Leaving UK and keeping UK company there. Where to go?

[brescape]

Hi all,
congratulation to everybody for the amount of information you provided.
I am EU citizen (Italian) and I have a UK Limited company that I use to provide remote professional service to company already outside UK, at the moment I live in UK and I pay myself using dividends. I am planning to leave UK for personal reasons, because I want to reuinite with my non EU partner (turkish with no residence permit in Shengen or UK), and I want to move in EU, but I have no specific plan, so I am kind of open to options.

Although my move has a mix of personal and business reasons, my specific question to this foum is to understand from a tax setup, which countries would optimise my bill. and I was wondering if anybody has any advices.

I would prefer to keep my company in UK as I have a number of NDA and other paperwork in place, so I cannot change the point in which my clients pay their bill, I could create another company to which I invoice, but I am not sure if this is acceptable (I want to stay within the boundary of tax laws). So I guess the easy setup would be to keep my company in UK (and pay corporate tax there) and then pay myself dividends in a country that has not so heavy taxes on foreign dividends.

I was looking into Spain (and specifically to teh Beckham tax law) as Spain has the convenience of easy immigration for my non EU partner (she Turkish and has no residence permit) via de facto couple (copia de hecho), that in Spain is available also for non resident (this is not the case for example in Italy in whichyou can be de facto only between couples that are already resident), however, my main question, is which countries I can have a good setup from a tax persective. I would imagine Portugal? Other countries?

 

[Marzio]

If you feel adventurous you could try Sark

 

[brescape]

If you feel adventurous you could try Sark

Wow, I did not even know it existed, but I would prefer some more main stream options first.

 

[ShillGates]

Cyprus, you could live in the turkish side whilst manintaining cyprus residency europe. best of both worlds for you. Plenty of turkish, lebanese, and other folk around as well in eu cyprus.... and best of all since you italian, dividends are tax free. however you will need to appoint a director of some sort i nthe uk to make sure your company remains in the uk and bank accounts dont get closed.

 

[John Andrews]

Couldn't he transfer the UK company tax residency to Cyprus? Much better than paying UK corp tax and it would(should) have no effect on clients.

 

[ShillGates]

true, the uk company becomes tax resident in cyprus in effect, although noone checks!

but the bank account provide rin uk will not be too happy wit this and close the account?

 

[brescape]

About the company residency, it is interesting, I didn't know you could move it, I always assumed you should close it and open a new one.

Any other options, apart cyprus? I guess if I move, my company would move too, or are there any country that let it stay where it is?

 

[ShillGates]

They all do let the company stay where it is - it depends on management and control - if you
Manage it from cyprus it will be resident there - if you do this from uae probably there - double tax treaty you need to check and where you want to go and if permanent or temporary and if your U.K. company is worth saving

banking is the most important bit - your banking in theU.K. is heaven compared to most of the shitty offshore crap being Touted here regularly

 

[ShillGates]

No offense intended - but do you really want to send every invoice to your bank to check if it can be paid

 

[brescape]

I have a small number of invoice, and I do send also to my UK bank because otherwise, they get blocked for compliance reasons. Said that, yes, I am pretty happy with my bank in UK (relatively speaking)

 

[Martin Everson]

You will run into CFC issues keeping your UK company so you may want to pick a EU country that has a decent CFC exemption threshold relative to your earnings when moving. If re-domiciling your company then investigate exit taxation under ATAD before doing so. I would seek some professional advice from Spainish tax advisor as Spain in merciless with taxes.

 

[brescape]

Yes, I am obvioulsy willing of researching and use professional help, however, i wanted to have some leads on which countries would be worth exploring, and why. I have low cash in the company so I could potentially dissolve it and take the effort to create a new one in another jurisdiction. I am a bit clueless in which direction to look thorugh.

 

[CaptK]

Cyprus Non Dom sounds like the best solution.
You will have to claim a refund on the tax 35% and pay dividends tax of 5%.
That way you keep your UK company but make your UK company the holding company of the Cyprus entity.

I have just set up a UK holding for a client for this purpose but know exactly how it works.
Double check with a Cypriot accountant.

Or set up an LLP with the same name with the LTD as a partner and you as the other partner.
As you will no longer be in the UK you pay your tax in the jurisdiction you settle in.


UAE is the easier option for an all round ease of residency for you and your partner. You can be the company owner and sponsor her as a staff member.

 

[brescape]

Can somebody comment on a Serbian setup with either a local company or not? For us both is easy to get residency either with investment program. Anybody has an idea?

 

[CaptK]

Here is the UK/Cyprus set up

• Shareholder is resident without domicile in Malta
• Subsidiary in Malta pays 35% tax, foreign shareholder receives 30% refund, final tax 5%. Requirement is foreign shareholder, therefore clients need a foreign company
• Because of the “total imputation” system, the final shareholder can receive the dividends tax free from the UK holding and even remit them to Malta (because the subsidiary in Malta had already paid the 35% tax)
• Holding needs no bank account, dividend payment goes directly to the shareholder and refund goes to the company and from there to the shareholder

 

[SapoLoco]

Because of the “total imputation” system, the final shareholder can receive the dividends tax free from the UK holding and even remit them to Malta (because the subsidiary in Malta had already paid the 35% tax)

Am I missing something?

" 1.5.Under the remittance basis of taxation -
-all income arising in Malta is subject to tax, regardless of where it is received
-income arising outside Malta is subject to Maltese tax only if and to the extent that it is received in Malta
-capital gains arising outside Malta are not subject to tax, even if they are received in Malta "

https://cfr.gov.mt/en/inlandrevenue... for Individuals under the Income Tax Act.pdf

Holding needs no bank account, dividend payment goes directly to the shareholder and refund goes to the company and from there to the shareholder

I thought the whole point of the setup is to have a layer between the shareholder and the subsidiary in Malta so the dividend is "arising outside of Malta". Wouldn't transferring the dividends directly from the subsidiary to the shareholder defeat the purpose?

 

[CaptK]

That is from my accountant in Malta, he is 70 years old been in the business for 50 years.

There maybe something else I'm missing but I have been working with him for 5 years and have passed every audit we have had.

 

[Maltaman]

That is from my accountant in Malta, he is 70 years old been in the business for 50 years.

There maybe something else I'm missing but I have been working with him for 5 years and have passed every audit we have had.

Hi. New here. I am resident non dom in Malta with UK holding. Planning on setting up Malta Trading. How much does your accountant charge you yearly? I would need an accountant and help to incorporate.

 

[CaptK]

Zugimpex.com

Give them a call as everything is on a case by case basis.