Where to open an offshore company for consulting/programming consultancy

[jackfrost]

Do not open banking in Malta (fellow German with an IT holding here) but simply use continental european banking. Transferwise, Revolut etc all got business accounts, bunq got fully insured private ones. Stash cash away in treasuries, ETFs whatever over direct buying or broker like IB etc.

And yes you are right Malta is very good for the Finanzamt since you get proper tax certificates, paying 35% etc pp. This is very important actually which most people do not realize.

Also i think judging from your other post you misunderstand how the refunds work, you dont pay corp tax right away and then wait 2 years to claim your refund. You claim that when you pay pretty much right away. Depending on your tax dates, how / when you pay dividends etc that will usually be like file september year after so after 18 months, pay in june next year and file right away and by law get it within 14 days after filing the refund. It will usually take a few months though (which generate you interest on late payment on behalf of the gov)

So e.g.

2018 -> tax return filing 10/31/2019, tax payment 06/30/2020, refund 06/30/2020, officially within 14 days of payment so 07/14/2020 refund. Late payments of refund = interest.

You can operate with that money for quite some time (but do make sure to have it one time!!! to not jeopardize your refund!!!) and usually will see the 30% gone only for weeks to months.

 

[devnull]

Yes, i now understand. Still the tax system is good for people like me from germany.
And yes, of course, i did not chosen Malta bank, but working with Revolut and etc instead.

 

[jackfrost]

Yes it is perfect for Germans

 

[negon]

Do not open banking in Malta (fellow German with an IT holding here) but simply use continental european banking. Transferwise, Revolut etc all got business accounts, bunq got fully insured private ones. Stash cash away in treasuries, ETFs whatever over direct buying or broker like IB etc.

And yes you are right Malta is very good for the Finanzamt since you get proper tax certificates, paying 35% etc pp. This is very important actually which most people do not realize.

Also i think judging from your other post you misunderstand how the refunds work, you dont pay corp tax right away and then wait 2 years to claim your refund. You claim that when you pay pretty much right away. Depending on your tax dates, how / when you pay dividends etc that will usually be like file september year after so after 18 months, pay in june next year and file right away and by law get it within 14 days after filing the refund. It will usually take a few months though (which generate you interest on late payment on behalf of the gov)

So e.g.

2018 -> tax return filing 10/31/2019, tax payment 06/30/2020, refund 06/30/2020, officially within 14 days of payment so 07/14/2020 refund. Late payments of refund = interest.

You can operate with that money for quite some time (but do make sure to have it one time!!! to not jeopardize your refund!!!) and usually will see the 30% gone only for weeks to months.

Great explanation, it is pretty much as it works in many (if not all) European countries. I know for sure it is similar to Sweden and Denmark.

2018 -> tax return filing 10/31/2019, tax payment 06/30/2020

That's how it works in Cyprus and most other countries as well.

 

[busdriver]

Delawar or Wyoming - When opening a new bank account anywhere in the world, banks ask about existing ties to the USA (like a bank account, a phone number). I guess owning a company would also count. Others in the forum will know what happens if you have to answer that with YES, I guess no bank account ...

 

[blockchain4ever]

Re Romania - I do not think pure service companies like IT professionals can pay 3%.

Re Georgia - not in EU, so CFC rules will typically be much stricter.

Re Wyoming - not in EU, so CFC rules will typically be much stricter. It's the US though, and countries are often somewhat hesitant to blacklist the US.

@jackfrost can you explain why Malta is preferred over, say Bulgaria? Are you telling me that the Finanzamt prefers the papers you get from Malta over those from Bulgaria?

Also, Hungary is an option if you develop products, as there's a 50% tax rebate on that income (4%).