Tech professionals are in high demand in many countries, especially in the European Union (EU), where there is a shortage of skilled workers in the digital sector. Many tech professionals have opted to obtain a Golden Visa, which is a type of residency-by-investment program that allows them to live, work, or study in a foreign country by making a significant investment in its economy. A Golden Visa can also lead to citizenship after meeting certain requirements, such as residing in the country for a minimum period of time.

However, obtaining a Golden Visa does not mean that tech professionals can avoid paying taxes. Depending on the country where they reside and the source of their income, they may be subject to various tax obligations, such as income tax, capital gains tax, wealth tax, inheritance tax, and social security contributions.

Therefore, it is important for tech professionals with a Golden Visa to plan ahead and adopt some tax-saving strategies that can help them reduce their tax burden and optimise their financial situation.

Strategy 1: Choose the Right Country and Tax Regime

One of the most important factors that can affect tax liability as a tech professional with a Golden Visa is the country where one chooses to reside and the tax regime that applies. Different countries have different tax rates, tax brackets, tax exemptions, tax treaties, and tax incentives for foreign investors and residents. Therefore, one should do some research and compare the tax implications of various countries before deciding where to apply for a Golden Visa.

For example, Portugal offers a very attractive tax regime for tech professionals with a Golden Visa, known as the Non-Habitual Resident (NHR) regime. Under this regime, one can enjoy a flat income tax rate of 20% on the income from certain high-value activities, such as engineering, software development, and information technology.

Strategy 2: Make Use of Tax Deductions and Credits

Another way to save taxes as a tech professional with a Golden Visa is to make use of the tax deductions and credits that are available in the country where one resides. Tax deductions are expenses that can subtract from the taxable income, which can lower the tax bill. Tax credits are amounts that can subtract from the tax liability, which can reduce the amount of tax that one owes.

Depending on the country and the type of income, one may be eligible for various tax deductions and credits, such as:

• Contributions to retirement plans, such as 401(k), IRA, or NPS
• Contributions to health savings accounts (HSA) or flexible spending accounts (FSA)
• Interest paid on mortgages, student loans, or electric vehicles
• Business expenses, such as travel, equipment, or marketing
• Research and development expenses, such as innovation or patent costs

For example, in Greece, tech professionals with a Golden Visa can deduct up to 10% of their income from certain professional activities, such as engineering, software development, and information technology, from their taxable income. They can also deduct up to 10% of their income from dividends, interest, royalties, and capital gains from their taxable income.

Strategy 3: Diversify Income Sources and Investments

By having multiple streams of income and investing in different types of assets, one can reduce the exposure to tax risks and take advantage of tax opportunities. For instance, one can:

• Earn passive income from dividends, interest, royalties, or rental income, which may be taxed at lower rates or exempt from tax in some countries
• Earn capital gains from selling shares, bonds, real estate, or other assets, which may be taxed at preferential rates or exempt from tax in some countries
• Invest in tax-advantaged vehicles, such as exchange-traded funds (ETFs), index funds, or life insurance policies, which can help reduce or eliminate tax costs

For example, in Cyprus, tech professionals with a Golden Visa can enjoy a tax exemption on their dividends and interest income for 17 years, as well as a tax exemption on their capital gains from the sale of securities, such as shares, bonds, or options. They can also benefit from a tax exemption on their foreign income, as long as they spend less than 183 days in Cyprus in a tax year.

Conclusion

Tech professionals with a Golden Visa can save taxes by choosing the right country and tax regime, making use of tax deductions and credits, and diversifying their income sources and investments. However, these strategies are not exhaustive and may vary depending on the individual circumstances and the tax laws of each country.

Therefore, it is advisable for tech professionals with a Golden Visa to seek professional guidance from a qualified tax advisor or a reputable immigration consultant, which can help them plan and implement the best tax-saving strategies for their situation.