When I first started my business in Australia, taxation was straightforward—I operated under the country’s regulations, paid my dues, and didn’t think much about it. But when I had to leave Australia unexpectedly, everything changed. Suddenly, I was a business owner without a home base, navigating international tax laws, business registration complexities, and the never-ending question:
Where should I base my company and taxes?
For digital entrepreneurs who live and work globally, choosing the right business structure and tax residency is one of the biggest financial challenges. In this article, I’ll share my journey from running a business in Australia to relocating it to Singapore, and exploring options like LLCs in the US, Partita IVA in Italy, tax setups in Paraguay or Malaysia, and figuring out where to pay taxes as an Italian citizen with a location-independent lifestyle.
“….Pretty funny right?”
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Why I Had to Relocate My Business from Australia
My business was fully established in Australia, complete with an ABN, a structured financial setup, and an accountant managing compliance. For eight years, I meticulously built and solidified everything for long-term growth in Australia—
“never once thinking it would change.
I mean, why would it? 😂”
This raised an immediate issue:
• Could I still run my business under an Australian company structure if I no longer lived there?
• Would I be taxed as an Australian company, even though I was no longer a resident?
• What would happen to my clients and my legal obligations?
I quickly realized that keeping my business registered in Australia didn’t make sense anymore. I needed to find a new jurisdiction that better fit where life was taking me next.
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Exploring Other Taxation Options
Since I had no idea where to go or how to handle it, I started diving into YouTube videos, social media, and forums, trying to piece everything together. I even spent quite a bit on international accountants, hoping to find the right solution. But with so much conflicting advice, I decided to explore other possible business and tax residency options myself.
1. Setting up a U.S. LLC
• Many digital nomads choose to register an LLC in the U.S. because it’s easy to set up and offers no corporate tax on income earned outside the U.S.
• The catch? An LLC is a pass-through entity, meaning taxes are paid on a personal level—so you still need to have a tax residency somewhere to declare your income.
“Well, I can’t go with this option since I’m still uncertain about where I want to establish my long-term base.”
2. Moving My Business to Singapore or Hong Kong (Without Residency)
• Both Singapore and Hong Kong allow foreigners to register a business without requiring residency or a visa. Both jurisdictions have double taxation agreements with Italy.
• Singapore: Low corporate tax (17%) and no tax on foreign income not remitted locally—a great option for digital businesses.
• Hong Kong: Also offers zero tax on foreign-earned income, making it attractive for location-independent entrepreneurs.
“Hmm… I initially thought this would be a great option, mainly because I wouldn’t need to be physically in Singapore or Hong Kong to run my business. This setup would give me the freedom to explore and find the right place to call home.“
3. Registering as a Freelancer (Partita IVA) in Italy
• Italy allows freelancers to operate under a Partita IVA regime (flat tax option for small businesses), which is attractive for some remote workers.
• The problem? I would have to pay personal taxes in Italy, which could be very high if I earn above the tax-friendly thresholds.
“Well, why I need to pay more?”
4. Setting Up an LLC & Tax Residency in Paraguay
• Paraguay offers a friendly tax system where foreign income isn’t taxed.
• A Paraguayan LLC could allow a legal business presence while benefiting from low personal tax obligations (if structured properly).
• The challenge? Obtaining legal residency and dealing with bureaucracy can be a headache.
“This option sounds great, but settling in Paraguay for a few months would be challenging since many of my clients are in Australia—the time zone difference would make scheduling and communication difficult.“
5. Exploring Malaysia’s Tax-Friendly Setup
• Malaysia has a relatively low corporate tax rate and no tax on foreign income.
• Some digital nomads choose Malaysia as a business base, but visa options can be restrictive without a long-term plan.
Note: These are the insights I’ve gathered through my own research, but I’m not a legal advisor. I highly recommend conducting your own due diligence, and let’s explore together to see if there are other viable solutions.
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Why I Chose to Register My Business in Singapore
After researching different options, Singapore stood out as one of the best places to register my business. Here’s why:
Tax Benefits – Singapore has a low corporate tax rate (17%) and various tax incentives for startups. Unlike Australia, where personal and corporate tax rates can be high, Singapore offers a more business-friendly structure.
No Tax on Foreign Income – Since my clients are global, I needed a jurisdiction that wouldn’t heavily tax income earned from overseas. Singapore doesn’t tax foreign-sourced income that isn’t remitted to a local bank account.
Business Reputation – Singapore is a global business hub, making it easier to work with international clients and establish credibility.
Ease of Business Setup – Unlike some European countries where bureaucracy is overwhelming, registering a company in Singapore was fast and efficient. Within a few days, I had my company up and running.
The process was straightforward:
• I set up a Private Limited Company (Pte Ltd) through a business registration service. I found a very amazing company and for what I need I pay around 5K to open everithing (www.sleek.com)
• I appointed a nominee director, as Singapore requires at least one local resident director.
• I opened a business bank account to separate my personal and business finances.
“However, even though Singapore was a great choice for my business, it didn’t automatically solve my personal taxation situation.…”
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The Personal Tax Dilemma:
Where Should I Pay Taxes as an Italian?
While my business is registered in Singapore, my personal taxation depends on where I’m officially considered a tax resident. I was previously a tax resident in Italy before switching to Australia. But now that I’m no longer an Australian resident, the big question is—what happens next?
Right now, I’m in Thailand on a DTV (Destination Thailand Visa), which allows me to stay in this incredible country for six months each year for the next five years. While I’m still exploring and deciding whether Thailand could become my tax residency, here’s what I’ve discovered so far:
A | Keeping My Tax Residency Undefined (Digital Nomad Grey Zone) 🌎
• Many digital nomads avoid committing to one tax residency by keeping their stays short (less than 183 days per country).
• This requires careful planning to avoid being flagged by tax authorities.
• It’s possible to remain legally “tax-free” for a while, but banking and compliance can become complicated.
✅ Best if: I want to remain flexible and explore different countries before settling.
❌ Downside: Not sustainable long-term, as most countries will require tax filings after extended stays.
B | Returning to Italian Tax Residency (Partita IVA for Freelancers) 🇮🇹
• Italy offers the Partita IVA regime for freelancers, with a flat tax option for small businesses.
• If I return to Italy for more than 183 days per year, I would become an Italian tax resident again and be taxed on worldwide income.
• Italy also has a “Forfait Regime” for new residents, allowing lower taxes for the first 5 years.
✅ Best if: I plan to stay in Italy for a while and want a structured tax setup.
❌ Downside: High taxes if income exceeds the favorable thresholds.
C | Exploring Special Tax Residency Programs (Portugal, Spain, Greece) 🌍
• Some European countries offer tax-friendly incentives for remote workers:
• Portugal’s NHR (Non-Habitual Resident) Program: 10-year tax benefits on foreign income.
• Spain’s Beckham Law: Lower taxes for expats working in Spain.
• Greece’s 50% Tax Reduction Program: 7 years of lower taxes for new residents.
✅ Best if: I want a legal EU tax residency with some benefits.
❌ Downside: These programs often require physical presence & official residency registration.
D | Becoming a Tax Resident in Thailand 🇹🇭
• Thailand offers the Thailand Elite Visa, allowing long-term stays without needing a work visa.
• However, Thailand taxes worldwide income if you’re a resident for over 180 days per year—unless you structure your finances carefully.
• Some digital nomads opt for the BOI Smart Visa or the Long-Term Resident (LTR) Visa, but taxation rules still apply depending on income sources.
✅ Best if: I plan to stay in Thailand long-term and can structure my income to avoid taxation on foreign earnings.
❌ Downside: If I stay too long, I could be required to pay taxes on my global income.
E | Establishing Tax Residency in a No-Tax Country (UAE, Panama, Paraguay, or Malta) 🌍
• Some countries offer territorial taxation or no personal income tax:
• UAE – No personal tax, but requires a business setup for residency.
• Panama – Territorial tax system (only local income is taxed).
• Paraguay – Tax residency possible with minimal presence; only local income is taxed.
• Malta – Offers tax residency programs with exemptions on foreign income.
✅ Best if: I want to minimize taxes legally while maintaining flexibility in my travels.
❌ Downside: Residency processes can be complex, and some require minimum physical presence.
“So, I’m still in the process of deciding…“
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A Constantly Evolving Journey
Navigating business registration and taxation as a digital entrepreneur is not easy, and it’s something I’m still figuring out.
But if there’s one thing I’ve realized, it’s that traditional tax systems were not built for those who work remotely, travel often, and don’t fit into one country’s rules.
If you’re in a similar situation, know that you’re not alone. There are solutions out there, but it requires research, planning, and sometimes trial and error.
I’ll continue sharing my experiences as I refine my approach, so stay tuned! If you have any questions or insights from your own journey, I’d love to hear them.
Let’s navigate this together!
Veronica,
currently in Koh Samui,
“where the ocean is calling and I’m pretending not to hear it (for now).”
Work Unplugged 
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