Hi everyone.
So can someone help me to understand this issue?
The POEM issue has been mentioned many times on this forum and it seems to be a major problem for anyone looking to manage a foreign company.
However, speaking with local accountants/lawyers in different countries I've got many different answers.
I consulted with accountants/lawyers in Malta, Romania, and Croatia and many of them told me it's not a problem at all if I move to their country and I keep doing my business with a foreign company (no employees, no office, just me as director). What I have to do is just pay my personal taxes in their country (salary, dividends, other personal income).
I'm a bit confused about this. Can someone help me to clarify this once and forever about this issue?
In Italy this is a big problem for the tax administration, maybe those other countries don't have or apply the same rules.
If I don't reside effectively in this particular location 365 days a year, it can be difficult to demonstrate that the company is actually "effectively managed locally", or does just the fact of becoming a local resident trigger this rule anyway?
Let's say I stay in the country for 185 days, and I stay outside the rest of the time. Is this a problem at all?
Should I go to the UK regularly to show any activity or just being outside my country of residence could let me avoid the presumption that I manage a foreign company inside that particular country?
I hope I didn't overcomplicate my question.
Thanks y'all in advance for the help!
So can someone help me to understand this issue?
The POEM issue has been mentioned many times on this forum and it seems to be a major problem for anyone looking to manage a foreign company.
However, speaking with local accountants/lawyers in different countries I've got many different answers.
I consulted with accountants/lawyers in Malta, Romania, and Croatia and many of them told me it's not a problem at all if I move to their country and I keep doing my business with a foreign company (no employees, no office, just me as director). What I have to do is just pay my personal taxes in their country (salary, dividends, other personal income).
I'm a bit confused about this. Can someone help me to clarify this once and forever about this issue?
In Italy this is a big problem for the tax administration, maybe those other countries don't have or apply the same rules.
If I don't reside effectively in this particular location 365 days a year, it can be difficult to demonstrate that the company is actually "effectively managed locally", or does just the fact of becoming a local resident trigger this rule anyway?
Let's say I stay in the country for 185 days, and I stay outside the rest of the time. Is this a problem at all?
Should I go to the UK regularly to show any activity or just being outside my country of residence could let me avoid the presumption that I manage a foreign company inside that particular country?
I hope I didn't overcomplicate my question.
Thanks y'all in advance for the help!
