Is it possible to avoid the 33% social tax in Estonia for non-residents?
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Can you get paid dividends or a salary to your self as the director of the company resident in Estonia, while avoiding completely to pay this atrocious 33% extra tax?
I mean, if you are a Tax resident in Estonia, the Dividend tax is only 7% right?
So would a set up like: Hong Kong company (not Tax on dividends and no corporate tax) + Estonian Tax personal residency = only 7% income tax if all dividends are taken out the HK company?
Or even fucking Estonia classifies foreign companies as local resident entities?
So would a set up like: Hong Kong company (not Tax on dividends and no corporate tax) + Estonian Tax personal residency = only 7% income tax if all dividends are taken out the HK company?
Or even fucking Estonia classifies foreign companies as local resident entities?
Estonia doesn't have management and control test for tax residency so its impossible for it to classify foreign companies as local tax resident.
Dividend tax would be 10% for natural person and 0% for company (based︀ on EE-HK treaty)
Even if the Hong Kong company has PE in Estonia the profits︁ attributed to PE are not taxed before they are withdrawn from Estonia.
Dividend tax would be 10% for natural person and 0% for company (based︀ on EE-HK treaty)
Even if the Hong Kong company has PE in Estonia the profits︁ attributed to PE are not taxed before they are withdrawn from Estonia.
That's interesting, not many people talk about this, does that mean that by having a UAE or HK corporation to do business, and living full time (365 days a year) in Estonia,
you can only pay 10%︀ personal income Tax if 100% of your income derives from Dividends issued by your own︁ offshore company? (being the only Director).
Sounds too good to be true?
you can only pay 10%︀ personal income Tax if 100% of your income derives from Dividends issued by your own︁ offshore company? (being the only Director).
Sounds too good to be true?
10% tax on dividends is with HK only based on the tax treaty.
Same way you could run a Georgian VZ company which has 0% CIT and only 5% tax on dividends.
With UAE there is︀ a higher WHT, but you can pay tax free directors fees.
What you are saying︁ could theoretically work, but then again for tax residency physical presence is not required in︂ Estonia.
Same way you could run a Georgian VZ company which has 0% CIT and only 5% tax on dividends.
With UAE there is︀ a higher WHT, but you can pay tax free directors fees.
What you are saying︁ could theoretically work, but then again for tax residency physical presence is not required in︂ Estonia.
If you're a resident in Estonia receiving dividends from a US LLC, such as one based in Delaware, would the tax on distributions be limited to just 10%?
Additionally, are there other countries︀ where residency does not require a lengthy physical presence? For instance, in Slovakia, you can︁ keep a resident without spending 180 days per year, you could stay for example 6︂ months in spain and 5 months in portugal without issue. Are there similar options in︃ other EU countries or nearby regions where physical presence is not mandatory? In Estonia?
Thank you.
Additionally, are there other countries︀ where residency does not require a lengthy physical presence? For instance, in Slovakia, you can︁ keep a resident without spending 180 days per year, you could stay for example 6︂ months in spain and 5 months in portugal without issue. Are there similar options in︃ other EU countries or nearby regions where physical presence is not mandatory? In Estonia?
Thank you.
US SMLLC doesn't distribute dividends.
Such distributions could be treated as personal income and taxed with the flat income tax 22%.
Alternatively US SMLLC could operate as a PE in Estonia if you get local tax number which would not be taxed before assets are taken out of the PE (tax on distribution only).
And theres also a scenario where PE is registered but not considered as a PE for tax purposes,︀ so Estonia wouldn't tax the corporate income.
Yes, Latvia and Bulgaria as well.
And in more countries, like Germany,︆ but you probably won't aim for tax residence there.
Such distributions could be treated as personal income and taxed with the flat income tax 22%.
Alternatively US SMLLC could operate as a PE in Estonia if you get local tax number which would not be taxed before assets are taken out of the PE (tax on distribution only).
And theres also a scenario where PE is registered but not considered as a PE for tax purposes,︀ so Estonia wouldn't tax the corporate income.
Yes, Latvia and Bulgaria as well.
And in more countries, like Germany,︆ but you probably won't aim for tax residence there.
If I were to establish residency in Slovakia, would 22% of my income from the︁ LLC be allocated for taxes? So if I bring 100.000€ from LLC to me I'd︂ pay only 22.000€, that is corrects?
In Estonia, is a minimum of 183 days of︃ residence required to be considered a tax resident? If so, what would be the tax︄ implications for the distribution of LLC income in such a case?
For Latvia, what steps︅ must be taken to become a tax resident? Is renting a sufficient requirement, and what︆ would be the tax rate for LLC distribution? Are there alternative setups within the EU︇ or nearby regions that offer favorable taxation?
In Estonia, is a minimum of 183 days of︃ residence required to be considered a tax resident? If so, what would be the tax︄ implications for the distribution of LLC income in such a case?
For Latvia, what steps︅ must be taken to become a tax resident? Is renting a sufficient requirement, and what︆ would be the tax rate for LLC distribution? Are there alternative setups within the EU︇ or nearby regions that offer favorable taxation?
I didn't get it, Latvia and Estonia you must stay there 180 days for keeping residence or can be outside?
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