UGLOBAL . COM 15
TAX PLANNING IS PART OF THE DECISION- MAKING
Recently , countries like India and China have been discussing the possibilities of global taxation to keep investments within these countries as more individuals choose to invest abroad . The concept of worldwide taxation being unacceptable to those with many international business interests and investments has caused HNWIs to discover citizenship by investment ( CBI ) programs offering desirable tax benefits .
For example , Hungary boasts one of the lowest corporate tax rates in the EU at only 9 % and income tax at 15 %. This makes this program a good place to form a tax hub or set up a business . In addition , countries like the United Arab Emirates ( UAE ) now provide Golden Visas , allowing renewable residency for up to 10 years . It is a known fact that the UAE has one of the most favorable tax regimes in the world at zero income tax and 9 % corporate tax ( newly introduced ), offering tax residency for those who spend six months in the country as a resident . The UAE Golden Visa allows HNWIs to continue to travel freely , while retaining the option of becoming a resident of a tax-free country .
To become a tax resident of a specific country , one must spend the government-allotted number of days in that country to claim tax residency while also not spending the government-allotted number of days in any other country where they may become a tax resident . Tax planning for high-net-worth individuals has become crucial in this era of second passports , residencies , and global access .
“ Many investors are moving toward obtaining only a second residency rather than a second passport .
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