avoiding tax with offshore company?

atari2001

New member
Hello,
i have a question because im not sure about it.
Im working in a normal company, and earning money through music (spotify, apple music etc). I have to pay in germany 42% taxes on it.
Is there any way to pay lower taxes with a offshore company and avoiding this 42% in germany? Or is the only way to change my residence?

thanks for your help :)
 

Sols

Entrepreneur
Is there any way to pay lower taxes with a offshore company and avoiding this 42% in germany?
Short answer: No.

Long answer: No, unless you have a very big budget and can afford to setup a complicated offshore structure with actual employees (or at least trustees) overseas.

But you can probably do something about your 42% tax burden in Germany if you speak with a good accountant. Lots of people aren't taking full advantage of deductions and other benefits/incentives that may exist.

Or is the only way to change my residence?
Yes, which if you have an EU citizenship is quite easy. Malta and Cyprus are the most popular and have been discussed a lot here already. Lots of information to be found.
 

mickey

New member
Germany ... i was born in that failed society as well. But since 2015 it is more an asylum without a roof (check this out: thg-essem).
Sorry 2 be off topic, but everybody needs to laugh sometimes.

Back 2 Topic:
The German tax system is a Tax by Residence - System so when you move into a country with better weather and taxes your 100% legal, but when you send invoices to German customers be careful. If you pick a country which is a well known Offshore jurisdiction like Cayman Islands and so on, your customers cannot deduct their taxes by paying your invoices. Due their tax authorities does not accept your invoices as expenses. This should avoid German companies to use offshore companies to move out their funds out of their country.
Cyprus, Malta and Madeira are better choices you pay taxes 10-20% but invoices from these jurisdictions are mostly accepted by German tax authorities.
 

KJK

Entrepreneur
What amounts are we talking about? Probably there is not a good solution for you though I know some musicians (including some very famous one) do their invoices through e.g. Maltese company, of course it is not the right way if you're a German guy living in Germany... but you probably know that.
 

clemens

Corporate Services
Mentor Group Gold
Have you spoken with an tax advisor in Germany to help you sort this tax avoidance issue? If not, it's time to do so. There may not be much to do but there is something and if you don't want to relocate to another country then you may take what you can get by consulting a specialist.
 
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