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by siscia 3791 days ago
I would definitely check out estonia, you are not taxed on profit but only when you get money out of the company.

https://en.wikipedia.org/wiki/Taxation_in_Estonia#Corporatio....

On wage there is a 33% social tax with is pretty much the same in Italy and I suspect to be pretty much standard across europe.

4 comments

One interesting aspect of Estonia is the Digital residency: if are you are allowed to live in Estonia (EU citizen or equivalent) you can be asked to be considered a “digital resident”. That means that you can choose to pay tax there. The main advertised advantage is that all your paperwork, including your company’s, can be done entirely on-line, using a super-secure ID card.

That comes with the (welcome) assumption that you are not going to speak Estonian, and would prefer strong encryption and associated protocols.

I haven’t tried it myself, but my experience of paper-based administrations vs. Finnish and Swedish (far more IT-friendly) is night and day.

Estonia sounds great on paper, has a proof of concept (Skype), English skills are good but the ecosystem around their Ltd (OÜ) is not as widespread as eg UK's where you find tons of resources.
there isn't any standard... in Belgium the taxes are 55% : http://www.oecd.org/ctp/tax-policy/taxing-wages-tax-burden-t...
thanks!
You are welcome !

BTW if you are a Portuguese citizen you can register your company in a easier way, from this page: https://e-estonia.com/component/e-business-register/

Finally if you want to open a company in estonia you will need a physical address, fortunately the government is aware of this hurdle, and in it's website suggest an handful of providers: https://e-residency.zendesk.com/hc/en-us/articles/205207022-...

The one with the nicer website is LeapIN, that has very affordable prices...

You need more than a physical address, you need to live in estonia if you don't want to pay extra taxes. This is true for at least Finland, I have consulted tax lawyers about this.
I have explored quite a bit the idea of opening a company in Estonia via e-residency and this particular point of extra taxes never showed up.

I am sure is not something that they would put on the first page, however I am a little surprise.

Do you care to elaborate ?

They are not listed because the extra taxes are not levied by Estonia.

Almost every country in the world taxes their residents' income, even if it arrives from a company abroad. And US (in)famously taxes their citizens' income, even if they do not live in US.

So if you run a company remotely, you still have to check with your local tax rules to see how much tax you may need to pay if this company pays you salary or dividend.

Well of course, but I would pay those tax even if I were working for Google in California or for Ferrari in Italy, at different government, with slightly different rates, but I would still pay...

Those are not "extra" taxes, those are regular taxes on your income...

Sorry this took so long, see my other reply.
AFAIK the extra taxes apply to your country of origin, not to Estonia.