Help For Tax optimization [ France ]

[HarryMen]

hi everyone!

I have a problem that I had to anticipate but unfortunately things decided otherwise!

I'm currently running a micro enterprise in France, and I have a 50% rebate on my charges which ends this month.

Without this abbatement, my margin won't be high enough to continue growing at the speed I'm aiming for!

I had consulted a chartered accountant in the middle of the year, who confirmed that I could open a limited company in one country (e.g. Gibraltar) and pay myself a salary in France.

I would then pay corporate tax in Gibraltar and income tax in France.

So my questions are, can I actually do this? Who can I turn to (because there are 1,000 different websites on the Internet promising an easy, quick,... )? And if all this is possible, how much could it cost me?

My business is mainly Rencontre affiliation and I'm just starting to promote moderates (OF). ( Last year's income ≃ 50k € and that was simply profit, I had no expenses., it's the first year and the beginning of the year was very good so for a bracket say I'd do between 30k and 70k annual.Next year I will have expenses ( between 1/2k monthly )

 

[Marzio]

I had consulted a chartered accountant in the middle of the year, who confirmed that I could open a limited company in one country (e.g. Gibraltar) and pay myself a salary in France.

I would then pay corporate tax in Gibraltar and income tax in France.

The funny thing is that there's plenty of buffoons that get paid to give dangerously wrong advices like this one.

If you manage an offshore company from France, it will become french tax resident and you'll have to pay French CIT.

Best tax optimization stategy for France is to leave France.

 

[HarryMen]

The funny thing is that there's plenty of buffoons that get paid to give dangerously wrong advices like this one.

If you manage an offshore company from France, it will become french tax resident and you'll have to pay French CIT.

Best tax optimization stategy for France is to leave France.

But what if the company has an anonymous ceo?

 

[JohnnyDoe]

The funny thing is that there's plenty of buffoons that get paid to give dangerously wrong advices like this one.

I wonder if they work for the state mafia.

If you manage an offshore company from France, it will become french tax resident and you'll have to pay French CIT.

Best tax optimization stategy for France is to leave France.

Nothing else to say.

 

[JohnnyDoe]

But what if the company has an anonymous ceo?

It worked in 1984.
Read this: https://www.offshorecorptalk.com/th...al-compliance-requirements.43814/#post-288350

 

[AlexPCS]

hi everyone!

I have a problem that I had to anticipate but unfortunately things decided otherwise!

I'm currently running a micro enterprise in France, and I have a 50% rebate on my charges which ends this month.

Without this abbatement, my margin won't be high enough to continue growing at the speed I'm aiming for!

I had consulted a chartered accountant in the middle of the year, who confirmed that I could open a limited company in one country (e.g. Gibraltar) and pay myself a salary in France.

I would then pay corporate tax in Gibraltar and income tax in France.

So my questions are, can I actually do this? Who can I turn to (because there are 1,000 different websites on the Internet promising an easy, quick,... )? And if all this is possible, how much could it cost me?

My business is mainly Rencontre affiliation and I'm just starting to promote moderates (OF). ( Last year's income ≃ 50k € and that was simply profit, I had no expenses., it's the first year and the beginning of the year was very good so for a bracket say I'd do between 30k and 70k annual.Next year I will have expenses ( between 1/2k monthly )

The key point is that in case the affiliated connection between you (in France) and the Gibraltar company (where you have planned to be the UBO I assume?) is disclosed - then french tax authority will not like it, to say the least of it =)

Then there is an employment mechanism: the Gibraltar company will need to have a designated body in France, which will be responsible for paying your mandatory social charges. Now as a micro-entrepreneur you are paying it directly to URSSAF yourself.

Nowadays it is better to earn less in France, socialism =)

 

[daniels27]

How about you ask your mother to open a new company with abatement and let her run it? You will eventually inherit the money if you ship her to Switzerland early enough while she still lives.

Otherwise, move elsewhere.

 

[HarryMen]

I was planning to go somewhere else but I can't anymore due to health problem so i'm just fucked I assume

 

[AlexPCS]

At least french healthcare is still decent.

If you are BNC it seems like you won't be able to subtract the costs to reduce the tax base?

With micro-entrepreneurship it's social charges that make it really heavy. You pay them from the total turnover regardless the expenses, which is crazy. And they are expected to be risen to a whooping 26% starting January 2025.

 

[SoNewToAllShit]

I was planning to go somewhere else but I can't anymore due to health problem so i'm just fucked I assume

How severe are your health problems? Can't you move to a better country, for example, Andorra, Monaco, or Malta?

 

[HarryMen]

How severe are your health problems? Can't you move to a better country, for example, Andorra, Monaco, or Malta?

Problem is I can't live alone for the moment, I was planning to go to dubai this year but I can't for the moment

So i'll be taxed sooooo much!!

I'll do 10 000€ and only keeping 7000€ but that's FRANCE

 

[HarryMen]

At least french healthcare is still decent.

If you are BNC it seems like you won't be able to subtract the costs to reduce the tax base?

With micro-entrepreneurship it's social charges that make it really heavy. You pay them from the total turnover regardless the expenses, which is crazy. And they are expected to be risen to a whooping 26% starting January 2025.

For the moment I'm in micro-business but I'm going to see a chartered accountant to see what kind of optimization I can do knowing that I would no longer benefit from the abbatement.

 

[lagloriacubana]

Thing is at the amounts you are mentioning the tax optimisation will probably cost you way more than what it is worth - Dubai is not cheap and you will have to have private insurance. Honestly, it might be complicated to even do other presence to show substance without spending a lot of money. France is pretty brutal in their tax enforcement, so it will have to be a rock solid structure - which will cost you way more than what you will save at 50k or even 100k.

If you want to consider Italy, then you can look at Forfait Regime. However, at such small amounts I am not sure if all the headache is worth it especially if you have health issues. You are better off talking to local advisor rather than look at offshore solutions - and then maybe ask the tax authorities to give you a ruling (or clarification letter) as to structure you have chosen so you have a basis for future in case of dispute.

 

[daniels27]

For those amounts, you probably still get more out of it than you pay taxes for. Just look at your health insurance, etc.

It sounds hard, but there really is not much to save. I had known to many who complained about the high cost of living in Hong Kong while their sister gets all for free in France. And they made more than you.

 

[HarryMen]

Okk, thanks for all those advice!!

I'm geting back to work then!

 

[thomasparra]

Probably stay in France. Once you reach 150k a year you can consider leaving.

 

[lagloriacubana]

Probably stay in France. Once you reach 150k a year you can consider leaving.

At that level also it makes sense if you are expecting to grow. Think of it like this - what is the net saving in tax vs difference in quality of life? If you save a little tax but quality of life goes down a lot then that tax saving is not worth it at all…

That analysis also needs to be made. But let’s say that you make 500k per year in profit and expect to also have a liquidity event then the tax saving is a lot and higher cost of living to maintain same level of lifestyle is worth it in relation to the taxes saved…

I have a friend from Sweden who is ok with paying crazy Swedish taxes because he actually likes living there and all his friend circle is there - which ends up making it all worth it for him to pay the sums he is paying.

 

[JohnnyDoe]

I have a friend from Sweden who is ok with paying crazy Swedish taxes because he actually likes living there and all his friend circle is there - which ends up making it all worth it for him to pay the sums he is paying.

Your friend is wise. If he perceives value in what he pays for, he has achieved fiscal happiness.
However, this also means that he has chosen to take the blue pill. (The one from the Matrix, that is)

 

[lagloriacubana]

Your friend is wise. If he perceives value in what he pays for, he has achieved fiscal happiness.
However, this also means that he has chosen to take the blue pill. (The one from the Matrix, that is)

Exactly. Well he was dating a single mother before I had to put some sense into him by taking him to a trip to Mykonos alone That only helped for a few months and was back to taking blue pill - figuratively and I guess literally with a Swedish single mom.

 

[JohnnyDoe]

Exactly. Well he was dating a single mother before I had to put some sense into him by taking him to a trip to Mykonos alone That only helped for a few months and was back to taking blue pill - figuratively and I guess literally with a Swedish single mom.

MILFs are not for everyone.
On another note, it seems that French castles today are for about everyone. Prices are ridiculous. There must be a good reason.