Advice on new company formation jurisdiction

[daniels27]

May I ask:

• Du you have to be in Germany to do the work for your client?
• Can somebody else do the work as well or do they require that you do it?
• Are you willing to leave Germany?

 

[Yeskou]

May I ask:

• Du you have to be in Germany to do the work for your client?
• Can somebody else do the work as well or do they require that you do it?
• Are you willing to leave Germany?

The issue is my client require my physical presence in their office 3 days a week.
As my client is requesting my presence i can only look to generate expenses for outsourcing a service to lower the taxables amount.
Am thinking also to leave germany open a new company elsewhere and come to germany only to do the business, as i can exist in germany but fiscally i belong to the country where my company is.

 

[daniels27]

The issue is my client require my physical presence in their office 3 days a week.

Yes, but then is becomes very hard to do anything without much effort. Are you close to a neighbouring country?

As my client is requesting my presence i can only look to generate expenses for outsourcing a service to lower the taxables amount.

Yes and then will have transfer pricing issues etc.

Am thinking also to leave germany open a new company elsewhere and come to germany only to do the business, as i can exist in germany but fiscally i belong to the country where my company is.

Yes, if you are in the South, you can move to Switzerland, be emplyed by your own company there. You then have a number of options:

• If you live within 100 km or less than 90 minutes of travelling time to your office, you can be classified as Grenzgänger and you only pay tax in Switzerland.
• You can travel to your office 3 days per week and spend the rest of your time in your own office in Switzerland. This could work unless you have a permanent office in Germany etc.
• You can work for your Swiss company and then you then file form A1 (Entsendung) this is only possible for up to 2 years

I think these are the only legal ways. Of course, you can follow this one:

S

Thread 'Overstaying 183 days - Spain vs Germany'

Monday at 17:58

In the event of overstaying the 183 days that make one a fiscal resident of most countries, and not making the obvious mistakes (getting a tax id, buying a car, having a child, sending children to school, buying real estate, get arrested several times...), and conducting a low-profile life, basically a digital nomad, for 2/3 years.

What is the chances of receiving a letter from the tax office in:
- this one I can answer myself: in Spain, Hacienda will never find out. Spain is primitive country as far as technology goes, so unless you are Shakira, you're good to go.
- in Germany?

Asking...

• sriracha
• Replies: 7
• Forum: Tax, Accounting & Legal

But in your case, it would be very, very risky. If you have family in Luxemburg and are member of sport sclubs there and live there all but the 3 days, it is risky.

 

[Yeskou]

Yep, it seems in all situations no 100% legal option exist.
If i will work only 100% remote jobs I will in competition with all the other persons who bill cheapers.
My only way to bill good rates is to show my face in the offices in Germany. Then i need to figure out hiw to pay less taxes.
It seems playing with opening new companies under my name will trigger the control for sure.

I start thinking to use a nominee to open a company under his name and build email exchanges beween us showing that I delegate the job to him. For example if I bill my client 600eur a day I pay my subcontractor 400 a day, then i live and spend the money of the subcontractors and keep my company money saved for the future.

As my actual turnover is not huge money I think that is the only way to save taxes.

 

[daniels27]

I start thinking to use a nominee to open a company under his name and build email exchanges beween us showing that I delegate the job to him. For example if I bill my client 600eur a day I pay my subcontractor 400 a day, then i live and spend the money of the subcontractors and keep my company money saved for the future.

Honestly, it is very illegal. But if course you can try. I would not recommend it. You cannot even claim you did not know it forgot. Ity is just very openly illegal.

Also, there are many like you in Germany with 3 times or more and they also pay it.