What steps might an individual be advised to consider before establishing residence in (or becoming otherwise connected for tax purposes with) the jurisdiction?

Private Client

France Small Flag France

Before becoming French resident individuals may contemplate setting up trusts in order to hold their assets (see § 23, 24, 25 and 26) and plan the transfer of their estate upon their death without the intervention of a French “notaire”. They may also contemplate deferring the payment of French income tax. Other estate planning arrangements including intermediate holding and/or operational companies should be considered in order to mitigate the legal consequences of becoming resident in a Civil law jurisdiction.

All steps involved in the structuring of ownership should however be properly handled with adequate substance. They should also have another purpose than avoiding taxes. therwise they might be challenged under the doctrine of abuse of law.

Italy Small Flag Italy

Individuals moving to Italy under the forfait tax regime must consider the filing of a ruling on the entitlement to such special regime and its application to their specific facts and circumstances, and must consider any restructuring of their foreign assets that may help minimizing taxation of source since foreign taxes will not be creditable in Italy.

Individual moving to Italy under the ordinary tax regime may consider to reorganise their ownership structure to make them more tax effective in the light of Italian tax laws and to try to obtain a step-up the tax basis of assets.

Israel Small Flag Israel

Israeli tax law provides new immigrants with 10 year exemption on their foreign income see Question 10. The regime is quite simple and there are no special steps that should be taken in order to be entitled to the benefits.

Greece Small Flag Greece

If the individual holds any kind of interest or connection in Foundation(s), Trust(s) or similar formations, a thorough analysis and assessment of inheritance and tax aspects will need to take place prior to establishing residence in Greece.

The individual would also be advised to consider the double taxation avoidance treaty that might be in place between Greece and their jurisdiction(s) as well as whether their jurisdiction(s) is listed as a non cooperative or preferential treatment regime for tax purposes, particularly if the individual intends to acquire property in Greece utilizing foreign entities residing in such regimes.

Germany Small Flag Germany

As there’s no automatic step-up for assets held by an individual moving to Germany (safe for the case of shareholdings in corporations of at least 1% if the state of expatriation levies an exit tax), it may be advisable to check the options of a tax efficient step up before becoming tax resident in Germany. As German gift tax will apply once the donor or donee has become tax resident, it should also be considered to make inter-vivos gifts before moving. Furthermore, as Germany has quite unfavourable rules on the taxation of settlors or beneficiaries of foreign trusts, also trusts structures should be checked with respect to the potential tax consequences for German residents.

Belgium Small Flag Belgium

Before emigrating to Belgium, one might consider the impact of the so-called ‘Cayman tax’ on his rights or entitlements towards trusts and low-taxed foreign legal entities (cf. question 22). Given the differences between the Regions with respect to inheritance and gift tax legislation, one might also consider the implications of settling in a certain Region.

British Virgin Islands Small Flag British Virgin Islands

He or she should consider the impact of the individual’s liability to taxation in other jurisdictions to which that individual might be subject, because of citizenship or other factors.

UAE Small Flag UAE

Residence in Dubai is based on obtaining a UAE visa. For most expatriate residents, this will be a work visa obtained for them by their UAE employer, although other types of visas, such as investor visas, can also be obtained. Visa rules and regulations do change from time to time, and advice should be sought prior to moving to Dubai if not going down the traditional work visa route.

New Zealand Small Flag New Zealand

Families who intend to come to New Zealand as permanent residents must therefore take planning advice in advance of their coming to New Zealand. This is because it is possible to establish pre-migration structures outside New Zealand that can be used to hold families’ overseas investments and property.

Monaco Small Flag Monaco

An individual who intends to establish residence in Monaco must obtain a residence card.

In certain cases, foreign tax authorities may request from individuals a proof of residence in Monaco.

The residence certificate is a proof of an individual’s current residence in the Principality. It is issued by the Monegasque authorities to residents of the Principality who reside in Monaco for at least 6 months a year or have their main centre of activities in Monaco.

Updated: December 8, 2017