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Why risk offshore? Just pay some taxes

jenhuang30

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Sep 18, 2019
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Hi,

I was discussing with a friend about the following situation: Why would you risk your a*s to go offshore if you could just:

1. Incorporate the company in your country (As long as the Corp tax is max 25% is it still fair)
2. Accumulate money into the LTD and then
3. Move to a country with low dividend tax like Portugal (0%) or Slovakia (7%) and get out all dividends from your LTD without health insurarance.

As long as the tax rate is 25% + (0% to 7%), it is not a big drama as you will have all those advantages.

A. Cash into a safe country and possibility to make investments and more
B.No Offshore cost, Risks, fraud, etc.
C.No Taxation Risk (claims, process, audit, etc)


Does it make this sense to you?
 
Sounds not like a bad idea, however, not all people are willing to move to another country and that may be the majority of people.
 
Hi,

I was discussing with a friend about the following situation: Why would you risk your a*s to go offshore if you could just:

1. Incorporate the company in your country (As long as the Corp tax is max 25% is it still fair)
2. Accumulate money into the LTD and then
3. Move to a country with low dividend tax like Portugal (0%) or Slovakia (7%) and get out all dividends from your LTD without health insurarance.

As long as the tax rate is 25% + (0% to 7%), it is not a big drama as you will have all those advantages.

A. Cash into a safe country and possibility to make investments and more
B.No Offshore cost, Risks, fraud, etc.
C.No Taxation Risk (claims, process, audit, etc)


Does it make this sense to you?
Many country have exit taxes, so the capital gains of your Ltd can get taxed when you become non tax resident.
 
Hi,

I was discussing with a friend about the following situation: Why would you risk your a*s to go offshore if you could just:

1. Incorporate the company in your country (As long as the Corp tax is max 25% is it still fair)
2. Accumulate money into the LTD and then
3. Move to a country with low dividend tax like Portugal (0%) or Slovakia (7%) and get out all dividends from your LTD without health insurarance.

As long as the tax rate is 25% + (0% to 7%), it is not a big drama as you will have all those advantages.

A. Cash into a safe country and possibility to make investments and more
B.No Offshore cost, Risks, fraud, etc.
C.No Taxation Risk (claims, process, audit, etc)


Does it make this sense to you?
But you cannot move to another country like that with your limited. Your Limited in your hometown country will be taxed in the same manner if you live there or not, because this is the activity that is taxed, not you. Of course, you can get better treatment from your personal earning from your limited in the second country, but I don't understand well your point. If your limited can do business with you, living in another country, why not just leaving now; why wait for 3 or 5 years ?
 
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This is a good point, basically because my country has a strong reputation and safe banking system. Slovakia and portugal are not safe countries
I understand, you will have the same problem in 3 or 5 years, Slovakia or Portugal won't be safer, and your country (Germany, UK, France...) will be as safe than now. Unsolvable problem. Finally, maybe you won't move never...
 
Thanks guys.

The concept is to pay this "fair" 25% and then accumulate capital. Once ready, Portugal or Slovakia can get the dividends on a monthly base and you could move the dividends in any country of your preference...

Do you think 25% or 25% + 7% is still better than offshore? I think so...
 
I think 0 % in RAK, BVI, Samoa or 0 % in Hong Kong for outside business is better.. but that's just my point of view... I solved 10 years ago the question : "should I move or not ?" I moved. The point is : could accumulate the same capital for your limited if managed from abroad, if yes, why waiting for that ? If no, you have no guarentee your limited won't decline after your move, ruining your plan.
 
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