Advice for a self-published writer

[thedirtyteller]

I currently make a living as a self-published writer making around 40- 50k USD a year although my income is steadily rising every month. I live in a country with no so friendly taxes in the EU and want to relocate somewhere else since I can work wherever.

I have been looking mainly at Romania's micro company scheme because of the ease of setting up the business with the law firms and the freedom to live somewhere else. Although, are there any better options out there than their 5 percent tax on dividends and 3 percent on corporate tax? I'm not so sure about living in Romania because of the corruption, so if I relocate somewhere else in the EU will I then have to pay more taxes for those dividends? I tried to get in contact with another dude here who lives in Romania but he hasn't answered so far. I have some questions about maintenance costs which I didn't get a clear answer from the law firms.

I have thought over Hungary with their 12 percent corporate taxes but reading through their threads here makes me think otherwise because of bureaucracy.

Countries where pornography is illegal are not good either, since what I write is mostly adult related. So Bulgaria, Dubai and Lithuania are out.

Another important thing, the US must have a tax treaty with the country otherwise Amazon, where I sell most of my books, will take a thirty percent tax.

 

[Dasilva]

Since when is publishing about P**N in Bulgaria illegal ? I know prostitution(even that is still very popular here) is but publishing I never heard about. I’m a big fan of Bulgaria tax wise. It’s very straight forward and also with the right accountant and law firm it’s easy and cheap to set up.

 

[JohnnyDoe]

Cyprus is good. If you relocate to a non tax country and manage the company from there, you will not pay taxes in Cyprus while still enjoying the DTA with the US.
I suggest you consider Online Self-Publishing Platform - Publish Books Online Globally to manage your book and publish on multiple platforms, they might also accept different corporate setups and give you more freedom than dealing with Amazon directly.

 

[thedirtyteller]

Since when is publishing about P**N in Bulgaria illegal ? I know prostitution(even that is still very popular here) is but publishing I never heard about. I’m a big fan of Bulgaria tax wise. It’s very straight forward and also with the right accountant and law firm it’s easy and cheap to set up.

I also like Bulgaria because of their taxes and low property prices but spreading P**N is illegal in their country. Pornography in Bulgaria - Wikipedia And yes, I know literature is obviously a lot different than pornographic films, but for payment processors, it isn't and by that, I believe it will be the same for a country. I'm not going to risk ending up in a foreign jail. I need a stress-free environment in order to write.

Cyprus is good. If you relocate to a non tax country and manage the company from there, you will not pay taxes in Cyprus while still enjoying the DTA with the US.
I suggest you consider Online Self-Publishing Platform - Publish Books Online Globally to manage your book and publish on multiple platforms, they might also accept different corporate setups and give you more freedom than dealing with Amazon directly.

And what would a non tax country be? Is it a lot of bureaucracy setting up a company In Cyprus and how much of a deposit do they require?

 

[JohnnyDoe]

And what would a non tax country be?

Many Caribbean islands, UAE, etc. Plenty of info on this forum.

Is it a lot of bureaucracy setting up a company In Cyprus

Not at all

and how much of a deposit do they require?

No need to deposit the share capital. Setting up a company should cost you about €2k. I can make an introduction to a good service provider or you can find some on this forum.

 

[thedirtyteller]

Many Caribbean islands, UAE, etc. Plenty of info on this forum.

Not at all

No need to deposit the share capital. Setting up a company should cost you about €2k. I can make an introduction to a good service provider or you can find some on this forum.

What if I want to live in a European country, how much taxes will it be then? Let's say Hungary, Slovakia or Latvia?

 

[JohnnyDoe]

What if I want to live in a European country, how much taxes will it be then? Let's say Hungary, Slovakia or Latvia?

You pay taxes according to the rate of that country, irrespective of where the company is registered.

 

[JimBeam]

Cyprus is probably the best option as many adult firms are registered there. But the issues are the costs (company setup costs €2-5k, CIT 12.5% + 1% if you do not pay in advance, expensive accounting and audits, expensive banking, social contributions...). You would have to spend there 90days a year to get a tax residency and then less than 183 days anywhere else and that should be it. So the costs of just having a company there can easily reach €5-10k/year and in your case that's 10-20% of your income.

Romania would probably be the best as their micro company is great option for you and there are bunch of cam girls working from Romania so I guess there will be no issues there regarding the nature of your business. Running costs for a company in Romania will be a fraction of these in Cyprus. I would also stay away from Hungary (especially if you don't know their language).

So, I don't know from what country are you, but you try and check all options in your country and what can you do to pay less taxes there.
Talk to several accountants to try and find the best way how you could lower your tax without the need to go somewhere else.

 

[Marzio]

I would also stay away from Hungary (especially if you don't know their language).

Are there other reasons beside the language barrier?

 

[JimBeam]

Are there other reasons beside the language barrier?

From personal experience: they tend to over-complicate things and are not very found of foreigners, terrible bureaucracy.
Also, possible instabilities with relations with EU. Orban is a Putin-loving dictator (Romania is more democratic in comparison).

 

[lostguy]

Romania, Switzerland, Andorra and Malta are some of the countries people prefer when it comes to low tax but living in Europe!

 

[thedirtyteller]

From personal experience: they tend to over-complicate things and are not very found of foreigners, terrible bureaucracy.
Also, possible instabilities with relations with EU. Orban is a Putin-loving dictator (Romania is more democratic in comparison).

Are you talking about people civilians in Budapest or bureaucrats? I've met many friendly people in their capital. I couldn't find any signs of disliking foreigners. And calling Orban a dictator is a bit far-fetched.

 

[disconnected]

If your book sales can be classified as royalties, you could be living tax-free in Portugal for 10 years.

 

[thedirtyteller]

If your book sales can be classified as royalties, you could be living tax-free in Portugal for 10 years.

A bit more information, please

 

[aragon]

A bit more information, please

I think he's referring to Portugal's Non-Habitual Resident status.

 

[disconnected]

A bit more information, please

Research the NHR scheme in Portugal. Certain types of (passive) income are tax-free for 10 years after moving to Portugal. I think book sales (royalties) would qualify.

 

[Forester]

Are you talking about people civilians in Budapest or bureaucrats? I've met many friendly people in their capital. I couldn't find any signs of disliking foreigners.

It depends on what country you are from. And much more importantly, there is a big difference between the capital and the rest of the country, especially small towns and villages (well, it is not so exceptional, from the global point of view).

 

[Peachs]

Been a fan of self published writer. More power Sir!!