Question Leaving my home country

[rakka]

Hey guys

I am running an internet based business in my home country . I am since a few year fully remote and wanna cut the ties with my home country and move somewhere else. I am traveling a lot but need a base where I live 6 months per year and pay taxes. Ideally in the EU.

Been looking at a structure where i base the new company in Estonia (because they are remote friendly) and hire a director, maybe another manager role as well and get a real office (not one shared with 1000s of others). Then I register for NHR in Portugal.

From what a lawyer in Portugal told me: as long as there is another director based in the home country of the company then it's fine. But ideally I should not be the director at all. Not sure how that would work, can just imagine signing up for stuff like bank accounts etc is gonna be be a big headache without being a director, and also finding a director I can trust. Also since I would own 100% of the shares I think Portugal would still see it as Portuguese company, even though the lawyer says thats fine. What's your thoughts on this?

What do you guys recommend? Is there a better way to do this? I would ideally want to spend max 20-30k per year for a good set up.

I am not looking for 0% tax just don't wanna pay 50%+ tax. What's a good solution?

 

[CyprusLaw]

Hey guys

I am running an internet based business in my home country . I am since a few year fully remote and wanna cut the ties with my home country and move somewhere else. I am traveling a lot but need a base where I live 6 months per year and pay taxes. Ideally in the EU.

Been looking at a structure where i base the new company in Estonia (because they are remote friendly) and hire a director, maybe another manager role as well and get a real office (not one shared with 1000s of others). Then I register for NHR in Portugal.

From what a lawyer in Portugal told me: as long as there is another director based in the home country of the company then it's fine. But ideally I should not be the director at all. Not sure how that would work, can just imagine signing up for stuff like bank accounts etc is gonna be be a big headache without being a director, and also finding a director I can trust. Also since I would own 100% of the shares I think Portugal would still see it as Portuguese company, even though the lawyer says thats fine. What's your thoughts on this?

What do you guys recommend? Is there a better way to do this? I would ideally want to spend max 20-30k per year for a good set up.

I am not looking for 0% tax just don't wanna pay 50%+ tax. What's a good solution?

I could recommend two options:

(a) Cyprus company and becoming Cyprus tax resident - you can become a Cyprus tax resident using the 60-day rule. This would mean 12.5% corporate tax plus 2.65% on dividend, therefore your effective tax rate would be around 15%

(b) Cyprus company using nominee directors and using the Portugal NHR - you have a similar effect to (a) above - we have used this on multiple occasions before.

Happy to PM you to discuss more.

 

[Mr Gus]

You could go with either Malta (5%), Cyprus (15%) or Bulgaria (7.5 or 10%).

The NHR is a risky option if you are running an active business, but you might get away with it, but why risk it?

Also check if your home country has a tax treaty with your new country, this will give you treaty protection (if you meet the requirements of residency given in the treaty) in case the tax authorities from your home country decide to go after you.

Italy also have a program if you are a freelancer, if you would move to the less developed parts of Italy (Southern Italy and Sardinia) this could also lower your income tax bill to 5-10%.

There are possibly some alternatives outside of the EU but within Europe;

Monaco (0%), Andorra (10%), Montenegro (9%), Georgia (5-20%), Gibraltar(idk), Isle of Man(idk), Channel Islands(idk).

 

[4br]

Monaco (0%), Andorra (10%), Montenegro (9%), Georgia (5-20%), Gibraltar(idk), Isle of Man(idk), Channel Islands(idk).

The Isle of Man and Channel Islands have 0% corporate tax and 20% income tax, with a threshold of about £12,000 on The Channel Islands and £14,000 on The Isle of Man. There is no capital gains tax, but I don't know what the situation is with paying dividends to yourself from your company. I believe in The UK, you need to pay yourself something that can feasibly cover your living costs, but I may be wrong.

The Isle of Man is not too expensive in terms of property, but Guernsey and Jersey are very expensive. £1,000,000 does not go a long way there. And as a foreigner you would only be eligible t obuy certain properties, which have higher prices. Alderney is the exception there, but it has a population of 2,000.

You can go for UAE, which I think is more secure than trying to spread yourself out in tax-happy The EU. You want to avoid the appearances of being offshore, which The UAE does a better job at. No taxes (in your case), but there are some higher fees in incorporation and visa fees that are essentially the tax. If you have a very high income then it's chump change. You only have to remain in the UAE for a few days a year to keep it all running. It seems you can have it for $5K pa - https://www.offshorecorptalk.com/threads/dmcc-and-uae.29752/#post-194431

Rent somewhere decent is quite high, unless you are used to living in major cities, then it's normal. Though you can save if you want to live in a more remote, less desirable area (maybe $6K / year). But owing to low demand for property as opposed to rent, properties are quite cheap to buy and you could vacation rental it out 11 months per year for 10% ($12,000+). Then your association with Dubai will be a bit of money in your pocket.