I wouldn't call this outsmart but rather find loopholes in the law and use them.
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Freelance taxes planning
- Thread starter WhiteAngel
- Start date
It's still illegal if they live in France but pretend to live in Andorra. Don't they use any credit cards / mobile phones / bank accounts in France?
Of course, if you are breaking the 183 day rule regardless of what the situation is you have a legal situation. But my guess is France has a lot of people who live in France for more than 183 days and have no residence in France. I'm sure France is eager to gather them all up and start asking for proof that they have been outside of the country for more than 183 days.
France is like Germany and most of the Scandinavian countries, they are tax aggressive and try to squize out every single tax cent they can from their citizens.
I see... As @Martin Everson and @W4rhol said, there's no good solution while you live in France. Still, my solution with the company in tax favorable region ruled by relatives and paying salary that is almost tax-free in France looks viable but requires involvement of other people and for them to be able to control the company properly (not suitable for everyone).
correct, most often you have to consider the costs involved to manage your setup and compare them to the true tax you have to pay.
When you do the addition of all the taxes you pay as business owner (66.78%), all the setup (no matter the cost is) worth it
Just move abroad. you can come back to France on the weekends and stay in a 5 star hotel with the money you save in taxes. 
Pretending you live in a country is equal to suicide..lol. You know the number one way people get caught doing this? Its not via phone records, cards etc. It is via friends, family, business partners, girlfriend/boyfriends and neighbors. Anybody with an axe to grind can betray you and tip of the French tax authority or even accidentally say "oh Mr X I see him every morning going for a jog"...lol.
Pretending you live in a country is equal to suicide..lol. You know the number one way people get caught doing this? Its not via phone records, cards etc. It is via friends, family, business partners, girlfriend/boyfriends and neighbors. Anybody with an axe to grind can betray you and tip of the French tax authority or even accidentally say "oh Mr X I see him every morning going for a jog"...lol.
The way I understand this situation is:
If he already gets paid via a marketplace such as Upwork for work, could he shut the upwork account and start new one on the name of his Panama company with a Cyprus bank account to get paid by his clients. Then bill the Panama company for consultation fees and get the money in France Via Upwork middleman. However, he would still remain the UBO of the offshore company. Is this why he can't optimize his taxes?
Now, if he had a Panama resident visa since it is easy to get one for Panama friendly nations list, his bank account would show him as the Panama resident even if he lived in France, as there would be no residency requirements in Panama. Would tax optimization still be a problem?
If he already gets paid via a marketplace such as Upwork for work, could he shut the upwork account and start new one on the name of his Panama company with a Cyprus bank account to get paid by his clients. Then bill the Panama company for consultation fees and get the money in France Via Upwork middleman. However, he would still remain the UBO of the offshore company. Is this why he can't optimize his taxes?
Now, if he had a Panama resident visa since it is easy to get one for Panama friendly nations list, his bank account would show him as the Panama resident even if he lived in France, as there would be no residency requirements in Panama. Would tax optimization still be a problem?
Thank you for information @Martin Everson. I didn't know they can ask neighbors, relatives, ... They are really aggressive in theirs willing to get taxesJust move abroad. you can come back to France on the weekends and stay in a 5 star hotel with the money you save in taxes.
Pretending you live in a country is equal to suicide..lol. You know the number one way people get caught doing this? Its not via phone records, cards etc. It is via friends, family, business partners, girlfriend/boyfriends and neighbors. Anybody with an axe to grind can betray you and tip of the French tax authority or even accidentally say "oh Mr X I see him every morning going for a jog"...lol.
Thank you for information @Martin Everson. I didn't know they can ask neighbors, relatives, ... They are really aggressive in theirs willing to get taxes
With millions of people to monitor the taxman relies on tip offs to start investigations. Investigations are never really random there is always something that triggers it
Panama company + Cyprus bank account is this still possible in 2018?
It would be unworkable for the reasons I mentioned in previous post. He will be spotted out and about while being in France unless he goes into deep hiding in France. You also open yourself up to blackmail if anyone works out what you are up to.
Hello,
I have a solution for you: 12% taxes on your business income, all legit and no issue with the french taxman.
I also have another couple of solutions, no need to start an offshore structure except if you aim at a 6 digits income, do you??
BTW this place of incorporation rule even if true is not really applied...but of course if you start driving a Panamera when declaring none or very low income...
Thank you for information @Martin Everson. I didn't know they can ask neighbors, relatives, ... They are really aggressive in theirs willing to get taxes
You can join forces with non-frenchmen and create a tax-free entity in some country as long as you control (directly or indirectly) <50%. Then you should get 30% tax on dividends in France.
Of course, you just need to setup a game where you all end up creating an equal amount of business for the tax-free entity.
how did you go about it if you don't mind? otherwise please PM me with information of your findings if possible.
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