NL resident - Online Consulting business - should I offshore?

[MatW]

Hi,


I'm a resident of the Netherlands, but I come from Australia, I have started an online consultancy and my clients are all outside of the Netherlands (US/Australia etc)


Should I set up my business offshore and which place would be best? I heard there are tax treaties between Cayman and Netherlands.


Basically I want to reduce my declarable income to almost 0, since I have to declare global income.


What would people advice would be the best way to do this?

 

[JohnLocke]

What income do you actually have? I'm asking because you are referring to the Cayman?

 

[MatW]

my income isnt much currently but eventually it would be 100k+ I have been looking for a country that doesn't share tax information with the Netherlands - maybe the Seychelles?


basically I just want to draw a wage from the IBC and pay tax on that

 

[Zqq]

my income isnt much currently but eventually it would be 100k+ I have been looking for a country that doesn't share tax information with the Netherlands - maybe the Seychelles?

There is a TIEA between the Netherlands and the Seychelles.

basically I just want to draw a wage from the IBC and pay tax on that

What do you do if the tax authority asks you about the source of your wage? Most jurisdictions apply reverse burden of proof in money-laundering cases and many jurisdictions consider tax evasion a predicate crime to money-laundering.


Instead of evading tax, sit down with an accountant or lawyer and draft up a tax avoidance or tax reduction structure. I know the Netherlands are often used for tax reduction purposes, though I am not sure if residents qualify.

 

[MatW]

i dont want to evade tax - i just want to reduce my tax to a wage i can draw from the business

 

[JohnLocke]

Best would be to find a country like Cyprus or similar who has a Double Tax Treaty with the Netherlands. You may need to consult a tax specialist in your country to get a structure that will be accepted by the tax authorities in your country, but doing this correct will reduce your tax burden dramatically, the is a possibility that it simply isn't possible to do so in your situation, so I want to point your attention to the importance to get in touch with a professional.