Where should I open a SaaS company?

vovler

New Member
Apr 4, 2023
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Hey, posting here hoping someone can help me out,
I plan to talk to a few accountants soon in several countries, but I'm posting here just to get an idea of what questions I should be asking, I'll keep it short:

I live in Portugal, and I have dual nationality in Portugal and Ukraine.

I need to open a SaaS company. The company will use Paddle for payment processing, they deal with VAT/Sales Tax and avoids me having to deal with VAT registrations around the world and so it simplifies accounting by a lot. Can't escape VAT.
Most countries are supported by Paddle, unless they are sanctioned, which is great.

I don't mind moving to another country, but would like to keep it near EU if not inside EU.

For the next 3-4 years I'll be traveling in a camper van in Europe, so technically I won't be living over 183 days in any country, not sure if that might give me some sort of tax advantage.

I've read a lot about the US LLC pass-through to Romania/Bulgaria and that "Income from independent/freelancing activities and intellectual property (IP)" basically lowers income tax to 7.5% and give you an upper limit in the social security. Pretty sure the SaaS doesn't apply to any IP Box, but the US LLC pass-through may(?) be considered independent work. Not really sure how the treaty between US and Romania/Bulgaria works, that is something I will have to ask an accountant.
Is Estonia even an option?

I'd love for all of you to give your opinion,
What would you do in my situation?

Thank you 🙂

Last edited: Apr 4, 2023
 
Your software may qualify for the IP regime in Cyprus which could reduce your tax burden to an effective taxation as low as 2.5%. If it does indeed, I see no better solution than a Cyprus company.
 

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