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Biz solutions for digital nomads 2020

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I thought US based income is taxed in American LLC companies (delaware or wyoming llc)‌ ?
My friend said, even as a non-resident or foreigner, if you receive money to‍ an American bank from USA sources you are going to pay tax for it. Can⁠ anybody enlighten me if I'm wrong?
 
If the income is from the US then a US LLC wouldn't be the best‌ option I think. Maybe Cyprus or Bulgaria.
 
Fake. In accordance with‍ the Cyprus income tax legislation, a company is considered to be tax resident in Cyprus⁠ if it is managed and controlled in Cyprus. Otherwise Cyprus would be a perfect⁤ tax heaven.

But you have to maintain a rent contract for the⁢ whole year which costs quite a few
 
Cypriot CFC rules are not applied to individuals, only for‍ corporate shareholders. So the above rules do not have a sense for the individual resident.⁠
 
You can stay the 60 days in⁤ diferents stages. Is 60 days on the calendar year. So if you want to spend⁣ 1 month now and other month after summer it will be ok. Cyprus is not⁢ Shenguen territory. So your entry will be controled by your ticket fly and with control︀ passport or ID. When you enter in Larnaca or Paphos airport your ID will be︁ scanned. Once scanned your ID document your receive a printed ticket on the same machine︂ scanner, giving you the welcome to Cyprus Mr. XX. And when you exit idem. Keep︃ these tickets. It's other proove as your date stay. When you will request a tax︄ resident certificate you will must to bring your copy ticket flys and tickets of welcoming︅ and they will verificate it with the entry and exit police register. Very easy

exact. That's is so my accountant confirm me.
 
So and how long do you think this will stay that way? - If this‌ is for a short period of time I would say go for it. If someone‍ is looking for a long term solution or at least something that will last longer⁠ than the next 12 months, you want to look into a different direction.

It is⁢ not a secret that I have been a huge fan of Cyprus business wise in︀ the past, but today it's more and more similar to most other EU countries. This︁ island / country is simply to small to stay against the presure of the major︂ countries of this world.
 
Thanks, very helpful reply.
Given the proofs of tickets, i suppose︄ i won't need to have a stable rental contract like GrumpyMess was suggesting?
 
What you just said‍ is a general principle which is called permanent establishment (PE). This is applicable for decades⁠ in almost all countries in the world not only in Cyprus. If you are a⁤ tax resident in Cyprus it does not mean that you effectively control all your foreign⁣ companies from Cyprus.
 
It won't⁤ be taxed. He is just working temporarily as a contractor. Imagine some big company sends⁣ their workers abroad for a short period of time. He would stay in Cyprus for⁢ 2 months or so (to be tax resident) and less than 183 days in any︀ other country.

OP, Cyprus non-dom is the best option here, paired with a Cypriot Ltd.︁ US LLC is a hassle to manage anyway and you will need social security in︂ Cyprus so it makes no sense.
 
Temporary work⁢ is taxable in most countries. He should check with the tax office in the country︀ he'll he working in.
 
From your link:

"If you work in your host‌ country for less than six months, you shouldn't be liable for income tax there. However, there are no EU-wide rules that set out which country can tax your income during‍ a posting. This may be set out in national laws or tax agreements between EU⁠ countries."

So you probably have to use a tax treaty to avoid paying taxes⁤ there.

And

" you will need to register your residence with the authorities if your⁣ posting is longer than 3 months"
 
i can go back before 3 months expires, and in fact it's what i do.‌ So i think i am OK wrt to B. In fact, if they would ever‍ complain, my employer is OK with me working remotely.
As i wrote, i am doing⁠ it only for convenience of teamworking (and it costs me money, so i would also⁤ save by not doing it).

A question about Estonia, that i think might be related⁣ unless i misunderstand the mechanism: what happens if i sign up for e-residency, create a⁢ company in Estonia, that apparently for non residents can only work with EMIs such as︀ TW, as local banks do not let foreigners open accounts, and then try to set︁ the residence of the EMI account to the company address?
As far as i understand︂ the estonian gov does not report to my country of residence that i have a︃ business in there.
I could technically run the biz through that company (emit invoices, get︄ paid, etc), and then the money in the company could be used to buy real︅ estate on behalf of the company and not even need to be cashed out via︆ dividends?
 
You should first figure out your goals. What would be the purpose of a company‌ in Estonia in your case? Keep in mind you will need substance there otherwise it‍ will be taxed as a local company in your country of residence. Also, in some⁠ EU countries you need a local company in order to buy real estate so Estonia⁤ wouldn't make any sense.

My suggestion is that you should stick to Cyprus.

they do, you just⁢ have to show up in person

which is probably not a︁ problem.

okay, but you don't have to do that.
 
you need a stable rental contract. At least for one year on the lease agreement. In‍ theory is the minimum time solicited
 
so in principle for a year or two i could avoid to get a salary‍ out ( i mean i could, by paying 20% to estonian gov on dividends), and⁠ live off savings or by doing some extra job invoiced in my country of residence⁤ for which i would pay taxes there.

What do you mean with "you︁ need substance there"? If i got nothing there but i simply omit to report this︂ company to A, what problems would i get into?

This would def. be something to check indeed. Like︅ where it is allowed and where not.

It is a good plan, but with a lease it starts to︉ become quite expensive. I donno what's the minimum i could pay for a studio or︊ a room there, but it sounds like no less than 5-6k/year.
I don't even know︋ if it's deductible?
Although i suppose there might be plenty of subleasing options if many︌ are doing this..
 
To have an idea about the prices you can check⁣ the web bazaraki. If you have a company, the rental payment is deductible. With a⁢ good accountant you can deduct almost 70% of your benefit over a turnover 80K.The rental︀ address it can be your home but also your office. So you can deduct it︁ + your salary. If you have your address office and a worker/employee, (for exemple yourself),︂ you automaticly have a substance. Subleasing is very factible. But you need to find in︃ this case somebody who can do sublease and subcontract also a utility bill. I mean︄ to put an utility to your name. This is the part a little hard to︅ find if you sublease, But it's important to get a utility bill because it will︆ be a proof residence. To prove a residence in a bank you will need an︇ address, an utility bill and a TIN
 
google:
permanent establishment
place of effective management
controlled foreign corporation⁠

yes, it is,⁤ as andres33 said in the post above

you can⁢ always open the local company as a subsidiary of the Cyprus Ltd.
 
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