Did you consider the high (25%)withholding tax on dividends from Ireland, unless you can provide a tax residency certificate from a country that has a tax treaty with Ireland?Actually, I think I just worked it out
So, we have:
Irish end client
Irish company (mine to create) - functions similar to a payroll/umbrella company
Independent contractor (me) of Irish company, tax resident of nowhere (or a no or low tax jurisdiction)
Then, the process:
- Contractor (me) timesheets Irish Payroll company for hours worked
- Irish Payroll company invoices Irish end client
- Irish end client pays invoice
- Irish Payroll company receives payment
- Irish Payroll company disperses payment to Independent Contractor (minus 3% service fee - market rate for a payroll service)
- Independent contractor (me) responsible for any and all personal income tax liability on this 97%
Irish Payroll company profits are only the 3% service fee - which is taxed at 12.5%
Basically I'll just set myself up something akin to a 1 person Umbrella company. Note - None of the umbrella companies I've spoken to in Ireland will work an overseas employee/contractor, they say it's because their insurance won't cover them. They all want to hire you as an employee and withhold tax, but legally I can't see why they couldn't do this... seems to just be company policy.
Does that sound OK?
No I didn't know this... doesn't sound good. Who does this - is it the bank who withholds the payments?Did you consider the high (25%)withholding tax on dividends from Ireland, unless you can provide a tax residency certificate from a country that has a tax treaty with Ireland?
Yes, that's the weakness here. I'd be creating an umbrella company, be the director of it, and the sole independent contractor also. My understanding is that it's technically legal, but it would raise an eyebrow. At first I thought I could then take on other contractors (and make it a more 'real' payroll umbrella company), but then I thought I could keep hunting around for one that is willing to disperse the full payments to me (no withholding) with a contract saying that I have full tax liability (and pay them an admin fee). The latter is probably easier.I'm no expert on Ireland, but it might be problematic paying yourself as an independent contractor when you are the owner and director of the company.
I think a UK Ltd would be the simplest. You can take a tax free salary if you don't live in the UK. Ireland taxes salaries to non resident directors.
Non-UK Resident Director Salary: If you, as a director, are not a UK tax resident and perform your duties wholly outside the UK, your salary from the UK Ltd may not be subject to UK income tax.
Your Irish Ltd should withhold the taxes, no the bank doesn't do it.No I didn't know this... doesn't sound good. Who does this - is it the bank who withholds the payments?
Yes, that's the weakness here. I'd be creating an umbrella company, be the director of it, and the sole independent contractor also. My understanding is that it's technically legal, but it would raise an eyebrow. At first I thought I could then take on other contractors (and make it a more 'real' payroll umbrella company), but then I thought I could keep hunting around for one that is willing to disperse the full payments to me (no withholding) with a contract saying that I have full tax liability (and pay them an admin fee). The latter is probably easier.
Can a UK Ltd really provide me with a tax free salary (no corporate income tax)? I thought that was only UK LLPs... If so that's well worth investigating
ChatGTP just spat out this...
I assume this is what you are talking about?
And I can use a Service Office for my UK LTD sole directors and shareholders address?
For best reputation ever and not located in the EU you better go for a Swiss AG as an foreigner you will have your great benefits which local Swiss people don't have.I want to have the best reputation possible, so I was planning to make both the UK and US entities the same name. The business name is not anonymous and easily tied back to me ('I' am the business, e.g. 'Smith Consulting').
Could you list the benefits? Thx.For best reputation ever and not located in the EU you better go for a Swiss AG as an foreigner you will have your great benefits which local Swiss people don't have.
Certainly, I can do that. It's quite clear that you can handle a company differently if the company is not in the same country as you are registered in. This applies not only to Switzerland but to all countries. It seems like authorities are more indifferent as long as it's about smaller amounts and seals, as they know that so far, it's almost impossible to get anything out of going after them.Could you list the benefits? Thx.
exact what I mean. If you don't live in the same country as where your company is registered you don't have to worry as much as if the opposite.I work in IT with US and UE companies, I have a San Vincent and the Grenadines LLC ( 1000$ per year ) + UAE Residency with Remote Work visa ( 1000$ per year ). My LLC uses Wise as the only bank.
No taxes so far and never had any issue with people working with me, as my company is not blacklisted. Torunaround is 150-200k USD. For me it's the easiest possible setup. I Live as a digital nomad between Ibiza - dubai - Milan - other places.
I work in IT with US and UE companies, I have a San Vincent and the Grenadines LLC ( 1000$ per year ) + UAE Residency with Remote Work visa ( 1000$ per year ). My LLC uses Wise as the only bank.
He opened the account a couple of years ago. Either way, relying on a single EMI isn't exactly smart.How? I though Wise didnt open for SVG.
I opened it 6 years ago. it was a different Wise and my business is 100% legit, I am a software engineer and have big clientsHow? I though Wise didnt open for SVG.
Can you suggest which EMIs are ok to work with SVG or other companies? Clear work, payments from big EU companies, in EUR, nothing illegal. thank youGet at least two more EMI accounts
Did you try with Wise?Can you suggest which EMIs are ok to work with SVG or other companies? Clear work, payments from big EU companies, in EUR, nothing illegal. thank you
Yes they don’t anymore…Did you try with Wise?
Payset probablyCan you suggest which EMIs are ok to work with SVG or other companies? Clear work, payments from big EU companies, in EUR, nothing illegal. thank you
so this setup is no longer available because Wise doesn't work with San Vincent and the Grenadines? Any other decent EMIs?I work in IT with US and UE companies, I have a San Vincent and the Grenadines LLC ( 1000$ per year ) + UAE Residency with Remote Work visa ( 1000$ per year ). My LLC uses Wise as the only bank.
No taxes so far and never had any issue with people working with me, as my company is not blacklisted. Torunaround is 150-200k USD. For me it's the easiest possible setup. I Live as a digital nomad between Ibiza - dubai - Milan - other places.
What is some setup like this?There are setups with Estonia that can provide a 0% overall tax (e.g., salary paid to non-residents).
Tax residence of company in different country will be in country you are registered in so tax will be same. Advantages are more than tax?Certainly, I can do that. It's quite clear that you can handle a company differently if the company is not in the same country as you are registered in. This applies not only to Switzerland but to all countries. It seems like authorities are more indifferent as long as it's about smaller amounts and seals, as they know that so far, it's almost impossible to get anything out of going after them.
How long do you have to spend in UAE to keep residency?UAE Residency with Remote Work visa
If Wise cancel your account because of SVG what will be your backup?