Company Formation with 100K € / year Turnover

[elaine053099]

Is it worth to form a Company in lower tax countries such as Malta, Cyprus, etc with estimate turnover of 100K? I'm a tax resident of a country with 40% tax rate. Thanks for your inputs!

 

[Sols]

If you plan to move there as well, yes. If not, forming any kind of foreign company is in most cases a waste of time and money.

Toggle signature
This is the probably the answer to your question.

 

[burden]

Relocate or make sure to not figure anywhere on the company documents nor on the bank account / neobank. Can you managed to do that (learn more in mentor group gold) you are 95% safe.

 

[EliasIT]

I agree with what is said here already. You better consider to relocate if you want to safe in taxes. Otherwise you may speak with a local tax advisor in order to get help to reduce your current tax burden. Most often they are able to help with something at least.

Toggle signature
If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability!
My personal favorite thread posted in the Mentor Group. Group of investment companies to avoid licensing.

 

[Expatas]

Cant be answered that easy. You have to provide more information. How much of the turnover is left as margin? Do you want to stay in you home country or become a digital nomad?

 

[Romamo]

You can save at least 20K from 100K: 12.5% corporate tax in Cyprus + all expenses there

 

[elaine053099]

Expatas said:
Cant be answered that easy. You have to provide more information. How much of the turnover is left as margin? Do you want to stay in you home country or become a digital nomad?
Click to expand...

What is left is about 50K and I want to stay in my home country. Thanks!

 

[JimBeam]

elaine053099 said:
What is left is about 50K and I want to stay in my home country. Thanks!
Click to expand...

I see in your profile that you're from "DE" so I guess that's Germany/Deutschland.
In your case that's simply not possible as they will figure it out and you'll end up in serious problems.

You can either move/relocate to Bulgaria or Romania for eg. or stay there and find a way how to optimize your setup as much as possible.

 

[JustAnotherNomad]

Romamo said:
You can save at least 20K from 100K: 12.5% corporate tax in Cyprus + all expenses there
Click to expand...

No.

elaine053099 said:
What is left is about 50K and I want to stay in my home country. Thanks!
Click to expand...

Forget about it. Talk to a good tax advisor in your country about what you can improve in your own country.

 

[Expatas]

I have to agree..... not worth it because too expensive. Better to optimize taxes in DE, there is plenty of possibilities with a good tax consultant. Setting up something in BG for example makes sense when we are talking about 150 k turnover net. Good luck!