Where to incorporate best as citizen in Austria

[alpagen]

Hi guys,

let me short explain what I want to do, I will soon start some E-Commerce Stores with the Dropshipping model as side Business to get an extra income, as soon as this income is enough i will cancel my normal Job and will work and live local Independent.

The Problem now is that i earn that "much" with my normal Job that I'm in the highest tax class with 55% which would then also be applied to my side Business, for Tax reason I will now start the Business somewhere else Europe or International both would be ok as I will have customers all over the world.

Does anyone here is maybe also from Austria and have some good tipps for me, dont get me wrong I dont want to pay 0% tax or something like that I just want to lower the tax a bit to make a bit more profit and let the side Business grow into a normal Business. I was thinking about Estonia, they have a quite good tax system where you only pay 20% tax when you take Money out of the Company, but maybe somebody has another idea.

 

[JohnLocke]

Well, Estonia is a great choice for your business depending on what other requirements you‌ may have. What I would look at is where you get the lowest possible tax‍ in Europe which is Cyprus with only 12,5% on profits. You don't pay any tax⁠ on dividend, royalties and immaterial copyrights.

For most businesses doing business in Europe these benefits⁤ alone make Cyprus to be their favourite choice when researching their possibilities.

You may also⁣ want to look at which jurisdiction i.e. Estonia, Cyprus or even Malta has a double⁢ tax treaty with Austria that would help you in your effort to setup a legal︀ corporate structure for your business. In any case you may want to consult a local︁ accountant or tax lawyer in Austria to help you once you need to do the︂ accounting and filing of the audited tax report for yourself to gain the tax benefits.︃

 

[hungryit]

Sorry to interrupt you. I would defiantly go for a Cyprus company if you want‌ something in Europe. Depending on your budget go for a Belize or Seychelles corp for‍ trading purpose to avoid lot's of administration burdens and questions. It's easy to establish and⁠ to maintain.

 

[alpagen]

but because of the OECD and the Exchange⁤ between countrys I still have the Problem that my Country (Austria) would find out that⁣ I have an Company in Belize for example, that is not the Problem I dont⁢ want to avoid tax to 0%, it is just the law I am not allowed︀ to have a Business outside of Austria as Long as I live there .. and︁ the Belize or Sychelles Company is still registerd under my Name also with an additional︂ nominee ..

 

[negon]

Austria may be the first country I have heard of that don't allow their citizens‌ to have a company abroad! I don't think that is true or do you have‍ any publication maybe where we may read about it, maybe you read it wrong? I⁠ could imagine that they tax their citizens the same way as the US and most⁤ EU countries do from world wide income!

 

[pkal]

Austria has lots of Double Taxation Conventions in place BMF - The Austrian Tax Treaty‌ Network so it seems that you can do business and owe a company abroad if‍ you live in Austria.

Here is the one between Cyprus and Austria http://www.fbscyprus.com/assets/mainmenu/71/editor/CYPRUSAUSTRIA.pdf why should⁠ they have made this if it isn't allowed to own a company as an Austria⁤ citizens? I may be wrong but thought I would share this.

 

[Zuzuud]

Hello guys, my question is kind of similar, this is why I don't want to‌ open a new thread for this:

Maybe the dividend as an Austrian tax resident (person)‍ could be tax-free (if some circumstances are met). I think I found payable WHT on⁠ company side in DTT, but I have not found the details on Austrian personal level.⁤ Where should I check this part? How can be the foreign dividend tax-free?