Hacker News new | ask | show | jobs
by sparkling 3428 days ago
Just to clarify, as long as all the money remains in the Estonian company entity (e.g. you are not paying yourself a salary), you should not owe any personal income tax in Germany since their is no income, correct?
1 comments

If you have no personal income from a company (profits or salary) you do not owe personal income taxes - wherever. No personal income, no personal income taxes. That seems kinda obvious :-)

However, the company itself very likely has to pay German company taxes and need German business permits if you operate from Germany / generate the income in Germany.

But if you have 10 Estonian developers in your Estonian company doing programming for you in Estonia and you are only the founder/investor living in Germany, you probably wouldn't have to pay anything in Germany if you don't pay out profits.

To get a dependable answer you really have to discuss that with a tax lawyer. And finding one which can deal with multinational businesses is going to be really tough and presumably expensive. Which is another reason why this whole thing is more headache than gain, IMO.