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Is bureaucracy better in Romania or Bulgaria?

Exactly, so income tax would be around 30K, perhaps a bit less, plus the 30K for social security would mean an overall effective rate below 6% for 1M income, which is not bad at all.

@scooterguy Can you please point me to the source where that is explained (best in Italian)? I believe it's not that high if you are a freelance and, in any case, there must be a cap. I do not believe you would pay 250K a year for social sec. on income of 1M. Thanks

Go to Italy. Register as freelance and 90% of your income will be tax exempt if you live in the South, 70% in the North. So you'd be paying around 4% effective tax rate (South) or 12% (North). ”˜Lavoratori impatriati' scheme...

But that would not work either, would it? If the tax office considers the company is a local resident, it would tax that profit regardless of whether it stays in the company or it is disbursed. Am I wrong?

How high was the company's (taxable) profit in those cases?

If there are only two shareholders and one is passive, the work has to be done by the other shareholder (or employees/contractors), so I am guessing you would have to prove that is the case. That is why I bring up SH1. I am thinking of the possibility of truly having a bona fide passive SH2 but...

How would the company or the tax office prove who did the work in any case? Would contracts with clients for instance have to specify that SH1 (or temp contractors) is doing the work? Contracts that I've had with clients on my past EU-based companies for instance do not typically go into that...

Thanks A. Regarding SH2 fiscal residency: Option 1: Slovakia Option 2: Greece B. Can the company be considered a partial tax resident in the EU? How would that work? Most tax treaties in the EU consider the place of effective management as the tie breaker. You mention SH1 is largely irrelevant...

What the banks do is not really relevant as SH2 in the EU will be reporting the dividends to the tax office and paying the tax due. No hiding. The company would offer mostly consulting services in technology/software across the world. SH1 would be doing most of the work. SH2 would help...

Hi all, Consider the following setup. FZC in UAE with two shareholders: - 51% for SH1, who lives and is a legal tax resident in UAE - 49% for SH2, tax resident in a EU country SH1 is the appointed director and manages the company. He is the effective decision maker since he owns the majority...

Can you name those few jurisdictions? Thanks

Thanks @Fred for the comprehensive answer Can you please PM me? I have some further questions about setting up the company in Dubai.

Hi all, Imagine you are in or move to a EU country with low tax on dividends. You set up a company abroad, for instance a US LLC, and do business through it. The LLC is not ETBUS and thus pays no federal income tax in the US. You disburse dividends to yourself, declare them before the local tax...

Good points. Thanks for the info. I don't know about the taxes, if any, associated with transferring assets from your IKE to you. If you find out more, please do share. As for your last point, I mentioned invoicing as a freelancer but that actually would not be necessary. If you have an IKE...

1. Yes. That should be feasible. The other worry the other "silent" partner might have is that OO and EE come with unlimited liability so they might be on the hook withe their assets if the partnership gets sued (which I guess it's unlikely). Not sure if that liability is determined by their...

As mentioned earlier, why don't you forget about the UK Ltd and set up a partnership in Greece (OE or EE as you yourself stated, I'm not familiar with them). Both tax rate and maintenance costs will be lower, and it would be by the book. What is stopping you from doing that? Remember you can...

I see. You said earlier that there are no transparent entities in Greece. UK LLP is taxed at the partner level in the UK but that concept does not exist in Greece. So I would argue both entities will be regarded in a similar way by the GR tax authorities: foreign companies. Of course I am just...

Yeah, I'd seen that. Just saying I don't quite get why the partnerships get that preferential treatment vs LTDs. Guess it's to compensate for the unlimited liability, as @hungryPanda pointed out. @Marzio I had asked you to elaborate on this, maybe you missed it. It'd be great if you can...

Anyone knows if they still allow to take your funds out as dividends, legally? I read somewhere it was possible with Winglio but I very much doubt it. I could not find much on it @ivan1911 had commented on this long ago