Advice on new company formation jurisdiction

[daniels27]

May I ask:

• Du you have to be in Germany to do the work for‌ your client?
  
• Can somebody else do the work as well or do they require that‍ you do it?
  
• Are you willing to leave Germany?
  

 

[Yeskou]

The issue is my client require my physical presence in their office 3 days a week.⁠
As my client is requesting my presence i can only look to generate expenses for⁤ outsourcing a service to lower the taxables amount.
Am thinking also to leave germany open⁣ a new company elsewhere and come to germany only to do the business, as i⁢ can exist in germany but fiscally i belong to the country where my company is.︀

 

[daniels27]

Yes, but then is becomes very hard to do‍ anything without much effort. Are you close to a neighbouring country?

Yes and then will have transfer⁣ pricing issues etc.

Yes, if you are in the South, you can move to Switzerland, be emplyed by︂ your own company there. You then have a number of options:

• If you live within︃ 100 km or less than 90 minutes of travelling time to your office, you can︄ be classified as Grenzgänger and you only pay tax in Switzerland.
  
• You can travel to︅ your office 3 days per week and spend the rest of your time in your︆ own office in Switzerland. This could work unless you have a permanent office in Germany︇ etc.
  
• You can work for your Swiss company and then you then file form A1︈ (Entsendung) this is only possible for up to 2 years
  

I think these are the︉ only legal ways. Of course, you can follow this one:
But in your case, it would be very, very risky. If you have family⁤ in Luxemburg and are member of sport sclubs there and live there all but the⁣ 3 days, it is risky.

 

[Yeskou]

Yep, it seems in all situations no 100% legal option exist.
If i will work‌ only 100% remote jobs I will in competition with all the other persons who bill‍ cheapers.
My only way to bill good rates is to show my face in the⁠ offices in Germany. Then i need to figure out hiw to pay less taxes.
It seems playing with opening new companies under my name will trigger the control for sure.⁤

I start thinking to use a nominee to open a company under his name and⁣ build email exchanges beween us showing that I delegate the job to him. For example⁢ if I bill my client 600eur a day I pay my subcontractor 400 a day,︀ then i live and spend the money of the subcontractors and keep my company money︁ saved for the future.

As my actual turnover is not huge money I think that︂ is the only way to save taxes.

 

[daniels27]

Honestly, it is very illegal. But⁣ if course you can try. I would not recommend it. You cannot even claim you⁢ did not know it forgot. Ity is just very openly illegal.

Also, there are many︀ like you in Germany with 3 times or more and they also pay it.

 

[cuno]

I would take that out of your list for the business‍ OP mentioned. it screams for lot's of troubles and you do not want as an⁠ foreigner with a small size business not doing at least 5 - 10 mlion euros⁤ in profits each year to fight the tax authorities setup an account there.

They are⁣ some of the worst countries for foreigners to do business in, unless you have millions⁢ for tax lawyers!