After what threshold of revenue/EBIT are you looking actively to offshore?

[thomasparra]

I was wondering after what kind of EBIT you would be looking to optimise taxation?

Personally I am about to start a company in France where start up costs are low. If income grows, there will be ways to optimise by creating a holding and benefit from 95% deduction on dividends sent to your holding. Another option is to invoice your company from your holding. It is an international business where I have clients all around Europe and Asia. I think that once I reach around 100k per year in EBIT I will actively look at offshoring the business but for now I think it is cheaper and easier for me to pursue the French route as I am a citizen here and my costs of living are rather low versus living in Dubai and whatnot trying to offset any potential future tax savings.

 

[Sols]

It's a pretty straight forward equation: when the tax savings exceed the costs of establishing a solid, resilient structure somewhere else.

For example, if you're paying X EUR/year in tax and the costs and tax of moving you and your business to, for example, Cyprus are less than X, it makes sense to move. Take care to closely analyse the costs, including costs of living and other changes.

Do the calculation for interesting jurisdictions; for example Malta, Cyprus, and UAE, which are easy, popular options in reach for EU citizens.

If you run a business that requires employees, things get more complicated and you'd be wise to seek professional advice from someone who knows French tax law in detail. Can you find the talent you need where you plan to move? Can you keep some in France and build a new team somewhere else?