Best setup for a Youtuber?

[imc]

I have a Youtube channel with around $15k per month revenue. I currently live in the UK, and I am looking to move out of here anyway so looking at which would be the most optimal move tax-wise.

My preferred choice lifestyle-wise would be the UAE - I am aware that despite 0% tax, I would still pay 30% withholding on US adsense revenue. This isn't a huge deal but if there would be a better option than UAE to avoid this I would be open to it.

Questions:

1) What are generally the best ways to set up as a Youtuber assuming I am willing to move anywhere? I've seen talk of malta, Cyprus etc.
2) Would there be any other things to take into account if I were to go to the UAE apart from the adsense withholding?
3) Do any withholding taxes etc apply to revenue from sponsorships, brand deals and affiliate income etc? Do US withholding taxes only apply to US adsense revenue in my case?

Any comments appreciated . I'm a Finnish citizen (not UK) if that makes a difference.

 

[ferchina]

In Europe, the countries that do not have withholding on US, and are low in taxes:

Cyprus 0%
Georgia 0%
Andorra 30%
Estonia 10%
Malta I think it is a 10% withholding tax from adsense earnings in the US.

You can check the countries by yourself, putting an address of the country that has treated in the adsense page and see what is the retention of those countries

 

[imc]

In Europe, the countries that do not have withholding on US, and are low in taxes:

Cyprus 0%
Georgia 0%
Andorra 30%
Estonia 10%
Malta I think it is a 10% withholding tax from adsense earnings in the US.

You can check the countries by yourself, putting an address of the country that has treated in the adsense page and see what is the retention of those countries

Thank you. yes, I know I can check those. I was looking to see if anyone had knowledge on the specific questions I posted.

 

[EliasIT]

If you are willing to move to Dubai you would also want to look into Cyprus and Switzerland for that sake.

 

[imc]

If you are willing to move to Dubai you would also want to look into Cyprus and Switzerland for that sake.

Do you know anyone here that I could speak to about a Cyprus setup? (cost, requirements etc)

 

[Marzio]

In Europe, the countries that do not have withholding on US, and are low in taxes:

Cyprus 0%
Georgia 0%
Andorra 30%
Estonia 10%
Malta I think it is a 10% withholding tax from adsense earnings in the US.

There's not only US WHT to take into consideration, there is also personal taxation and easyness of bank account opening.

Cyprus: 0% WHT + 12.5% CIT + 2.65% Gesy + bank account opening nightmares
Georgia: 0% WHT + 15% CIT + 5% tax on divi + banking in USD could be challenging
Andorra 30% WHT + 10% CIT
Estonia 10% WHT + 20% tax on divi + bank account only with EMI
Malta 10% WHT + 5% total taxation but setup is expensive + bank account opening nightmares

Whichever way you look at it you are going to pay at least 15% taxes plus accounting and auditing (in Cyprus) costs.

I have a Youtube channel with around $15k per month revenue

How is the composition of your revenue?

Is 100% revenue from Adense or you also have revenue from motion picture or TV royalties?

 

[imc]

There's not only US WHT to take into consideration, there is also personal taxation and easyness of bank account opening.

Cyprus: 0% WHT + 12.5% CIT + 2.65% Gesy + bank account opening nightmares
Georgia: 0% WHT + 15% CIT + 5% tax on divi + banking in USD could be challenging
Andorra 30% WHT + 10% CIT
Estonia 10% WHT + 20% tax on divi + bank account only with EMI
Malta 10% WHT + 5% total taxation but setup is expensive + bank account opening nightmares

Whichever way you look at it you are going to pay at least 15% taxes plus accounting and auditing (in Cyprus) costs.



How is the composition of your revenue?

Is 100% revenue from Adense or you also have revenue from motion picture or TV royalties?

Around 1/3 of my revenue is adsense (of which around 40% is from a US audience), rest from direct brand sponsorships and affiliate income (ie, when people buy products with my affiliate links). In the future I will be starting to offer my own services.

So that is why if the US adsense 30% withholding is the only tax I will have to consider on my income then that is quite negligible (compared to paying, like you said, at least 15% ish in Cyprus etc on everything).

So that is why I made this thread mostly, to get any opinions on if there would be any other hidden costs/taxes in setting up in Dubai (ie, if there would also be some withholding tax from brand sponsorships from US sponsors) as if there are not, that would be my preferred choice as that is where I would prefer to live (although I wouldn't mind living in Cyprus too).

 

[Marzio]

If my math is correct of those $15K only $2K are from US audiences so if you apply 30% WHT you'll pay $600.

On $180K yearly revenue you'll pay $7200, a whopping 4% tax

Go to Dubai but be aware that in case your revenue composition will change you could end up paying more.

 

[imc]

If my math is correct of those $15K only $2K are from US audiences so if you apply 30% WHT you'll pay $600.

On $180K yearly revenue you'll pay $7200, a whopping 4% tax

Go to Dubai but be aware that in case your revenue composition will change you could end up paying more.

Yep exactly. Do you know how much I should be prepared to pay for a setup in Dubai?

 

[Marzio]

Yep exactly. Do you know how much I should be prepared to pay for a setup in Dubai?

Not a Dubai expert, you should ask @Fred

 

[Houdini]

Not a Dubai expert, you should ask @Fred

second that, speak with @Fred

 

[thedirtyteller]

In Europe, the countries that do not have withholding on US, and are low in taxes:

Cyprus 0%
Georgia 0%
Andorra 30%
Estonia 10%
Malta I think it is a 10% withholding tax from adsense earnings in the US.

You can check the countries by yourself, putting an address of the country that has treated in the adsense page and see what is the retention of those countries

Where have you gotten that US withholds 0% for Georgia? United States - Corporate - Withholding taxes Unless it's outdated, I can't find Georgia anywhere.

 

[Marzio]

Unless it's outdated, I can't find Georgia anywhere.

It’a not outdated, Georgia is part of CIS states

 

[ferchina]

Where have you gotten that US withholds 0% for Georgia? United States - Corporate - Withholding taxes Unless it's outdated, I can't find Georgia anywhere.

Put a example address in Georgia in adsense, is 0%

 

[Mr Gus]

If in your current situation you would end up paying 4% in the UAE and you prefer living there then it's very easy choice.

Setup cost is somewhere around 10K if you go with Fred I believe, but you should ask him.

I know a lot of people in the UAE abuse UK LP's and US LLC's to avoid paying WTH, so far so good I believe but there is a risk.

 

[thedirtyteller]

It’a not outdated, Georgia is part of CIS states

But they withdrew in 2008

 

[Marzio]

But they withdrew in 2008

https://taxsummaries.pwc.com/united-states/corporate/withholding-taxes

I know a lot of people in the UAE abuse UK LP's and US LLC's to avoid paying WTH

How can they avoid paying WHT if they are in UAE? Do they use a fake treaty country address? Well at some point IRS will fight back.

 

[Hmmm]

It's from Maltese adsense account:

Setup cost 2-4k eur in 2022.
Only one thing to note - adsense allow only local IBAN (with MT beginning); only Maltese EMI's which is probably 3-5 is could be added to adsense. Local Maltese banks won't open you account if there is no real psychical presence in the country.
Wish you patience!

 

[Mr Gus]

https://taxsummaries.pwc.com/united-states/corporate/withholding-taxes

How can they avoid paying WHT if they are in UAE? Do they use a fake treaty country address? Well at some point IRS will fight back.

Yes they abuse it with a fake address, you can find so many LP's on the Company House register with UAE resident directors/shareholders, they don't even try to hide it.