Hello Friend!
So as I understand, you would also opt for the safest way and incorporate the LTD in my home country, correct?
If it is about a 5-15% saving from taxes, I do not think it is worth to explore some offshore solutions. As long as I do not sell the assets of the LTD (so that I will have to pay huge dividends or continue to pay myself a salary) I can still have similar benefits with rental income as Director of the LTD, right?
Q1: What about if I get married? If my salary is just as Directory a potential unemployed husband will not be able to get aliments from me even if the real money is in the LTD?
Q2: What about if someone sue me for some personal reasons? The assets will be protected as they are in the LTD, correct?
Q3: My consulting business LTD will not have any big risk and the liability is covereted by the insurance. Would you also do a LTD for the Real Estate business as well to make sure those assets will be untouchable?
Thanks
Q1: If so, he will be able to get aliments based only on your salary, not on the assets of LTD. In the case of divorce, a general rule is that only a wealth accumulated and created in marriage is subject to divorce settlement. However, many variables plays a role. Who applied for divorce, kids, cheating, if he became sick / disabled during the marriage. There can also be a major shift between what I know from my experiences in my country and the law in Netherlands (I am not an expert). The only real protection is to have assets offshore OR to have prenuptial agreement, which is exactly what you should do. It is 2019 and a normal thing to do.
Q2: No, if you will owe money on a personal level, then a debt collector can go after your shares in the LTD. Normally, they can access only your shares and its value when you bought them (LTD was created), which could be only couple euros (depends on the amount of shared capital). However, if you are the only shareholder and the only director, it can result in liquidation of the company. This will also depend on laws in the jurisdiction where you incorporate.
Q3: You can use your consulting LTD as a holding and funding vehicle company for other LTDs where you will own properties (across Europe or in NL). Personaly, I would create a new LTD company for each property, from three reasons.
1. If you will rent all properties through a single ltd you may reach the VAT registration threshold, therefore an obligation to charge your tenants VAT, which can result in a lower profit for you or lower attractivity of your properties on the real estate market for tenants. If you will continue in consulting business in the future (perhaps for some EU customers) the likelyhood of reaching the VAT threshold is even higher. It is fair to say, that the VAT threshold in Netherlands is now relatively high (80k eur), but is expected to go lower very soon bc of push from the EU.
2. If you will have each property in a separated company and you will decide to sell, you can try to sell not the property, but the shares of the company. If the potential buyer will be a corporate entity or just a smart guy who wants to avoid 6% real estate transfer fee, you can make this (actually, I am also looking for such property/company). If you will sell the shares of the company and not the property in the company, it will be treated as capital gains for the holding company (0% tax).
3. If you will not manage to sell through the option in the point 2. you will sell normally, then is essential to have a property in a separated entity. You want to have most of the value of asset taxed through the lower tax bracket. Also, it is easier to do tax optimization through more entities from rent income (that is where you can reach me out and I can help to cut your cpt + directory salary taxes).
What about this one:
- Move to Cyprus, apply for non-dom tax residence for you as a private person. Rent a flat/house for 2-3 months to make it 100% legal and bulletproof and dont live anywhere else for more than 183days...
- Create LLP in UK and invoice from UK
- As tax resident of Cyprus you will pay zero tax but consult this setup with a tax advisor first.
Enjoy life, and come back home after x years with all the money you earned.
Hello, If you need someone to help with SK LTD + UAE FZE setup, try to google in slovak language "starting offshore companies", there is quiet a few companies doing so. It is not my job, I just do have this UAE FZE setup by myself. Dividends 7%, not problems so far. With Cyprus non-resident I would be more scared tho (only through Malta office it is bulletproof). Maybe try to ask some agents here on the forum (perhaps in the mentor section).
I would not bet my last coin on that, sorry but this is too weak.
Admin, and what exactly they should do?
Lets say you own 25% of some REIT based in BVI, which you bought on the stock exchange or out of the stock exchange as a slovak tax resident. You receive dividends... now they should demand from you to pay CPT on profits the BVI company have made bc of suspicion that effective management happens in Slovakia? Same it is with the UAE company. They do not know where the actual business is happening, what is the actual business or if you do not pay 100 employees in the UAE to do and manage the business. In the case it gets to the court... they have to prove to you that effective management was in Slovakia, not you to them that it was in the UAE.. There is no need to overesteminate tax authorities. Ladies there work for 450 eur, by and large do not speak english, and they struggle to settle things when you change an address of the local ltd within the country, not complicated foreign structures. Skilled ppl they have focus more on VAT, bc 25% VAT-gap is more valuable than your few hundred k you cash (and actually pay taxes on) through dividends.
