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Yes, but the money will be in the Cyprus company, not in your personal possession. If you try to take them out either as a dividend or salary you'll have to pay tax, because it's a domiciled entity. Unlike when you just receive dividends from the Romanian company personally. Because that one is...

Not sure why would you want a Cypriot holding company. As a domiciled entity it'll be liable for taxation there, as far as I understand. So it'd erase all the benefit of not having to pay the 5% on dividends from the Romanian company. Imo it's better to just employ someone for a minimum wage in...

I think the advice is wrong. In this thread one person got a reply from the Cypriot ministry saying that POEM and PE rules do apply if you manage it from Cyprus. CFC rules alone are not a deciding factor. So an Estonian company would be considered a Cypriot company if it doesn't have an economic...

I read some time ago that as an EU citizen you can just need to prove with bank statements that you have enough resources.

That's a great idea. Cyprus seems to have identical CFC and non-dom laws as Malta, and on top of it no capital gains tax on trading and only 60 day rule for residency. And Estonia truly waives its right to tax any salary paid to a non-Estonian resident. So with an Estonian company + residency...

Then I wouldn't be able to trade tax free with that capital. If it's paid to a Cypriot company, trading gains will be subject to the CIT in Cyprus, and dividends from the Cypriot company would be taxed too. It's better to just stick to a single company (Romanian) and pay the 5% on dividends, if...

Tax on dividends of a micro-company is 5% in Romania. So it will be 5% at most. According to the tax treaty it's not clear if it will be taxed in Romania or in Cyprus. It depends on their agreement. It can be either taxed in Romania (5%), or in Cyprus (0%). The 10% is just the upper limit in...

Probably the taxation of trading is not even an issue. Check this out: - have a company in Romania - employ there someone to create an economic substance, pay minium wage, get 1% tax rate - live in Cyprus, within the EU the CFC rules are not applicable if the company has an economic substance -...

Is the 1% / 3% revenue tax not good enough of a reason?

This is for short term trading. Not sure how long term investing is considered. For short term trading this can kill you as you can pay more tax than you have gains at the end of the year, you can in fact pay tax even when you achieve a nett loss. So it's absolutely not advisable to use a...

I just got it confirmed by a Romanian lawyer. Gains are taxed in full while losses are nondeductible. The tax is the usual 1% / 3% .

I searched in Romanian and found this: https://www.portalcodulfiscal.ro/tranzactionare-la-bursa-prin-achizitii-si-vanzari-actiuni-49348.htm After registering I saw this answer: Raspuns: Opinie: In conformitate cu prevederile Ordinului 1802/2014, se recomanda efectuarea de inregistrari...

Do you know how trading revenue would be taxed? Would losses be offset from gains? Or since revenue is taxed, not profit, it wouldn't be possible to deduct losses, gains would be taxed in full? I asked the consulting company and they couldn't tell me, they didn't even get the question.

Found this service: Înființare firmă 100% digital | Nu te mai lupta cu birocrația | FirmeON SRL incorporation 572 RON ~ 115 EUR

Thanks. I see now that they don't have many tax treaties. That's quite a bummer.

Thanks. Honestly I'm hesitant, so far I'm getting a feeling that even though it's cheap, and it's in the EU which would make things easier, otherwise the administrative environment is a pain in the a*s to deal with. Company formation is not swift, incorporation services are quite pricey, the...

Anyone here has an experience with company formation in one of the above places?

The EU dropped the threat so the US had to satisfy their demands. Around the same time the IRS has started to collect all this information about foreign owners. A very simple leverage is for the EU would be to say they also wouldn't report info on US citizens to the US. Simple as that I'd say.

I'm very sure of that. Now sure about the circumstances of those certain people.

foreign-owned LLC owners have to submit IRS forms 5472 and 1120 every year identifying them with their local tax id, moreover those FATCA agreements typically contain automatic information exchange of investment bank account information for individuals and all bank accounts of other entities...