Lowest income taxes countries in Europe

[Codio]

Hello,

I'm from Italy and i want to move somewhere in Europe where the Income Taxes are low. My option was Montecarlo but it's kinda complicated with all requirements (and expensive).
What's the best option? UK (even tho it's not in EU anymore)? Netherlands? Switzerland?

Perhaps, if there is a chance to go outside the Europe, what will you recommend? Dubai?

Best!

 

[JohnLocke]

Switzerland, Dubai (UAE), Cyprus and even the UK in certain setups can be some good places.

It's all depending on your specific situation so what I would suggest is to spend some money on an tax advisor in the country of your choice (or even in several countries) showcase them your situation and let the numbers speak.

 

[Codio]

Switzerland, Dubai (UAE), Cyprus and even the UK in certain setups can be some good places.

It's all depending on your specific situation so what I would suggest is to spend some money on an tax advisor in the country of your choice (or even in several countries) showcase them your situation and let the numbers speak.

Thanks you for your help. I saw that in the UK the income tax is up to 45% of income taxes (this is what i would pay). What makes you say that is a good place? Perhaps there are ways to pay less?

Best

 

[JustAnotherNomad]

Depends on your income and how you earn your money.
Malta, Cyprus, Bulgaria and Romania are popular option. For solo traders with lower income, Czechia can be a good choice. Portugal can also work.
You need to find a balance between taxes and the kind of lifestyle you like.

 

[Marzio]

What's the best option?

For an italian one of the best options is S. Marino

 

[Codio]

Depends on your income and how you earn your money.
Malta, Cyprus, Bulgaria and Romania are popular option. For solo traders with lower income, Czechia can be a good choice. Portugal can also work.
You need to find a balance between taxes and the kind of lifestyle you like.

My income is 200k per year. My favourite cities in Europe are UK and Netherlands but the first is 45% and the second is almost 50% on your income... I have my own company. What would you do in my shoes? Just wondering

 

[Cavendish]

My income is 200k per year. My favourite cities in Europe are UK and Netherlands but the first is 45% and the second is almost 50% on your income... I have my own company. What would you do in my shoes? Just wondering

Re UK it depends on how much you want to flip from the Company to personal income - the rate is 20% under £50k a year. Corporation Tax is currently 19% but will increase in the years ahead. Like others have said here, it's important to calculate the balance between desired lifestyle, taxes you are legally obliged to pay - and ways to reduce that tax burden / increase your "take home" pay by legally extracting sums from the Company.

 

[nobel]

ANDORRA 10% tax for AD company, dividend from AD company 0% Tax!

 

[Codio]

Re UK it depends on how much you want to flip from the Company to personal income - the rate is 20% under £50k a year. Corporation Tax is currently 19% but will increase in the years ahead. Like others have said here, it's important to calculate the balance between desired lifestyle, taxes you are legally obliged to pay - and ways to reduce that tax burden / increase your "take home" pay by legally extracting sums from the Company.

I understand, i don't have a very lavish lifestyle but i do want to build wealth and if i take home 200k per year, i will need 2 years to actually bring 200k in my bank account since the tax is 45%. There must be a legal way to pay less as possibile, otherwise how do rich people do to build wealth. I'm willing just to pay myself once a year with the dividends from the company, so perhaps the dividend tax are lower in UK?

 

[Cavendish]

I understand, i don't have a very lavish lifestyle but i do want to build wealth and if i take home 200k per year, i will need 2 years to actually bring 200k in my bank account since the tax is 45%. There must be a legal way to pay less as possibile, otherwise how do rich people do to build wealth. I'm willing just to pay myself once a year with the dividends from the company, so perhaps the dividend tax are lower in UK?

Unfortunately the UK Gov have closed the dividend tax loophole - anything above £2k a year is now taxable and substantial dividends are taxed at substantial rates! If you are looking at building wealth then pension contributions are an option. You can contribute up to £40k a year (please check as this is from memory) if your salary is this amount or above.

 

[Codio]

Unfortunately the UK Gov have closed the dividend tax loophole - anything above £2k a year is now taxable and substantial dividends are taxed at substantial rates! If you are looking at building wealth then pension contributions are an option. You can contribute up to £40k a year (please check as this is from memory) if your salary is this amount or above.

I see.. So, what about Cayman, Belize and friends? Let's say i 2 companies, one in Cyprus and one in UK and my residency is in the cayman island (or friends such as british verign, belize...) and i pay myself a salary/dividends. Would that be taxable or it will be 0% as i've read around?

 

[Cavendish]

I see.. So, what about Cayman, Belize and friends? Let's say i 2 companies, one in Cyprus and one in UK and my residency is in the cayman island (or friends such as british verign, belize...) and i pay myself a salary/dividends. Would that be taxable or it will be 0% as i've read around?

My knowledge does not extend to that where off shore links are involved - that would be one for more learned members.

 

[12345]

Maybe you could check Montenegro. It has 9% corporate, income and capital tax. Good lifestyle and affordable, by the coast is very nice place to live,much better than for example Bulgaria in my opinion at least. Also it was supposed to join Eu in 2025 but it will happen later probably, eventually they should join. As far as I know they have citizenship program now but it ends soon

 

[Codio]

My knowledge does not extend to that where off shore links are involved - that would be one for more learned members.

No problem, i appreciate your help.

 

[Codio]

Maybe you could check Montenegro. It has 9% corporate, income and capital tax. Good lifestyle and affordable, by the coast is very nice place to live,much better than for example Bulgaria in my opinion at least. Also it was supposed to join Eu in 2025 but it will happen later probably, eventually they should join. As far as I know they have citizenship program now but it ends soon

Not really my lifestyle, i'm more New York, Los Angeles, London kind of girl

 

[12345]

Not really my lifestyle, i'm more New York, Los Angeles, London kind of girl

Then Dubai seems like the best choice, apart from tax advantages cost of living is much lower than in cities mentioned

 

[Codio]

Then Dubai seems like the best choice, apart from tax advantages cost of living is much lower than in cities mentioned

Yes, that's why i mentioned it at the beginning. Any leads how to ask for residency, someone who can help on that?

 

[Cavendish]

Yes, that's why i mentioned it at the beginning. Any leads how to ask for residency, someone who can help on that?

@Fred is your man

 

[TenToedTom]

One and only - Monaco. If it's too expensive, there is no point in trying to save taxes. Better go back to work.

 

[Stahrk]

In Cyprus there are caps on Social Insurance and health care. Could be a relevant option for you at this income level. What kind of income constitutes those 200 K, is it dividend ?