UAEWhere are you based?
Hi,Hey,
In the EU, you might be interested in:
Malta – effectively allows benefiting from 5% tax (achieved by using a refund scheme);
Estonia – applies 20% corporate income tax. But it is applied only when profit is distributed, as long as you don’t pay dividends, tax is not paid.
Lithuania, 0% the first year, 5% if turnover is not higher than 300 000 EUR;
Cyprus – flat rate 12.5%, tax authorities not very aggressive, so you would have more freedom to deduct expenses.
In any case, the final tax result depends on your residency, and the effective place of management of such company. If you reside in a high-tax country and would own a company in a low-tax country without proper substance, all income still might be taxable in your residency country under PE rules.
In UAE from 1st June this year companies have to have a CIT.You can try Estonia and pay yourself a salary - the salary will be tax free in Estonia. But there is a risk that the company will have to register for corporate tax in the UAE (but it will be like that with a company from any country), it's a bit of a hassle and the legal situation in the UAE is still unclear.
You could also consider operating through an Estonian company with a UAE branch.
Is personal presence needed for the process?On a side note,since you said Europe and not EU explicitly, Albania has a 0% corp tax until 2029. You'd need an accountant there to handle the paperwork ( around 500 euros a year and city tax of 1k a year ) but otherwise, you can set that up there and every service is electronic ( Estonia style ).
Since you have an estonian company you can easily leverage that for legal residency for your wife. You can possibly avoid tax residency if structured right.@JustAnotherNomad You are right. If I will be single then it's fine. That's what I exactly do, resident in UAE and freedom. It's more complicated when my wife is not EU citizen and we want to live somewhere near the Mediterranean Sea (Spain favorable). If she will become a temporary resident in Spain then at the same time my " Centre of vital interests" become with her.
What I want is to give my wife the right to be in the EU and the same time has the tax benefits same as in UAE.
In general, 182 days rule applied.
NHR will not allow my wife to have a free Schengen visa to travel in/out EU.
I looked in Estonia, eResidency will not allow her to travel to EU.
Is that information still accurate? My understanding is that in Estonia, if I were to reside there with an LLC and refrain from distributing profits, I could potentially avoid paying taxes on my LLC altogether.Hey,
In the EU, you might be interested in:
Malta – effectively allows benefiting from 5% tax (achieved by using a refund scheme);
Estonia – applies 20% corporate income tax. But it is applied only when profit is distributed, as long as you don’t pay dividends, tax is not paid.
Lithuania, 0% the first year, 5% if turnover is not higher than 300 000 EUR;
Cyprus – flat rate 12.5%, tax authorities not very aggressive, so you would have more freedom to deduct expenses.
In any case, the final tax result depends on your residency, and the effective place of management of such company. If you reside in a high-tax country and would own a company in a low-tax country without proper substance, all income still might be taxable in your residency country under PE rules.