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?

 

[Propeller]

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

 

[Marzio]

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 added︁ defence tax.

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

 

[cameleon]

They are‌ world wide, but most Europe.

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]

Where would be a good paper residence if you do the perpetual travelling?

 

[daniels27]

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]

Do you sell‌ direct to consumer or to other businesses?

 

[cameleon]

direct sales to consumers with websites. I own several different businesses.
read the⁤ same, asked a local tax dude awaiting his response.
won't work for me, I need︁ 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 have︃ personal savings to buy house and car in cash.

 

[daniels27]

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?

 

[Hydrox]

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]

Why would they ask?

 

[cameleon]

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. A︀ buyer would not be able to continue my business, I don't feel there is any︁ goodwill here.

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

 

[Hydrox]

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

 

[cameleon]

true, could possible give me troubles. I⁠ put it on my list.
Will set it on my list of possible countries. Thank you.︀