Advice on where to open a company...?
- Thread starter Guti
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Just make sure the costs of the structure (incorporation and renewal fees, maintaining sufficient substance etc) don't outweigh the saved taxes. If you're making 100k per year and paying 24k in taxes, shifting to an offshore at 5% only leaves 19k to run the whole offshore operation.
Other posters are right to be critical of you. You︋ are saying you don't want to pay taxes in Spain but run a business there.︌ You even extend this to say you don't want your employees who work in Spain︍ to pay Spanish taxes. My friend, that is the definition of avoidance. Don't piss in︎ people's ears and tell them its raining.
If you want to legitimately reduce your taxes,️ I can offer you some suggestions but without knowing the industry you are in or where the clients would be, or what specific service/product you offer it is impossible to get a meaningful recommendation. So I'll wait for your response on that.
Also if your purpose for being anonymous is simply to avoid taxes, it will not work because of tax treaties. Most of the anonymous legislation get pulled back for government investigating tax cases. If your point is to be anonymous to creditors or just general public, then I have some recommendations.
If you want to legitimately reduce your taxes,️ I can offer you some suggestions but without knowing the industry you are in or where the clients would be, or what specific service/product you offer it is impossible to get a meaningful recommendation. So I'll wait for your response on that.
Also if your purpose for being anonymous is simply to avoid taxes, it will not work because of tax treaties. Most of the anonymous legislation get pulled back for government investigating tax cases. If your point is to be anonymous to creditors or just general public, then I have some recommendations.
Because it's the law and Spain is one of those countries that shoots first and asks questions later. I've known of expats in Spain who haven't had their affairs in order, get hit with an enormous tax bill, and have to spend months if not years sorting things out - or just paying it.
As I︀ hinted at and @Gediminas laid out more clearly, you can try to establish a substantial︁ economic presence and permanent establishment in a place like Cyprus or Malta and pay the︂ low tax there. You're looking at high costs - office with utilities, local director, full-time︃ employees, and other things required to make it a real, local company there.
That may︄ absolve you of Spanish corporate tax. No guarantee, because if the Spanish authorities determine that︅ the company is still under your control, they might send you an invoice for full︆ corporate tax in which case you might be able to use a DTA to use︇ taxes paid in CY or MT as credit and only pay the difference to Spain.︈
Funds you pay to yourself personally, though, is still subject to personal income tax.
But it sounds like you have made up your mind, though. I just hope they have︉ wifi in your prison so you can post an update a couple of years from︊ now. 😉
As I︀ hinted at and @Gediminas laid out more clearly, you can try to establish a substantial︁ economic presence and permanent establishment in a place like Cyprus or Malta and pay the︂ low tax there. You're looking at high costs - office with utilities, local director, full-time︃ employees, and other things required to make it a real, local company there.
That may︄ absolve you of Spanish corporate tax. No guarantee, because if the Spanish authorities determine that︅ the company is still under your control, they might send you an invoice for full︆ corporate tax in which case you might be able to use a DTA to use︇ taxes paid in CY or MT as credit and only pay the difference to Spain.︈
Funds you pay to yourself personally, though, is still subject to personal income tax.
But it sounds like you have made up your mind, though. I just hope they have︉ wifi in your prison so you can post an update a couple of years from︊ now. 😉
@Guti, you have 2 problems. One it's that you can't move with family to other country. This is the big one. The second it's that actualy you are in a comunist country. All will be wrost from now.
Meanwihle you will be resident in Spain you will have problems. And I'm conscient that Spain is the best country on the world to live. Well it was !!!. But right it's imposible to think about a future there working or having assets.
But if you can't go out, and you can have the posibility to open an office, and employ worker, you can have a︀ small oportunity to reduce taxes legally. But not anonymously. For that you would need to︁ create a structure for exemple in CY with trustee.
If you can have 1 employee︂ you can try to open a company in Madeira. You will pay 3% taxes. And︃ if you are in a Special industrial zone in Funchal, you will pay 1/2 of︄ 3%. You need to invest 75K in your business but not obligatory in the island,︅ and the directives and decisions must be taken from a person who is resident on︆ the island and all the direction must be done from the island. Your employee can︇ do it. This advantage are limited on the time. This structure has a caducity. It︈ remain 9 years. After this time the EU wil decide if they stop this special︉ traitement or if they give some years more.
You have the same advantage in Canary︊ Island. There in the small island you need 3 employees. Is named the ZEC. Zona︋ especial canaria. But it's not a sepcial zone. Is all the islands. On the big︌ island you need 5 employees.
Tax are 4%. Completely legal and acepted by the european︍ union. No TVA. Only IGIC with 7%.
Canary has the same problem than Madeira. In︎ 9 years the caducity of this previlege will arrive. No body know right now if️ it will be renewal.
But If you business is for IT, in Georgia the special zone for IT business is free tax. To pulish that and if you can, you can try to have substance. It's not obligatory. You rent a flat less than 200€ and put an employee 300€. There is not social security in Georgia. Is the best country to get substance very cheap.
In the case of Georgia you will need also to find a system to find a trustee if you don't want to be visible as UBO. But this is other history.
But after all that, in your place, I︀ should beguin seriously to think to convince my family little a little to change the︁ residence one day. Better in short time that in long time. In Spain is better︂ to saty as emigrant or visitor than as resident.
Meanwihle you will be resident in Spain you will have problems. And I'm conscient that Spain is the best country on the world to live. Well it was !!!. But right it's imposible to think about a future there working or having assets.
But if you can't go out, and you can have the posibility to open an office, and employ worker, you can have a︀ small oportunity to reduce taxes legally. But not anonymously. For that you would need to︁ create a structure for exemple in CY with trustee.
If you can have 1 employee︂ you can try to open a company in Madeira. You will pay 3% taxes. And︃ if you are in a Special industrial zone in Funchal, you will pay 1/2 of︄ 3%. You need to invest 75K in your business but not obligatory in the island,︅ and the directives and decisions must be taken from a person who is resident on︆ the island and all the direction must be done from the island. Your employee can︇ do it. This advantage are limited on the time. This structure has a caducity. It︈ remain 9 years. After this time the EU wil decide if they stop this special︉ traitement or if they give some years more.
You have the same advantage in Canary︊ Island. There in the small island you need 3 employees. Is named the ZEC. Zona︋ especial canaria. But it's not a sepcial zone. Is all the islands. On the big︌ island you need 5 employees.
Tax are 4%. Completely legal and acepted by the european︍ union. No TVA. Only IGIC with 7%.
Canary has the same problem than Madeira. In︎ 9 years the caducity of this previlege will arrive. No body know right now if️ it will be renewal.
But If you business is for IT, in Georgia the special zone for IT business is free tax. To pulish that and if you can, you can try to have substance. It's not obligatory. You rent a flat less than 200€ and put an employee 300€. There is not social security in Georgia. Is the best country to get substance very cheap.
In the case of Georgia you will need also to find a system to find a trustee if you don't want to be visible as UBO. But this is other history.
But after all that, in your place, I︀ should beguin seriously to think to convince my family little a little to change the︁ residence one day. Better in short time that in long time. In Spain is better︂ to saty as emigrant or visitor than as resident.
Absolutely right, this is something to consider and I did not (yet) think about it 🙂
Yes, the idea is to︉ legitimately reduce taxes and to be anonymous to the general public. If avoidance if the︊ definition, so be it. I am not too big into labels. It seems people in︋ the forum are misunderstanding where I am coming from. Spain is NOT the best place︌ to be tax wise so I can either move or ty and look for further︍ options. All I am doing is look for better options.
Thanks for that, I am not 100% sure to be honest, but it would not surprise me...
Yes, the idea is to︉ legitimately reduce taxes and to be anonymous to the general public. If avoidance if the︊ definition, so be it. I am not too big into labels. It seems people in︋ the forum are misunderstanding where I am coming from. Spain is NOT the best place︌ to be tax wise so I can either move or ty and look for further︍ options. All I am doing is look for better options.
Thanks for that, I am not 100% sure to be honest, but it would not surprise me...
It makes sense al you are saying, thank you. I did not made︈ my mind up yet, I am listening to what advise I get here.
WOW, thanks you so much for the insights my friend! I did not have a clue of most of what you said. I could not agree more than Spain is a communist style country and that it is better to live as a visitor or emigrant... problem is︀ I am Spanish and came back here from abroad, where I spent 2 decades away,︁ a few years ago due to family concerns... I may move in the future but︂ right now I have to look after some people.
Interesting ideas about the canary Islan︃
Well, not that good in opinion (and I am Spanish) 🙂 I lived abroad for many years︅ and coming back was a shock to the system. Certainly a better lifestyle that most︆ though.
WOW, thanks you so much for the insights my friend! I did not have a clue of most of what you said. I could not agree more than Spain is a communist style country and that it is better to live as a visitor or emigrant... problem is︀ I am Spanish and came back here from abroad, where I spent 2 decades away,︁ a few years ago due to family concerns... I may move in the future but︂ right now I have to look after some people.
Interesting ideas about the canary Islan︃
Well, not that good in opinion (and I am Spanish) 🙂 I lived abroad for many years︅ and coming back was a shock to the system. Certainly a better lifestyle that most︆ though.
Thats most proparly the problem for of people around. They have kids and other relations and can't relocated for that reason. That's what banks, lenders and even tax authorities know which again is the reason for why they have a good grip on the balls of the majority of people within the EU.
Thank you for the straightforward message and idea, I appreciate the input (unlike some people in the forum coming up with their judgement and morals). I know someone who operates in Bulgaria, but he actually relocated there... I'll have to ask him 🙂 Thanks!
Absolutely. The younger generation with no family commitments have︃ more flexibility as they can relocate. I have relocated myself with kids but was not︄ an easy task... the thought of relocating again sounds like a nightmare... hence looking for︅ options 🙂
Absolutely. The younger generation with no family commitments have︃ more flexibility as they can relocate. I have relocated myself with kids but was not︄ an easy task... the thought of relocating again sounds like a nightmare... hence looking for︅ options 🙂
It's not tax free. You will have to pay 5% upon withdrawing money from the company as dividends.
In theory it is not indeed, but you will have a hard time opening and running a business account in Georgia without substance these days. Moreover, you will have a hard time opening a business account in most Georgian banks as a foreigner, even if you have some substance. Overall, Georgian banks is a huge pain the behind︀ to deal with, at least when it comes to business accounts.
In theory it is not indeed, but you will have a hard time opening and running a business account in Georgia without substance these days. Moreover, you will have a hard time opening a business account in most Georgian banks as a foreigner, even if you have some substance. Overall, Georgian banks is a huge pain the behind︀ to deal with, at least when it comes to business accounts.
I know that's very complicate right now open bank account. But I think that︁ the interest to have a compnay with substance it's to open in other juridiccion the︂ account. Personaly I don't trust in any georgian bank. One thing is to have a︃ company with substance and other think is to open an account there.
be vigilant with bulgarian companies. I was reading︇ last year from a lawyer firm about the companies kidnapping in the register. Mafias with︈ hacker take the control of your company and change the director name and they check︉ for your bank account to empty their.
be vigilant with bulgarian companies. I was reading︇ last year from a lawyer firm about the companies kidnapping in the register. Mafias with︈ hacker take the control of your company and change the director name and they check︉ for your bank account to empty their.
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