That alone is not enough. Company will be tax resident in OPs home country where it is run from.You want to setup a company in Dubai, have a look here UAE / Dubai FZE company for Computer Service?
Is that enough in all cases? open shut case? An EU national, living in the EU, is the sole owner of a UAE company, they manage the company from their home in the EU, they run the day to day operations and have just minimum wage staff posting things from the UAE? Will the EU tax authorities see this and say "ok they do not owe tax". It would pass an audit, all above board?If you physically store products and distribute products from the UAE, that gives you substance.
How would guys to in the following scenario:You need to know the rules of where you live, before you can work out your offshore plan.
This could work subject to the country of residence and of course citizenship are your major factors.How would guys to in the following scenario:
I have 400K EURO for this investment.
Take a flight to the UAE, hire some good and reputable lawyer and tax professional there, they will help me to find a nice office, staff and even a cleaning company that will clean up the mess every week. I hire a director for this company who is operating it for the day to day business.
Would I still be liable for the profits this operation makes if I live in a different country?
If you physically store products and distribute products from the UAE, that gives you substance.
I hire a director for this company who is operating it for the day to day business.
Would I still be liable for the profits this operation makes if I live in a different country?
He said he is willing to throw money at it.I find it hard to believe that where products are stored and shipped would count as substance. Quite often warehouses don’t even count as permanent establishment.
That depends on the country you live in. It’s definitely more complex than “I’ll just hire a local director and pay no tax.”
You’d probably have to prove that you don’t manage the company from your home country, that you don’t work for the company from your home country and that you have good reasons for setting up a company in the UAE, i.e. that it’s not just for tax reasons.
Depending on whether your country has CFC rules and how strict they are, you might still have to pay taxes in your home country. If your country has exit taxes, then they’d usually also apply to offshore companies, so you won’t be able to cash out without paying taxes in your home country, not even if you move to the UAE later.
You can probably still save a lot of taxes, but it needs to be set up correctly. You’d be a fool to attempt this without good legal counsel from your home country all along the way.