FIRE traveling abroad

1

If you are FIREd with a residency in Switzerland and traveling most of the time abroad, you need to pay the wealth tax, AVS/AHV and income tax. I assume that you only own a portfolio of stocks/bonds.

I was wondering if some countries have low or no taxes which doesn’t require to be 180 days in it.

Do you have insight? (the question if traveling abroad long term is viable is not the subject :wink: )

The criteria would be:

  • Allowed double citizenship or to stay long term on other visas
  • No wealth tax
  • No tax on capital gains from foreign securities
  • No tax on dividend
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2

If you don’t stay too long in neither country, you can be totally legitimately be a tax resident of none!

No wealth tax to pay, no CGT, no dividend taxes except withholding - which for US securities is going to be 30%.

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3

I second pandas.
Stay nowhere >180days & thereby avoid tax residency in most places completely. (Only lose dividend tax, verrechnungssteuer etc)
For long-term visas a few countries in SEA and Central America offer retirement visas (usually 50+) with no taxation on foreign assets.

4

30% withholding is a lot, frankly. This is much more than I would be expecting to pay when I retire. So to me this does not sound like a good deal. I’d rather stay in CH, pay around 15% income tax on dividends, another 0.5% on wealth and that’s about it.

5

Thanks for the feedback, concerning the withholding tax, if you buy a irish ETF only 15% would apply, so not a major issue.

I would assume when you live Switzerland you need to give an foreign adress to the tax office/city.
in any case, you still need to have an adress in your bank account.
Theorically, if you don’t modify the adress configured on IB. Switzerland could be aware of it through the automatic exchange of information program

6

After some reseach the following countries could be an option: paraguay, panama and cyprus

7

So you’d just be going to your brokerage/bank:
„Oh yeah, I won’t have any tax residence anywhere anymore“?

Which brokerage and/or bank is accepting clients „without“ residence for tax purposes?

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