Italian starting new online business. How to avoid my State taxes?
- Thread starter AntonioT95k
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Each pussy is like its own country with its own tax rules. I know people who have paid over 50% in pussy tax, others much less. There is always some sort of tax though, or at least some hidden VAT, even in the "free" ones.
OP: Like others have said, just leave Italy. Move to Albania or Romania and you'll pay much less in taxes. You can even just set up a micro company in Romania and pay 1% tax + 8% in dividends (i.e., no need for a US LLC in that case).
OP: Like others have said, just leave Italy. Move to Albania or Romania and you'll pay much less in taxes. You can even just set up a micro company in Romania and pay 1% tax + 8% in dividends (i.e., no need for a US LLC in that case).
As this forums relentless promoter of︀ Estonia to supplement my previous comment, one could also setup a holding in Estonia +︁ subsidiary in Romania to get rid of this 8% WHT (leverage the participation exemption, EU︂ partner-subsidiary directive), resulting in overall 1% tax.
Its worth noting though that Romanian regime has︃ certain limitations, and tax could also be increased to 3% if you don't hire employees︄ in Romania.
One could have the following structure:
Estonia holding - 0% tax until distribution︅ (else 20%) / profits from PE or subsidiary not taxed
Romania subsidiary - 1% turnover︆ tax
Albania branch - 0% + 5% on repatriation of profits
Effectively keeping total tax︇ at 0-5%.
Its worth noting though that Romanian regime has︃ certain limitations, and tax could also be increased to 3% if you don't hire employees︄ in Romania.
One could have the following structure:
Estonia holding - 0% tax until distribution︅ (else 20%) / profits from PE or subsidiary not taxed
Romania subsidiary - 1% turnover︆ tax
Albania branch - 0% + 5% on repatriation of profits
Effectively keeping total tax︇ at 0-5%.
That could︁ work, the problem is that it is more expensive to set up, so maybe it's︂ kind of overkill for a business that hasn't even started yet?
Since OP is starting,︃ it might be wiser to start with a simple setup and focus on profits; later︄ on they could improve it.
In other words, I'd rather start paying an overall Romanian︅ tax of ~10% with a simple setup and focus on growing the business, instead of︆ setting up 3 different companies in 3 different countries.
Of course, the structure that you︇ propose would certainly begin to make more sense as OP's profits grow.
Since OP is starting,︃ it might be wiser to start with a simple setup and focus on profits; later︄ on they could improve it.
In other words, I'd rather start paying an overall Romanian︅ tax of ~10% with a simple setup and focus on growing the business, instead of︆ setting up 3 different companies in 3 different countries.
Of course, the structure that you︇ propose would certainly begin to make more sense as OP's profits grow.
I believe here there is a misunderstanding because dividends of non-residents natural persons are subject to︃ 8% WHT based on internal legislation. 10% on other kind of income (e.g. liquidation). Here︄ a summary table from Minister of Finance RO:
https://mfinante.gov.ro/apps/detali...ENITURILE OBTINUTE DIN ROMANIA DE NEREZIDENTI
I would be glad to be wrong on the point but I believe that this 0%︅ wht in RO (apart from DTA, PEX, etc..) is a myth.
https://mfinante.gov.ro/apps/detali...ENITURILE OBTINUTE DIN ROMANIA DE NEREZIDENTI
I would be glad to be wrong on the point but I believe that this 0%︅ wht in RO (apart from DTA, PEX, etc..) is a myth.
The minimum holding period requirement, if any, must be met (the PSD gives member states the option to require that a parent company hold the shares in its subsidiary for an uninterrupted period of at least two years to qualify for benefits under the PSD).
@ElBotellon, @Marzio, @Don: An excellent discussion and material for learning, thanks.
But for the @AntonioT95k 's situation I rather stand with @scooterguy :
This perhaps even should be chiseled into stone 😉
But for the @AntonioT95k 's situation I rather stand with @scooterguy :
This perhaps even should be chiseled into stone 😉
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