Author: Hristina Georgieva

The New Digital Nomad Visa – Residency Route: Steps to Take

Background

The new visa for digital nomads became available on October 30th 2022, allowing any remote worker or self-employed individual to pursue their profession through Portugal, enjoying all of the quality of life that Portugal has to offer.

Overview

With the last amendment of the relevant law, the Portuguese Government implemented the digital nomad visa, specifically allowing foreign professionals to provide their services remotely, either as a subordinate worker or as an independent worker from Portugal, and to apply for residency in Portugal. 

Step 1: Hire a Legal Adviser

As the digital nomad visa is very recent, it requires an expert, such as Dixcart, with sufficient experience and knowledge of Portuguese immigration law, to take you smoothly through the process. Things to consider when hiring a legal adviser are experience in the market, specifically in this area, and the track history of the firm.

Once a legal adviser is appointed, they will assist you with the documents that you need to collect to apply for the visa and schedule the relevant appointment at the Portuguese Consulate, for the area where you reside, helping you through every step of the process.

Step 2: Portuguese Tax number and Opening a Portuguese Bank Account

To apply for the visa, you will need to prove that you have sufficient means of subsistence in Portugal for the period of your stay (a minimum of one year). This means that a Portuguese bank account, and consequently a Portuguese tax number, are required.

A deposit of the minimum monthly Portuguese salary of €760, multiplied by twelve (the minimum stay period) is mandatory, to present to the Portuguese Immigration Authorities.

Step 3: Collect Documentation

You will need to assemble a number of documents for the appointment at the Portuguese Consulate:

General documentation required to request a visa:

  1. Proof of legal residency in the country from where you are applying
  2. Travel insurance covering necessary medical expenses, valid for 12 months
  3. Criminal record
  4. Proof of accommodation in Portugal for, at least, 12 months
  5. Proof of means of subsistence in Portugal

Specific documentation for the digital nomad visa

  • Working for an employer – one of the following documents:
    • Work contract; or,
    • Promise of work contract; or,
    • Declaration by employer confirming the labour link.
  • Independent professional activity – one of the following documents:
    • Contract of company incorporation; or,
    • Contract of service provision; or,
    • Written proposal of services provision contract; or, 
    • Document attesting the services provided to one or more entities.
  • Proof of average monthly income for the last three months with a minimum value equivalent to four times the Portuguese minimum wage: €3,040.
  • A document confirming tax residence.

Step 3: Legal Formalities

Make an appointment at the Portuguese Consulate, where a meeting must take place to deliver the documentation and for biometrics for the visa to be taken.

Step 4: Final Steps

After analysis of the application is complete, the digital nomad visa is issued for a period of four months and allows two legal entries in Portugal. When in Portugal, an appointment needs to be made with the Portuguese Immigration Authorities to complete the process. Once the digital nomad visa for residency is issued, it will be valid for two years and there is an option to then renew it.

Advantages

Work remotely and legally from Portugal Mainland or either of the Islands of Madeira or the Azores, and enjoying the amazing weather and food.

In Madeira, the “Digital Nomads Madeira” has already been created, which is a village for digital nomads, where they can enjoy workspaces, places of activity and community, with updated technology.

In addition, following on from this residency visa and subsequent residency permit, you can apply for citizenship or permanent residency after five years, and you can also apply for the non-habitual tax regime that gives a number of income tax advantages.

Additional Information

If you require any additional information regarding the Digital Nomad visa, the processes involved and the advantages it offers, please contact the Dixcart office in Portugal: advice.portugal@dixcart.com

We will be delighted to help you.

Publication

9 May 2023

Reference

IN881

Country/Countries

Living in Portugal.

Is St. Kitts and Nevis Citizenship by Investment Right for You?

St Kitts & Nevis Citizenship by Investment – A Second Passport that Can Assist with Mobility Around the World

With less than 3 months remaining on the limited time offer announced by the Government, which includes a reduced donation amount and fast tracked applications, until 30 June 2023, now is a good time to consider obtaining a second passport for St Kitts and Nevis

The Benefits of Nevis Citizenship by Investment

Nevis offers a Citizenship by Investment program that provides individuals with the opportunity to become citizens of the island nation. In this article, we explore the benefits of Nevis Citizenship by Investment, including visa-free travel, tax advantages, and access to a global community of investors.

First, let’s take a look at what the St. Kitts and Nevis Citizenship by Investment Program actually entails. Basically, it allows individuals to obtain citizenship in exchange for making an investment in the country. The investment can take several forms, such as buying property, making a donation to a government fund, or investing in a business. Once the investment is made, the applicant can become a citizen of St. Kitts and Nevis and enjoy all the benefits that come with it.

  • One of the most significant benefits of St. Kitts and Nevis citizenship is that it offers visa-free travel to more than 150 countries, including the UK, Schengen Area, and Canada. This can be especially beneficial for individuals who want to travel freely and explore the world without the complication of applying for visas.
  • Additionally, St. Kitts and Nevis has no income, capital gains, or inheritance taxes, making it an attractive destination for individuals looking to minimize their tax burden.
  • Another advantage of St. Kitts and Nevis citizenship by investment is that it offers a high standard of living in a beautiful setting. The country boasts stunning beaches, lush rainforests, and a warm, tropical climate. The locals are known for their friendly, welcoming nature, and the country has a rich cultural heritage that is celebrated through music, dance, and art.
  • Furthermore, St. Kitts and Nevis is politically stable and has a strong economy, making it a safe and secure destination for investors. The government has implemented measures to attract foreign investment, such as offering tax incentives and promoting business development. As a result, the country has seen steady economic growth in recent years.
  • Finally, Nevis Citizenship by Investment provides access to a global community of investors, which can be a valuable resource for business owners and entrepreneurs looking to expand their networks.

The Benefits of Investing in Nevis Real Estate

Investing in Nevis real estate offers numerous benefits that intelligent investors should consider. Investing in Nevis real estate could be a smart move for you due to the island’s tax incentives, its location, and its unique lifestyle and culture.

Nevis is a beautiful island with a vibrant culture, and it is located in a prime spot in the Caribbean. This makes it an attractive destination for tourists and investors alike. Nevis offers tax incentives, making it an ideal place to invest in real estate. Additionally, the island’s relatively small size means that it is easy to get around and to find the perfect property to suit your needs. The island has a rich history and culture, which can add an extra layer of value to any investment in Nevis real estate.

Dixcart has excellent relationships with local realtors and can make key introductions to assist you in finding the perfect property to suit your needs.

The Advantages of Setting Up a Business in Nevis

If you are looking to set up a business in the Caribbean, Nevis is an excellent choice and offers numerous advantages. The island’s tax laws are favourable to businesses, and its legal system is strong and reliable. Additionally, Nevis has a pro-business environment, which means that entrepreneurs can feel confident in their ability to succeed. Not forgetting the island’s unique location, culture, and lifestyle, which can be an added bonus for business owners looking to relocate to a vibrant and dynamic community.

Summary

In conclusion, St. Kitts and Nevis citizenship by investment can be an excellent option for individuals looking to gain a second passport and enjoy the benefits of living in a beautiful, welcoming country. The program offers visa-free travel, a high standard of living, and a strong economy, making it an attractive destination for investors. However, it is important to note there are certain eligibility requirements such as; having a clean criminal record, passing a background check and being in good health.

Contact Us

If you would like additional information regarding St Kitts & Nevis Economic Citizenship by Investment and the comprehensive services available to assist with this process, please speak to Beth le Cheminant at the Dixcart office in Nevis: advice.nevis@dixcart.com.

Publication

14 April 2023

Reference

IN905

Country/Countries

St Kitts and Nevis Citizenship.

For further information

Please contact John Mellor.

Employing a Non-UK National: A UK Sponsor Licence – Key Questions Answered

Visas Available to Non European Economic (EEA) Individuals Allowing them to Work in the UK

The UK is currently experiencing an unusual economic climate. On one hand, we are facing a possible recession but on the other hand, the reduced qualified/skilled available workforce is leading employers to look overseas. This article hopes to dispel some of the myths surrounding sponsoring non-UK nationals.

What do I need to think about, when employing a non-UK national?

Firstly, where is your prospective employee?  If they are in the UK, how are they in the UK?

There are a number of immigration categories where an non-UK national is able to work for you in the UK without you needing to sponsor them. For instance:

  • Holders of Ancestry visas
  • Holders of dependant status: where their partner is in the UK under one of the work categories
  • Holders of spouse visas

If none of the above apply, then, if you are a UK trading entity, you can sponsor a non-UK national if you obtain/hold a sponsor licence.

Is it very expensive to sponsor a worker?

The total cost of sponsoring a non-UK employee depends on the following:

  1. Whether you are considered a small/medium or large company
  2. The duration of the permission: less or more than 3 years
  3. The job type: is it considered a shortage occupation or is it a PhD occupation?
  4. How old is your candidate?

Secondly, you need to consider what you, as an employer must pay for and what the employee pays for. Any immediate costs; for assigning the certificate of sponsorship, the certificate charge and the Immigration Skills Charge, is the responsibility of the employer. The other costs; Immigration Health Surcharge, priority processing and visa fees, are the responsibility of the employee and if paid by the employer are considered to be a “benefit in kind”.

Is it difficult to obtain a sponsor licence?

The main complexity with the sponsor licence application is that, if an application is refused, you are unable to reapply for 6 months.

The rules surrounding which entities can apply, the evidence  required to be submitted and whether a licence is required for each related entity in the UK is a challenge. Although information is available on the UK Government portal, it is not always clear which sections apply.

I have heard that the process is complicated and burdensome for the employer

That depends on whether you are already running a compliant business. Contrary to popular belief, the sponsor licence obligations complement the compliance required for employment law, tax, and  health and safety along with other areas of UK law. It is only complicated/burdensome, if you do not already have an effective compliance infrastructure in  place.

Additional Information

If you have any questions and/or would like tailored advice on any UK immigration matter, please speak to us at: advice.uk@dixcart.com, or to your usual Dixcart contact.

Publication

11 April 2023

Reference

IN902

Country/Countries

UK Citizenship.

Live, Work and Explore Switzerland

Switzerland is a very attractive location to live and work for many non-Swiss nationals. It offers amazing scenery as well as a number of world-famous cities such as Berne, Geneva, Lausanne, and Zurich. It also offers an attractive tax regime for individuals as well as for companies, in the right circumstances.

It is an enchanting country, blessed with spectacular hiking and skiing trails, beautiful rivers and lakes, picturesque villages, Swiss festivals throughout the year, and, of course, the spectacular Swiss Alps. It appears on almost every bucket list of places to visit but has succeeded in not feeling over-commercialised – even with the tourists flocking to the country to try the world-famous Swiss chocolates.

Switzerland features almost at the top of the list of most attractive countries for high-net-worth individuals to live. It is one of the world’s wealthiest countries and is also known for its impartiality and neutrality. It offers an exceptionally high standard of living, first-rate health service, outstanding education system, and boasts a plethora of employment opportunities.

Switzerland is also ideally situated for ease of travel; one of the many reasons high-net-worth individuals choose to relocate here. Perfectly situated in the middle of Europe means moving around could not be easier, especially for individuals who regularly travel, internationally.

In Switzerland, four different languages are spoken, and English is well spoken everywhere.

Living in Switzerland

Although Switzerland has a variety of beautiful towns and alpine villages to live in, expats and high-net-worth individuals are mainly drawn to a few specific cities. At a glance, these are Zürich, Geneva, Bern and Lugano.

Geneva and Zürich are the biggest cities due to their popularity as centres for international business and finance. Lugano is located in Ticino, the third most popular canton, as it is close to Italy and has a Mediterranean culture many expats enjoy.

Geneva

Geneva is known as the ‘international city’ in Switzerland. This is due to the high number of expats, the UN, banks, commodity companies, private wealth companies, as well as other international companies. Many businesses have set up head offices in Geneva. However, the main attraction for individuals, continues to be the fact that it is in the French part of the country, has a well-looked-after old town full of history and culture and boasts Lake Geneva, with a magnificent water fountain which reaches 140 meters into the air.

Geneva also has fantastic connections to the rest of the world, with a large international airport and connections to the Swiss and French rail and motorway systems.

In the winter months, residents in Geneva also have very easy access to the Alp’s best ski resorts.

Zürich

Zürich is not the capital of Switzerland, but it is the largest city, with 1.3 million people within the canton; an estimated 30% of the residents in Zürich are foreign nationals. Zürich is known as the Swiss financial capital and is home to many international businesses, especially banks. Even though it gives the image of high-rise buildings and a city lifestyle, Zürich has a beautiful and historical old town, and an abundance of museums, art galleries and restaurants.  Of course, you are also never too far from the lakes, hiking trails and ski slopes if you love being outdoors.

Lugano and the Canton of Ticino

The canton of Ticino is the southernmost canton of Switzerland and borders the canton of Uri to the north. The Italian-speaking region of Ticino is popular for its flair (due to its proximity to Italy) and fantastic weather.

Residents enjoy a snowy winter but in the summer months, Ticino opens its doors to tourists who flood to its sunny coastal resorts, rivers and lakes, or sun themselves in the town squares and piazzas.

Working in Switzerland

There are three ways to be entitled to work in Switzerland:

  • Being hired by an existing Swiss company.
  • Forming a Swiss company and become a director or an employee of the company.
  • Investing in a Swiss company and become a director or an employee of the company.

When applying for Swiss work and/or residence permits, it is important to note that different regulations apply to EU and EFTA nationals compared to other nationals, so it is worth checking.

The most popular route is definitely individuals forming a company in Switzerland. This is because EU/EFTA and non-EU/EFTA nationals can form a company, be employed by it, reside in Switzerland, and benefit from the attractive tax regime.

Any foreign national can form a company and therefore potentially create jobs for Swiss nationals. The owner of the company is eligible for a residence permit in Switzerland, as long as he/she is employed by the company in a senior capacity.

For more information on forming a Swiss company, please read our following article: Moving to Switzerland and Want to Work? The Benefits of Forming a Swiss Company – Dixcart

Taxation is also a topic that needs to be considered.

  • Taxation of Individuals

Each canton sets its own tax rates and generally imposes the following taxes: income, net wealth, real estate, inheritance, and gift tax. The specific tax rate varies by canton and is between 21% and 46%.

In Switzerland, the transfer of assets, on death, to a spouse, children and/or grandchildren is exempt from gift and inheritance tax, in most cantons.

Capital gains are generally tax free, except in the case of real estate. The sale of company shares is one of the assets, that is exempt from capital gains tax.

Lump Sum Taxation – if not working in Switzerland

A non-Swiss national, who does not work in Switzerland, can apply for Swiss residency under the system of ‘Lump Sum Taxation’.

  • The taxpayer’s lifestyle expenses are used as a tax base instead of his/her global income and wealth. There is no reporting of global earnings and assets.

Once the tax base has been determined and agreed with the tax authorities, it will be subject to the standard tax rate relevant in that canton.

Work activities outside Switzerland are permitted. Activities relating to the administration of private assets in Switzerland can also be undertaken.

Third country nationals (non-EU/EFTA) may be required to pay a higher lump-sum tax on the basis of “predominant cantonal interest”. This will depend on several factors and varies case by case.

Additional Information

I hope this article has inspired you to visit Switzerland and to consider this incredible country as a place of residence. No matter which canton draws your attention, or which city you decide to settle in, the rest of the country, and Europe, is easily accessible. It may be a small country, but it offers; a diverse range of places to live, a dynamic mix of nationalities, is headquarters to many international businesses, and caters to a large range of sports and leisure interests.

The Dixcart office in Switzerland can provide a detailed understanding of the Swiss Lump Sum System of Taxation, the obligations that need to be met by applicants and the fees involved. We can also give a local perspective on the country, its people, the lifestyle, and any tax issues.

If you would like to visit Switzerland, or wish to discuss moving to Switzerland, please do get in touch: advice.switzerland@dixcart.com.

Publication

16 March 2023

Reference

IN891

Cyprus Is One Of Europe’s Top Hotspots And Is Considered An Ideal Destination For Permanent Residence 

Individuals wishing to move to Cyprus can apply for a Permanent Residence Permit which is useful as a means to ease travel to EU countries and organise business activities in Europe.

The process is simple: applicants must make an investment of at least €300,000 in one of the investment categories required under the programme, and prove they have an annual income of at least €30,000 (which can be from pensions, overseas employment, interest on fixed deposits, or rental income from abroad). If they choose to reside in Cyprus for seven years, in any ten-calendar year period, they may be eligible to apply for Cyprus citizenship by naturalisation.

Alternatively, in order to encourage new businesses to the island, Cyprus offers temporary visa routes as a means for individuals to live and work in Cyprus:

  • Establishing a Cyprus Foreign Investment Company (FIC): work permits can be obtained for relevant employees, and residence permits for them and family members. After residing for seven years in Cyprus, within any ten-calendar year period, third country nationals can apply for Cyprus citizenship.
  • Business Facilitation Unit: visas for highly skilled third country nationals – the Ministry of Finance announced in 2022, that they are introducing the Business Facilitation Unit to assist highly skilled third country employees with a minimum gross salary of €2,500 per month, to gain work permits in Cyprus. These permits will last up to three years.
  • Establishment of a small and medium sized Innovative Enterprise (Start-up visa): the core goal of the Cyprus start-up visa scheme is to allow talented, non-EU entrepreneurs from countries located outside the EU and outside the EEA to reap the benefits of residing and working in Cyprus, whilst the island benefits from the development of these innovative new businesses. There are two main schemes: (1) the Individual Start-up Visa Scheme; and (2) the Team Start-up Visa Scheme.

This visa is available for one year, with the option to renew for another year.

It is common for high-net-worth individuals to relocate to Cyprus for employment purposes. If the Permanent Residence Permit or the temporary permits are not the right route for you and/or your family, Cyprus offers another alternate way to live and work in Cyprus:

  • Digital Nomad visa: non-EU nationals who are self-employed, salaried, or on a freelance basis can apply for the right to live and work in Cyprus remotely, for up to one year. The visa can be renewed for another two years.

If you are considering relocating to Cyprus, please get in touch – I would be delighted to speak with you: advice.cyprus@dixcart.com.

Publication

15 March 2023

Reference

IN896

Key Routes to Swiss Residence: Working in Switzerland or The Lump Sum System of Taxation

How Can Individuals Move to Switzerland and What Will Their Basis of Taxation be?

Switzerland is a very attractive location to live and work for many non-Swiss nationals. It offers amazing scenery as well as a number of world-famous cities such as Berne, Geneva, Lausanne, and Zurich. It also offers an attractive tax regime for individuals as well as for companies, in the right circumstances.

It is an enchanting country, blessed with spectacular hiking and skiing trails, beautiful rivers and lakes, picturesque villages, Swiss festivals throughout the year, and, of course, the spectacular Swiss Alps. It appears on almost every bucket list of places to visit but has succeeded in not feeling over-commercialised – even with the tourists flocking to the country to try the world-famous Swiss chocolates.

Switzerland features almost at the top of the list of most attractive countries for high-net-worth individuals to live. It is one of the world’s wealthiest countries and is also known for its impartiality and neutrality. It offers an exceptionally high standard of living, first-rate health service, outstanding education system, and boasts a plethora of employment opportunities.

Switzerland is also ideally situated for ease of travel; one of the many reasons high-net-worth individuals choose to relocate here. Perfectly situated in the middle of Europe means moving around could not be easier, especially for individuals who regularly travel, internationally.

In Switzerland, four different languages are spoken, and English is well spoken everywhere.

Living in Switzerland

Although Switzerland has a variety of beautiful towns and alpine villages to live in, expats and high-net-worth individuals are mainly drawn to a few specific cities. At a glance, these are Zürich, Geneva, Bern and Lugano.

Geneva and Zürich are the biggest cities due to their popularity as centres for international business and finance. Lugano is located in Ticino, the third most popular canton, as it is close to Italy and has a Mediterranean culture many expats enjoy.

Geneva

Geneva is known as the ‘international city’ in Switzerland. This is due to the high number of expats, the UN, banks, commodity companies, private wealth companies, as well as other international companies. Many businesses have set up head offices in Geneva. However, the main attraction for individuals, continues to be the fact that it is in the French part of the country, has a well-looked-after old town full of history and culture and boasts Lake Geneva, with a magnificent water fountain which reaches 140 meters into the air.

Geneva also has fantastic connections to the rest of the world, with a large international airport and connections to the Swiss and French rail and motorway systems.

In the winter months, residents in Geneva also have very easy access to the Alp’s best ski resorts.

Zürich

Zürich is not the capital of Switzerland, but it is the largest city, with 1.3 million people within the canton; an estimated 30% of the residents in Zürich are foreign nationals. Zürich is known as the Swiss financial capital and is home to many international businesses, especially banks. Even though it gives the image of high-rise buildings and a city lifestyle, Zürich has a beautiful and historical old town, and an abundance of museums, art galleries and restaurants.  Of course, you are also never too far from the lakes, hiking trails and ski slopes if you love being outdoors.

Lugano and the Canton of Ticino

The canton of Ticino is the southernmost canton of Switzerland and borders the canton of Uri to the north. The Italian-speaking region of Ticino is popular for its flair (due to its proximity to Italy) and fantastic weather.

Residents enjoy a snowy winter but in the summer months, Ticino opens its doors to tourists who flood to its sunny coastal resorts, rivers and lakes, or sun themselves in the town squares and piazzas.

Working in Switzerland

There are three ways to be entitled to work in Switzerland:

  • Being hired by an existing Swiss company.
  • Forming a Swiss company and become a director or an employee of the company.
  • Investing in a Swiss company and become a director or an employee of the company.

When applying for Swiss work and/or residence permits, it is important to note that different regulations apply to EU and EFTA nationals compared to other nationals, so it is worth checking.

The most popular route is definitely individuals forming a company in Switzerland. This is because EU/EFTA and non-EU/EFTA nationals can form a company, be employed by it, reside in Switzerland, and benefit from the attractive tax regime.

Any foreign national can form a company and therefore potentially create jobs for Swiss nationals. The owner of the company is eligible for a residence permit in Switzerland, as long as he/she is employed by the company in a senior capacity.

For more information on forming a Swiss company, please read our following article: Moving to Switzerland and Want to Work? The Benefits of Forming a Swiss Company – Dixcart

Taxation is also a topic that needs to be considered.

  • Taxation of Individuals

Each canton sets its own tax rates and generally imposes the following taxes: income, net wealth, real estate, inheritance, and gift tax. The specific tax rate varies by canton and is between 21% and 46%.

In Switzerland, the transfer of assets, on death, to a spouse, children and/or grandchildren is exempt from gift and inheritance tax, in most cantons.

Capital gains are generally tax free, except in the case of real estate. The sale of company shares is one of the assets, that is exempt from capital gains tax.

Lump Sum Taxation – if not working in Switzerland

A non-Swiss national, who does not work in Switzerland, can apply for Swiss residency under the system of ‘Lump Sum Taxation’.

  • The taxpayer’s lifestyle expenses are used as a tax base instead of his/her global income and wealth. There is no reporting of global earnings and assets.

Once the tax base has been determined and agreed with the tax authorities, it will be subject to the standard tax rate relevant in that canton.

Work activities outside Switzerland are permitted. Activities relating to the administration of private assets in Switzerland can also be undertaken.

Third country nationals (non-EU/EFTA) may be required to pay a higher lump-sum tax on the basis of “predominant cantonal interest”. This will depend on several factors and varies case by case.

Additional Information

I hope this article has inspired you to visit Switzerland and to consider this incredible country as a place of residence. No matter which canton draws your attention, or which city you decide to settle in, the rest of the country, and Europe, is easily accessible. It may be a small country, but it offers; a diverse range of places to live, a dynamic mix of nationalities, is headquarters to many international businesses, and caters to a large range of sports and leisure interests.

The Dixcart office in Switzerland can provide a detailed understanding of the Swiss Lump Sum System of Taxation, the obligations that need to be met by applicants and the fees involved. We can also give a local perspective on the country, its people, the lifestyle, and any tax issues.

If you would like to visit Switzerland, or wish to discuss moving to Switzerland, please do get in touch: advice.switzerland@dixcart.com.

Publication

15 March 2023

Reference

IN891

Country/Countries

Living in Switzerland.