Most trusted place to setup company in Europe?
- Thread starter benq
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We have used Deloitte for nearly a lifetime, and they’ve always ensured that the tax authorities are kept at bay while opening doors to bank credit when needed. Additionally, they’ve been excellent at optimizing my personal tax burden and, above all, have a solid understanding of my goals and preferences.
That said, I can see from the responses in this thread that there is room for alternative approaches to Deloitte’s suggestions, and I’ve truly appreciated reading all your insightful replies. I’ve now reached out to advisors in Liechtenstein to explore the potential for a setup there. I’m also still considering a company in Switzerland as︀ a public-facing entity and have requested a thorough review of the tax disadvantages.
Please feel︁ free to share more advice. I’ve contributed to the forum with a lifetime membership as︂ a way to give back to this fantastic platform and to show that I’m serious.︃
That said, I can see from the responses in this thread that there is room for alternative approaches to Deloitte’s suggestions, and I’ve truly appreciated reading all your insightful replies. I’ve now reached out to advisors in Liechtenstein to explore the potential for a setup there. I’m also still considering a company in Switzerland as︀ a public-facing entity and have requested a thorough review of the tax disadvantages.
Please feel︁ free to share more advice. I’ve contributed to the forum with a lifetime membership as︂ a way to give back to this fantastic platform and to show that I’m serious.︃
Try to think out of the box. Deloitte is the epitome of conventional thinking (when not incompetence).
I would also avoid patronizing such a company for a plethora of ethical reasons.
Do you remember Parmalat?
More recently: https://www.lidentita.it/lombra-di-...ortina-2026-tre-indagati-perquisita-deloitte/
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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields
I completely understand your choice of advisors for a larger enterprise like yours. While it may not seem enormous, it falls into the category of small to medium-sized Enterprises (SME's) in many countries. If you have the budget and flexibility to work with advisors like Deloitte and complement that with a skilled law firm and professional in-house bookkeeping, you can keep many potential problems at bay. In the end, it’s worth every penny.
In our business, which is roughly the same size as yours, we spend around €125,000 annually on accounting, tax advisory, legal services, and all financial matters. That investment pays for itself many︀ times over every year.
For smaller business owners or people earning their money in a︁ simpler, more convenient way, who only have to worry about their own well being, it︂ might seem completely nonsensical. But if you’re playing at a professional level and want to︃ stay there, you have to act like the pros. That’s the name of the game.︄
In our business, which is roughly the same size as yours, we spend around €125,000 annually on accounting, tax advisory, legal services, and all financial matters. That investment pays for itself many︀ times over every year.
For smaller business owners or people earning their money in a︁ simpler, more convenient way, who only have to worry about their own well being, it︂ might seem completely nonsensical. But if you’re playing at a professional level and want to︃ stay there, you have to act like the pros. That’s the name of the game.︄
Two problems I see in these proposal: 1. To transfer part of full ownership of the operating company might be taxable if not done with proper transfer pricing. Possibility (nothing more, please check) of a share swap or forming a European SE could possibly avoid that. 2. With reference to Lichtenstein nobody indicated the WHT on the dividends coming out to the holding company, only the individual’s personal income tax liability from getting out the money from the holding company. As an EEA country the parent/subsidiary directive cannot be applied, and for this possible solution an EU holding company might be better than Lichtenstein.
And I might be wrong
And I might be wrong
And this is where my very︁ skilled tax advisors come into play, providing me with immense value by ensuring everything is︂ done correctly from the start. You are absolutely right, it’s not everything that users here︃ can or remember to share, which is why I use the thread as a hint︄ and then conduct my own research.
I’m still very grateful for the help and input︅ I receive here. It’s invaluable and something I can’t get from regular advisors.
I’m still very grateful for the help and input︅ I receive here. It’s invaluable and something I can’t get from regular advisors.
It is not a significant budget considering the total revenue and the corporate structure, which is classified as moderately complex. For a small business, however, it might understandably seem like a substantial amount.
For the sake of clarity and to conclude this discussion, we opted for Switzerland with a Luxembourg parent company as the holding entity. Based on our calculations and the conclusions drawn by our financial strategists, this approach represents a solution that meets the conditions we set for our business while ensuring we maintain credibility with our customers︀ and business partners.
For the sake of clarity and to conclude this discussion, we opted for Switzerland with a Luxembourg parent company as the holding entity. Based on our calculations and the conclusions drawn by our financial strategists, this approach represents a solution that meets the conditions we set for our business while ensuring we maintain credibility with our customers︀ and business partners.
Many Danish here guy have severe problems with the Skat. The Danish tax authority had a lot of demands and then, they left. You can check @JohnLocke's case here
https://www.offshorecorptalk.com/th...l-if-account-got-closed-for-tax-office.44791/
I think a big part of the reason why OCT exists is because of the aggressive Skat.
Having read all those stories, I would not recommend Denmark either.
https://www.offshorecorptalk.com/th...l-if-account-got-closed-for-tax-office.44791/
I think a big part of the reason why OCT exists is because of the aggressive Skat.
Having read all those stories, I would not recommend Denmark either.
Thank you for sharing @benq, appreciate︀ it.
May I ask out of Curiosity why the TradeCo is in Switzerland and not︁ Liechtenstein having the potential CH source tax on dividends in mind?
I assume with Lux︂ holding the EU mother/daughter directive may apply, but 'i heard' in some cases CH made︃ problems with that and retroactively applied Source taxes when trying to take more money into︄ the EU Holding.
May I ask out of Curiosity why the TradeCo is in Switzerland and not︁ Liechtenstein having the potential CH source tax on dividends in mind?
I assume with Lux︂ holding the EU mother/daughter directive may apply, but 'i heard' in some cases CH made︃ problems with that and retroactively applied Source taxes when trying to take more money into︄ the EU Holding.
That would have been my suggestion as well. Luxembourg is very popular for holding companies.
Alternatively, Poland also seems to have a holding regime as well now.
Alternatively, Poland also seems to have a holding regime as well now.
Liechtenstein has a robust network of concluded DTAs
see
https://archiv.llv.li/files/stv/int-uebersicht-dba-tiea-engl.pdf
see
https://archiv.llv.li/files/stv/int-uebersicht-dba-tiea-engl.pdf
Very interesting read! Although I don’t have as large a budget as you, I’ve learned something new from reading this thread. Great work
Based on the information discussed, here are two solid options which I consider the best for establishing a holding company in Europe:
I hope this provides some useful guidance!
- UK Holding Company
If you're not a UK tax resident and are comfortable with the UK's status outside the EU, setting up a UK holding entity is top. Key benefits include:- 0% taxation on any ownership under the ltd company over 5%
- 0% withholding tax on dividends paid to non-residents, allowing for tax-free repatriation of profits.
- A straightforward process for distributing dividends or dissolving the company to access its assets.
- Low maintenance costs and a strong reputation as a jurisdiction for holding companies.︀
- 0% taxation on any ownership under the ltd company over 5%
- Luxembourg Société de Gestion de Patrimoine Familial (SPF)
Designed specifically for private wealth management (e.g.,︁ holding activities), the Luxembourg SPF offers:- 0.25% tax with a maximum of €125K. Over that,︂ it's 0%.
- It cannot have commercial / trading activity and is restricted to only holding/managing︃ assets. This is, in practice, very flexible, as certain management fees can qualify as "managing︄ assets" and, therefore, inclusive.
- 0.25% tax with a maximum of €125K. Over that,︂ it's 0%.
I hope this provides some useful guidance!
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