Setting Up an Offshore Company While Being a French Tax Resident

[nobel]

I find it a coercive and nonsensical language that doesn't exist anywhere in the world. I‌ want to do my job and earn money and not sit in school all the‍ time, losing money because I can't work.

 

[JustAnotherNomad]

Pretty sure you are wrong about this.⁠ Do you have a source for this?

 

[ImABotnet]

https://setupandorra.com/en/news/what-are-the-taxation-and-the-corporate-tax-rate-in-andorra/
"International corporation: taxation of 2% maximum;"‍

 

[ImABotnet]

I just⁠ checked and nothing is required for the first year. For the renewal, I find it⁤ normal it's the minimum when settling in a country that isn't ours to know the⁣ basics of the language, especially since I will be spending more than six months per⁢ year there. So, it's beneficial for everyone.

 

[JustAnotherNomad]

That's your source?‌ You read two words on a random website and automatically assumed your business would qualify?‍

 

[ImABotnet]

You can imagine that I contacted them‍ by email. Here is what they confirmed to me. They are a legitimate Andorran firm,⁠ and they also have a YouTube channel where they post daily videos. In any case,⁤ whether it's 2% or 10%, both options work for me, so the outcome will remain⁣ the same.

I am copying here what they confirmed to me by email:

"The 2%⁢ tax rate for the development of intellectual property and the conduct of international activities without︀ a direct impact on the economy of the state is granted. This scheme is called︁ the International Trade Companies (MAIN) regime.

Conditions:​

The activity must be international: It should︂ be remembered that the client base cannot be Andorran (i.e., your online stores must sell︃ globally).

• No physical activities with clients based in Andorra.
  
• An additional requirement is to obtain︄ a special authorization from the Andorran government.
  
• The application must include the presence of offices︅ and a real economic substance in the Andorran state (at least one employee or a︆ physical office).
  
• To maintain accounting records in conformity with the tax transparency regulations."
  

 

[Marzio]

I guess it's a sort of IP Box where you are granted⁠ a relief on the statutory CIT rate if you have some kind of R&D expenses⁤ to develop your IP.

Be aware that there's no Stripe in Andorra.

Your only option⁣ would be to use Braintree (a PayPal company) the fee is 1.9% +0.30€ which isn't⁢ bad at all.

 

[drphantom]

Is there as lot‍ troubles with Braintree as with PayPal or is BT better ?

 

[Marzio]

I honestly never used them so i can't say anything‍ from direct experience.

 

[Sols]

IIRC, Andorran companies are sometimes able to get processing with Spanish processors like https://paynopain.com/en/ or https://monei.com/ or https://redsys.es/en/.

 

[ImABotnet]

Hello everyone,

First of all, I want to sincerely thank you all for your help‌ and for opening my eyes throughout this process. I have now successfully registered my company‍ in Malta, which was finalized today!

I would really appreciate your advice on one final⁠ and crucial point: Which bank would you recommend for my business?

I run three e-commerce⁤ stores generating around €100K in monthly revenue (total). My business is relatively new, operating since⁣ September 2024. My stores are not in a high-risk sector (no gambling, crypto, or finance/⁢ adult).

I’ve heard mixed opinions on fintech solutions,some say they are great, others mention account︀ freezes and compliance issues. Also, I read that opening an account with HSBC Malta is︁ very difficult, and Bank of Valletta (BoV) is even more complicated.

Considering my situation, which︂ banking solution would you recommend ?

 

[JustAnotherNomad]

So you moved to Malta in the end?

 

[ImABotnet]

Yes, of course, I will stay there for at least 183 days in the year.‌

 

[ImABotnet]

Regarding the opening of a bank account, does anyone have suggestions on who I could‌ choose?

 

[drphantom]

Why not Wise, Revolut or some of many EMI's ?

 

[mpao]

Your best option is Revolut Business. If you need‍ a maltese IBAN go for Moneybase. I would suggest to avoid Em@ney.

 

[blast629]

May I know which︃ CSP firm did you use for creating and maintaining the Maltese company? Do you have︄ a fiscal unit with a foreign or local holding?

I am looking into either moving︅ to PT with IFICI and use a MT Ltd for exempt dividends, or directly move︆ to Malta and live with corporate money and pay that 5% CIT. So I am︇ definitely looking for experiences on that matter.

For now, I have been quoted from 3k︈ to 14k for same services (accountancy + bookkeeping + tax filing + virtual office +︉ audits).

Looking forward to your news

Thanks and best regards

 

[mpao]

3k for all those services is unrealistic in Malta. The real︁ cost of a two-tiers structure is around €10k-€12k per year

 

[blast629]

These are the maintenance‍ costs I was quoted:

Holding maintenance (UK) - 1000€

Rest are Maltese trading company:

Audit - 1000€

5% Tax Return - 250€

Yearly Tax Return - 150€

Accounting - 500€/quarter⁠

Compliance - 300€/1-5 years

Registered Address Office - 700€/year

I guess there might be something⁤ missing?

Thanks for your reply

 

[Marzio]

Those costs‌ omits company formation costs which in Malta is at leat 1500€, no secretary, no director‍ and random bulls**t that Maltese love to throw at you that will rise the cost.⁠

This is the real cost, as i already told you.