Hello! I am looking for a decent low-capital tax optimization setup.
I am operating a company making a small amount. It is about $1000/month in net profit.
The model is quite simple; It has server hosting, and some freelance agents that get paid commission.
I am an EU resident, and so are the freelancers.
While I plan on expanding this operation to a lot more (I estimate around $20 000/month before the year is over) I have the following worries:
A lot of the better tax-structures has a large cost of setting up and maintenance, so I see no point in doing it until I can justify the cost. I am looking at Dubai or RAK. Although I have heard from industry acquaintances that this type of agency+IT service company, Hong kong might be better. Those worries are however for later, when I make more than a hundred thousand a year in profits from this company.
My country of residence has quite heavy taxes, so I wish to make it more hidden until I can invest in accountants and lawyers. I am considering some low-fee setup that will provide a basic protection temporarily.
One set-up that seems tempting is: Estonian E-residency + Payoneer registered through that E-Company.
This way I have multiple layers between the money and my local tax entity, and they will need an actual warrant and case, instead of just passively logging it. I do plan on declaring the income later on, however, just to be safe. (Paying thousands of euros when you make a hundred thousand is no big deal, but when it is a majority of the company capital, it does matter to me.)
The final question is this:
Has anyone had any experience with low-fee structures for low-capital companies?
I am operating a company making a small amount. It is about $1000/month in net profit.
The model is quite simple; It has server hosting, and some freelance agents that get paid commission.
I am an EU resident, and so are the freelancers.
While I plan on expanding this operation to a lot more (I estimate around $20 000/month before the year is over) I have the following worries:
A lot of the better tax-structures has a large cost of setting up and maintenance, so I see no point in doing it until I can justify the cost. I am looking at Dubai or RAK. Although I have heard from industry acquaintances that this type of agency+IT service company, Hong kong might be better. Those worries are however for later, when I make more than a hundred thousand a year in profits from this company.
My country of residence has quite heavy taxes, so I wish to make it more hidden until I can invest in accountants and lawyers. I am considering some low-fee setup that will provide a basic protection temporarily.
One set-up that seems tempting is: Estonian E-residency + Payoneer registered through that E-Company.
This way I have multiple layers between the money and my local tax entity, and they will need an actual warrant and case, instead of just passively logging it. I do plan on declaring the income later on, however, just to be safe. (Paying thousands of euros when you make a hundred thousand is no big deal, but when it is a majority of the company capital, it does matter to me.)
The final question is this:
Has anyone had any experience with low-fee structures for low-capital companies?
