Most/least aggressive tax offices in Europe?
- Thread starter sriracha
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How did it go for you︇ in the end? Did you buy the property? I'm currently thinking about a similar thing︈ - rent and then buy an apartment in Spain, but stay there less than 6︉ months/year and have tax residency in Romania ( plus a company and another rental/bought property︊ there ).
In the middle of the dial right now. I have found a property that I like, paid the 10% deposit and planning to transfer the remainder in the coming month. Banks and notaries were giving me lots of headache asking for documents. The weirdest thing was "we︀ cannot accept the transfer if no taxes were paid on that money". Geez, ok, but︁ it is my 2023 income! I will file it in 2024 declaration! It took me︂ quite some time to persuade the notary that it's ok. Receiving tax number was slow︃ and cumbersome. Bureaucracy... Overall, everything is fine.
Germany is the worst by far. If you are a low or medium sized business you will be fcked. Only the large businesses can play around with the tax office as they want.
Story:
A person with a german company had a high-profit business (automation software) with not many employees. Around 200 - 300 k profit a year before tax. He sold his software world wide but had some european customers faking their billing address to save the VAT. The company received a mandatory audit by the tax office and they found it. Tax office now wants to blame it on company because going after︀ a customer for a 50 € invoice missing 10 € VAT in bulgaria is not︁ worth it. Long story short, company was in the right because its IP preset and︂ if someone sets Iraq as their billing address this is not for the company to︃ verify.
Afterwards the company received 2 more audits in those 8 years, totaling 3. Those︄ audits werent "random". Every audit nothing could be found, but thousands were spend for the︅ accountant, lawyer and tax consultant.
Company also had workers. Workers and students worked as normal︆ employees and freelancer because they also had a job. The company was once raided by︇ customs. Customs found out that at some times the workers/students had no job and blamed︈ bogus self-employment. Company needed to pay hefty fines. Also some documents were missing or not︉ fully available. Hefty fines too.
Person fired all employees and moved his company to Dubai.︊ Person never had a headache anymore, saved a lot of money and doesnt get fcked︋ on a monthly and yearly basis.
Story:
A person with a german company had a high-profit business (automation software) with not many employees. Around 200 - 300 k profit a year before tax. He sold his software world wide but had some european customers faking their billing address to save the VAT. The company received a mandatory audit by the tax office and they found it. Tax office now wants to blame it on company because going after︀ a customer for a 50 € invoice missing 10 € VAT in bulgaria is not︁ worth it. Long story short, company was in the right because its IP preset and︂ if someone sets Iraq as their billing address this is not for the company to︃ verify.
Afterwards the company received 2 more audits in those 8 years, totaling 3. Those︄ audits werent "random". Every audit nothing could be found, but thousands were spend for the︅ accountant, lawyer and tax consultant.
Company also had workers. Workers and students worked as normal︆ employees and freelancer because they also had a job. The company was once raided by︇ customs. Customs found out that at some times the workers/students had no job and blamed︈ bogus self-employment. Company needed to pay hefty fines. Also some documents were missing or not︉ fully available. Hefty fines too.
Person fired all employees and moved his company to Dubai.︊ Person never had a headache anymore, saved a lot of money and doesnt get fcked︋ on a monthly and yearly basis.
Poland is really bad from what I've heard.
I haven't done business in this country myself, but know many people who have, e.g., heard of someone who got criminal charges for temporarily keeping a 50 dollar printer that was owned by his business in his home.
They are also quite powerful, if they want to go after someone the methods they use are far from what I would expect from a state institution.
Fines are one of the worst. DAC6 non compliance can cost you up to︀ 5.8 million, while in some other EU countries same thing costs max 3k.
All you︁ need is one person to get angry at you and snitch you to the tax︂ office and you might get into deep trouble.
Legal system is also quite complex and︃ uncertain. People say that when they would speak to 3 different advisers in most case︄ each would have a different opinion.
I haven't done business in this country myself, but know many people who have, e.g., heard of someone who got criminal charges for temporarily keeping a 50 dollar printer that was owned by his business in his home.
They are also quite powerful, if they want to go after someone the methods they use are far from what I would expect from a state institution.
Fines are one of the worst. DAC6 non compliance can cost you up to︀ 5.8 million, while in some other EU countries same thing costs max 3k.
All you︁ need is one person to get angry at you and snitch you to the tax︂ office and you might get into deep trouble.
Legal system is also quite complex and︃ uncertain. People say that when they would speak to 3 different advisers in most case︄ each would have a different opinion.
There's a reason an author like Kafka came from what today is Czechia. Their bureaucracy has been an abomination for hundreds of years, and it's a part of their history and culture that they hold on to firmly.
They somehow manage to replicate this terrible bureaucracy even when they digitize their systems. It's the same process, except it happens on a computer screen instead of on paper. Still takes just as long.
In other words, the Czech government is in such a sorry condition that tax evasion︀ is rampant and tax laws poorly enforced. But when they finally do catch someone, they︁ tend to not let go easily. A dangerous mix of incompetence and aggression.
They somehow manage to replicate this terrible bureaucracy even when they digitize their systems. It's the same process, except it happens on a computer screen instead of on paper. Still takes just as long.
In other words, the Czech government is in such a sorry condition that tax evasion︀ is rampant and tax laws poorly enforced. But when they finally do catch someone, they︁ tend to not let go easily. A dangerous mix of incompetence and aggression.
That's why the gang members of these︄ criminal organizations ...ahem...I meant "public servants", do whatever it takes to keep their names anonymous,︅ otherwise, retribution is career-ending. All it takes is for them to get a "package" at︆ their house.
Life can be so much better for all these cretins if they just︇ became productive members of society instead of lazy parasites 😉
We can change the country's name︈ with any other name and the story pretty much stays the same.
Life can be so much better for all these cretins if they just︇ became productive members of society instead of lazy parasites 😉
We can change the country's name︈ with any other name and the story pretty much stays the same.
Apparently, up to 12,000 Americans are wrongfully marked dead each year.
If you are officially dead, how will they tax you or hold you legally accountable?
I guess that would be one example of how to be completely off the radar 🙂
Imagine doing business in the US being officially dead, while at the same︀ time having multiple other passports.
Reference: Madeline-Michelle Carthen was declared dead 15 years ago. The︁ only problem? She's still alive.
If you are officially dead, how will they tax you or hold you legally accountable?
I guess that would be one example of how to be completely off the radar 🙂
Imagine doing business in the US being officially dead, while at the same︀ time having multiple other passports.
Reference: Madeline-Michelle Carthen was declared dead 15 years ago. The︁ only problem? She's still alive.
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