Question Minimize tax: Swedish company owned by offshore entity?

[DOWGY]

Hi,

This is my first post here and want first of all to thank everyone for the helpful posts, answers and knowledge!

I'm about to start a company in Sweden, but am thinking of how I can avoid drowning in taxes (initially and forever). My longt term goal is, if I'm successfull, to be able to copy this procedure on new ideas/companies, hence Company A below could be 1-10 companies (in various EU countries) down the line.

First question:
My goal is to be able to live in Sweden (for now), while starting up some companies but minimize all taxes as legally as I can. My thinking of setting up would therefore be the following, which I would much appreciate your advice (/ input) on.

Company A - A swedish registered company owned 100% by company B (conducting business in Sweden). Company A, har 1-2 employee(s), which I'm 1 of, living in Sweden (for now), taking out a low income salary to be taxed in sweden but still reap benefits such as health insurance, child care etc.. Company A will pay e.g. licensing fees (and/or consulting fees, interest rate on company loans) to Company B, so that Company A does not make any profit (or loss).
Company B (a holding company?)- A e.g. Maltese registrerad company. Makes profit on the companies and pays low company tax in Malta, + pays out dividends (with little to no tax) to owners (me and my business partner) of Company B. It would also be a long term goal that Company B, could lease cars, own houses etc. instead of me as a person (if Sweden starts up wealth taxes in the future).

In Sweden we pay company tax(>20%), high taxes on salaries (>55%) + VAT (25%, which cannot be avoided )etc. I would like to minimze the amount of taxes I am paying while still operating business and living in Sweden (for now).

All input / tips and advice is highly appreciated!

 

[Sols]

Any company that you own or control from Sweden is Swedish for tax purposes. Failure to comply with that is a crime, and it's a crime that's increasingly easy for law enforcement to investigate and prosecute.

That Malta company is going to be Swedish, unless you can demonstrate that it is a bona fide Maltese company with local directors (not just nominees), local employees, paying local taxes, and so on just like other companies in Malta.

However, you can defer and potentially reduce some taxes by introducing a holding company. This is mostly useful in case you sell one of the businesses.

The best way to avoid Swedish taxes is to not live in Sweden. If you live in Sweden, you're going to have to pay Swedish taxes. That's just the reality of it nowadays. Unless you have enough means to set up actual businesses with operations (not just shell companies), in which case you might be able to get away with only paying yourself dividends and paying capital gains tax on that instead of salary.

 

[DOWGY]

Any company that you own or control from Sweden is Swedish for tax purposes. Failure to comply with that is a crime, and it's a crime that's increasingly easy for law enforcement to investigate and prosecute.

That Malta company is going to be Swedish, unless you can demonstrate that it is a bona fide Maltese company with local directors (not just nominees), local employees, paying local taxes, and so on just like other companies in Malta.

However, you can defer and potentially reduce some taxes by introducing a holding company. This is mostly useful in case you sell one of the businesses.

The best way to avoid Swedish taxes is to not live in Sweden. If you live in Sweden, you're going to have to pay Swedish taxes. That's just the reality of it nowadays. Unless you have enough means to set up actual businesses with operations (not just shell companies), in which case you might be able to get away with only paying yourself dividends and paying capital gains tax on that instead of salary.

Thank you for the swift and informative reply, much appreciated.