Asking for Sugestion - 45% tax - offshore company?

[RDidario]

Hi guys! I’m wondering if can some one give me a suggestion or advice.
I have Brazilian/Italian passport and I live in Spain (tax resident In spain). My wife has Brasilian passport and For her to get a work visa I had to be resident there.
I work offshore as a Rov Pilot and is normally around 180 days off the country.
My payments are made on my Jersey account and I keep my money there. From there I send monthly a amount to my german account and from there I send a small value to spain ( to pay the bills).
My issue is that my Tax will reach 42% as a frelancer! Its way to high!
I’ve been looking into a Cyprus company and bank account, reading and trying to understand if could work for me, but being honest I’m quite ignorant in this!
So have some one in here, that could give me some idea?
I appreciate in advance.
Thanks

 

[AND]

I have a similar situation. The problem is that anything you do will either be illegal or the tax auth will not recognize as valid and fine you. You can later go to court and waste further money trying to defend your case, but you'll loose it.

I'm thinking the only way to do this legally is to incorporate offshore in the EU/Swiss to have a good reputable cpy A to invoice from. Then incorporate B in Belize? for added layering/anonymity. You get payed 10K a month i.e. so you invoice 10K through A. Then A pays you 2K salary and makes a loan to B for the other 8K at some low interest. That means you lowered your tax burden to 17% iirc + expenses and you halved your taxes from the 40-ish%

That only works if you don't need the money ofc. Some years later you relocate somewhere tax friendly such as Andorra and retrieve all B money through dividends taxed at 0%.

Unfortunately I don't know the real viability of this approach and if the tax man would say 'Yeah right, whatever, here's your big fine and see you in court for jail'

 

[Martin Everson]

Taxation for pilots is a specific area and you need a tax advisor. Depending where you are working you may only have to pay tax in country of work and not where resident. Their are specific ruling around taxation of pilots and I think it is so also in Spain.

 

[GrumpyMess]

Just relocate to Cyprus as non-dom and pay zero tax

100% exemption on remuneration for salaried services rendered outside Cyprus for more than 90 days in a tax year to a non-Cyprus resident employer.

 

[Palvik]

How do you receive payments would be my question.

Here's what I do for my Amazon UK and EU:

I have a Hong Kong corp with NEAT Business and Personal Bank account.

Hong Kong has a territorial tax system, meaning you pay tax only on business conducted in Hong Kong. I use WorldFirst to open up bank accounts in EU and UK. FYI these arent accounts you control. You receive deposits in them and then forward them out from their dashboard.

I then send all the money I receive to my NEAT account. I transfer $2-3k per month to my personal to use for day to day stuff. The rest I use for my suppliers in china from my Biz account but you don't need that.

Cost of set up approximately is $1200-1500 for HK corp (try not to pay more than that). I used InTouch to form it without going to HK.
You pay about $800 yearly to maintain the crop.
You pay about $600 to file an exemption per year to pay no tax there since you don't do business.

All in all, saves me a lot on taxes. Hope it's worth exploring for you.

 

[TurnedToRobot]

Hong Kong has a territorial tax system, meaning you pay tax only on business conducted in Hong Kong. I use WorldFirst to open up bank accounts in EU and UK. FYI these arent accounts you control. You receive deposits in them and then forward them out from their dashboard.

sounds really something I would relay my hard earned money on

How long have you had this company setup? What turnover are you doing each month?

 

[JimmyWho]

How many years has HK worked for you?