Considering setting up an offshore company to legally optimize taxes

[cameleon]

I'm considering setting up an offshore company to legally optimize taxes and improve privacy, what are the best jurisdictions and steps to get started?

I'm a digital entrepreneur with clients across multiple countries, and I'm looking for a transparent, legal way to reduce my tax burden while protecting my financial privacy.

I don't intend to evade taxes but want to streamline my operations and ensure my business structure is efficient and scalable.

I've heard about jurisdictions like Malta, Estonia, and Cayman Islands but need advice on choosing the right one and setting it up correctly.

Any guidance or shared experiences would be greatly appreciated!

 

[cameleon]

I'd like to add the following:
I'm willing to relocate and leave my current residence (Norway), as I have no ties there.
My revenue is 4 million NOK per Anum

 

[EliasIT]

Based on what you've mentioned, I'd go with Cyprus as things stand right now, or Dubai! We've got some knowledgeable consultants here on OCT who can help with setups in those places and also assist with tax questions like @CyprusBusiness and @CyprusLawyer101 and @James Turner

I'm assuming you don't have physical customers visiting your business, and everything is online?

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[Propeller]

Welcome, if taxes don't matter I would look into Dubai to stay out of the EU!

 

[Marzio]

cameleon said:
I'm a digital entrepreneur with clients across multiple countries
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Where the majority of your customers come from?

 

[ilke]

Makes sense.

At the end of the day, it depends where you would like to go.

We can send you to a s-hole where you pay 0% tax but you will hate spending time there or not be able to communicate with the majority of people.

The jurisdiction of your clients might dictate the need for intra-EU VAT processing/access to reverse charge, etc.

In general, there are quite a few options you can apply within the EU, e.g. Malta for 5% CIT and a nice place to live, Cyprus for 12.5% CIT (avoidable by owning an offshore company but no longer fully clean) and 2.65% social (no taxation on dividends). Estonia is less effective now due to the recently added defence tax.

And if you are looking for a different geographical region, can make other suggestions.

 

[cameleon]

Marzio said:
Where the majority of your customers come from?
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They are world wide, but most Europe.

ilke said:
The jurisdiction of your clients might dictate the need for intra-EU VAT processing/access to reverse charge, etc.
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Considering non EU country

 

[PhantomOf ThePits]

@cameleon
I have no idea about Norway, but be aware about exit taxes if you lived there and have existing business

https://www.bdo.global/en-gb/insigh...x is levied at a,on the day before emigration.

This can be quite nasty and you'd need someone who understands this part of the equation and not only to focus where to go to

 

[daniels27]

Yes, but they generally apply on the goodwill created. Most small setups do not have such goodwill. It is then just a matter of closing down slowly.

 

[daniels27]

The best of all worlds is what many do here and become the perpetual tourist while running a US LLC from airbnbs. No taxes at all. You just want to have a paper residence in a couple of save places.

 

[Hydrox]

daniels27 said:
The best of all worlds is what many do here and become the perpetual tourist while running a US LLC from airbnbs. No taxes at all. You just want to have a paper residence in a couple of save places.
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Where would be a good paper residence if you do the perpetual travelling?

 

[daniels27]

Hydrox said:
Where would be a good paper residence if you do the perpetual travelling?
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Basically anything that does not care whe you are not there. I even know people running around on US visa. EU on the other hand is not an option as they tax as soon as you are registered. Thailand, Philippines, Paraguay (@NewHorizonsParaguay), Uruguay, etc. have been widely discussed.

 

[Marzio]

cameleon said:
They are world wide, but most Europe.
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Do you sell direct to consumer or to other businesses?

 

[cameleon]

Marzio said:
Do you sell direct to consumer or to other businesses?
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direct sales to consumers with websites. I own several different businesses.

daniels27 said:
Yes, but they generally apply on the goodwill created. Most small setups do not have such goodwill. It is then just a matter of closing down slowly.
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read the same, asked a local tax dude awaiting his response.

daniels27 said:
The best of all worlds is what many do here and become the perpetual tourist while running a US LLC from airbnbs. No taxes at all. You just want to have a paper residence in a couple of save places.
Click to expand...

won't work for me, I need to buy a house where ever my destination will be and live a normal live. As I said, I don't need a zero tax setup, just low taxes. I have personal savings to buy house and car in cash.

 

[daniels27]

cameleon said:
read the same, asked a local tax dude awaiting his response.
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Do you own any brands, have any long term contracts, etc.? I mean anything that a buyer of your company would be interested in?

cameleon said:
won't work for me, I need to buy a house where ever my destination will be and live a normal live. As I said, I don't need a zero tax setup, just low taxes. I have personal savings to buy house and car in cash.
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Many options, where on the planet do you like to live?

 

[Hydrox]

daniels27 said:
Basically anything that does not care whe you are not there. I even know people running around on US visa. EU on the other hand is not an option as they tax as soon as you are registered. Thailand, Philippines, Paraguay (@NewHorizonsParaguay), Uruguay, etc. have been widely discussed.
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So you could get a cheap Thailand Flat, never be there and it would count as a residency in case EU authorities ask for one?

I dont really like thailand would there be any more civilized country you could get a residency that doesnt care if you´re there?

 

[daniels27]

Hydrox said:
So you could get a cheap Thailand Flat, never be there and it would count as a residency in case EU authorities ask for one?
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Why would they ask?

 

[cameleon]

Hydrox said:
So you could get a cheap Thailand Flat, never be there and it would count as a residency in case EU authorities ask for one?
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Norway is not EU, but I wanted something where I can live. Thailand is not for me, never been there but it's tropical climate isn't for me.

Do you own any brands, have any long term contracts, etc.? I mean anything that a buyer of your company would be interested in?


Many options, where on the planet do you like to live?
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No, no long term contracts, no brands I own. A buyer would not be able to continue my business, I don't feel there is any goodwill here.

Places like Monaco and Dubai could work for me, plan to travel there in the next weeks. Could be good with additional countries to visit before taking a decision. I know Monaco won't work unless you have 2 - 3 million euro for property alone.

 

[Hydrox]

daniels27 said:
Why would they ask?
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In case of an investigation for exit tax they might want to see where you resided, otherwise they could claim you still owe them taxes if you are in your home country regularly

cameleon said:
Norway is not EU, but I wanted something where I can live. Thailand is not for me, never been there but it's tropical climate isn't for me.


No, no long term contracts, no brands I own. A buyer would not be able to continue my business, I don't feel there is any goodwill here.

Places like Monaco and Dubai could work for me, plan to travel there in the next weeks. Could be good with additional countries to visit before taking a decision. I know Monaco won't work unless you have 2 - 3 million euro for property alone.
Click to expand...

I would do cyprus non dom (need to open limited for that) and combine it with the offshore company which is under a nominee director that pays you dividends to cyprus. Dividends would be 0% + 2.65% health tax.

 

[cameleon]

Hydrox said:
In case of an investigation for exit tax they might want to see where you resided, otherwise they could claim you still owe them taxes if you are in your home country regularly
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true, could possible give me troubles. I put it on my list.

Hydrox said:
I would do cyprus non dom (need to open limited for that) and combine it with the offshore company which is under a nominee director that pays you dividends to cyprus. Dividends would be 0% + 2.65% health tax.
Click to expand...

Will set it on my list of possible countries. Thank you.