Transparent entity(USA/UK) + resident in Europe with progressive tax system

[Bofferding]

Hi,

This is my first post. Hope it's the correct place.

Where I live we have a progressive tax system. Income earned during the year less than +12K Euro is 0% tax eg.

Now, does having a transparent entity like a USA LLC or UK LLP would allow me to keep a portion of the profit in the company and send just a few back home to stay under the personal income tax cap limit?

This comes back to my second point:
Certain countries don't recognize these entities as transparent. Therefore they are considered as an equivalent local corp. What's the point then to start these offshore corps if you do it the legal way like eg. revealing to your country that you own a foreign corp etc. (Not talking about the Mentor Stuff of course).


Thanks.

 

[JohnLocke]

There can be many reason for why one want to setup a offshore company even in the times of great reporting and mass control.

For instant anonymity in the acquisition of a competitor or product from a competitor. Some countries still make it very difficult for normal people to find the real UBO. Another reason could be a better tax structure, we speak a legal tax structure which a professional tax advisor will be able to help you with.

 

[Bofferding]

Thanks @Admin for the reply.

What about the remittance of the profits to my home country? From what I read, since it's a transparent entity, all profits goes straight to me and I should be taxed on a personal level. But is it possible to keep some in the US LLC entity and just remit a small portion, so to not trigger the personal income tax which is 0% if under 12k euro?

Thanks

 

[OffshoreDurian]

If you live in the EU and manage the company from the EU (e.g. where you live), most countries will consider the company to be tax resident of your country, which will make it subject to corporate income tax.

The only way to avoid this is to move to a country with low or 0% personal income tax.