Best low tax EU country for freelancing

[boresnake]

As always in case you are EU citizen - to stay in the Czech Republic‌ for at least 183 days in a given calendar year (you will have to prove‍ that) and do not have center of life (houses, spouse, children) in any other country⁠ that could claim you to be tax resident there.

This is hard to achieve for⁤ full-time employed family leader but quite manageable for young digital nomad working in IT industry⁣ with clients across schengen area for example sitting now in Spain and paying 45% tax.⁢

If you will decide in future to settle in Czechia and need to help with︀ accounting, banking and residence you can PM me, I am local and know how the︁ system works.

It's not the easiest one, you may find one with less bureaucracy but︂ it has its own benefits. And the banks are better capitalized here than in many︃ of the western EU countries.

 

[micand]

Cyprus might have the lowest standard tax rate with 12,5% but don´t forget about the new⁣ GHS contributions which are now an extra 2,4% and while having a closer look Malta⁢ has an effective tax rate of 5% due to it´s 6/7 tax refund and Romania︀ has a final corporate tax rate for micro companies with at least one employee and︁ turnover not exceeding 1 million euro.

Yes

Generally all micro companies with at least one employee and turnover not exceeding 1 million euro.︄

Yes

It cannot, you have to either show up in front of a notary or you need︊ to give power of attorney which has to be notarized, translated and notarized again.

You will always have costs running a business e.g. bookkeeping, annual accounts, tax statements.‌ Romania is quite affordable.

Thats a myth. The question is rather if you work with︀ professionals.

 

[JohnLocke]

very true, but⁣ how about non-domestic companies, you don't pay and tax and honestly my experience is that⁢ the tax autho. in Cyprus don't care about such corps owned by foreigners. I admit︀ that if you want a legal setup with resident certificate (if that is required) and︁ VAT registration you have to pay that higher tax.

 

[here2learn]

Sorry to revive an old thread @Admin - But this is interesting to⁤ me! Do you know if going this route (non-domestic Cyprus company) you still need to⁣ file legal docs each year - Accounts etc with all receipts & invoices, or do⁢ you just declare that income is non-domestic? Interested in hearing more about this - any︀ info/threads on this specifically in the Mentor Group?

 

[cyprus123]

The CFC rules in Cyprus are very new - from April 2019. I think it‌ has to be seen how authorities are dealing with such structures. In my opinion it‍ is advisable to run a local company in Cyprus, pay a small salary, pay some⁠ social insurance... and parallel run an international business in Hong Kong, Labuan, UAE or Georgia.⁤

@micand: About Romania: of course it is always an individual impression, but I was⁣ never lucky to work with professionals there, only dissappointments. Mistakes from translators, notaries, accountants, lack⁢ of communication, ghosting, long delays - not the environment I like to work in. Just︀ my experiences of course.

 

[cyprus123]

And yes, you need to declare your income and file tax returns in Cyprus. 🙂

 

[Zuzuud]

Helo Guys!

I have searched heavily in this forum and on Google as well, after‌ I read about UK non-resident direcotor/employee who doesnt spend any days in UK except from‍ pay tax in UK.

There are a lot of good documentation on HM Revenue &⁠ Customs with some examples, but I have not found anything specific to this.

Could you⁤ guys make it clear what's the exact tax free situation, please? Are we talking about⁣ salary or is there any special benefit? (I am sure its not dividend)
https://www.gov.uk/running-a-limited-company/taking-money-out-of-a-limited-company
So what's the way to pay a a non resident director abroad without PAYE nor NI⁢ and any other uk (reporting) duties?

ps: I have found something similar in Estonia where︀ I see different between "board memeber salary" and "emplyee salary" (second one is tax free).︁
https://yourcompanyinestonia.com/how-taxes-and-vat-works-for-estonian-companies/
thank you for any tip

 

[Zuzuud]

Thats all my findings:
"If you live abroad and are employed in the UK, your‌ tax is calculated automatically on the days you work in the UK."
https://www.gov.uk/tax-uk-income-live-abroadhttps://prnt.sc/v8vj5l
https://www.pwc.com/gx/en/services/...ry-guides/assets/pwc-gm-folio-uk-outbound.pdf
but I would be very happy if you can link the exact part of the‍ relevant law.

 

[Zuzuud]

Do you have any idea or can you show me relevant source, please?

thank you‌

 

[Piano]

How can I PM you ? Don’t see that option...

 

[avalanche]

How does it beat 12.5% corp tax︈ + 0% dividend tax in Cyprus?

 

[avalanche]

What about 23% Polish VAT? According‍ to EU rules you must charge VAT to B2C for almost all services unless they⁠ are exempt (not many are exempt). In Cyprus VAT is 19%, basically lower by 4%.⁤ Essentially your lower Polish corporate tax rate is then "compensated" with higher VAT (which is⁣ worse than optimizeable corporate tax).

Then.. why would you look for EU solution if you⁢ are not planning to make more than 2m EUR in turnover? Eventually you end up︀ paying 19% on dividend distribution in Poland which is a lot higher than Cyprus (if︁ you take into account flat 12.5% corporate tax in Cyprus). There are a lot cheaper︂ tax set ups for small companies outside EU

If you are not planning to make︃ 2m EUR turnover why not just look for something non-EU that does not have draconian︄ VAT?

 

[dziter]

Totally agree with that.

Source? Never heard about that, usually it's 19%⁠ as @avalanche said.

 

[avalanche]

Anyone following MichaILs tax advice may︀ be doing grave mistake if you dont get legit consulting from a proper tax advisor.︁ You may not pay VAT for export of services to non-EU persons for a while︂ until your gov catches up with you and demands to pay shitton of taxes for︃ many years of operations.

His job is to probably sell you a company with fairy︄ tales and after he's done he will disappear. You end up with a company and︅ a full a*s of debts

 

[avalanche]

You started sounding like a⁢ con artist or a very silly person

 

[exprtadvisrdev]

Wtf?

 

[Btraveler]

Very interesting option + it's a country outside⁣ the CRS radar.

About EUR - USD accounts. How do you manage them for not⁢ to be charged for intermediary banks and similar. Practical examples of my question:

1) If︀ a customer that lives in Europe wnat to make a transfer to your EUR account︁ in Armenia, how does it work? Comissions, etc...or you receive charge free in your account?︂

2) If you manage to obtain a merchant account in an Armenian bank that charges︃ customers in USD or EUR, the money enters without comissions to your USD or EUR︄ account at that armenian bank accounts? Or, at least, at a flat rate like Stripe︅ of 1% or 1,5%?

Many thanks in advance for your info on that

 

[avalanche]

1. Customer chooses OUR︁ in bank transfer options. I think its classic thing everybody should do when they are︂ paying.
2. Card processing fee is 2.7-3%, money enters your bank account without any extra︃ fees. If your volume is large, you can go for less fees. Where did you︄ see 1-1.5% on Stripe?

 

[Btraveler]

I think Stripe is

1.4%+€0.25
for European cards

2.9%+€0.25
for non-European cards

But yes, an‌ average of 3% for having that money out of CRS in Armenia (or other countries‍ like that) is quite good

 

[drumtraks]

Maderia has a 5% corporate tax and 0% on dividends if I recall correctly. VAT‌ is 22% tho.