E- residency avoid tax inversion

[Anonimo69]

Hello there if you open a company in Estonia with the program of e-residency is it possible avoid the " tax inversion " in the different place of fiscal residence ?

 

[Clip]

What's the "tax inversion"?

You can run a company in Estonia and pay yourself a salary in another EU country. What I won't recommend is to do all your sales using Estonian to invoice you own country residents. Tax office considers this as fraud

 

[Sols]

E-residency doesn't mean anything except that you are pre-KYC'd which can sometimes make opening bank account and forming a company in Estonia easier. It has no bearing on actual, physical tax residency.

 

[JohnLocke]

Unfortunately it's not a way to avoid to pay taxes locally. For some year ago we had this discussion already here on the forum, at this time it was poisslbe to use the e-residenct as an advantage to open bank accounts and a company, today it's a waste of time.

 

[Anonimo69]

It is valid also if I travel a lot and I do not do any type of contract in my country of residence like the phone bill / electricity / rent ecc.. in this case do I have still to pay here the tax too ,is it less traceable ?

 

[Sols]

No, it's an e-residency, not an actual residency. You need actual residency if you want to do things involving taxes.

 

[JohnLocke]

E-residency in Estonia has been discussed here a lot of times, you want to have a read here:
https://www.offshorecorptalk.com/threads/estonia-e-residence.23205/https://www.offshorecorptalk.com/th...-onboarding-e-residents-by-end-of-year.27296/https://www.offshorecorptalk.com/threads/estonia-e-resident-company-vs-freezone-uae.24079/
And the biggest thread for years ago:
https://www.offshorecorptalk.com/threads/about-estonian-e-residency.17292/

 

[Anonimo69]

No, it's an e-residency, not an actual residency. You need actual residency if you want to do things involving taxes.

With the e-Residency they dont give you legal residency in Estonia with virtual office? I plan to work online as a sole proprietor and I travel out of my country of residence most of the year without doing here paper agreements ,I can pay only job tax in Estonia?

 

[burden]

Forget it unless you can prove you are out of your countru more than 183 days a year!

 

[Anonimo69]

Forget it unless you can prove you are out of your countru more than 183 days a year!

If it is only enough this will be great

 

[Sols]

With the e-Residency they dont give you legal residency in Estonia with virtual office?

No, they don't give you legal residency in Estonia. You don't get a physical address or residence at all.

Have you done any research?

https://learn.e-resident.gov.ee/hc/en-us/articles/360000711978-What-is-e-Residency
https://learn.e-resident.gov.ee/hc/en-us/articles/360000721597-Estonian-tax-basics

I plan to work online as a sole proprietor and I travel out of my country of residence most of the year without doing here paper agreements ,I can pay only job tax in Estonia?

If you have a company in Estonia, the company and its income are subject to Estonian tax law. But that doesn't necessarily mean you can legally avoid tax in your home jurisdiction, even if you spend most of your time abroad. Speak with a local lawyer/tax adviser.

 

[Anonimo69]

There are a lot of conflicting information around about this

 

[speedster]

No, they don't give you legal residency in Estonia. You don't get a physical address or residence at all.

Have you done any research?

https://learn.e-resident.gov.ee/hc/en-us/articles/360000711978-What-is-e-Residency
https://learn.e-resident.gov.ee/hc/en-us/articles/360000721597-Estonian-tax-basics

If you have a company in Estonia, the company and its income are subject to Estonian tax law. But that doesn't necessarily mean you can legally avoid tax in your home jurisdiction, even if you spend most of your time abroad. Speak with a local lawyer/tax adviser.

Company tax residency isn't guaranteed, this would largely depend on your home nation's CFC rules. Also, OP would do well to differentiate between personal and corporate tax residency

 

[speedster]

There are a lot of conflicting information around about this

Not really. Tax residency is a pretty simple concept

 

[burden]

This is not a solution that is applicable in Europe any longer if it has been at all! Just to make it easy for people that don't have read the entire thread!

 

[CoffeeCherryTea]

I have E-Residency in Estonia but for company formation I still await what Lithuania is offering from Jan. 1, especially regarding banking options. E-Residency is pretty perfect IMHO for nomads and non-CFC residents, as employment income from your Estonian-company is not taxed at all, only dividends at 25%. Zero share capital required at the start, and capital can be contributed with EMI like Transferwise. Costs to run it all inclusive around €600/year, I am intending to use virtualofficeinestonia.com.

 

[JohnLocke]

E-Residency is pretty perfect IMHO for nomads and non-CFC residents,

That's the point, I belive there is only a handful around here that actually have this status.

 

[Clip]

E-Residency is pretty perfect IMHO for nomads and non-CFC residents

Ireland also worth looking. 12.5 - 6.25 Corporate tax and non-EU residents pay 0%