Opening an LLC in either Estonia or Latvia and living there. Please help me decide.
- Thread starter rust3964
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Indeed this is very interesting. However, for someone that is heavily exposed to crypto, keeping in mind how fast the tax laws are changing right now, one might want to consider to actually leave it for the next crypto cycle, not to risk locking in capital and them changing the taxation laws(?)
One thing I do not understand is, why is this legal to do under "substance over form" law? Obviously you are creating a structure (company) to avoid paying income tax as an individual, if trading is the only thing the company will do. If this would be legal, all citizens in Estonia would do this in order to avoid paying income tax on invesments(?)
The only way I see this can work is if you indeed are NOT a tax resident of Estonia. But then your home country can use the Substance over form law.
The only way I see this can work is if you indeed are NOT a tax resident of Estonia. But then your home country can use the Substance over form law.
Beware when doing this in Estonia, I asked a few people there and the answer︀ was that you'll likely get a tax audit if you capitalize your company with large︁ amounts of crypto.
Thats correct, and the same applies to other similar tax systems like Latvia and Georgia.
Such transactions are closely monitored and double checked by tax authorities. And it applies to most capital contributions, because you're effectively applying for a tax exemption.
Such transactions are closely monitored and double checked by tax authorities. And it applies to most capital contributions, because you're effectively applying for a tax exemption.
Stay (Physically) away from the so called Baltic countries. They are hellish s..tholes, long time abandoned by the smart locals who flew abroad, and only useful for (mainly illegal) operations managed from abroad.
Unfortunately violent crime is rampant. Lithuania is a major hub of trafficking (drugs and cigarettes), Latvia is just a U.S. colony (Check the huge U.S. embassy there, as I posted some time ago here), Estonia plays the role of the smartest kid but it’s the same.
Long are gone the good times when you could walk in Rietumu with cash in plastic bags.
Unfortunately violent crime is rampant. Lithuania is a major hub of trafficking (drugs and cigarettes), Latvia is just a U.S. colony (Check the huge U.S. embassy there, as I posted some time ago here), Estonia plays the role of the smartest kid but it’s the same.
Long are gone the good times when you could walk in Rietumu with cash in plastic bags.
Your knowledge must be︀ outdated, as Tallinn is actually currently considered vastly superior to its neighbours in the region,︁ including Riga, Vilnius, Stockholm, Oslo, Berlin, ranking 17th amongst 195 capital cities globally.
https://news.postimees.ee/7955309/tallinn-ranks-17th-in-global-quality-of-life-index
Btw which countries you consider better where you can walk around with your cash in plastic︂ bags?
https://news.postimees.ee/7955309/tallinn-ranks-17th-in-global-quality-of-life-index
Btw which countries you consider better where you can walk around with your cash in plastic︂ bags?
So Postimees.ee said rof/%
I’m currently an Estonia e-resident and I continue to deal with the 3 little rabid countries.
Any non Western country, where cash is still considered legal. Some might remember the times when not accepting cash was illegal 😕
I’m currently an Estonia e-resident and I continue to deal with the 3 little rabid countries.
Any non Western country, where cash is still considered legal. Some might remember the times when not accepting cash was illegal 😕
Tallinn is immensely boring. And unpracticable during winter time, as they do not remove ice and snow from the sidewalk. Estonians are very good at marketing themselves, and at “arranging” statistics, but when you live there, you realize that Estonia is very much an empty ex-soviet country with big SUVs︀ (there is nothing else to buy anyway).
Helsinki, which is 50km away, is much more︁ interesting, and welcoming than Tallinn. If you forget about the taxes!
Baltic countries are shitholes,︂ but you can stay there anonymously, no one cares about you, they usually respect a︃ lot your privacy. There isn't much non-European immigration (Russians not included), and real estate is︄ very cheap (especially in Latvia). Locals have mainly abandoned the idea of making near enough︅ babies for their country to survive, many have left, so cities are never very crowded,︆ and you have room to think and live. If you want to hide, this is︇ a very good place. A lot of Russians live there undocumented. Everyone knows this, cash︈ is widely accepted, it won't raise any eyebrows.
Since they are ex-soviet countries that haven't︉ turned the page, most people there have no idea how to run businesses efficiently. It's︊ a major pain, things like customer service or marketing are completely ignored, workers to do︋ the minimum whatever the wage level. They often don't maintain their properties, which are often︌ derelict, because they don't understand the capitalist game at play with real estate. This is︍ part of the reason they're still poor, and it's very complex to do business there.︎
Helsinki, which is 50km away, is much more︁ interesting, and welcoming than Tallinn. If you forget about the taxes!
Baltic countries are shitholes,︂ but you can stay there anonymously, no one cares about you, they usually respect a︃ lot your privacy. There isn't much non-European immigration (Russians not included), and real estate is︄ very cheap (especially in Latvia). Locals have mainly abandoned the idea of making near enough︅ babies for their country to survive, many have left, so cities are never very crowded,︆ and you have room to think and live. If you want to hide, this is︇ a very good place. A lot of Russians live there undocumented. Everyone knows this, cash︈ is widely accepted, it won't raise any eyebrows.
Since they are ex-soviet countries that haven't︉ turned the page, most people there have no idea how to run businesses efficiently. It's︊ a major pain, things like customer service or marketing are completely ignored, workers to do︋ the minimum whatever the wage level. They often don't maintain their properties, which are often︌ derelict, because they don't understand the capitalist game at play with real estate. This is︍ part of the reason they're still poor, and it's very complex to do business there.︎
A very good review about Tallinn and Helsinki; one might consider swapping summer surroundings for snow and ice and a snowmobile. Personally, it's not for me either, even though the taxes are very low, and you can live there anonymously.
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