Hello guys,
I ask you help to understand where I can open my offshore company.
I am solo entrepreneur, Italian citizen and resident in Thailand (paying taxes in Thailand).
I want to open a company that will sell my digital marketing services and resell a private labeled CRM Saas software. All my clients are in Italy or Switzerland. My revenue is about 35.000 to 100.000 euro per year.
These are the criteria I am looking for:
- 0% profit corporate tax (and the lowest possible cost in general);
- Country must be EU Europe Cleared list (no black no grey list);
- Banking, I have to be able to receive bank transfer on an EUROPEAN IBAN and I have to have a Stripe account.
The countries I am considering are:
- USA: Wyoming or Delaware (most people say Wyoming)
- UAE (but quite expensive)
I would appreciate also if you can share services you used to set up company and also give a feedback.
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UAE have introduced corporate tax at 9% on profits above 300,000 AED. UAE is also on the FATF grey list
An offshore company can cost $1k-$2k a year in admin fees and a offshore bank account will usually require a balance of $25k-$100k and have monthly fees if $50-$100. Which is why it’s usualy only worth it once you are in the six figure profit stage
Consider Singapore. You can set up company and banking accounts entirely remotely, and 0% tax on annual dividends.
I thought SG corporate tax was 8.5% up to 300k then 17% ? And there is fee for a nominee director ?
Can someone give enlighten me ?
It is like you said. It is about 4.000usd at least plus taxes at the end of the year
Open in Dubai free zone , no income tax, no corporate tax.
Thanks. Did you have this experience?
I researched few options last week, I want to open a Free zone company for Trading Forex with no tax in future. All free zone have offers also. There are a lot of YouTube Videos about this
UAE have introduced 9% corporate tax on profits above 300,000 AED
not on software services, only on manufacturing goods. They have 2 categories now one category has 9% tax and other has 0% tax
Agree with Singapore, you’ll need a company to set it up with you though. We do this, 440APL.com - startup, legal and business expertise on team.
Feel free to get in touch and ask any questions :)
You are trying to optimise this with just average of 50k a year?
Doesn’t Thailand have CFC rules? If it does what you’re suggesting is illegal regardless of where you set it up.
It doesn’t look like Thailand has CFC rules, but my understanding of their recent personal tax changes are that OP would have to pay local tax on all money he remits to Thailand (ie, his annual spending as a tax resident there).
https://taxsummaries.pwc.com/thailand/corporate/group-taxation
https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2018/09/thailand-2018.pdf
No corporate tax works if OP is living frugally, and therefore retaining earnings or cash in their corporate structure.
I agree with the broader point that someone earning €35,000 should focus more on making that consistently €100,000+, before worrying about tax optimisation. I’d rather pay 40% on €100,000 than 0% on €35,000.
Rather USA LLC or UK LTD are good for what you are looking for.
UK LTD has better banking options.
The UK LTD has 19-25% corporate tax though no? Thanks
Estonian e-citizenship will give you a company based there. Profits are only taxed if distributed, if they stay in the company they are 0%.
https://www.e-resident.gov.ee/become-an-e-resident/
Banking is a little trickier - it’s very hard to get a bank account in Estonia - but you can use something like Wise with them easily instead.