Possible not to be tax resident anywhere?

[jetsetter]

Hi All,

Is it possible not to be tax resident anywhere?

I left the UK back in July Â’04 and issued a P85 to the Inland Revenue stating that I would be gone for at least 3 years. Since then, I have been self-employed working on various short term contracts in different countries (not spending more than 183 days in any one country).

Just wondering if I could start billing my clients from an offshore company and draw a dividend rather than salary. In theory would the dividend only have to be declared in my country of tax residence? – which is nowhere at present.

Pls note that I am not married and do not own property anywhere in the world – only living out of a suitcase in hotels wherever I am working.

Many Thanks.

[King_Maker]

In theory, Yes.

But it is in the nature of governments to want to tax everyone they can - so it is likely to be only a matter of time before some tax jurisdiction attempts to capture you.

Owning your own country/island, or remaining continuously in International waters might be successful.

[jetsetter]

I realise that somewhere down the line - I will most likely settle in one country and become tax resident there (not sure where yet). But I would only surely have to start declaring worldwide income from the day I become tax resident there.

To be more specific - I was wondering if I could be a non-tax resident (anywhere) for a period of say 3 years - during which time, dividends would not have to be declared anywhere.

I presume that tax would only be due on any salary earned in the country in which the duties were performed?

[King_Maker]

The problem is different tax jurisdictions have different rules - based on (say)residence, nationality, domicile etc.

[TaxationWeb@BritishA]

To pull it off, you would need to know each jurisdiction's definition of residence, domicile, and citizenship; not just the general definition, but quirky exceptions to the rules as well. For example, you may end up reverting to UK residency in a wide variety of circumstances.

For a bit of free online advice, you've won by finding out that it's a real possibility; the next step is to seek expert advice regarding each jurisdiction you're considering from an international tax attorney who specialises in this exact situation.