Yet another Digital Nomad from EU

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gnud

Entrepreneur
It's the opposite. You need to get RO tax residency so that other EU countries won't have questions for you. You don't need to pay anything that you mentioned above since you are going to get money through dividends (5% tax paid by company ).
So after initial setup, you only pay: rent (300e+), accounting( mine is 45e/month), 3% revenue tax and 5% dividend tax. If you invest personally or through the company then there is also 10% Capital gains tax. After all that it's still a bargain if you compare RO to other EU countries. Best part is that there is no 6 months bullshit residence requirement.

The only reason to pay salary/social/health insurance is to hire yourself for a minimum wage. If you have an employee(you), your revenue tax drops from 3 to 1% :)


I actually decided to stay in my country while keeping Romanian one. So I'll pay 3% revenue to RO, then around 17% to my own country as corporate tax. But after 5-10 years I will retire, move to Romania, take all the money out and move again somewhere warm and nice. So basically it will be 20% corporate, 10% Capital gains and 5% dividend at the end. Which is way better than just using LLC in my country ( 20% corporate, 20-30 dividend, 30-35 capita gains ).

How does it work exactly? Did you report it to your home tax authorities? Or did they find out? How do they decide what part of the profit is taxable where?
 

kkein

Entrepreneur
Why do you recommend Romania, Bulgaria or Cyprus for incorporation if he wants to spend a substantial time in Germany? Wouldn't that give Germany an opportunity to claim permanent establishment of effective place of management of the company? How can he avoid being appropriated by Germany?
Romania seems a lot easier here. Easy to get in and out of it from germany, and to stay under the radar while in germany.
 

gnud

Entrepreneur
Romania seems a lot easier here. Easy to get in and out of it from germany, and to stay under the radar while in germany.

Not sure how you can stay under the radar. I think foreign bank accounts are being reported automatically under the CRS, so if you have a residency in Germany and you open a bank account for your Romanian company it will be reported back to Germany, no? Also I think you have an obligation to declare your foreign company if you reside in Germany, no? And even if you get away with not declaring it, if you keep receiving regularly money from abroad to your German account, or pay all the time with a bank card that's not with a German bank, or access your Romanian internet banking from Germany all the time, eventually you will be marked and someone will start asking questions probably.

Under the DAC there's way more information exchange within the EU between administrations than just the CRS like with other countries.
 
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