I am a business consultant what should I do to maximize income?

[thisguyducks82]

Hello,

I am posting here since I know you guys are the best in the field!
Here is my situation:
- 15 years of business consulting experience
- IT citizen
- Living in CZ and paying taxes here (as well as my healthcare)
- I go back and forward between CZ and DE for personal reasons

I am currently onboarding several customers projects and I my income will be well above 15k monthly, and I would like to find a way to pay the lowest amount of taxes (considering I am between CZ and DE) and get a decent healthcare too. Ideally, the German healthcare is better but it would mean for me having my tax residence there (not ideal).
What would you suggest? I would like to have an "European" healthcare and a favorable tax regime that would allow me such flexibility, meaning being covered in both CZ and DE.
Suggestions?
thanks

 

[JohnnyDoe]

1. Move to a warm, tax free country. Save on taxes and on heating.
2. Buy a private insurance policy.
3. Enjoy.

 

[thisguyducks82]

Hello Johnny, the thing is that I can't do that I have to stay in Europe between CZ or DE so I can't do that

 

[JohnnyDoe]

The European Health Insurance Card is valid through the whole EU. As a CZ resident you can access to treatments in DE like a DE resident.
https://ec.europa.eu/social/main.jsp?langId=en&catId=559&furtherNews=yes&newsId=10635

 

[void]

1. Move to a warm, tax free country. Save on taxes and on heating.
2. Buy a private insurance policy.
3. Enjoy.

this is the right solution

if you can't move away then your probably only (not blatantly illegal and dangerous) option is not to earn the money... depends whether you're OSVC or S.R.O. - somebody can take care of your profit, especially in business consulting this is widely used

 

[thisguyducks82]

I have an ICO

 

[void]

I have an ICO

OSVC then

if you use 60% lump sum for costs then you're facing about 28-30% taxation (including mandatory social and health "insurance") - you'll also have to register as a VAT payer (which is probably no big deal if your clients are businesses) - there is zero space for optimization

if you use real costs and bookkeeping then it really depends on your situation and you have some options to "move" at least some part of your profits elsewhere...

 

[Onassis]

Any chance you have a family member in a low tax country? You could use them as either a trustee, beneficial owner, company director or a combination of.

 

[Konstanz]

1. Move to a warm, tax free country. Save on taxes and on heating.
2. Buy a private insurance policy.
3. Enjoy.

Good suggestion. But difficult to find such place with 15k month

 

[JohnnyDoe]

Good suggestion. But difficult to find such place with 15k month

In most of the Caribbean islands you can live like a king with that income

 

[Konstanz]

In most of the Caribbean islands you can live like a king with that income

which place you live like king with 15k? just for example
isn't it like you have to have millions to get residency in Bahamas, Cayman?

 

[void]

isn't it like you have to have millions to get residency in Bahamas, Cayman?

there is more to Caribbean then just these two... for Jamaica, DR, Santa Lucia or Dominica this is way enough...

 

[JohnnyDoe]

there is more to Caribbean then just these two... for Jamaica, DR, Santa Lucia or Dominica this is way enough...

and SVG, Grenada, St. Kitts, Antigua

 

[thisguyducks82]

15k are almost net - maybe I can live in Germany but my tax based being in CZ?
then get some private healthcare that covers Europe ? any suggestion?

 

[scooterguy]

15k are almost net - maybe I can live in Germany but my tax based being in CZ?

You could do that but it would be tax evasion. If Germany found out, you'd be in trouble.

Maybe consider moving to Romania, you could minimize taxes to around 10%-15%, by using a micro company (1% tax for income up to 500K EUR/year) and hiring yourself (with a basic salary and dividends at 8%).

 

[JohnLocke]

1. Move to a warm, tax free country. Save on taxes and on heating.
2. Buy a private insurance policy.
3. Enjoy.

If only everything was as simple as it's written here, then I think no one would seek the fortune of lots of money and tax exemption. There are just factors that make it so most people can't follow these simple three steps (I completely agree that it is that simple) - there are human aspects to it and familial aspects that one probably forgets. It's worth thinking really carefully before making the next move in one's efforts to find happiness in tax freedom and lots of money.

 

[uncreative]

If you have just a partnership or a self-employed, you can live probably 15 years tax free by moving to germany.

( video is in german )
You bring a lot of value to Germany and you can write off this value over 15 years.

Example, you make 200k a year in profit, then according to German law your business has a value of 200 x 13.75 = € 2,750,000! You bring this value to Germany and can depreciate it on a straightline basis over 15 years, so that you wont pay any taxes if your income remains more or less the same.

It is the opposite process to exit taxation and can be applied in Germany, speak to a good tax advisor.

But important a corporation is not working. but maybe you get your earnings from a self employed or partnership status or can plan it p.E 2 years in CZ self employed and moving later to germany.
In this case you can profit extremly from this german tax rule.

 

[JohnnyDoe]

If only everything was as simple as it's written here, then I think no one would seek the fortune of lots of money and tax exemption. There are just factors that make it so most people can't follow these simple three steps (I completely agree that it is that simple) - there are human aspects to it and familial aspects that one probably forgets. It's worth thinking really carefully before making the next move in one's efforts to find happiness in tax freedom and lots of money.

The only impediment is the boiling frog syndrome. If humans were meant to remain stationary, they would have roots and be known as trees.

 

[thisguyducks82]

what is tax regime called?

If you have just a partnership or a self-employed, you can live probably 15 years tax free by moving to germany.

( video is in german )
You bring a lot of value to Germany and you can write off this value over 15 years.

Example, you make 200k a year in profit, then according to German law your business has a value of 200 x 13.75 = € 2,750,000! You bring this value to Germany and can depreciate it on a straightline basis over 15 years, so that you wont pay any taxes if your income remains more or less the same.

It is the opposite process to exit taxation and can be applied in Germany, speak to a good tax advisor.

But important a corporation is not working. but maybe you get your earnings from a self employed or partnership status or can plan it p.E 2 years in CZ self employed and moving later to germany.
In this case you can profit extremly from this german tax rule.

 

[JimBeam]

1. Move to a warm, tax free country. Save on taxes and on heating.
2. Buy a private insurance policy.
3. Enjoy.

If you want to be close to EU maybe Cyprus could work for you as well (EU member, EUR currency, low taxes, hot weather, 2-3hour flights to just about anywhere in Europe)