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Recommendation for software reselling business

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Cyrex

Mentor Group Gold
Hello!

Im currently running a software reselling (cleaning tools ala ccleaner etc) service for private customers, mostly the EU.
Receiving 20-50k/m from mostly Stripe and also rarely directly to my bank account.

Following issue:
- Being located in germany i need to pay the 19 % VAT or do something like reverse-charge which isnt well seen here
- The developer of the softwares (which gets XX% of the sales) is a private entity without any business registered (there from no invoicing and so on)
-> Paying 55 % company and income tax with social insurance is breaking my neck

I saw that it is possible to do something like a company formation in Dubai or other countries. Is it really worth it for the amount of money i earn?
Are there any alternatives?
 

Sols

Staff member
Mentor Group Gold
As long as you live in Germany, there really isn't much you can do. You can't just incorporate in UAE and call it a day. Those days are decades behind us.

But if you move to UAE and sever your ties to Germany, yes, you'd be looking at no tax.

Other options would be Malta or Cyprus, where you can get away with somewhere in the range of 5%-12.50% tax burden.

In terms of VAT, you are required to pay/charge VAT as long as you sell to EU customers. Enforcement of this is quite lax still, though, and it's no secret a lot of non-EU companies aren't complying.
 

jscargo

Active Member
Yes it is worth it

1 - Move to the Czech Republic (get everything there, a dwelling, a car, company, everything), sever ties with Germany, do not maintain accounts in Germany. Do your Abmeldung.

2 - Don't stay in Germany for more than 183 days per day, but you can visit clients and family if you need it.

You will still pay taxes but the overall burden will decrease substantially (if you still want to be close to Germany and visit often).
Otherwise follow the suggestions of @Sols if you want to reduce it to even lower levels.
 
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DLS Dubai Company Formation and banking solution
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