Best setup for a freelancer

[GrumpyMess]

What are the best tax options for a freelancer available now?

My findings:
Georgia - probably doesn't tax foreign earned income, but further investigation needed
Romania - 10% tax
Bulgaria - 10% tax
Czech republic 12-13% effective tax, 80k € limit
UAE - no tax, but flat fee, difficulties in obtaining a license

Am I missing something?

 

[clemens]

Georgia is good if you seek a fast and hassle-free setup as well as some good banking options.

 

[user9823671]

Am I missing something?

Where do you live? Where are you tax resident?
Are you planning on moving to the mentioned locations?
Are you aware of CFC and if so, have ways around it that you are prepared to accept?

 

[GrumpyMess]

Where do you live? Where are you tax resident?
Are you planning on moving to the mentioned locations?
Are you aware of CFC and if so, have ways around it that you are prepared to accept?

It highly depends on a setup and a country. In some countries I would like to live, in others I would like to maintain a paper tax residence only. Best case scenario it should be non CFC privacy friendly country, but a low personal income tax is a priority.

 

[bigsmoke]

Are you from the United States? Self employment (freelancer) tax in Russia is 4-6% which sounds good, but i don't know how foreigners are treated.

 

[GrumpyMess]

Are you from the United States? Self employment (freelancer) tax in Russia is 4-6% which sounds good, but i don't know how foreigners are treated.

Not from US. There are many caveats associated with Russia

 

[micand]

What are the best tax options for a freelancer available now?

My findings:
Georgia - probably doesn't tax foreign earned income, but further investigation needed
Romania - 10% tax
Bulgaria - 10% tax
Czech republic 12-13% effective tax, 80k € limit
UAE - no tax, but flat fee, difficulties in obtaining a license

Am I missing something?

The mentioned tax rates might be valid for private individuals, because of that you will also face social security contributions.

If you instead consider forming a company you could lower your tax bill in Romania to 1%, based on the revenue at the corporate level and another 5% would only apply in case the company pays dividends.

 

[John82]

If you are talking about a company incorporation, then Singapore is a good fit for freelance. A large number of deductions and exemptions do so that in the first three years of work you do not pay taxes at all.

 

[cyprus123]

In order to give a proper answer to your question you should mention how much turnover and profit you are making a year and if you consider to move to one of those countries?

Considering only the taxation I would recommend Bulgaria to you if you want to stay within the EU and Georgia if you want to pay as little tax as possible, have a look into the virtual zone georgia.