Tax optimization europe

Emberburn
Emberburn

Is moving to Malta only way to avoid paying a shitload of money to the gov? im currently living in germany and paying around 15k tax off and 50k income. im selfemployed with internet business. business skyrocket this year and hopfully will continue to in next years - so i will even pay more tax. pls tell me best way to not support merkel.

Flameblow
Flameblow

@Emberburn
Find a trustworthy lawyer and ask them to set up any and all tax avoidances possible, while also tell him to find ways for you to gain welfare money to reverse the taxes you will inevitably pay.

eGremlin
eGremlin

I'm in a similar position. I actually went to Malta to check it out in April to see if I want to live there. I have not quite made up my mind yet.

Malta does seem like the best option though in Europe. Bulgaria could be another option since you would only have to pay 10% there.

In Malta you only pay tax on income you remit to Malta, so that's great.

lostmypassword
lostmypassword

Do you guys not bother with friends?

CouchChiller
CouchChiller

@Emberburn
Doesn't Monaco not tax foreigners?
Or is that only rich foreigners?

Soft_member
Soft_member

no capital gains tax in monaco if you're a foreigner...but rents are extremely high... good place to live. clean, safe, no riff raff

girlDog
girlDog

@Emberburn
you're a small fish. you don't even come close to the maximum on german progressive taxes. you're honestly not bad off, stop complaining. after all you benefit from all the good things the state provides for you in germany.
the only sucky thing operating a business as a person is you can't forward profits to do investments in following years. if you want to park profits, found a limited (german GmbH). income tax on a limited (german K├Ârperschaftsteuer) is only 15.825% flat, add something like 7% for business tax and you'd only have to pay ~23% flat tax. you can't take those profits out without triggering an additional 25% capital gains tax of course, but at least it allows you to save up your profits within the limited. especially useful if you expect irregular profits, so you don't pay 45% personal income tax in one year and zero in the next.

get a pro to look at your finances. why are you asking anonymous idiots for tax advice?

@Flameblow
anything effective will cost him more than 15k a year
@eGremlin
In Malta you only pay tax on income you remit to Malta
doesn't mean other country will accept that you don't pay taxes anymore. basic rule is that *both* countries tax you and you have to convince one to give you credit for the taxes paid in the other (which only works if both countries have signed a DTA)
@CouchChiller
@Soft_member
if it were that easy, everyone would move to monaco

Bidwell
Bidwell

i wasnt saying it was easy... its mainly for people who've made all their money already and just want a nice place to live carefree from the taxman. business wise, its subject to corporation tax etc... but if you're already minted, its a nice place to be. the reason its hard to find a place is because real estate is limited...and super expensive.. but if you can afford the rent and have at least 500k in the bank account, anybody can come

happy_sad
happy_sad

@girlDog
doesn't mean other country will accept that you don't pay taxes anymore. basic rule is that *both* countries tax you and you have to convince one to give you credit for the taxes paid in the other

Where the fuck do you live? USA? In Europe we pay taxes based on country of residence, which is where you spend more than half of each year.

Harmless_Venom
Harmless_Venom

legal not much

illegal, the possibilities are endless especially in the internet business world.

A little bit of research and you will see how ridiculously easy it is to pay 0% tax when you're an online entrepreneur
however this is fully illegal but there's close to zero probability of you getting caught if you do it right

Boy_vs_Girl
Boy_vs_Girl

@girlDog
doesn't mean other country will accept that you don't pay taxes anymore. basic rule is that *both* countries tax you and you have to convince one to give you credit for the taxes paid in the other (which only works if both countries have signed a DTA)

nah man that's not how it works outside of burgerland
actually USA is one of the very few countries on earth that do double taxation
most civilized countries have tax agreements to prevent double taxation, you don't have to "convince" anyone to give you a tax credit

Inmate
Inmate

@happy_sad
nope. you're talking about the unlimited taxability which depends on your residence. but every country puts you under limited taxability for the majority of the ways you can generate income in that country. which means by default both countries tax your income.
@Boy_vs_Girl
tax agreements
yeah, said DTAs. i'm aware. "convincing" as far as getting the country to give you credit for the foreign tax paid. the path is set, but you still have to do the work (filings, etc).

Methshot
Methshot

@Emberburn
@eGremlin
Bump. For awhile now I've also been interested in residence in Malta or Bulgaria or any other low tax countries in Europe.

Raving_Cute
Raving_Cute

@Emberburn
convert to Islam
move to caliphate
profit

IT CAN'T POSSIBLY GO WRONG!!!

Lord_Tryzalot
Lord_Tryzalot

@Bidwell

This OP, malta is a place for people who don't have jobs and earn all their money through passive investments. You need to have 500k euro for their residency scheme, that's why it's so popular with retirees.

Ignoramus
Ignoramus

@Emberburn

Im not american and this might be a retarded question, but what happens if someone earns 6k a month in the US on a job? You only get to use 3k?

Evilember
Evilember

@Emberburn

2016
Not moving your business to Bulgaria and enjoy the 10% flat corporate tax while trading in the whole EU.

SniperWish
SniperWish

@Methshot
Bulgaria or any other low tax countries in Europe.

This. One of the best places in Europe for doing business, especially in IT.

Sauce: Business optimization expert in Bulgaria.

VisualMaster
VisualMaster

i heard bulgarian woman have beard

AwesomeTucker
AwesomeTucker

i have a friend who moved from germany to malta. basically when i ask him he said its not that good in malta as expected. ofc he safes some money on tax. but gov administration is shit. he needs a guy for everything especially in business and finance. infastructure in every sight is bad (especially health). other thing is that you can't really live there because you get ripped of from everyone there because they know you saving tax there. other thing is malta has a lot of debt (73% of gdp).

is bulgaria any different? i really like germany tho. travelling a lot and saw no place better than here. but would love to spread time and go 6 month germany / 6 month warm place over the winter. dunno if that could be connected with tax optimization.

Need_TLC
Need_TLC

@AwesomeTucker
is bulgaria any different?

From lifestyle point of view, yes. Everything is cheap as fuck and the people are friendly. Crime rate is low.

From govt administration and infrastructure point of view is the same as Malta. You will need trusted local partners in order to get shit done smoothly. But once you've got this settled the rest is easy. Health care is pretty decent and affordable tho.

The economic climate offered here is fantastic especially if you're in trade and IT and operating in the EU or worldwide.

In the same time the local manufacturing and trade are crap. The market is small and over-saturated, the local people are poor and the corruption serious.

Crazy_Nice
Crazy_Nice

@Emberburn
Why don't you just set up a company in BVI?

Lord_Tryzalot
Lord_Tryzalot

@Crazy_Nice

BVI will be kill soon.

Just wait till article 50 is being activated and the Brexit happening.

Boy_vs_Girl
Boy_vs_Girl

@Crazy_Nice

Not to mention that if you have to you can reach Bulgaria or Malta in a matter of 2 hours from Berlin.

5mileys
5mileys

@Lord_Tryzalot

Is BVI kill for everyone or just EU people? I'm in NA but I was planning on incorporating there.

RumChicken
RumChicken

@5mileys
Is BVI kill for everyone or just EU people?

The EU residents. Brussels will blacklist and triple tax the shit out of BVI immediately after brexit. I can even image that the same will happen to the City of London as well.

PurpleCharger
PurpleCharger

@RumChicken

Isn't that kind of futile? What about all the other Caribbean tax havens that are almost as good?

Bidwell
Bidwell

@PurpleCharger

BVI is part of British Overseas Territories.

Which automatically is giving them a very big advantage regarding the financial transactions and trade with UK (i.e. EU) compared to the rest jurisdictions.

Btw. The above is valid for Gibraltar as well.

lostmypassword
lostmypassword

@Bidwell
Btw. The above is valid for Gibraltar as well.

Meant: The above is valid for Gibraltar, Anguilla, Bermuda etc. as well.

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