German resident: moving away but family stays
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Are you talking about staying in Germany and forming a Swiss company?
By forming a Swiss company he could immeditaly save 50% on German CIT and then he could take out a minimal salary + dividends or minimal salary while reinvesting the company profits.
By forming a Swiss company he could immeditaly save 50% on German CIT and then he could take out a minimal salary + dividends or minimal salary while reinvesting the company profits.
I would like to understand more regarding the article 4, cited by @Marzio. Up to which point is one "tax prisoner" in a country?
- If I divorce my wife, am I still prisoner?
- If I no longer own an apartment, am I still prisoner?
- Does having kids in a different country of residence, makes you tax prisoner of that country?
- If I divorce my wife, am I still prisoner?
- If I no longer own an apartment, am I still prisoner?
- Does having kids in a different country of residence, makes you tax prisoner of that country?
It always depends on the country.
Germany is very insane.
Its a facist state which will milk their citizens to death.
There its enough you hold only a key to an appartment located in germany and you will be already considered a tax resident as you could use that key to sleep in a room not important if its your appartment or not
Germany is very insane.
Its a facist state which will milk their citizens to death.
There its enough you hold only a key to an appartment located in germany and you will be already considered a tax resident as you could use that key to sleep in a room not important if its your appartment or not
No, not really, unfortunately, at least not in the immediate future.
One more question, since you guys are so patient with me.
If I move to Italy and open a company (Srl) and I give myself a salary, the funds that stay in the company should not be taxable from the German taxman, but only from the Italian one.
I assume my salary, would be taxed by both jurisdictions.
One more question, since you guys are so patient with me.
If I move to Italy and open a company (Srl) and I give myself a salary, the funds that stay in the company should not be taxable from the German taxman, but only from the Italian one.
I assume my salary, would be taxed by both jurisdictions.
If you own the company and you are also a manager of it and you are tax resident in Germany, you will get taxed there from all income in the company and personally. The the beauty of the "new regulations" which took place 5 or more years ago.
Not if he owns the company but manages the company from another country.
In that case by virtue of double tax treaty between the countries, business profits will be taxed only in the country where those profits were accrued.
Your statement is valid if he would be managing the company from Germany.
In that case by virtue of double tax treaty between the countries, business profits will be taxed only in the country where those profits were accrued.
Your statement is valid if he would be managing the company from Germany.
It sounds really good when you read it in the tax regulations, but in practice, you might end up fighting with the tax authorities about this specific part of the tax law. If you're up for it, then go for it, and tell them that you read it in the tax rules they published and that you will adhere to them. But don't be surprised if you first have to pay a lot in︀ taxes plus a fine, and then find a lawyer (whom you also have to pay)︁ who might, or might not, be able to get back the money you paid but︂ shouldn't have.
It's a battle like no other and you're asking for trouble. It sounds︃ fruitfully smart when you read it, but in practice, it's different.
Of course, there is︄ always a 50% chance that no one notices or says anything and you get away︅ with it.
I just want to point out that tax authorities are more aggressive and︆ inventive than ever before.
It's a battle like no other and you're asking for trouble. It sounds︃ fruitfully smart when you read it, but in practice, it's different.
Of course, there is︄ always a 50% chance that no one notices or says anything and you get away︅ with it.
I just want to point out that tax authorities are more aggressive and︆ inventive than ever before.
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