Sail the world never pay taxes
- Thread starter lenny2
- Start date
Dont you know the 2 Universal laws?
1. Death and 2. Taxes
Even sailing the world on a boat, you will still need to register the boat (pay taxes registration and insurance) and need a dock slip (taxed avajn) to land for refueling or resupply.
Although the taxes maybe minimal, its still there.
1. Death and 2. Taxes
Even sailing the world on a boat, you will still need to register the boat (pay taxes registration and insurance) and need a dock slip (taxed avajn) to land for refueling or resupply.
Although the taxes maybe minimal, its still there.
Agreed Pusher69......knowing those two 'Universal Laws' and knowing there is no way, or legal way, to get around them, isn't it nice to know the endless possibilities of pooning on your own boat with international ladies!!! could make death and taxes almost non-existant, at least for those moments. LOL
.....or even better, dying of a heart attack on your own boat whilst hosting a poon party after evading the tax man!!!
.....or even better, dying of a heart attack on your own boat whilst hosting a poon party after evading the tax man!!!Many boats are registered in countries like Belize. Look at cruise ships.. lots of them are registered in Liberia.
This if for a reason.
You can't live 'tax free' but you can certainly live 'almost completely tax free'. I'd consider paying $1000/yr to register my boat 'tax free' if that's all the taxes I ever pay in my life (other than sales taxes paid on consumables like food and clothing)
This if for a reason.
You can't live 'tax free' but you can certainly live 'almost completely tax free'. I'd consider paying $1000/yr to register my boat 'tax free' if that's all the taxes I ever pay in my life
(other than sales taxes paid on consumables like food and clothing)I am paraphrasing:
1) Do not bother looking into it unless you income from international sources is over $500,000 US (or you can switch the income to an international source).
2) You cannot just 'live on a boat". You have to be a resident of a country without a tax treaty with your home country. You must maintain a residence there 365 days a year. But you only need to be there enough that their government recognizes you as a resident. Your boat has to be registered to that country for the days spent on it to count for your new countries residence.
3) Canada will not grant you non-residency status unless you follow a lot of rules, and most often still tax you at full rate for any CANADIAN INCOME. We were told if we cut the non-residency short we could be back taxed for all the money we saved.
4) You need to determine if your income tax is sufficient to cover the costs of your new domicile, your boat, etc. Just living in your selected country is MUCH less expensive.
5) The big trick is to never ever be in a situation where you spend more than the trigger time in a high tax country. In many cases about 6 months anywhere and you ned to file taxes. I was told each country has their own number of days they allow before you get charged income taxes.
6) When in port you are in the country.
Bad stuff:
1) all capital gains taxes must be pay all 'deemed sold' capital gains tax when you leave. In my case it hurt. But I was able to claim a $750k one time exemption and only paid at 1/2 the normal tax. So it was not that much. If you own property though, it might be expensive.
2) any property and money left in Canada will cause issues.
3) You often have to pay some taxes to your new country of residence. And different countries have different rules. Ours has 0% tax on capital gains. So All my income is from capital gains
However we do pay real-estate/land tax. It is about 1/10 of what we would pay for the same property in Canada.Most countries have sale taxes, fortunately many countries have different VAT type clauses that return much of it to you if you are a 'just visiting tourist'. I foolishly went off and got our tank topped off and did not know about the paper work and it cost a lot more. Also maxed out my credit card!
Does that help?
buy the boat, rip off the gps so you can't be found. sail and live on the water, stop at isolated islands and trade for what you need. fuck taxes. you only need to worry about shit like that if you plan on getting seen again. just get on your boat and bail, what are they gonna do, mail you a bill ? fuck it, get on your boat and go. better yet, take a loan out for the boat and never come back.
Problem is..you do have to tie off some where, and regularly.
overnight dockage is expensive.
Hard to live on a constantly moving boat! Who would steer it?
unless of course off shore and anchored!
overnight dockage is expensive.
Hard to live on a constantly moving boat! Who would steer it?
unless of course off shore and anchored!
A little over £200.00 a week at South Dock.Problem is..you do have to tie off some where, and regularly.
overnight dockage is expensive.
Hard to live on a constantly moving boat! Who would steer it?
unless of course off shore and anchored!
In general we expect to pay about $1.00 US per foot, including power and water.
Our tub budgets about 1 gallon of diesel per mile.
Sail boats are much less fuel intense.
In the early stages we were advised to budget 10% of the purchase price every year for maintenance.
Well many places have no sales tax. Many have no capital gains. So depending how you make your money, and where you choose to live, you can be well under a few % points in total tax.
I'd like to try living & travelling in Asia 12 months a year & see if i like it or if i'd rather come back to Canada. Stay in no country more than 179 days/yr to avoid becoming a "tax resident", so would not have to pay taxes for income there, since all my income (life annuities) would be from Canadian sources. This 179 day rule would apply to nations like Thailand, the Philippines, Cambodia. I'm guessing Hong Kong & Macau as well.
Unfortunately it seems that if after leaving Canada i come to be considered a non resident of Canada for tax purposes, then i'd be subject to withholding taxes of 25% on my incomes, considerably more than the less than 7% i presently pay. OTOH, AFAIK, if i was still considered a tax resident of Canada, even while living abroad for years, the 7% tax rate would continue to apply.
Alternately to declaring intentions of making a permanent move from Canada, another plan would be to live outside the country for up to 24 months with the intention of returning. It is possible to do this while still paying into and recieving provincial health coverage. For example in BC the limit for doing this is once every 5 years for up to 24 months.
Although I'm not aware if they will allow the purchase of coverage to Canadians who have no residence (rented or owned) in Canada. I'd rather not be throwing away cash by paying rent on an apartment i'm not living in for 2 years, but perhaps that is the price one has to pay to maintain tax residence status in Canada. Neither the Revenue Canada or the BC Health care sites give definitive answers about this.
Ideally i'd prefer to retire to Bangkok 12 months a year, but then there are issues of paying taxes in two countries and the 25% withholding rate payable to Canada. Moreover, from my reading on the subject, one is less likely to be declared a non resident of Canada for tax purposes if they do not become a resident of another country, which i take to mean tax resident.
What i'm wondering is, if possible, how to make a permanent move to Asia & continue paying less than 7% Canadian tax.
Even better than that, perhaps, would be if the Canadian annuity companies could transfer my payments so that i was receiving them from outside Canada, say Hong Kong, and as such it was considered that i no longer had any Canadian income, so was not subject to any Canadian taxes, and the non Canadian source of my income charged me no tax.
Tax resident status in Canada, as i understand it, is based on a number of things, such as residential ties to Canada as well as ties to another nation. The former could include things like a spouse or children living in Canada, ownership of property, bank accounts investments & CCs, club memberships, driver's licence, etc.
Personally i'd be maintaining at least 5 bank accounts, 2 CCs & 2 bank cards with 2 Canadian banks. Maybe some personal belongings like clothes & furniture in storage. Also relatives living there along with ex wife recieving alimony payments. I wouldn't be making any "residential ties" in Asia, or paying income tax there. Would this make me a resident or non resident of Canada for tax purposes?
Unfortunately it seems that if after leaving Canada i come to be considered a non resident of Canada for tax purposes, then i'd be subject to withholding taxes of 25% on my incomes, considerably more than the less than 7% i presently pay. OTOH, AFAIK, if i was still considered a tax resident of Canada, even while living abroad for years, the 7% tax rate would continue to apply.
Alternately to declaring intentions of making a permanent move from Canada, another plan would be to live outside the country for up to 24 months with the intention of returning. It is possible to do this while still paying into and recieving provincial health coverage. For example in BC the limit for doing this is once every 5 years for up to 24 months.
Although I'm not aware if they will allow the purchase of coverage to Canadians who have no residence (rented or owned) in Canada. I'd rather not be throwing away cash by paying rent on an apartment i'm not living in for 2 years, but perhaps that is the price one has to pay to maintain tax residence status in Canada. Neither the Revenue Canada or the BC Health care sites give definitive answers about this.
Ideally i'd prefer to retire to Bangkok 12 months a year, but then there are issues of paying taxes in two countries and the 25% withholding rate payable to Canada. Moreover, from my reading on the subject, one is less likely to be declared a non resident of Canada for tax purposes if they do not become a resident of another country, which i take to mean tax resident.
What i'm wondering is, if possible, how to make a permanent move to Asia & continue paying less than 7% Canadian tax.
Even better than that, perhaps, would be if the Canadian annuity companies could transfer my payments so that i was receiving them from outside Canada, say Hong Kong, and as such it was considered that i no longer had any Canadian income, so was not subject to any Canadian taxes, and the non Canadian source of my income charged me no tax.
Tax resident status in Canada, as i understand it, is based on a number of things, such as residential ties to Canada as well as ties to another nation. The former could include things like a spouse or children living in Canada, ownership of property, bank accounts investments & CCs, club memberships, driver's licence, etc.
Personally i'd be maintaining at least 5 bank accounts, 2 CCs & 2 bank cards with 2 Canadian banks. Maybe some personal belongings like clothes & furniture in storage. Also relatives living there along with ex wife recieving alimony payments. I wouldn't be making any "residential ties" in Asia, or paying income tax there. Would this make me a resident or non resident of Canada for tax purposes?
Sadly if your income is from Canadian sources Canada will take their taxes off the top.
You have to be a resident of another country to be a non-resident for tax purposed.
Lenny, you need to get a very competent international tax lawyer and go through it one line at a time. My opinion (not a fact just an opinion based on a lot of things) Is that there is no way on earth that you can "e maintaining at least 5 bank accounts, 2 CCs & 2 bank cards with 2 Canadian banks. Maybe some personal belongings like clothes & furniture in storage. Also relatives living there along with ex wife receiving alimony payments." and have Canadian annuities and become a non resident.
Loki gave me a bit of gold as a wedding present. To be deemed non-resident I had to pay the capital gains on it and liquidate it. Also had to sell our vehicles and NOT have a residence.
I guess the basic rule of thumb that $500,000 of international income was the typical value where you should start thinking non-resident / boat life is a good guide line.
My resident expert
says $200,000 to be a straight forward 6 month land liver is the rule of thumb for non-resident living.But if you are near those values, go talk to an expert.
Miss C
Do you know off the top what countries have low or no income tax on foreign earned personal income for non-citizen residents?
Do you know off the top what countries have low or no income tax on foreign earned personal income for non-citizen residents?
That you think GPS is going to send position reports to tax authorities and not that you might use it to navigate makes me less than confident in your advice!
if they don't know where you are, they can't send you tax bills. just never dock in a heavy populated port. anyone that thinks that vanishing is hard, is loopy. also there is a difference between a tracking gps and navigating gps.
lol, it is Simon
the manufactures spec sheet on the GPS are all lies. He knows the truth
