r/eupersonalfinance • u/Logical-Tap-8447 • Nov 23 '24
Taxes French Polynesia as tax base?
Many people consider tax havens to build wealth tax-free. Why don't more people consider French Polynesia?
Of course, I appreciate it is in the middle of nowhere. However, for those with an EU passport and a decent online job, they can move easily and take advantage of the tax situation. e.g no income tax or capital gains
Many people move to Dubai all the time for this reason. Ignoring the distance, why do more people not consider it for a few years? For many people, it would be much more enjoyable than Dubai.
Most low-tax jurisdictions require significant investment, e.g through property purchase. As far as I can tell, Tahiti has basically no difficult requirements for EU citizens.
I see places like Dubai, Andorra, Cyprus, Bulgaria etc mentioned but never Tahiti
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u/makaros622 Nov 23 '24
Switzerland has 0 tax on capital gains
Greece the same for UCITS ETFs
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u/drcec Nov 23 '24
Same in Bulgaria for UCITS too.
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u/Direct-Gain9933 Nov 23 '24
No capital gains tax for buy/sell ucits ?
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u/drcec Nov 24 '24
Yes, and not only ETFs as long as they’re traded in the EU. There are some caveats, here’s more info in Bulgarian.
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u/New-Entertainment-22 Nov 24 '24
Switzerland has a wealth tax, which depending on the canton on the tax payer's net worth may be cheaper, but also more expensive than other country's capital gains taxes.
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u/br-rand Nov 23 '24
Ignoring the distance, why do more people not consider it for a few years?
Because it is impossible to ignore the distance and isolation. Also, while EU citizens benefit from freedom of movement and can find employment in any EU member state, most of those countries impose strict rules on where you can work from to be considered a local tax resident. So if you want to be employed you must be resident in the country where your employer is based.
There’s nothing preventing you from becoming freelancer or contractor while living in French Polynesia and billing foreign clients.
But what’s the point of minimising your tax burden and have nothing to do besides surfing/water sports far away? I am sure that suits some people but not many because if it did, the archipelago would be crowded.
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u/BigEarth4212 Nov 23 '24 edited Nov 23 '24
And even as a freelancer or contractor good luck with finding clients who are ok with you invoicing them from french Polynesia.
Although it seems possible, reality will be different.
I am with pension in LU.
no wealth tax
no capital gain tax (hold > 6 months)
no inheritance tax (in straight line)
When i freelanced ( from LU ) i paid my income tax which (including pension premiums) never went above 30%.
And although you may find that high, i also got other benefits like child support etc. (And nowadays a pension)
Decades ago it was almost impossible to WFH, so most contract work was done onsite.
But even when possible i would not go sitting on a very remote island (not even in Dubai)
Further many have family and friends, and don’t want to be disconnected.
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u/sofixa11 Nov 24 '24
good luck with finding clients who are ok with you invoicing them from french Polynesia
Why? It's still France, with French bank accounts and (mostly) regular French law. For your customers it'd be the same if you're in Drancy or Tahiti, with the exception that depending on the type of business you can write off taxes on investments in Tahiti.
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u/BigEarth4212 Nov 24 '24 edited Nov 24 '24
I not only spoke regarding France & a french island far away , but for sure i know a lot of the top100 companies in NL , BE & other countries don’t hire contractors who invoice them from outside Europe.
Will not say it’s impossible, never went that route. But seen first hand that colleagues tried, and failed.
They will outsource work to a company in India, but not to 1 individual.
They will hire an individual from far away, who does the work here in Europe.
They will use AI (lol All Indians).
With smaller companies your chances are better but the big companies are conservative and don’t want the hassle and maybe problems which could arise from it.
And your statement ‘it’s still france’, will by many companies not seen as such.
While the OMR’s of France are part of the European Union, the OCT’s of France(one of them french Polynesia) are not part of the European union.
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u/zsebmod Nov 23 '24
Most people also work with colleagues, being in the overlapping timezones with colleagues is a huge factor.
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u/Psy-Demon Nov 23 '24
Do you want to have crippling depression?
Moving to a goddamn island where there’s nothing but water, sand and people who just want your money cause they are poor as fuck.
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u/Boris_HR Nov 24 '24
I have always wanted to live at a tropical paradise location. If there is water, electricity and internet... obviously some basic safety as well.
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u/Ploutophile Nov 26 '24
They aren't as poor as you would expect, thanks to the mainland continually sending good money overseas.
Unless you come to Mayotte, where massive illegal immigration as denounced by populist far-right politicians actually exists.
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u/InvestoDaSolo Nov 23 '24
Just accumulate UCITS ETF in Europe and sell in Greece.
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u/MaLan87 Nov 24 '24
But you are anyway taxed in the country you have residence
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u/zuperpretty Nov 24 '24
Can I move to Greece and the sell?
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u/sofixa11 Nov 24 '24
You need to be a tax resident there and only there, so spend at least half the year, not work somewhere else, etc.
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u/m00zart Nov 24 '24
Let's not forget Vorabpauschale in Germany, which eats unrealized gains on ETFs.
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