Citizenship/Residence by Investment and Digital Nomad Visas: The Golden Era of Individual Tax Evasion and Avoidance?

28 Pages Posted: 31 Aug 2023

See all articles by Elisa Casi

Elisa Casi

Norwegian School of Economics (NHH) - Department of Business and Management Science

Mohammed Mardan

Norwegian Center for Taxation; Norwegian School of Economics (NHH) - Department of Business and Management Science; CESifo (Center for Economic Studies and Ifo Institute)

Barbara Stage

WHU - Otto Beisheim School of Management

Date Written: August 31, 2023

Abstract

In recent decades, increased mobility of capital and labor improved individuals’ opportunities to avoid or evade tax. This chapter explores two programs commonly provided by tax havens that facilitate individuals in dodging taxation in their home country. We first focus on longer-existing initiatives targeting wealthy individuals by offering citizenship and residence-by-investment (CBI/RBI) programs and discuss how they allow individuals to evade taxes. We then delve into the recently launched digital nomad visa (DNV) programs, which grant individuals temporary residence in a country while working exclusively remotely. We provide a comprehensive overview of the key features of existing programs based on a novel, hand-collected dataset. Currently, more than 40 countries offer a DNV program, and half of them are tax havens. Although DNV programs mainly create concerns about tax avoidance, they can also provide tax evasion opportunities similar to those documented in the literature for CBI and RBI programs.

Keywords: Digital Nomadism, Citizenship- and Residence by-investment Programs, Digital Nomad Visa, Tax Residency, Tax Havens, Offshore Tax Avoidance and Evasion

JEL Classification: H26, G21, F42

Suggested Citation

Casi-Eberhard, Elisa and Mardan, Mohammed and Mardan, Mohammed and Stage, Barbara, Citizenship/Residence by Investment and Digital Nomad Visas: The Golden Era of Individual Tax Evasion and Avoidance? (August 31, 2023). NHH Dept. of Business and Management Science Discussion Paper No. 2023/12, Available at SSRN: https://ssrn.com/abstract=4557656 or http://dx.doi.org/10.2139/ssrn.4557656

Elisa Casi-Eberhard (Contact Author)

Norwegian School of Economics (NHH) - Department of Business and Management Science ( email )

Bergen, 5045
Norway

Mohammed Mardan

Norwegian Center for Taxation ( email )

Helleveien 30
Bergen, Bergen 5045
Norway

Norwegian School of Economics (NHH) - Department of Business and Management Science ( email )

Helleveien 30
Bergen, NO-5045
Norway

HOME PAGE: http://sites.google.com/site/webpagemohammedmardan/

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Barbara Stage

WHU - Otto Beisheim School of Management ( email )

Burgplatz 2
Vallendar, 56179
Germany

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