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it's rafael the wealthy expat here teaching you how to lower your taxes down to zero percent or as close to zero percent as possible completely legally by doing offshore legal strategies or moving to countries that welcome your wealth and tax you at zero percent today as part of a series on worldwide tax systems and understanding how to lower your taxes depending on what region you are from the world we're going to start off with the united kingdom the uk and how to lower taxes as a uk tax rest center as a uk citizen and the uk is a great example because their tax system is so straightforward you either are a tax resident if you meet certain tests or you are not tax resident if you meet other tests and it's just very straightforward anybody can understand it i've dug through the literature and i'm actually going to show you exactly what tests you need to be looking at and this also applies to other nationalities other tax residents of other places like canada australia the eu and many other places around the world this could be very valuable for you to understand how governments are looking at these different things in order to tag you as a tax resident or not all right we are here in the government of the uk's website gov uk and we're going to be looking at the statutory residence test srt are you determined to be a tax resident or are you not so right here it says the srt came into effect april 2013 you don't really care about that it takes into account the amount of time you spend and where relevant work in the uk the connections you have in the uk and it's split into the following parts automatic overseas tests we're going to be looking at those they're the easiest ones to fit into automatic uk tests sufficient ties tests and the other things that apply for a deceased person or split ears and it's important to know that you will be a uk tax resident if you've been in the uk for 183 or more days in the tax year so no matter which test you pass or if you have a home in another country or if you say that you live in another country if you pass 183 days in that tax year you will be a uk tax resident no exceptions and you'll be resident in the uk for a tax years and at all times in that tax year if you do not meet any of the automatic overseas tests which we'll cover in a second and you meet one of the automatic uk tests or sufficient ties test so let's go to the actual test down here automatic overseas test the first one is you'll be non-uk resident for the tax here if you were resident in the uk for one or more of the last three tax years before the current tax year and if you spend fewer than 16 days in the uk in this tax year so let's say the last three years you've been living in london and this year where you want to lower your taxes down you move to dubai if you spend less than 16 days in the uk in this new tax year you'll be deemed non-tax resident you won't need to pay taxes to the uk straightforward and simple second automatic overseas test you'll be non-uk resident for the taxi if you're a resident in the uk for none of the last three tax years before the current tax year and you spend fewer than 46 days in the uk in the tax year so let's say the last three years you were non-tax resident this year you spend 43 days in the uk there are other tests to consider but at least this one is automatic if you spend less than 46 you haven't been tax wrestling for the last three years done you're a non-tax resident third automatic overseas test you'll be non-uk tax resident for the tax year if you work full-time overseas this applies to self-employed and full-time employed people and you spend fewer than 91 days in the uk in the tax year the number of days of which you work for more than three hours in the uk is less than 31 and there is no significant break from your overseas work meaning that when at least 31 days go and not one of those days is a day where you work for more than three hours overseas or you would have worked for more than three hours overseas but you had to do sick leave or parenting leave so this is also very insightful that if you have full-time work overseas let's say you're working in dubai you spend fewer than 91 days in the uk and you don't work more than three hours per day in the uk for more than 31 days then you will also be non-tax resident now let's look at the other tests right here automatic uk test this one is the easy one you'll be uk tax wrestler for the tax here if you spend 183 days or more easy one you'll be like that in every single country around the world second you'll be uk resident for the tax here if you have or have had a home in the uk for all or part of the year this is the one that gets a lot of people specifically in not just countries like the uk but also countries like canada and australia where they're spending time in other countries but they still have a home in their country in their high tax country and that tax them back as tax resident and also the other things like here for example and the following all applied this is great about the uk test and the uk tax resonance test that these all have to apply or some of these have to apply like it's very specific on what you need to do in order to not become tax wrestling there is or there was at least a period of 91 consecutive days when you had a home in the uk note it doesn't say 91 consecutive days when you lived in your home it says when you had a home in the uk at least 30 of these days fall in the taxi when you have a home in the uk and you've been present at that home for at least 30 days at any time during the year so let's say i'm from the uk i want to leave the uk i go to dubai if i have a home for more than 91 days consecutive days in the uk and i spend 31 32 30 whatever days in that home during that tax year that would make me a tax resident if at that time you had no overseas home or if you had an overseas home you were present in it for fewer than 30 days so you have to be extremely specific if you want to spend as much time as possible in the uk for example you need to have a home in another country if you have a home in the uk you need to spend a lot of time in that home in another country so let's say in dubai you buy an apartment you get a property you lease it for 12 months or so you live in that property for more than 30 days you work in that property when you go to the uk you're not working for one three hours per day and you see how all these tests sort of combine and you can see that you need to fit into this different criteria so whenever you're going to the uk treat it as a vacation don't go and actually work in the uk have a home in another country ideally don't have a home in the uk so that you meet all these tests and it's very easy for the tax department to know okay this guy is not tax harassment or this woman is not tax resident they don't need to pay taxes to the uk and the third automatic test which doesn't really apply to you you'll be uk tax resident if you work full-time in the uk for any period of 365 days so if you think that if you work full-time in the uk but you're going back and forth and pretending to live in dubai but actually you'll be living in the uk you're going to be tax-resident in the uk the other one which i really like a little bit more vague but at least it gives some sort of road map for other countries to follow in order to have their tax system be a lot more efficient use the sufficient ties test to work out your uk resident status for the tax year if you do not meet either of any automatic overseas test or automatic uk test so if you don't have a home in another country maybe you don't even have a home in the uk but you're spending a lot of time in the uk more than 46 days you've been tax rest in the last couple of years how do i determine okay this test doesn't make any sense this test doesn't make any sense how do i determine if i uk tax resume you'll need to consider your connections to the uk known as ties which i've talked about million times here on the channel what ties do you have to your country of residence what ties do you have to your country of citizenship to work out of your ties taken together with the number of things you spend in the uk will make you resident in the uk for that particular tax year if you were not uk resident in any of the three years prior for the year that we are considering you'll need to check if you have any of the following family time very easy to get that one accommodation time you have a place to stay or habitual abode a work time so your work depends on the uk and a 90 day time if you're a resident in the uk in one or more of the last three tanks or before the one you're considering you also have to check whether you have a country tie so let's go to the actual ties uk ties needed if you were a uk restaurant for one or more of the three tax years before the taxi are under consideration i know i know this is a lot of mumbo jumbo but i just want to make sure that it's absolutely clear with you they spent in the uk and the taxi under consideration uk ties needed 16 to 45 at least four uk ties needed 46 to 90 at least three uk ties needed and so on and so forth so let's say that you spend 100 days in the uk they just need to prove two ties to the uk in order to make you tax residents so let's go back to the ties up here let's say you have family in the uk and you've worked some of that time in the uk let's say for more than 30 days boom you're going to be uk tax resident so that's why i tell people when you're leaving a country when you're not wanting to pay taxes in a country legally you want to spend as little time as possible in that country or be extremely sure that your bases in the other country let's say in dubai or cayman islands or wherever you're going are so strong that your country is not going to tie you back as these ties here in the uk so for example we've been over 120 i mean it's very easy to prove that you're uk tax resident you worked a little bit you have a family you have a home whatever boom you're tax resident you could test need it if you were uk resident in none of the last three tax years then you need more so 46 to 90 all four 91 to 120 at least three so you can get a little bit more flexible as you spend more time abroad so let's say you left the united kingdom 5 10 years ago and this year you're wanting to spend a lot more time let's say you want to spend 90 days or 88 days to make your life simpler then you need four uk ties to make you a tax resident so you need all of the ties that we're talking about here family tie accommodation tie work tie 90 day tie which you obviously already covered so obviously those are all the ties that they need to tag you back as tax residents so you want to make sure that if you were tax resident for the last years spend as little time as possible have a home in another country don't have a home in the uk have as little ties as possible and follow these tests to make sure that you're not deemed a tax resident i think the uk is a perfect example of the tests that you need to go through the ties that you need to consider and the time consideration that you need to consider in order to determine if you're a tax resident of a particular country obviously none other country has a straightforward and practical test as the uk has australia is all messed up canada's all messed up the eu has their own chaos and own mess so you do need to look at your particular country what are the ties what is the process what are the tests that they have in order to make you tax rested and if you are from a particular country that you're interested in seeing their tax system or your tax system how it works what ties you need comment it down below i'm going to be covering canada australia some countries in the eu and countries that overall my clients come from i have a lot of clients from the uk from canada australia obviously the united states where you're attacked on citizenship or tax based on your passport or citizenship so it's a little bit different but we'll be talking about all of the different tax systems in the world so you won't be tagged as a tax resident and can legally lower your taxes down to as close to zero as possible if you need help leaving your home country moving to another place or setting up a company bank account a home somewhere else like here in dubai in the united arab emirates you need help paying zero percent tax paying as little tax as humanly possible click that first link in the description let's book a one-on-one call together let's go through your goals through your options through your lifestyle goals that you also want to live and determine which place is best for you what strategy what offshore company information strategy you need and what options you have in order to lower your taxes down to as close to zero as possible i'll tell you honestly and based on my experience i run a company in dubai i have a second passport that i'm gonna use to renounce my u.s citizenship in order to lower my taxes so i know how this all works i study taxes every single day and i can help you with all that click that first link in the description and if you want to find out which countries the richest people in the world and the wealthy are moving to in order to lower their taxes maybe you're from the uk or canada australia you want to move somewhere else lower your taxes down click that video that is going to pop up right here the top three countries my wealthiest clients and the wealthiest people in the world are moving to click it right now subscribe hit that notification bell the like button down below and i will see you on the next video i'm raphael from the wealthy expat