Hi guys! (sorry for my nickname, if anyone feels offended)
I know there are a lot of information already in forum, which I read meticulously, but I still have some doubts regarding which country/setup I should pursue, but there are some very bright people right here, so I hope I can get some useful insights.
Soo... I'm self-employed, but most (something like 70-80%) of my income comes from one company, the rest is from occasional assignments, from other customers. In last two years I was running UK LTD company along with three other directors (three different countries) to avoid any nasty CFC nad PE rules + I travelled a lot across the Europe. My tax burden was really low, but I've got tired to be constantly on move + tax office in my country become a nightmare. They can basically interpret the law as it is useful for them at the moment, because that's how law changed in recent years.
I'm planning to relocate and stay more than 183 days per year in some other country + make a ties to it, to change my tax residency.
What I want to achieve / What are my requirements:
- Find an optimum between simplicity and low taxes
- Live in relatively cheap country (that's why I focused on central/eastern part of EU)
- Low total tax burden, including social securities, as I'm obligated to pay those as an EU citizen (unless I'm missing something?)
- It has to be an EU country
- Rather long term solution (not for few months. At least a year, maybe more, who knows)
Some useful information:
- Currently my 'base' is in one of the central Europe countries (not sure if I can freely share this knowledge? Probably it can be easily deducted already)
- My annual income is something between 30-45k EUR (I know there are some people here who probably earn this amount as a monthly but well, not me
).
- I have almost no costs related to my business
- I will sell mostly B2B, occasionally B2C, but due to that fact I will probably need a VAT registration(?)
I was digging a lot and finally I think there are two setups that could work for me: Czech self-employment OR Romania LLC with micro-company regimen.
I was considering also Hungary, due to KATA scheme, but unfortunately they are very strict regarding 'relevant customers' so it's not for me:
http://kataonline.hu/blog/en/small-business-tax-kata/
Czech pros:
- Total tax burden (PIT + social) with flat expenses 60% is something around 13% as I calculated + some accountant job probably
- Very close: geographically, culturally and linguistically to me
- Was multiple times in different regions there and people were always lovely towards me
- Really easy to setup and maintain as far as I understand
- 15% PIT, which may be very beneficial in the future if my other income (e.g. capital gains or dividends from the stock etc.) will be higher
Romania pros:
- Tax from income will be 8-9% (3% CIT + 5% for dividends on individual level) + health fund contribution (information below), but only 10% of 12 x minimum gross salary for current year (so for this year for example 2676 RON in total) + some accountant work for sure.
https://taxsummaries.pwc.com/romania/individual/income-determination- VERY cheap to live there
- Cities are small (that's an advantage for me), yet beautiful and landscapes are phenomenal
- 10% PIT, which is even better than Czech
So maybe some of you may recommend something or have some experience or maybe there is some other solution, that I missed, which could be beneficial in my situation?
Any thougths or information will be very valuable to me. Thanks!
I know there are a lot of information already in forum, which I read meticulously, but I still have some doubts regarding which country/setup I should pursue, but there are some very bright people right here, so I hope I can get some useful insights.
Soo... I'm self-employed, but most (something like 70-80%) of my income comes from one company, the rest is from occasional assignments, from other customers. In last two years I was running UK LTD company along with three other directors (three different countries) to avoid any nasty CFC nad PE rules + I travelled a lot across the Europe. My tax burden was really low, but I've got tired to be constantly on move + tax office in my country become a nightmare. They can basically interpret the law as it is useful for them at the moment, because that's how law changed in recent years.
I'm planning to relocate and stay more than 183 days per year in some other country + make a ties to it, to change my tax residency.
What I want to achieve / What are my requirements:
- Find an optimum between simplicity and low taxes
- Live in relatively cheap country (that's why I focused on central/eastern part of EU)
- Low total tax burden, including social securities, as I'm obligated to pay those as an EU citizen (unless I'm missing something?)
- It has to be an EU country
- Rather long term solution (not for few months. At least a year, maybe more, who knows)
Some useful information:
- Currently my 'base' is in one of the central Europe countries (not sure if I can freely share this knowledge? Probably it can be easily deducted already)
- My annual income is something between 30-45k EUR (I know there are some people here who probably earn this amount as a monthly but well, not me
).- I have almost no costs related to my business
- I will sell mostly B2B, occasionally B2C, but due to that fact I will probably need a VAT registration(?)
I was digging a lot and finally I think there are two setups that could work for me: Czech self-employment OR Romania LLC with micro-company regimen.
I was considering also Hungary, due to KATA scheme, but unfortunately they are very strict regarding 'relevant customers' so it's not for me:
http://kataonline.hu/blog/en/small-business-tax-kata/
Czech pros:
- Total tax burden (PIT + social) with flat expenses 60% is something around 13% as I calculated + some accountant job probably
- Very close: geographically, culturally and linguistically to me
- Was multiple times in different regions there and people were always lovely towards me
- Really easy to setup and maintain as far as I understand
- 15% PIT, which may be very beneficial in the future if my other income (e.g. capital gains or dividends from the stock etc.) will be higher
Romania pros:
- Tax from income will be 8-9% (3% CIT + 5% for dividends on individual level) + health fund contribution (information below), but only 10% of 12 x minimum gross salary for current year (so for this year for example 2676 RON in total) + some accountant work for sure.
https://taxsummaries.pwc.com/romania/individual/income-determination- VERY cheap to live there
- Cities are small (that's an advantage for me), yet beautiful and landscapes are phenomenal
- 10% PIT, which is even better than Czech
So maybe some of you may recommend something or have some experience or maybe there is some other solution, that I missed, which could be beneficial in my situation?
Any thougths or information will be very valuable to me. Thanks!
