Zero Taxes in 1st world, Yea right…
Many people fantasize about going to countries like South Korea or Japan due to their beauty, friendly people, technological sophistication, nature, cleanliness, amazing food and so much more.
Admittedly, I’m still planning my trip (You’ll see it on OnTheBall Travels!) but for those who have gone and believe you could live there, you should keep reading.
Since of the declared pandemic, many people found out that their presence in any given country was not necessary and took the opportunity to travel, work while on the road, or simply continue their life of living off dividends and capital gains.
For those who do have a business generating them income or who live off of passive investments like rental income, dividends, capital gains or royalties, it’s possible to reside in either of these countries (South Korea and Japan) and not pay taxes.
Here's how it works:
Some income may be nuanced when it comes to capital gains–the result of the taxation may be perceived differently depending on the time it was held for, whether it is shares or real estate and other factors.
Furthermore, if you have an offshore business and you’re frequently travelling, it’s possible to leave these countries to complete business tasks outside of the country which will not be deemed as being sourced in Japan or SK, despite your residence in these locations. For instance, let’s say you’re enjoying Osaka as a fiscal resident but you leave to go to Dubai for a business deal, to receive directors fees by making a decision, or work on something for a short period for pay (receiving pay for a job) than since all of this work is taking place outside of Japan you won’t be taxed.
Few people also know that foreign-income is NOT taxed in South Korea and Japan for the first 5 years of your residents. Both countries have very strict methods of obtaining residency, but if you are committed to living there, it’s great to know that they leave foreign-income alone for this time period. Chile will do this too for the first 3 years.
Contact Open Door Consultancy for a personalized plan and lots of hidden secrets like this!
Who is this for?
- Someone who is very fond of these cultures and would like to spend more time there
- Someone who may be predicting economic hardship in these regions (see my Japan article!!) who will be able to live more cheaply (if you’re earning dollars)
- Someone who has their assets structured outside of these countries and require minimal control over the management of these assets (pension income, rental income & from dividend stocks we mention on the Premium service for you).
- Someone who is a business person who must travel frequently (who therefore forced to do work outside of country)
- Someone who doesn’t like paying tax–hope thats you if you found my site!
Thank you for taking the time to read. I hope it was informative if this was on your list of places. Please take the time to explore other articles by simply clicking around!
#StayOnTheBall
