Options & Ideas for UK Resident Digital Nomad

[InnocuousNomad]

Just joined Mentor Group Gold to see what this is all about. Hoping to find some answers and ideas here 🙂

Ok, so what are some options and ideas for a UK citizen with an entirely online setup? I have no requirement for any brick and mortar location except maybe a mail forwarding/virtual address type of setup, and currently sell nothing at all to UK customers. Need access to some kind of Card processing. Wondering what kind of structures can be set up for the 2 big problems I need to solve:

1. Lowest taxes possible, ideally 0%

2. Privacy, or at least something better than having all my personal details on some free public register.

I can compromise on 1 and 2. For example Bulgaria caught my eye because corporate taxes are 10%, but this could be 0% if its all foreign sourced income?

Are there better structures like companies owning other companies, in a chain that could be set up? I would love to hear some ideas.

 

[Martin Everson]

A chain of companies still has a UBO that bank or even EMI needs to know who this is. Also banking such structures can prove hard work if not impossible if a chain of companies is involved.

If you want low taxes best to firstly get at least a second residency. See list of digital nomad countries below..some have zero tax for such workers as long as income is not derived in country you are resident in.

https://nomadgirl.co/countries-with-digital-nomad-visas/
Secondly just setup a normal company in EU. i.e an Estonia company would do. Estonia companies only pay tax at point of distribution of income. Hence some of the income you can expense away tax free i.e salary etc and the other amount you can shelter in the company tax free. However Bulgaria is fine as 10% is a fair tax. Keep in mind we live in a world where showing you pay tax someone is important if your gonna be in and around Europe. Also consider CFC rules whichever jurisdiction you plan to use for your company. Your residency at end of day is most important factor if you plan to control and operate the company from where you are resident.

In terms of privacy EU companies will offer none. Just consider it the price to do business. The days of corporate privacy are coming to an end in general anyway.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[InnocuousNomad]

Martin Everson said:
A chain of companies still has a UBO that bank or even EMI needs to know who this is. Also banking such structures can prove hard work if not impossible if a chain of companies is involved.

If you want low taxes best to firstly get at least a second residency. See list of digital nomad countries below..some have zero tax for such workers as long as income is not derived in country you are resident in.

https://nomadgirl.co/countries-with-digital-nomad-visas/
Secondly just setup a normal company in EU. i.e an Estonia company would do. Estonia companies only pay tax at point of distribution of income. Hence some of the income you can expense away tax free i.e salary etc and the other amount you can shelter in the company tax free. However Bulgaria is fine as 10% is a fair tax. Keep in mind we live in a world where showing you pay tax someone is important if your gonna be in and around Europe. Also consider CFC rules whichever jurisdiction you plan to use for your company. Your residency at end of day is most important factor if you plan to control and operate the company from where you are resident.

In terms of privacy EU companies will offer none. Just consider it the price to do business. The days of corporate privacy are coming to an end in general anyway.
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Thanks for the reply.

I think my personal circumstances will be last to solve as it means getting off my a*s to move, which I can't do for a couple of years yet as have some loose ends to tie up in the UK. Plus if I'm going to move out of the UK then it better be somewhere sunny to be worth it haha, and ideally English speaking! Spanish is only second language I can speak and it's really not good.

For business, it would be cheap to set up substance in Bulgaria but I will check Estonia too. I like the idea of tax at distribution that you mentioned, but maybe Bulgaria has something similar.

Ideally, I would like my company to be as far away from the hands of the EU as possible but Estonia & Bulgaria do sound interesting.

 

[bountymounty]

Switzerland, (UK - not in your case) and Caribbean islands as well as Liechtenstein are good places to stay under the radar. For instant in Swiss you can get full nominee service so your name will not appear anywhere, not public not in the books.

 

[InnocuousNomad]

bountymounty said:
Switzerland, (UK - not in your case) and Caribbean islands as well as Liechtenstein are good places to stay under the radar. For instant in Swiss you can get full nominee service so your name will not appear anywhere, not public not in the books.
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Thanks. Apparently nominee directors are not recognised in the UK anyway, not that it matters as I'm looking to go offshore but just a point that might be of interest to some.

Will look at the tax situation for Switzerland and Liechtenstein. Caribbean especially Cayman is a dream but very expensive to get into and very limited in terms of card processing, unfortunately.

 

[uplana]

Switzerland may work well for you for now, at least the next years, you can get full nominee service there and you get something that looks good to the rest of the world should you do business with others.

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