ll be encouraged to call us and definitively change the course of your life for imminent improvement.
