Buying a car in Europe with a offshore bank account
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Welcome to the real world. That is how much it costs to take money out from a company in most European countries with good roads, social security, good education. Those things doesn't come for free and taxes are the way we pay for them.
My practical observations regarding buying/registering/using cars:
- using foreign registered cars is problemating due to many reasons, for example, in some countries criminals like to steal the licence plates and sell them back. local plates are easier to replace so they are not interesting to criminals. also, it is often difficult or︀ impossible to pay for parking with foreign plates using modern technology (apps etc do not︁ accept other than local plates) - this makes everyday life complicated
- in many countries︂ (especially with high car related taxes) using foreign registered vehicles is heavily restricted or illegal︃ for local residents
- police is often more interested in foreign registered vehicles in trafic︄ and especially when crossing borders. exotic plates always get more attention.
However, it used to︅ be good to drive with foreign plates on the roads with automatic speed cameras -︆ fines didn't follow you abroad. What I have heard, this "behefit" is quickly disappearing with︇ more and more countries sending fines abroad (and countries accepting fines from abroad). But it︈ is worth checking when you are closer to making decisions where to register and use︉ the car.
Buying a car to the company is probably the oldest trick of avoiding︊ taxes. In most countries I know, however, using company car for private trips is heavily︋ taxed. Tax office determines value of this benefit (of using company car for private drives)︌ - which is then added to your taxable income and you pay taxes from it.︍
Again, the opposite is often true too. Using personal car for company trips can earn︎ you tax benefits. This can actually be a very good way to bring your total️ tax burden down (together with other duductable travel related costs, daily allowances etc).
One way to own expensive car and keep it registered locally is to set up car rental business. You can rent your car with a driver (=you), do some wedding gigs every now and then, earn some money and deduct all expenses in company taxation. 100% legal and can be close to tax free. This would make owning expensive car meaningful as there is always some crazy people who are willing to pay a lot to be seen in Tesla etc.
My practical observations regarding buying/registering/using cars:
- using foreign registered cars is problemating due to many reasons, for example, in some countries criminals like to steal the licence plates and sell them back. local plates are easier to replace so they are not interesting to criminals. also, it is often difficult or︀ impossible to pay for parking with foreign plates using modern technology (apps etc do not︁ accept other than local plates) - this makes everyday life complicated
- in many countries︂ (especially with high car related taxes) using foreign registered vehicles is heavily restricted or illegal︃ for local residents
- police is often more interested in foreign registered vehicles in trafic︄ and especially when crossing borders. exotic plates always get more attention.
However, it used to︅ be good to drive with foreign plates on the roads with automatic speed cameras -︆ fines didn't follow you abroad. What I have heard, this "behefit" is quickly disappearing with︇ more and more countries sending fines abroad (and countries accepting fines from abroad). But it︈ is worth checking when you are closer to making decisions where to register and use︉ the car.
Buying a car to the company is probably the oldest trick of avoiding︊ taxes. In most countries I know, however, using company car for private trips is heavily︋ taxed. Tax office determines value of this benefit (of using company car for private drives)︌ - which is then added to your taxable income and you pay taxes from it.︍
Again, the opposite is often true too. Using personal car for company trips can earn︎ you tax benefits. This can actually be a very good way to bring your total️ tax burden down (together with other duductable travel related costs, daily allowances etc).
One way to own expensive car and keep it registered locally is to set up car rental business. You can rent your car with a driver (=you), do some wedding gigs every now and then, earn some money and deduct all expenses in company taxation. 100% legal and can be close to tax free. This would make owning expensive car meaningful as there is always some crazy people who are willing to pay a lot to be seen in Tesla etc.
First don't expect the accountant to help you with tax evasion 🙂
There are lot's of ways to get money out of the company legally, first of all, as I mentioned earlier, the car must be in your name or rented/leased by you so you can claim milleage...
There are lot's of ways to get money out of the company legally, first of all, as I mentioned earlier, the car must be in your name or rented/leased by you so you can claim milleage...
I was thinking of even suggesting this.
In some countries you need just a few cars (in some countries 2 cars) to register as a car rental company 🙂
But any it/services company would do.... Just don't mention crypto to anyone (banks/govt/taxman/company website etc).
Yeah I︃ figured it out... He wants it the same way kids want a new iPhone LOL︄
In some countries you need just a few cars (in some countries 2 cars) to register as a car rental company 🙂
But any it/services company would do.... Just don't mention crypto to anyone (banks/govt/taxman/company website etc).
Yeah I︃ figured it out... He wants it the same way kids want a new iPhone LOL︄
LOL
Maybe, but also you're a 23yo guy that want's to buy a Tesla and has no salary, no company, no income of any kind in a country. And now we're hypocrites?
Anyways, I think you've got few decent advices here.
I still think that setting up a local company is the best way to do it and probably the cheapest one.
Reboot mentioned something about mileage on the previous page. I'm not sure about that, but you should check that since I don't know the rules about that in Portugal.
Also if︀ you want to look into registering as a limo service or something.
Minimal salary in︁ Portugal is just €635 so social contributions can't be that high (a salary for a︂ driver or something).
Maybe, but also you're a 23yo guy that want's to buy a Tesla and has no salary, no company, no income of any kind in a country. And now we're hypocrites?
Anyways, I think you've got few decent advices here.
I still think that setting up a local company is the best way to do it and probably the cheapest one.
Reboot mentioned something about mileage on the previous page. I'm not sure about that, but you should check that since I don't know the rules about that in Portugal.
Also if︀ you want to look into registering as a limo service or something.
Minimal salary in︁ Portugal is just €635 so social contributions can't be that high (a salary for a︂ driver or something).
A 23-year old dude who never paid a cent of tax in Portugal wants to buy and flaunt a 80K car. What can go wrong?
doh948""
It's hard to give any serious recommendations for this scenario, but here it is.
1. Relocate to Montenegro for 1 year. (Officially register as non-resident in Portugal)
2. File a tax return in Montenegro for 100K of income, and pay 9000 EUR (9%) tax.
3. Relocate back to Portugal and buy the car.
4. Show them your Montenegrin tax return.
doh948""
It's hard to give any serious recommendations for this scenario, but here it is.
1. Relocate to Montenegro for 1 year. (Officially register as non-resident in Portugal)
2. File a tax return in Montenegro for 100K of income, and pay 9000 EUR (9%) tax.
3. Relocate back to Portugal and buy the car.
4. Show them your Montenegrin tax return.
Exactly.
But he will just complain again that we are not helping him. He needs buy the Tesla P100d with undeclared income and drive round to showoff folks. Somebody help him plz 🙄
But he will just complain again that we are not helping him. He needs buy the Tesla P100d with undeclared income and drive round to showoff folks. Somebody help him plz 🙄
@Martin Everson - a bit off-topic question, but I believe we'll all benefit from the answer. Do you know how much it is to ship the car from Dubai to Europe? And, if you'd be so kind, any websites to gather more info on the topic? I'm really interested in the option, since having the Emirates ID allows me to go into Emirates Auction and find some bargains there, but I'm at a total loss on the shipment︀ process and costs, so any help is appreciated.
Shipping is cheap if you can find a RORO ferry service from Dubai to Europe. However you want container shipping if you are shipping a real premium vehicle to avoid scratches and dents which WILL happen. Shipment process is simple if you use a shipping agent to do it all. They do this all day long and most even collect the car from any location inland. However I have never shipped from Dubai mostly from Europe to Africa so the process maybe a︀ little different due to laws over there. I paid like 950 euros for a RORO︁ delivery to Africa years ago and that included insurance and collection.
You can try:
Best RORO | Roll on Roll Off Shipping Services Companies in Dubai
P.S What about import︂ duty however that is the real cost?
You can try:
Best RORO | Roll on Roll Off Shipping Services Companies in Dubai
P.S What about import︂ duty however that is the real cost?
@Martin Everson - many thanks for that, much appreciated.
Ah, that's the 'other' question, isn't it? I'm contacting a local agent soon to find that out, I've been told it could go north of €5K 😳😳😳😳, in which case I'll just buy it for my Dubai home, as it then pays me more to get into a local auction here to try and find any salvaged/foreclosed car. However, I'd hate to end up walking that route, as auctions here do literally "really suck" (even from tax office's foreclosed︀ units), whereas in the UAE they are 'real', ie, they really go for whatever the︁ best bid is, regardless of the amount put up and the state the car is︂ in, so you may end up with an 'in perfect condition' 2017 Porsche Cayenne for︃ €8K or 2015 Maseratti Quattroporte fpr €5-6Kns2. Let alone transparency issues (hidden bidders appearing︄ at the last minute for 0.01 more than you (real life example) just to f**k︅ you off the deal), which despite all the window-dressing remains non-existent in some European spots...but︆ we all know that, don't we?
Ah, that's the 'other' question, isn't it? I'm contacting a local agent soon to find that out, I've been told it could go north of €5K 😳😳😳😳, in which case I'll just buy it for my Dubai home, as it then pays me more to get into a local auction here to try and find any salvaged/foreclosed car. However, I'd hate to end up walking that route, as auctions here do literally "really suck" (even from tax office's foreclosed︀ units), whereas in the UAE they are 'real', ie, they really go for whatever the︁ best bid is, regardless of the amount put up and the state the car is︂ in, so you may end up with an 'in perfect condition' 2017 Porsche Cayenne for︃ €8K or 2015 Maseratti Quattroporte fpr €5-6Kns2. Let alone transparency issues (hidden bidders appearing︄ at the last minute for 0.01 more than you (real life example) just to f**k︅ you off the deal), which despite all the window-dressing remains non-existent in some European spots...but︆ we all know that, don't we?
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