The United Arab Emirates (UAE)
Ukrainian citizens can reside in the UAE for up to one year without the need to find a sponsor. Russians can easily obtain a long-term UAE visa by applying online. It will allow them to bring their family members as well and to open a bank account in the UAE. Belarusians can stay in the UAE for up to three months by obtaining a free UAE tourist visa.
The UAE is a favorite destination for highly-skilled individuals because it does not charge any income or corporate taxes. Thus, individuals and their companies who become UAE tax residents may not be subject to taxation, except for the recently introduced VAT of 5%.
It should also be noted that the UAE (Dubai in particular) has a very developed business environment allowing highly-skilled workers to find interesting job offers and establish solid business connections. In this regard, it is worth mentioning the existence of Dubai International Financial Centre, Dubai Silicon Oasis, Dubai Internet City, Dubai Healthcare City, Dubai Production City, Dubai Media City, Dubai Studio City, and many other free zones offering interesting career opportunities to people from all over the world.
Dubai attracts numerous digital nomads every year because of its low crime rate, beautiful beaches, safe and international environment, friendly approach towards foreigners, and abundance of co-working spaces.
Georgia
At present, Ukrainian citizens can enter Georgia without any visas and stay there for up to one year. Russian citizens also do not need any visa if they stay in Georgia for up to 90 days. Citizens of Belarus can stay (visa free) in Georgia for up to 2 months. Georgia is relatively close to Ukraine, Russia, and Belarus which ensures that expats from those three countries can visit their home countries.
The corporate tax rate in Georgia is just 15%. The personal income tax rate is also relatively low (20%). An important feature of the Georgian tax system is that Georgian residents are subject to tax only on Georgian source income. However, most income earned by digital nomads while being in Georgia is not regarded foreign source income and they may be subject to the income tax of 20%. This is because income generated from services provided by Georgian residents is considered to be Georgian source income. If you wish to rely on the tax exemption of Georgian source income, you need to receive passive income (royalties, dividends) from a company outside Georgia which is not managed or owned by you while residing in Georgia.
Individuals who earn less than GEL 500,000 (about USD 160,000) per year may benefit from the small business scheme allowing them to pay income tax of just 1% on their turnover. It is important to note that the small business scheme does not apply to certain activities (e.g., gambling).
If you do not qualify for the small business scheme, you may consider the registration of a Georgian LLC. Georgia follows the Estonian model of taxation on LLCs, which means that profits generated by LLCs are subject to tax only when they are distributed. This means that, if the profits are kept in the bank account of the LLC or reinvested in assets, they will not be subject to tax.
One of the most attractive features of Georgia for Ukrainians, Russians, and Belarusians is its affordable lifestyle. The rent of an excellent apartment in the capital Tbilisi varies between USD 400 and USD 600. Users of the website www.expatistan.com ranked Georgia the third cheapest city in the world (Antalya in Turkey being the second and Rosario in Argentina being the first). A meal in a regular restaurant costs about EUR 2 and a three-course meal in an expensive restaurant costs less than EUR 20. A 15-minute taxi ride costs about EUR 2.
Panama
Ukrainians and Belarusians can arrive in Panama without a visa and can stay there for up to six months. After arriving in the country, they can go to the Panama immigration counter and get a stamp in their passport. Russians can travel to Panama without a visa and stay in the country for up to three months if they get an entry stamp after arriving in Panama.
In 2021, the government of Panama started issuing digital nomad visas allowing foreigners willing to work remotely in Panama to stay in the country for up to 18 months. To apply for a digital nomad visa, one needs to (i) have an employment contract with a foreign company or (ii) be able to demonstrate that one works remotely as a freelancer. Furthermore, the remote work should be done for businesses outside Panama and the remote worker shall generate annually at least USD 36,000. The entire application process can be completed online and takes less than 30 days.
The taxation in Panama is based on the principle of territoriality which means that Panamanian residents are subject to tax only on the income earned from Panamanian sources. Thus, if a Ukrainian, Russian, or Belarusian citizen residing in Panama receives income outside of Panama, the income may not be subject to any tax. That is why this small Central American nation is usually considered a tax haven.
Similarly to Georgia, Panama has an affordable lifestyle. One can live well for about USD 1000 per month, irrespective of whether one resides in the capital Panama City or the famous tourist sea resort Bocas del Toro.
Serbia
Ukrainian citizens can enter Serbia visa free and stay for 90 days within every period of 180 days. Russian and Belarusian citizens can also enter visa free, but may stay in the country for a maximum of 30 days. For those who want to stay for a longer period of time, it is relatively easy to apply for a “long term visa” (visa D) for working purposes allowing its holders to stay for up to 180 days.
The corporate income tax in Serbia is just 15%, whereas the personal income tax is 20%. Expats can benefit from the special corporate income tax of 3% applying to revenues from intellectual property created in Serbia. Besides, 80% of certain qualified income received by the owner of intellectual property may be excluded from the tax base if the tax payer agrees to this.
The costs of living in Serbia (including Belgrade) are not high. A furnished one-bedroom apartment in the center of the city can be rented for about EUR 400. A meal in a restaurant costs about EUR 10 to 15 and a beer in a pub up to EUR 2. Belgrade has a large number of co-working places which makes it an ideal destination for remote workers.
Indonesia
Ukrainians, Belarusians, and Russians can enter Indonesia visa free and stay there for up to 30 days. Highly skilled individuals can apply for the Indonesian long-term work and stay permit (ITAS) which will allow them to stay in Indonesia for up to 12 months. The permit can be extended four times. To extend the permit, the permit holder is not required to leave Indonesia.
Indonesia is a country with moderate tax rates. Individuals are subject to a progressive tax ranging between 5% and 35%. The highest rate of 35% applies exclusively to income exceeding IDR 5 billion (about EUR 330,000). Income under IDR 500 million (about EUR 33,000) is subject to tax of up to 25%.
It should be noted that Indonesia considers granting 5-year visas to digital nomads willing to relocate to Bali and make the non-Indonesian income of those nomads tax free. In this context, Sandiaga Uno, Indonesia’s Minister for Tourism and the Cultural Economy, stated “If they earn income within Indonesia they will be taxed but if it’s solely from overseas there will be zero tax.”
Bali is one of the most popular places for digital nomads in Indonesia. This is largely because of its beautiful beaches and tropical forests. An expat can live comfortably there for about USD 1,000 to EUR 1,900 per month. The rent of a villa costs between USD 500 and USD 1000 per month. A simple room can be rented for about USD 300 (including the utility bills). Remote workers in Bali usually choose to settle in Canggu (a coastal village) and Ubud (a resort town).
Portugal
And then, of course, there is our favorite, Portugal. Here you have the possibility to live tax free for 10 years, quite easy to get a residence permit so you can travel freely in the Schengen area and…you can normally get a passport after 5 years. Moreover, you are still not taxed on crypto..
If you want more information on any of the options, mail us at info@dehoon-dhp.com or download one of our brochures or e-books, at nomoretax.eu.
