When choosing a country for relocation and establishing tax residency, high-income businessmen are mainly guided by the requirement that there is should be no taxation of income received from abroad in such countries.
Asian countries, which offer you territorial tax regime, meet such requirements and we already talked about them in our previous article.
Some European countries (see the article) may also be of interest to the future resident, offering the possibility of using the non-domiciled and remittance basis options.
Today we will touch on two more countries that are interesting from this point of view.
Georgia
The Tax Service of Georgia clarifies that in accordance with the legislation individuals who are residents of Georgia pay taxes only on income received from sources in Georgia. Dividends and interest received by a resident from resident companies are exempt from taxation. An individual is recognized as a tax resident provided that he/she has been in the country for 183 or more days during the last 12 months.
Israel
Israel’s tax system is considered one of the most complex in the world. Without a codified law and based on case law, the taxation of income of residents of Israel often needs clarification from professional consultants and even the courts.
However, since 2007 in order to attract investment to Israel, the country has introduced a 10-year exemption from income tax on foreign income of any person who is repatriated to Israel. Under these provisions, the taxpayer is also exempt from declaring such foreign income. The tax exemption does not apply to income received from doing business in Israel, as well as to active income abroad, if the business is opened after obtaining Israeli citizenship. After repatriation to Israel, you can apply for a 1-year delay in recognising you as a tax resident of Israel, so the total period of tax holidays for income received from abroad can be 11 years. More information on this exemption can be found on the website of the Tax Service of Israel.
