Moving countries (EU), switching banks, payroll and tax questions

[hoorayitsme]

@luna70 I suggest you investigate a bit because you are a bit green in this regard yet.

It's not easy by itself, and marketers trying to make it seem easy don't help things either.

The key thing for you to understand now is what others told you. Tax residence rules are per country. Tax residence dictates where you pay. Your bank has nothing to do.

I actually can open bank accounts in other countries without ever stepping on them, thanks to Wise. That doesn't change anything.

 

[alan21usr]

@luna70 Actually if you make a company in like Delaware or Portugal and then become an employee of that company it’s much better.
You just have to learn to play the game, depending of your expected gains one option or another might be more beneficial.

I’m a freelancer as well living in Spain and planning to open a company in Portugal because my main clients are from USA and Spain just sucks with taxes. Everything I don’t plan on using for my basic life will stay in the company and be a company expense (technology and stuff like that).
That way, I only pay taxes for my “salary” and if my salary is less than 900 € I don’t have to pay any tax on it

There is always a way and you have a lot of advantages you just have to educate yourself, most people don’t know about the advantages of being international like your case or mine, so, a lot of research is the way to go

 

[peppergalmo]

@luna70 I will be (try to be) brief :

Can I even open a bank account in country B if I'm not a citizen, and am not (YET) residing there? (like generally, or does this vary by country?)

As a rule of thumb you can have a bank account in a country only if you reside there or have significant business there, so most likely you will not be able or will be extremely difficult anyway to open a bank account in B. Some countries, however, will allow you to open a bank account if you have proof that you will be moving there within a certain timeframe.

If I can open one, and country D sends my pay there, I assume I pay taxes to country B for this income, and not country A correct?

As said elsewhere: where you pay your taxes depends strictly on where you reside, not where you have your bank account, on 99% of cases, so, in your exemple that would B only if you move there (of course this works the other way around as well, so if you move to B you can keep your bank account in A to get paid and just pay taxes in B).

So if I live in country A, but have a bank account and pay income taxes in country B (or C if I end up not moving) is that generally legal? Or is this some form of tax fraud?

No, if you keep living in A you will have to declare your taxes there in 99% of cases. Otherwise you will commit tax fraud.

Best solution for you might be to just move to B and settle down there with your business.

NOTA BENE: what I explained here above is a general rule but there might be several exceptions or loopholes depending on which the four countries are: you might need a "cross border tax accountant" if you are not educated on tax matters and/or do not speak the language of B