Advice on new company formation jurisdiction

[daniels27]

May I ask:

• Du you have to be in Germany to do the work for your client?
• Can somebody else do the work as well or do they require that you do it?
• Are you willing to leave Germany?

 

[Yeskou]

May I ask:

• Du you have to be in Germany to do the work for your client?
• Can somebody else do the work as well or do they require that you do it?
• Are you willing to leave Germany?

The issue is my client require my physical presence in their office 3 days a week.
As my client is requesting my presence i can only look to generate expenses for outsourcing a service to lower the taxables amount.
Am thinking also to leave germany open a new company elsewhere and come to germany only to do the business, as i can exist in germany but fiscally i belong to the country where my company is.

 

[daniels27]

The issue is my client require my physical presence in their office 3 days a week.

Yes, but then is becomes very hard to do anything without much effort. Are you close to a neighbouring country?

As my client is requesting my presence i can only look to generate expenses for outsourcing a service to lower the taxables amount.

Yes and then will have transfer pricing issues etc.

Am thinking also to leave germany open a new company elsewhere and come to germany only to do the business, as i can exist in germany but fiscally i belong to the country where my company is.

Yes, if you are in the South, you can move to Switzerland, be emplyed by your own company there. You then have a number of options:

• If you live within 100 km or less than 90 minutes of travelling time to your office, you can be classified as Grenzgänger and you only pay tax in Switzerland.
• You can travel to your office 3 days per week and spend the rest of your time in your own office in Switzerland. This could work unless you have a permanent office in Germany etc.
• You can work for your Swiss company and then you then file form A1 (Entsendung) this is only possible for up to 2 years

I think these are the only legal ways. Of course, you can follow this one:

S

Thread 'Overstaying 183 days - Spain vs Germany'

Sep 23, 2024

In the event of overstaying the 183 days that make one a fiscal resident of most countries, and not making the obvious mistakes (getting a tax id, buying a car, having a child, sending children to school, buying real estate, get arrested several times...), and conducting a low-profile life, basically a digital nomad, for 2/3 years.

What is the chances of receiving a letter from the tax office in:
- this one I can answer myself: in Spain, Hacienda will never find out. Spain is primitive country as far as technology goes, so unless you are Shakira, you're good to go.
- in Germany?

Asking...

• sriracha
• Replies: 7
• Forum: Tax, Accounting & Legal

• 

But in your case, it would be very, very risky. If you have family in Luxemburg and are member of sport sclubs there and live there all but the 3 days, it is risky.

 

[Yeskou]

Yep, it seems in all situations no 100% legal option exist.
If i will work only 100% remote jobs I will in competition with all the other persons who bill cheapers.
My only way to bill good rates is to show my face in the offices in Germany. Then i need to figure out hiw to pay less taxes.
It seems playing with opening new companies under my name will trigger the control for sure.

I start thinking to use a nominee to open a company under his name and build email exchanges beween us showing that I delegate the job to him. For example if I bill my client 600eur a day I pay my subcontractor 400 a day, then i live and spend the money of the subcontractors and keep my company money saved for the future.

As my actual turnover is not huge money I think that is the only way to save taxes.

 

[daniels27]

I start thinking to use a nominee to open a company under his name and build email exchanges beween us showing that I delegate the job to him. For example if I bill my client 600eur a day I pay my subcontractor 400 a day, then i live and spend the money of the subcontractors and keep my company money saved for the future.

Honestly, it is very illegal. But if course you can try. I would not recommend it. You cannot even claim you did not know it forgot. Ity is just very openly illegal.

Also, there are many like you in Germany with 3 times or more and they also pay it.

 

[cuno]

Northern Europe
- Denmark: 22%
- Sweden: 20.6%
- Norway: 22%
- Finland: 20%

I would take that out of your list for the business OP mentioned. it screams for lot's of troubles and you do not want as an foreigner with a small size business not doing at least 5 - 10 mlion euros in profits each year to fight the tax authorities setup an account there.

They are some of the worst countries for foreigners to do business in, unless you have millions for tax lawyers!