A Desk In The Sun

But then it is a tax haven. Would it be fair to assume you meant 'in Europe'? In theory I don't have to pay tax at all - unless the authorities know I'm here (in France) and I haven't actually told them yet. Must get around to it.

My experience is European and there are some distinct advantages in terms of free movement of labour within the EU. But, there is no reason why people who are able to work online shouldn't do so from anywhere in the world, It's a matter of balancing the cost-effectiveness of living in a particular place with its quality of life.

Beware, by the way, of the cosy feeling that becuase you haven't told the tax authorities, nobody will catch up with you. I was speaking to somebody the other day who'd left the UK three years ago and hadn't bothered to register with the authorities here in Spain. The UK Inland Revenue is after her to prove that she's paid tax in the place she's now resident. And the UK revenue has informed the Spanish authorities as well...

I'm in the system now, but I have realised one disadvantage of living abroad, whilst retaining rental property in the UK, is that you have to pay two accountants to do your tax returns.

(Of course I could attempt them myself - what do you do Nick?)

Belize is good for tax purposes yet it's a bit out of the way and you can't rely on the internet connection! Something to do with all those parrots on the line?

Having said that, you can establish a legitimate offshore company in Belize (protected by strong privacy laws and opaque structuring) which can accept payments for all manner of things - from property rental, income from Google adsense or client fees. The tax field is ever changing though, as I'm sure you know Nick. A broad assessment (in my humble experience) is that as long as you are not repatriating the funds to your tax domicile, the assets are out of sight, out of reach. With annual fees working out at about US$1,500 a year, for some higher-rate tax payers (but not yet zillionaires), the structure makes sense.

That leaves the need to keep up appearances where you are in the world. A local limited company to receive small sums and pay you a modest salary might make you look less like a well-fed foreigner with no tax returns.

It's an interesting world out there. I'm working on a project in the Philippines next, plenty of tax structring options from there too!

matto