Want to move to germany and take business global, how to structure?

[letsgonow]

Hello, im looking for advice on whats the best solution for my situation.

Have company incorporated in Chile that sells digital services only in Chile, current revenue is around 200K EUR and profits of 130K EUR. Company operates fine and im comfortable with current taxes in Chile.

I Want to offer services globally and for this I must incorporate a new company because of payment processors (want to use Stripe), I thought about Singapore. Chilean company can stay the same and keep operating as it is for Chilean based customers. Rest of the world would go through new company.

My wife is German and we want to move to Germany, we have 2 kids. Staying in Chile or any latin american country is not an option.

How to structure this for success?

thanks in advance.

 

[12345]

I thought about Singapore.

Maybe USA LLC instead? It's cheaper and should be easier, works fine with stripe and easy to open a bank account

My wife is German and we want to move to Germany, we have 2 kids. Staying in Chile or any latin american country is not an option.

Then I would open a german company, you need to pay taxes where you reside

 

[bigdaddyleon]

Chilean company can stay the same and keep operating as it is for Chilean based customers.

Taxation would then proceed according to German law.

Rest of the world would go through new company.

I would open a German company, it is difficult to find a good tax advisor for International companies.

If you should turn your back on Germany one day, please note that an exit tax may be due (which is quite a bit).

 

[chrisgerth]

If you move to Germany you will have to pay taxes in Germany. But the good thing is that you already created substance abroad, you can basically have your current business valued by German tax authorities (something like 13.75*130000). Once this is recognized you can start living in Germany having a some sort "balance/coupon" with German tax authorities to the tune of 1.7million euro. Any tax obligations which might arise by making money in Germany will be subtracted from that amount. So you can live tax free for quite some time in Germany. It is a legit way, tell your wife to watch

. The youtube channel of this tax advisor is superb, he is professor of tax law.

 

[AlexGE]

If you move to Germany you will have to pay taxes in Germany. But the good thing is that you already created substance abroad, you can basically have your current business valued by German tax authorities (something like 13.75*130000). Once this is recognized you can start living in Germany having a some sort "balance/coupon" with German tax authorities to the tune of 1.7million euro. Any tax obligations which might arise by making money in Germany will be subtracted from that amount. So you can live tax free for quite some time in Germany. It is a legit way, tell your wife to watch

. The youtube channel of this tax advisor is superb, he is professor of tax law.

Sounds too good to be true!
What's the title of the law? Are there other countries in EU with similar rules?

 

[letsgonow]

If you move to Germany you will have to pay taxes in Germany. But the good thing is that you already created substance abroad, you can basically have your current business valued by German tax authorities (something like 13.75*130000). Once this is recognized you can start living in Germany having a some sort "balance/coupon" with German tax authorities to the tune of 1.7million euro. Any tax obligations which might arise by making money in Germany will be subtracted from that amount. So you can live tax free for quite some time in Germany. It is a legit way, tell your wife to watch

. The youtube channel of this tax advisor is superb, he is professor of tax law.

thanks for the info but it seems that it would not work for me because the company is not sole propietor but a partnership (my wife holds 50% and I 50%)

 

[scooterguy]

What about opening a branch/subsidiary of your Chilean company in Germany? That way, the Chilean customers are not affected, and the new ones go through the German branch.

If it's just you and your wife in this company, another option could be to just open a new company in Germany and operate everything from there.

 

[chrisgerth]

thanks for the info but it seems that it would not work for me because the company is not sole propietor but a partnership (my wife holds 50% and I 50%)

Well I wouldnt rule it out straight away, as long as you are not resident of Germany you can also change things or adjust accordingly. You could for example open a sole trader this year have it invoice the existing business for management fees etc., that way you could fit right into the requirements. By the way, countries like Germany have old and complex tax laws, hence people like the professor can do quite amazing things. But it is crucial to consult experts before moving to Germany, once in Germany your options are limited.

 

[clemens]

If you move to Germany you will have to pay taxes in Germany. But the good thing is that you already created substance abroad, you can basically have your current business valued by German tax authorities (something like 13.75*130000). Once this is recognized you can start living in Germany having a some sort "balance/coupon" with German tax authorities to the tune of 1.7million euro. Any tax obligations which might arise by making money in Germany will be subtracted from that amount. So you can live tax free for quite some time in Germany. It is a legit way, tell your wife to watch

. The youtube channel of this tax advisor is superb, he is professor of tax law.

That's not bad, it might be a loophole if this is really true.