Estonian EU as holding company for EU resident

[Dillon]

Hi everyone,

I've got a few questions regarding setting up an OU in Estonia as my personal holding company for investing via IBKR for example.

Personal situation:
I'm an EU citizen&resident; my country doesn't have CFC laws for natural persons and doesn't care about place of effective management. I'm also planning to move out of the EU, likely within the next 2 years.

Now, I'll soon receive about 100 000 EUR from sale of real estate in my home country and want to invest this in stocks and funds the smart way so that I can reinvest dividends tax free.

Questions:

#1: I'm wondering if a company in Estonia would be the way to go considering the ever-tightening EU regulations? Would some other jurisdiction be better? UK, Gibraltar, Isle of Man? Those are not in the EU and offer similar benefits.

#2: Should I incorporate with minimum share capital and loan the 100k EUR to the company? Or should I use 100k as share capital?

#3: Will I have issues opening an IBKR account for an Estonian OU if I'm not an Estonian tax resident myself and have no substance in Estonia?

#4: Can an Estonian company loan me (the shareholder) money? I may want to take out a lombard loan as the OU with stocks/shares as collateral and pass this money to myself (the shareholder).

Furthermore - is there anyone here using an Estonian OU as their personal holding company?

Thanks in advance.

Last edited: Aug 23, 2022

 

[UndividedNomad]

It's the 100k is coming in as personal capital gains, why try to put it into a company? Take the money, open an account with a private bank or a decent broker that offers Lombard loans, invest that via your broker/bank and take a loan against the securities. Loans don't qualify as personal income so no taxes on that.

Regarding #4, it is illegal for a OU company to loan money to its shareholders.