Country selection advice

[JustAnotherNomad]

You should move your a*s before you set up a new company.
Your income is very low at the moment, so you have plenty of options. Whether you pay 0%, 5%, 10% or 15% tax means very little with your numbers.
Start with where you want to live.
Moving to another EU country will probably be less risk. You can go to Cyprus or Malta, for example. There are plenty of Swedes there, taxes are low (5-12.%, something like that).
You could even live there and run an offshore company from there, and they likely wouldn't even bother you, even if - in theory - you should pay tax as if it were a local company, since they have the same rules as Sweden, but enforcement is very lax.

You really should start with where you want to live. There's no point in moving to Dubai if you like going for hikes in the forest.

Once you have decided on what kind of country you like/you have narrowed it down to a few countries, you can start looking at different options for the company.

 

[Clank]

Why will they probably end up closing my account? I mean I run a legal business and pay taxes.

High risk business.

 

[Learner458]

You should move your a*s before you set up a new company.
Your income is very low at the moment, so you have plenty of options. Whether you pay 0%, 5%, 10% or 15% tax means very little with your numbers.
Start with where you want to live.
Moving to another EU country will probably be less risk. You can go to Cyprus or Malta, for example. There are plenty of Swedes there, taxes are low (5-12.%, something like that).
You could even live there and run an offshore company from there, and they likely wouldn't even bother you, even if - in theory - you should pay tax as if it were a local company, since they have the same rules as Sweden, but enforcement is very lax.

You really should start with where you want to live. There's no point in moving to Dubai if you like going for hikes in the forest.

Once you have decided on what kind of country you like/you have narrowed it down to a few countries, you can start looking at different options for the company.

Sweden is terrible, firstly im somehow paying over 50%. It’s not safe for me and l’m asking about the tax stuff but I’m moving cause of the safety issues I’ve got.

 

[Learner458]

Sweden is terrible, firstly im somehow paying over 50%. It’s not safe for me and l’m asking about the tax stuff but I’m moving cause of the safety issues I’ve got.

What I’m asking is just where to move my company and also when to move it and if it’s possiblento move it right now without major tax issues arising.

 

[JustAnotherNomad]

What I’m asking is just where to move my company and also when to move it and if it’s possiblento move it right now without major tax issues arising.

And we have told you you have to move yourself first.
There's no point in "moving the company" if the company is just you and you want to stay in Sweden. The company will be treated like a Swedish company in the eyes of the Swedish tax office.
If you don't pay tax for the offshore company in Sweden, that's tax evasion and potentially a criminal offense.

When you have decided on countries you could imagine living in, only then it's worth thinking about the location of the company.

 

[Learner458]

And we have told you you have to move yourself first.
There's no point in "moving the company" if the company is just you and you want to stay in Sweden. The company will be treated like a Swedish company in the eyes of the Swedish tax office.
If you don't pay tax for the offshore company in Sweden, that's tax evasion and potentially a criminal offense.

When you have decided on countries you could imagine living in, only then it's worth thinking about the location of the company.

I mean yes what I don’t get is why it’d still be treated as a Swedish Company after I move my a** out of Sweden

 

[JustAnotherNomad]

It won't be.
But if you set up the company before, it will start as a Swedish company. At the very least, the company has to register with the Swedish tax office and pay tax in Sweden as long as you are in Sweden.
Once you move, they may agree that it's no longer taxable in Sweden, but it will likely fall under other rules, such as exit tax.
Google says Sweden doesn't have exit tax, but it does have "10 year rule", which means that if you sell the company within 10 years after moving to another country, you have to pay tax on this in Sweden.

Even if you don't want to sell the company, just think of the hassle:
You have to contact the tax office and tell them: "Hey guys, I registered a Nevis LLC for my company, I want to pay tax for it."
Imagine the head scratching. This alone might give them a reason to investigate you further: "What kind of shady business does this guy have going on?"
Then there will be a lot of paperwork to register the company as a Swedish taxpayer. You have to register for VAT, corporate tax etc.
Then if you move in 5 months, you have to contact them again: "Oh hey guys, I'm leaving. By the way, I don't want to pay tax for my company anymore."
Then you're going to have to deal with a lot of questions:

• Why should this company no longer pay tax in Sweden? It was paying tax in Sweden before?
• Ok, so you no longer run the business from Sweden, so where are you running it from? You're moving to Thailand? Show us proof the company actually has a registered office in Thailand and pays tax there.
• What do you mean, you're a digital nomad? Never heard about this. Where is the office? Do you have employees? Do you have Swedish customers?
• Oh, so you have Swedish customers... Well, then we believe the company should still pay some tax in Sweden. If you disagree, feel free to hire a lawyer and sue us.
• Oh, and we'll also make a note that you have to pay tax if you sell the company in the next 10 years. We'll keep you on our radar to make sure you don't try to avoid this tax.

It's just a massive headache.

Move your a*s out now, the sooner, the better.
If you move to e.g. Malta, you may even be able to keep the company and just pay 5% in Malta instead.
Or you move to e.g. Dubai or Thailand, you tell them "Byyyye" and then you set up a new offshore company (not sure Nevis would be my preferred choice) that you don't have to tell them about. Then you close the Swedish company. Very clean and simple.

Or you can set up the offshore company now, never tell the tax office about it and have to worry about going to jail for tax evasion for the next 20 years.

I know what I would do.

 

[daniels27]

Let me summarise things for you again. You are selling privacy services from your home in Sweden and are worried about having to pay VAT on all sales. You propose to incorporate offshore to avoid having to charge VAT to all customers.

Let's go through it step by step.

Offshore Company
An offshore company is a good idea. But only if you personally leave Sweden before incorporation. If you incorporate while you are in Sweden, you must register a branch of your company in Sweden. You will then be subject to Swedish tax on the business profit. Of course, the branch will also be subject to the same Swedish VAT rules as you are now.

Opening a company even 1 day before you left Sweden only makes your life more complicated. We all do not advocate this move.

Your Broken VAT Accounting
The problem you are having now is that you don't know what VAT to charge, so you just charge Swedish VAT. While it may be ok for a while, you are in violation of EU rules. You must use OSS
https://vat-one-stop-shop.ec.europa.eu/one-stop-shop_en
If you do not use OSS, any member state can claim VAT on the sales you made to his territory.

The Solution: Proper VAT Accounting
What you are supposed to do (if you are staying in Sweden) is that you do proper VAT accounting and pay VAT where it is due. You can use your customer's IP address and for those that pay by card, you can look up the country of the card. You can then properly invoice customers. Don't walk around telling people that it is not possible etc. You can talk to the VAT guys and explain them that you have a business model similar to Mullvad. This is a Swedish company and they are able to handle all sort crypto payments too. Here is how they issue the invoice:

Source:
https://www.studocu.com/en-us/docum...m/mullvad-vpn-receipt-uhtuhwjnetkj4g/88847604