Setup as Freelance/Company in Georgia v UK

[whatsnext]

Hello everyone,

After reading pages and pages of the forum regarding the setup as freelance/company in Georgia and UK I'm not sure which way is the best for me. I would like to get some advice to choose properly.

I'm a designer/musician, and Spanish resident, and don't know exactly which way is the best for me. I'm working around the world with no fixed place, so I'll keep my Spanish residency. Info about me:

- Working as consultant and selling music on Bandcamp.
- My clients are Italian, USA / UK, Spain, Germany mostly.
- Im both cases I will pay some website to do the setup.
- A Transferwise business account could work as a my bank service for the company/freelance?

I saw that UK usually it's more expensive and also I must pay 20% (I'm planning to earn around 25K/year) in TAX at the end of the year. I'll hire an accountant to have all the invoices, expenses, etc in order... Maybe more credibility for the client. + annual renewal.

In Georgia, If I'm correct, just need to pay the setup and no need to have an accountability, keeping with me the invoices for send to an accountant. + annual renewal.

Any advice or thread that I'm missing regarding a similar case will be welcome,
Thanks

 

[Sols]

If you live in Spain, you need to pay Spanish tax. That's just a fact of life.

You could go the unnecessarily difficult route of setting up a UK company or, worse, a Georgian company. But all it's going to do is introduce a lot of cost and overhead while not doing anything to legally reduce your Spanish tax burden. The foreign company becomes tax resident in Spain and must comply with Spanish tax law, as must you personally.

If it's just you in the business, speak with a Spanish tax adviser about becoming a self-employed autonomo.

Whether it's today or tomorrow, through public company registers or through CRS/AEO, Spain will very likely learn about your company and when the tax man comes with fines and penalties, you're going to wish you had done it right from the start.

 

[whatsnext]

Thanks Sols,

The things changes If I start my residency in UK?

 

[Sols]

The things changes If I start my residency in UK?

The principle is the same in nearly all countries. If you move to the UK, you're subject to UK law and a Georgian company operated/mnaaged from the UK would be liable for UK tax. But if you move to the UK and start a UK company, you're setting up a perfectly compliant and sustainable business. No need to worry about fines and jail time for tax evasion as long as your UK company follows UK law.