Setting up an offshore company - Cyprus or Malta

[Everglow]

Hi folks,

I'm looking to move to portugal and live there - whilst opening a business in Malta or Cyprus.

The idea is to pay myself dividends from the holding company, to Portugal, where I'm able to receive them tax free.

I've heard Portugal are tightening rules when it comes dividends coming into the country. Specifically scrutinising Directors activity in foreign companies.

On the other side, Matla is perhaps considering a new legislation to avoid directors directing more then xxx companies.

Do you have any tips / advice with the above? I'm still digging and speaking to folks in Portugal / Malta.

If you've got any better ideas, would love to hear them.

Thanks

 

[LoveMyLife]

None of this will work for you. If you will be living in Portugal for more than 183 days, portugeese tax authorities will tax your foreign corporation as a local portugeese company. Portugal has strong CFC rules. Does not matter, where it will be incorporated. Portugal is a high tax country. Portugal residence permit is good for tax plannign just in case if you do not plan to live there more than 90 days per year.

 

[PaulKruger]

ot plan to live there more than 90 days per year.

In any other EUR country (I assume Portugal still belongs to EU ) the tax rule is 184 days, but you say that Portugal will not accept it if you live there more than 90 days?

 

[LoveMyLife]

In any other EUR country (I assume Portugal still belongs to EU ) the tax rule is 184 days, but you say that Portugal will not accept it if you live there more than 90 days?

If you live in Portugal for 183 days, you are tax resident automaticaly.
If you live there 90 days:
- If you are fullfiling at least 1 of 4 additional conditions of economical ties to the coountry, you are tax resident.
- If you are not fullfiling any of 4 additional conditions, you are not a tax resident.

But if you will live there, you will be fulfilling as least 1 or 2 conditions, so you will be a tax resident there. So, your foreign company will be tax resident of Portugal and you will have to pay a corporate tax in Portugal.

 

[JimBeam]

I guess that the @Everglow is considering this -> NHR Portugal - The complete guide to the non-habitual resident regime

 

[LoveMyLife]

I guess that the @Everglow is considering this -> NHR Portugal - The complete guide to the non-habitual resident regime

He is not. He plans to live there a full time.

 

[JimBeam]

Well he can live there for 10 years, tax free.

 

[LoveMyLife]

Well he can live there for 10 years, tax free.

You still do not understand what are CFC rules..

Yes, he can be tax free. As physucal person. But his companies NO. If he will live there and have a company in a foreign country with no real presence in a foreign country and if that company will be directed by him only, that company will be tax residente of Portugal. So his company will have to pay a Corporate tax in Portugal.

 

[JimBeam]

You still do not understand what are CFC rules..

Yes, he can be tax free. As physucal person. But his companies NO. If he will live there and have a company in a foreign country with no real presence in a foreign country and if that company will be directed by him only, that company will be tax residente of Portugal. So his company will have to pay a Corporate tax in Portugal.

Agreed.

But he said that he wants to get dividends there...
He didn't mention if he's also a director or UBO of that company.

 

[LoveMyLife]

Agreed.

But he said that he wants to get dividends there...
He didn't mention if he's also a director or UBO of that company.

He wrote, he is going to open a business in Cyprus or Malta.. if he is going to open a business, who will be UBO?