Where and how to easily start my company and minimize taxes?

Discussion in 'Business & Tax Advice' started by empan920, May 26, 2016.

  1. empan920

    empan920 Junior Member

    Feb 9, 2014
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    Hey bhwers, was really hoping someone knowledgable/experienced could help me out with some advice and point me in the right direction.

    My story in short is that I live in Sweden and have started making some money through IM this year, focusing only on the U.S. market. I don't have a company and am self-emplyed at the moment. But the taxes in Sweden are sort of unforgiving for entrepreneurs and in the end I'll only get to keep about 40% of what I make (60% tax).

    So I was thinking of making a company some place where the taxes are low (corporate tax) and let the money sit in the company for this year. And then next year I'd move permanently (staying there 6months+ and cutting ties to Sweden to move my tax liability) to a country with as low income tax as possible but and take out the company earnings in salary there (doesn't need to be the same country the company is in, as long as the total tax will be low when corporate+income tax is added).

    It's important that the country has business friendly laws etc but above all that it's relatively simple to set up a company quickly without getting scammed or anything, preferably without having to go there using some reliable do-it-for-you complete package service, but if really needed I could travel there in person as well to set things up.

    Then I would also need tips of a good country to emigrate to where I'll take out my salary next year. I've heard some good things about bulgaria both when it comes to having the company, and standard of living, corporate as well as individual tax at 10% each. Southeast asian countries are alluring to emigrate to as well (such as thailand although the income tax is a bit too high there at 35%).

    Another question I have, although it may be more up to Swedish laws not sure, is what about the money I've made so far this year as self-employed? Ideally I'd like to count that to the company, putting it into the company account once it's set up and have the company pay the tax for it in the country it's in. Would this be this possible? I haven't paid income tax for it in Sweden yet since that's not due until next year.

    And then one last question. How about when you move an existing company to another country? In Sweden the corporate tax is 22% which I find is totally acceptable. So if I were to make a company in Sweden and pay the 22% for this year but barely taking out any salary personally, then move it abroad for the start of next year and also emigrate to say Bulgaria. Could I then take out all this years earnings in salary from the company account at the bulgarian income tax rate which is where my new tax liability is (total tax would amount to the 22% already paid and then 10% income tax on top of that)?

    Also, I am not looking to cheat the tax system or do anything illegal, I am only looking to take advantage of the laws in place that would benefit an online marketer the most.

    Thanks a lot in advance.
  2. Vlad D


    Apr 21, 2016
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    In Romania you'll pay 16% of the profit .

    You can rent a flat with $150/month . Also the business consultancy is cheap and romanian gypsies are friendly . Just joking I'm romanian , gypsies aren't ... as everybody think .
  3. LaurusK

    LaurusK Newbie

    Jan 5, 2016
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    Hi Empan! As you are a swede, I'd suggest you Estonia, as it should be quite familiar to you (banks/banking is similar) etc. You can visit Estonia, set up the company, open the bank account, apply for e-residency (which helps you to run the business via internet from wherever you'll move in the end:)). As taxes are low (no income tax, only 20% when profits are distributed on those profits), you'll be able to invest (buy shares for example or grow your own business) and grow.
  4. kekmaw

    kekmaw Jr. VIP Jr. VIP

    Dec 19, 2014
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    Hi fellow Swede!

    I've done a bunch of research on this as I'm in a similar position.

    It depends on so many things, for example how and where does your money come from? You said US market, so I'll asume that you get paid by a US company. That means you want to have your business in a country which has tax treaty with the USA (you can google that). Then based on what kind of business you run you can determine which of the tax countries that will give you the best result. The most popular solution we swedes typically do in the IM space is that we set up our business on Malta and have a Holding company on Cyprus, while you live on Malta. This way, in most cases anyway, you can get down to about 5% effective tax. But depending on what type of income you earn there might be better solutions. For example, I make money by owning IP and get paid in royalties. Cyprus has a special law for income from IP which puts me at 2.5% tax if my company is there.

    Feel free to PM me, wouldn't not mind to chat about business and IM with a fellow swede :)
  5. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

    Mar 19, 2010
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    Just make sure you can make use of the double tax treaty if you incorporate your business in Cyprus or Latvia. Also I recommend you to consult a lawyer that knows about tax regulations in your country of course but even more important, about tax laws in the country of your choice.