Buffer payments to reduce tax burden

[AND2]

Hi,

can't login, registering again :shrug:

say you earn 100K and above which gets taxed 45%-ish in Spain. Is there a legal way to get payed 20K over 5y and pay at a much lower tax rate %?
- An LLC + dividends doesn't work as tax man tells you you're cheating. Dead end
- A foreign LLC neither as the 'activity' of the LLC happens in Spain hence dead end
- A real umbrella cpy, in a low tax region, that paces down payment would be ideal. Do they exist? Any references?
- Some PIF or anstalt that just hold the excess in gold (foreign gold holdings don't report to tax auths in Spain lol, bastards), credited directly by the umbrella - your 'salary'
- Any gold bullion payment schemes or similar still standing

I can only think of some umbrella in Andorra to invoice and pay me a small salary to make it look nice, the excess belongs to the cpy but I keep it in custody as gold or cash which I will be payed spread over time in the long run. We meet once a month to arrange...

Any ideas on how to pace down/spread payments to lower tax % highly welcomed. Any Andorran contacts welcomed.

Thx in advance.

 

[Tax Cow]

What message does it send to a Spanish tax official when they see you claiming overseas income from Andorra or Gibraltar - would they find it interesting, wanting to have a closer look, or not?

Look beyond Andorra and Gibraltar if you live in Spain. Wealthy Andalusians are known to use Gibraltar for their optimizations, and the taxman is focusing in, issuing fines regularly. The same with Catalans who go on a "ski holiday" to Andorra.

Both jurisdictions are good for tax optimization if you live in Finland or Estonia. For a Spanish dude or gal like yourself, I recommend to be paid by a UK or Swiss umbrella company instead. Plausible, and class above the lazy idiots

 

[TurnedToRobot]

I would setup a UK company for this purpose if you ask me.

 

[AND2]

Hi,

first and foremost thanks for taking the time to reply.

I see somebody in a similar situation here so I will use that thread meanwhile.

Yes I am aware And and Gib may raise flags. UK & Swiss no idea who could I contact that would lend themselves to such agreement. Unless I owned the cpy itself in some legal way allowing me to do that myself. Mmmm... need to think/read more...

 

[TurnedToRobot]

Well, you could setup some UK companies and invoice these or send invoices from these entities, use nominees or similar to get this work.

 

[AND2]

Well,

I have been giving this a thought and I don't see how to make it work. Sooner or later, as I read in this forum, a new law will go through in Europe where you will have to inform of all cpys you own etc So the moment you mention the UK Ltd you will get taxed to death. If you move money from UK to a low tax place you will raise flags.

And the nominee route I don't understand how it would work tbh. If you're a UK nominee HMRC will tax you, if you're a Spanish nominee the spanish will tax you...

So is what you are suggesting a UK Ltd owned by a middle man, tax resident in some tax friendly place, and him to be nominee to appear on all papers?