Hello there if you open a company in Estonia with the program of e-residency is it possible avoid the " tax inversion " in the different place of fiscal residence ?
E- residency avoid tax inversion
- Thread starter Anonimo69
- Start date
- Status
What's the "tax inversion"?
You can run a company in Estonia and pay yourself a salary in another EU country. What I won't recommend is to do all your sales using Estonian to invoice you own country residents. Tax office considers this as fraud
Toggle signature
Expat in Hong Kong - There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt. - John Adams
You can run a company in Estonia and pay yourself a salary in another EU country. What I won't recommend is to do all your sales using Estonian to invoice you own country residents. Tax office considers this as fraud
Toggle signature
Expat in Hong Kong - There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt. - John Adams
E-residency doesn't mean anything except that you are pre-KYC'd which can sometimes make opening bank account and forming a company in Estonia easier. It has no bearing on actual, physical tax residency.
Toggle signature
This is the probably the answer to your question.
Toggle signature
This is the probably the answer to your question.
Unfortunately it's not a way to avoid to pay taxes locally. For some year ago we had this discussion already here on the forum, at this time it was poisslbe to use the e-residenct as an advantage to open bank accounts and a company, today it's a waste of time.
Toggle signature
Toggle signature
Latest Video Interviews, Offshore Company Resources, Payment Processing Tips & Tricks, Articles and Anonymity Hints only a click away!
Support the Freedom of Speech of our Community
Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.
Support the Freedom of Speech of our Community
Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.
No, it's an e-residency, not an actual residency. You need actual residency if you want to do things involving taxes.
Toggle signature
This is the probably the answer to your question.
Toggle signature
This is the probably the answer to your question.
E-residency in Estonia has been discussed here a lot of times, you want to have a read here:
https://www.offshorecorptalk.com/threads/estonia-e-residence.23205/https://www.offshorecorptalk.com/th...-onboarding-e-residents-by-end-of-year.27296/https://www.offshorecorptalk.com/threads/estonia-e-resident-company-vs-freezone-uae.24079/
And the biggest thread for years ago:
https://www.offshorecorptalk.com/threads/about-estonian-e-residency.17292/
Toggle signature
https://www.offshorecorptalk.com/threads/estonia-e-residence.23205/https://www.offshorecorptalk.com/th...-onboarding-e-residents-by-end-of-year.27296/https://www.offshorecorptalk.com/threads/estonia-e-resident-company-vs-freezone-uae.24079/
And the biggest thread for years ago:
https://www.offshorecorptalk.com/threads/about-estonian-e-residency.17292/
Toggle signature
Latest Video Interviews, Offshore Company Resources, Payment Processing Tips & Tricks, Articles and Anonymity Hints only a click away!
Support the Freedom of Speech of our Community
Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.
Support the Freedom of Speech of our Community
Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.
With the e-Residency they dont give you legal residency in Estonia with virtual office? I plan to work online as a sole proprietor and I travel out of my country of residence most of the year without doing here paper agreements ,I can pay only job tax in Estonia?
No, they don't give you legal residency in Estonia. You don't get a physical address or residence at all.
Have you done any research?
https://learn.e-resident.gov.ee/hc/en-us/articles/360000711978-What-is-e-Residency
https://learn.e-resident.gov.ee/hc/en-us/articles/360000721597-Estonian-tax-basics
If you have a company in Estonia, the company and its income are subject to Estonian tax law. But that doesn't necessarily mean you can legally avoid tax in your home jurisdiction, even if you spend most of your time abroad. Speak with a local lawyer/tax adviser.
Toggle signature
This is the probably the answer to your question.
Company tax residency isn't guaranteed, this would largely depend on your home nation's CFC rules. Also, OP would do well to differentiate between personal and corporate tax residency
I have E-Residency in Estonia but for company formation I still await what Lithuania is offering from Jan. 1, especially regarding banking options. E-Residency is pretty perfect IMHO for nomads and non-CFC residents, as employment income from your Estonian-company is not taxed at all, only dividends at 25%. Zero share capital required at the start, and capital can be contributed with EMI like Transferwise. Costs to run it all inclusive around €600/year, I am intending to use virtualofficeinestonia.com.
That's the point, I belive there is only a handful around here that actually have this status.
Toggle signature
Latest Video Interviews, Offshore Company Resources, Payment Processing Tips & Tricks, Articles and Anonymity Hints only a click away!
Support the Freedom of Speech of our Community
Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.
Support the Freedom of Speech of our Community
Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.
Ireland also worth looking. 12.5 - 6.25 Corporate tax and non-EU residents pay 0%
Toggle signature
Expat in Hong Kong - There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt. - John Adams
- Status