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Cyprus or UAE for me? (Low income btw...)

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itsmemario123

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Jan 30, 2023
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#1
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I'm a EU citizen earning no more than 100k USD yearly with my business. Is not that much compared to you in this forum... but is my hard work and still I'm trying to optimize it.

I moved to Romania a while back (beautiful country and beautiful people. Love the Carpathians) but they changed the taxes so, although it is still better than my original place, the net profit went down pretty quick (from 1% to 3% microcompany taxes, they increased the minimum wage like 4 times since I'm here which makes me pay more healthcare and taxes as a requirement is to have myself hired in the company, and they increased the paperwork so my accountant charges me more for the services). In total I'm spending about 13% and is going to get worse each year...

I selected Romania as being a EU citizen, it was pretty easy for me, and I was a bit scared to do the "big jump" out of EU. The thing is that after Romania I'm ready to jump to Cyprus or UAE.

So, EU citizen nomad travelling around, less than 100k USD yearly, I don't care the country but I need for it to be clean with EU (not blacklisted ones like Seychelles) as I'm investing that money. What do you think is better for my company? I've read that UAE has a 9% tax now, but I think that it only applies after 95k, so for me could still be almost 0% (after paying the flat 6k yearly). Which I'm not sure I'm understanding is Cyprus, because everywhere I read a lot of different things...

Also, I'm trying to get a better contract, about 200k USD yearly, so maybe that's something to factor in just in case...

I think that the easiest one is UAE. To get an Advisor to create the company, pay 12k the first year and then 6k each year, 3 months to get the tax residence, then 1 day each 6 months and that's it, to travel around the world and enjoy life :)
 
#5
You can try with the US LLC which is by far the cheapest for your case. If they do not like it, you can try they usual zero tax places, but they will most likely cost you a minimum of 2500 per year for setup and filing. It costs you more than Georgia's 1% tax on turnover below 500k GEL (180k USD). An alternative would be Bulgaria with 10+5% and then take all business expenses into company costs to get a low profit you could even invoice your labour out into some other jurisdiction or check with @providenceventurer on other ways to get money out of the country. I can recommend him.
 
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#6
daniels27 said:
You can try with the US LLC which is by far the cheapest for your case. If they do not like it, you can try they usual zero tax places, but they will most likely cost you a minimum of 2500 per year for setup and filing. It costs you more than Georgia's 1% tax on turnover below 500k GEL (180k USD). An alternative would be Bulgaria with 10+5% and then take all business expenses into company costs to get a low profit you could even invoice your labour out into some other jurisdiction or check with @providenceventurer on other ways to get money out of the country.
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US LLC requires me to pay taxes where I'm living, so although I'm travelling around, I prefer to have a document stating that I fulfilled my taxes requisites somewhere as when I'm going back to Spain to invest my money, they will probably ask where that money is coming from.

I'm not sure about the zero tax places that you mean haha. You mean the blacklisted ones by most EU countries? (Seychelles and such). Here I apply the same as before. That would be a mess for me to move the money back to Spain. Coming from a blacklisted country they are going to ask for sure, and I don't want the mess.

Didn't knew about Georgia's 1%. That's quite interesting. Going to read.

I've already seen Bulgaria, but for just 200€ more profit per month than Romania is not worth the hassle now...

Thank you for your input! Going to read about Georgia.
 
#7
Yeah, US LLC sounds good in this case, clean jurisdiction, easy and cheap to set up and maintain, plus good banking access. But why do you want tax residency* in the UAE? Just get residency there, and be out of the Romanian tax net. Then there is no 9% UAE tax or any other tax on your US LLC, assuming you dont accidentally become a tax resident somewhere else.

*Unless you are Spanish, there it seems to get out of the tax net, one de facto needs a tax residency outside Spain. But I think Spain like Italy has anti tax haven rules, so even in this case tax residency in the UAE might not be a good idea, better with a place like Paraguay.
 
#8
itsmemario123 said:
US LLC requires me to pay taxes where I'm living, so although I'm travelling around, I prefer to have a document stating that I fulfilled my taxes requisites somewhere as when I'm going back to Spain to invest my money, they will probably ask where that money is coming from.
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itsmemario123 said:
I'm not sure about the zero tax places that you mean haha.
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No, Hong Kong, etc. but forget about these as they won't fulfill your requirements. Check Georgia etc.
 
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#9
Cloudbanck said:
Yeah, US LLC sounds good in this case, clean jurisdiction, easy and cheap to set up and maintain, plus good banking access. But why do you want tax residency* in the UAE? Just get residency there, and be out of the Romanian tax net. Then there is no 9% UAE tax or any other tax on your US LLC, assuming you dont accidentally become a tax resident somewhere else.

*Unless you are Spanish, there it seems to get out of the tax net, one de facto needs a tax residency outside Spain. But I think Spain like Italy has anti tax haven rules, so even in this case tax residency in the UAE might not be a good idea, better with a place like Paraguay.
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Yep, I'm spanish... as you say is like Italy. I left Spain and became a romanian tax resident, but I have spanish nationality, and I'm investing back in Spain as I want to return there at some point in my future life and live out of my properties rentals... So although there are almost 0% tax schemes out there, they are not for me. So with this I'm just trying to optimize the best scheme for me although is not 0%.

The tax residency in UAE is to have documents proving that I paid my taxes there, although it is 0%, but at least that I belong somewhere and have fulfilled my tax documents. I don't know if Spain is going to ask as I'm not a millionaire, but I want to sleep peacefully while travelling around. Of course I'm not going to live more than 183 days anywhere while optimizing my taxes.

So I guess that what you explained me is a scheme where I don't have to fulfill any yearly tax document anywhere where I declare my profits, right?

UAE is not a tax heaven in the eyes of Spain, so that's good actually.

With 100k do I have to pay the 9%?
 
#12
yngmind said:

Since you're Spanish, check this dude on youtube.
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Seems like the typical influencer that explains everything and nothing at the same time and then sells his services to you... :-/

Didn't say anything clear, just the 183 rule we all know, the Beckham law we all know and is just a 24% flat tax which doesn't apply to me, and then all blabbery and "here is my link to my services" xD
 
#13
Is that eve
itsmemario123 said:
Seems like the typical influencer that explains everything and nothing at the same time and then sells his services to you... :-/

Didn't say anything clear, just the 183 rule we all know, the Beckham law we all know and is just a 24% flat tax which doesn't apply to me, and then all blabbery and "here is my link to my services" xD
Click to expand...
Yep, but he’s Spanish, and he managed to escape the Spanish tax hell.
 
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