[ExpertAdvisor01]

Don't incorporate somewhere else it will only lead to disaster. The company will end up being German tax resident anyways due to management and control being in Germany as you live in Germany .

Then you have to be compliant in 2 jurisdictions (file forms/balance sheets in both countries etc..) and worst case you could become subject to double taxation (if there is no agreement).

The optimal solution is just to leave Germany .

[fakedang]

Can't you just incorporate a Wyoming LLC (zero corporate tax + federal tax because you're non-resident in the US) then just open a Wise account?

Wyoming LLC gives passthrough taxation, and because you're in Germany, you'll be subject to German corporate and personal taxes alone, I presume?

Edit: changed from just personal tax to personal+corporate

[ExpertAdvisor01]

What should the US LLC do ? It will end up being treated like a GMBH in Germany (keyword : Typenvergleich ) and you will have to do all the bureaucracy in the us + Germany and end up paying the same taxes

[fakedang]

The point I thought was a plus was that you'd be paying German taxes without all the German bureaucracy? Because there's definitely no bureaucracy for a Wyoming LLC except for a couple of IRS forms annually.

[ExpertAdvisor01]

Unfortunately it doesn't work like that. You are just adding us bureaucracy+ dual accounting (euro/USD) to German bureaucracy where nothing changes .

[fakedang]

My point is that US bureaucracy is very minimal - like I said, just need to submit a couple of forms to the IRS as a foreign-owned LLC.

[r_lee]

from what I know this is very much possible, you can also use tax treaties to transfer taxation to Germany.

e.g. Irish Ltd that is a resident in Germany

you won't have to bother with the naming problems etc. either

[petesergeant]

Finanzamt may well decide this is a German company in the cunning disguise of a cowboy hat, and charge it German corporate tax

[fakedang]

Which is still fine imo. My idea was not about skipping German corporate or personal taxes - it was about skipping German bureaucracy.

[petesergeant]

> it was about skipping German bureaucracy

By creating a company that requires a special filing status to the German tax office?

[fakedang]

Ouch, is that painful too? Damn.

[eagleal]

Do not know Germany's specific tax code, but in most EU countries should a control fire up it would result in tax evasion (not even tax avoidance), as in this case Germany can easily demonstrate the center of control is in fact in Germany.

Especially as you will have to file tax forms and disclosures for your salary.

You guys might want to take a consultation with a proper accountant/tax advisor for these setups.

[barrenko]

Bookmarking for my personal posterity.

[f6v]

> The optimal solution is just to leave Germany

Just go to one of them Baltic states. They actually have a functioning electronic ids and other necessary infrastructure.

There’s no reason to live in Germany if you’re working with international clients.

[ExpertAdvisor01]

Malta and Cyprus offer much better quality of life and also significantly less taxes .

Also Polands IP Box(5% tax rate) regime can be very interesting to software engineers right across the border.

[f6v]

> Malta and Cyprus offer much better quality of life and also significantly less taxes .

To each their own, I guess. I can't imagine living on those islands.