Can we setup a company with 0% corporate tax in Europe?

[pluma]

I wonder if it is possible to setup a company with 0% corporate tax in Europe?

If so I could use it for payment processing needs for a web business and just pay taxes in my home country!

Do you think this will work? corportae tax is 20% in total here.

 

[Samuel Newman]

pluma said:
I wonder if it is possible to setup a company with 0% corporate tax in Europe?

If so I could use it for payment processing needs for a web business and just pay taxes in my home country!

Do you think this will work? corportae tax is 20% in total here.
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you need to find out if these options work for you
1) non-resident Gibraltar company
2) non-resident Cyprus company
3) Irish or British LLPs

 

[realcat]

Estonia
Latvia

 

[Martin Everson]

Isle of Man
Guernsey
Jersey

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Adrian1]

Isle of Man was the last EU-resident solution, and would have been safe due to EU freedom of establishment (and compatibility with EU-VAT comes in handy), but after BREXIT you can consider IoM offshore (the same as BVI/Cayman/Dubai/etc) from an EU perspective.

Non-resident Gib/Cyprus/Hong Kong/etc is also all the same 0% offshore thing from an EU perspective, its just different marketing/image.

A 0% offshore front will poke eyes out in the EU, and cannot be maintained for big business. It is also impossible to process VAT within EU like that (you can register a branch in the EU, but then its not offshore anymore).

If you have long-term big business and want to remain safe in EU (and want to have ability to process EU-VAT), these are the ultimate:
- Malta (5% effective, but warning: your 30% refund can be long-frozen before you get it back)
- Latvia/Estonia (Postpone corporate tax forever)

 

[Adrian1]

if you are taxed/resident in Malta or Latvia/Estonia (or IoM until BREXIT), then EU countries cannot also claim their tax due to EU law & double taxation treaties, and you will be protected.

if you are a non-resident in the EU (whether fully resident on a non-EU offshore island, or a non-resident in the EU like a non-resident cyprus company) and pay 0%, you will be unprotected from the claims of EU countries. They will usually tax you successfully , or otherwise at least take down your accounts / ruin your business, you won't survive.

if anybody thinks otherwise, please comment

 

[JohnLocke]

pluma said:
I wonder if it is possible to setup a company with 0% corporate tax in Europe?

If so I could use it for payment processing needs for a web business and just pay taxes in my home country!

Do you think this will work? corportae tax is 20% in total here.
Click to expand...

Make use of double tax treaties and incorporate your business for instant in Cyprus! That may work very well for you. It's not possible to get a 0% tax rate if you do it like this but you can reduce the tax. If you get some professional advise on top of this you can reduce the tax dramatically compared to the 20% you pay right now or the 12,5% corporate tax in Cyprus.

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[pluma]

Thanks folks for all your help 🙂 I'm going with a Cyprus company as suggested here in hope it will work out as expected.