Leaving my home country

[rakka]

Hey guys 🙂

I am running an internet based business in my home country . I‌ am since a few year fully remote and wanna cut the ties with my home‍ country and move somewhere else. I am traveling a lot but need a base where⁠ I live 6 months per year and pay taxes. Ideally in the EU.

Been looking⁤ at a structure where i base the new company in Estonia (because they are remote⁣ friendly) and hire a director, maybe another manager role as well and get a real⁢ office (not one shared with 1000s of others). Then I register for NHR in Portugal.︀

From what a lawyer in Portugal told me: as long as there is another director︁ based in the home country of the company then it's fine. But ideally I should︂ not be the director at all. Not sure how that would work, can just imagine︃ signing up for stuff like bank accounts etc is gonna be be a big headache︄ without being a director, and also finding a director I can trust. Also since I︅ would own 100% of the shares I think Portugal would still see it as Portuguese︆ company, even though the lawyer says thats fine. What's your thoughts on this?

What do︇ you guys recommend? Is there a better way to do this? I would ideally want︈ to spend max 20-30k per year for a good set up.

I am not looking︉ for 0% tax just don't wanna pay 50%+ tax. What's a good solution?

 

[CyprusLaw]

I could recommend two options:

(a) Cyprus company and becoming Cyprus tax︋ resident - you can become a Cyprus tax resident using the 60-day rule. This would︌ mean 12.5% corporate tax plus 2.65% on dividend, therefore your effective tax rate would be︍ around 15%

(b) Cyprus company using nominee directors and using the Portugal NHR - you︎ have a similar effect to (a) above - we have used this on multiple occasions️ before.

Happy to PM you to discuss more.

 

[Mr Gus]

You could go with either Malta (5%), Cyprus (15%) or Bulgaria (7.5 or 10%).

The NHR is a risky option if you are running an active business, but you might‌ get away with it, but why risk it?

Also check if your home country has‍ a tax treaty with your new country, this will give you treaty protection (if you⁠ meet the requirements of residency given in the treaty) in case the tax authorities from⁤ your home country decide to go after you.

Italy also have a program if you⁣ are a freelancer, if you would move to the less developed parts of Italy (Southern⁢ Italy and Sardinia) this could also lower your income tax bill to 5-10%.

There are︀ possibly some alternatives outside of the EU but within Europe;

Monaco (0%), Andorra (10%), Montenegro︁ (9%), Georgia (5-20%), Gibraltar(idk), Isle of Man(idk), Channel Islands(idk).

 

[4br]

The Isle of Man and Channel Islands have 0% corporate tax‍ and 20% income tax, with a threshold of about £12,000 on The Channel Islands and⁠ £14,000 on The Isle of Man. There is no capital gains tax, but I don't⁤ know what the situation is with paying dividends to yourself from your company. I believe⁣ in The UK, you need to pay yourself something that can feasibly cover your living⁢ costs, but I may be wrong.

The Isle of Man is not too expensive in︀ terms of property, but Guernsey and Jersey are very expensive. £1,000,000 does not go a︁ long way there. And as a foreigner you would only be eligible t obuy certain︂ properties, which have higher prices. Alderney is the exception there, but it has a population︃ of 2,000.

You can go for UAE, which I think is more secure than trying︄ to spread yourself out in tax-happy The EU. You want to avoid the appearances of︅ being offshore, which The UAE does a better job at. No taxes (in your case),︆ but there are some higher fees in incorporation and visa fees that are essentially the︇ tax. If you have a very high income then it's chump change. You only have︈ to remain in the UAE for a few days a year to keep it all︉ running. It seems you can have it for $5K pa - https://www.offshorecorptalk.com/threads/dmcc-and-uae.29752/#post-194431

Rent somewhere decent︊ is quite high, unless you are used to living in major cities, then it's normal.︋ Though you can save if you want to live in a more remote, less desirable︌ area (maybe $6K / year). But owing to low demand for property as opposed to︍ rent, properties are quite cheap to buy and you could vacation rental it out 11︎ months per year for 10% ($12,000+). Then your association with Dubai will be a bit️ of money in your pocket.