Taxation

Note for U.S. Citizens: With the introduction of FATCA (Foreign Account Tax Compliance Act), the United States federal law requires U.S. citizens to report their non-U.S. financial affairs. Hence, tax can be a significant part of your decision-making process when it comes to obtaining citizenship.

Indian Citizens: Laws similar to the U.S. law on reporting worldwide income are being proposed by the current Indian government. In the near future, even Indian passport holders who live abroad (NRIs) might have to report their financial affairs to the Indian government. Further clarity on these issues is anticipated.

For Other Citizens: Tax planning will depend on the tax laws in your country – you may or may not have to report foreign income.

We have broken down tax-related specifics of citizenship and residency programs country-by-country below : –

Non-resident individuals are taxed on Cyprus-source income only. Progressive tax rates of up to 35% are imposed on incomes above EUR 19,500.

There is no capital duty tax, capital acquisitions tax, inheritance/estate tax or wealth/net worth tax.

Property tax ranges from 0.6% to 1.9%. And, transfer tax on properties ranges from 3%-8%.

Non-residents are taxed on their Portuguese-sourced income only. But, there is no net wealth/net worth tax.

Real estate income is taxed at a flat rate of 28%. And, municipal tax is levied on property sales and transfers. There is 10% stamp duty on inheritance/estate tax (with the exceptions of a few cases).

Although resident individuals in Dominica are subject to income tax on a worldwide basis, there are two noteworthy exceptions which can offer tremendous tax savings :-

  • Non-resident citizens of Dominica are only liable to pay income tax on Dominican source income.
  • And, resident citizens of Dominica not regarded as “ordinarily resident” are subject to taxation on income accumulated outside of Dominica, but only to the extent that any such income is remitted to Dominica.

In brief, Dominica offers great opportunities for international business people, mobile people who wish to acquire a second passport and people who want to minimise their personal income tax burden.

Other important benefits of the Commonwealth of Dominica are no real estate tax, no wealth tax, no death tax and no inheritance tax.

There is no personal income tax, capital duty tax, capital acquisitions tax, inheritance/estate tax or net wealth/net worth tax.

Property tax ranges between 0.2-0.3%, depending on how the property is used and its location. And, stamp duty on the transfer of real estate property ranges from 2% to 18.5% – this is payable by the seller.

St. Kitts & Nevis has tax treaties in force with CARICOM, Monaco, Switzerland and the United Kingdom.

Non-residents are taxed on Grenada-sourced profits only. There are no capital gains tax, stamp duty tax, capital acquisitions tax, inheritance tax or net wealth/net worth tax.

Property tax ranges between 0-0.5%, depending on how the property is used.

People who are resident or domiciled in Malta are taxable on their income. However, there is no capital duty, real property tax, inheritance tax or net wealth/net worth tax. But, tax is generally due on any gain on the transfer of property.

Non-residents are taxed on Greece-source profits only.

There is no capital duty tax or net wealth/net worth tax. Inheritance tax does apply, but only ranges between 1-10% for close relatives.

Stamp duty for individuals is 3.6%. And, property taxation includes a main tax, depending on the characteristics of the property and an additional tax calculated for properties with value exceeding EUR 300,000.