Lowest income taxes countries in Europe

[lavel]

ANDORRA 10% tax for AD company, dividend from AD company 0% Tax!

how easy is it to relocate there, get banking and company setup, what are the living costs there?

 

[Diego Reppas]

My income is 200k per year. My favourite cities in Europe are UK and Netherlands but the first is 45% and the second is almost 50% on your income... I have my own company. What would you do in my shoes? Just wondering

Don't earn money personally but through a company... max 25% corporate income tax rate (most likely 15% in your case) , send dividends to a holding company (tax free) and use the money from the holding either through a shareholder loan (untaxed) or a shareholder current account (untaxed).

 

[Marzio]

use the money from the holding either through a shareholder loan (untaxed) or a shareholder current account (untaxed).

Can't he does that from the operating company?

 

[Diego Reppas]

Can't he does that from the operating company?

Yea but I would say that it makes more sense to do it through the holding company as typically you would like to separate risky assets and liabilities from non-risky assets (like cash).

 

[JohnLocke]

Yea but I would say that it makes more sense to do it through the holding company as typically you would like to separate risky assets and liabilities from non-risky assets (like cash).

It's always a better idea. Anyway, it's allowed to make a loan on your own Holding Company in Andorra?

 

[nobel]

how easy is it to relocate there, get banking and company setup, what are the living costs there?

Moving is easy, founding a company also, 3K minimum deposit, banks a bit bitchy but it works. Your certificate of good conduct must be clean. You have to pay a 10K deposit to the state. Cost of living like in Spain, Germany.

 

[Diego Reppas]

It's always a better idea. Anyway, it's allowed to make a loan on your own Holding Company in Andorra?

Not sure about Andorra. 100% possible in NL

 

[noname]

In my country Bosnia & Herzegovina, located in Europe but not a member of the EU, corporate tax is 10%, no dividend tax at least for local person owners. One of the reasons we have much corruption is a low tax, company owners just transfer the profit to personal accounts after paying 10%, then start bribing politicians and everyone they need. We have a currency tied to EUR and somehow it's not volatile. Not a stable country if you look financially can't compare it to any EU member or UAE, but we have many IT and other international companies coming here, cheap workers, low minimum salary.

As a company owner and one-person director, you can be employed as a manager so you do not pay salary, and not own anything to the country.

If you ever decide to incorporate here and need any assistance feel free to contact me for help.

 

[Marzio]

feel free to contact me for help

Are you an offshore agent or what?

 

[noname]

Are you an offshore agent or what?

No I am not, I didn't mean to sell anything just to offer help if need it. I have my own company here, went through the process so I know how it goes. I can recommend accountants things like that, its good to know someone local.

 

[lavel]

can you list the benefits with Bosnia and costs involved for an foreigner to take this opportunity?

what would be the key benefit of incorporating the business there?

 

[Marshal]

In my country Bosnia & Herzegovina, located in Europe but not a member of the EU, corporate tax is 10%, no dividend tax at least for local person owners. One of the reasons we have much corruption is a low tax, company owners just transfer the profit to personal accounts after paying 10%, then start bribing politicians and everyone they need. We have a currency tied to EUR and somehow it's not volatile. Not a stable country if you look financially can't compare it to any EU member or UAE, but we have many IT and other international companies coming here, cheap workers, low minimum salary.

As a company owner and one-person director, you can be employed as a manager so you do not pay salary, and not own anything to the country.

If you ever decide to incorporate here and need any assistance feel free to contact me for help.

How is this better than say moving to Montenegro where tax is even lower?

 

[Adlawyer]

Hungary - 9% corporate tax, and 15% for personal income

 

[Piano]

North Macedonia ..

 

[JustAnotherNomad]

Seems like Montenegro is 9-15%, but if you're in an underdeveloped region (it's a small country), for the first 8 years, you don't have to pay the first 200k in taxes. So you should be able to earn up to 2.2M tax free.
Passive and active income is taxed at the same rate.

 

[zzzzzz]

Seems like Montenegro is 9-15%, but if you're in an underdeveloped region (it's a small country), for the first 8 years, you don't have to pay the first 200k in taxes. So you should be able to earn up to 2.2M tax free.
Passive and active income is taxed at the same rate.

Interesting. Do you have any link?

 

[Don]

Interesting. Do you have any link?

https://taxsummaries.pwc.com/montenegro/corporate/tax-credits-and-incentives

 

[scooterguy]

otherwise how do rich people do to build wealth.

Two general rules to build wealth quickly:

1) Maximize profits.
2) Keep living costs as low as possible.

This is usually better achieved through planting flags in different countries, as opposed to simply relocating to a particular place.

For example:

1) Maximize profits by setting up your companies in UAE, Singapore or HK.
2) Reduce living costs by spending most of your time/living in SEA and South America. Keep an eye on residency/foreign income tax rules, and count the days you spend in each country to avoid surprises.

By doing that you can easily keep most of your income.

 

[JohnLocke]

1) Maximize profits.
2) Keep living costs as low as possible.

One of the wises methods to get rich. If you add this in combination with relocating to i.e. Dubai with no income tax or other low tax low living cost countries you can get very wealthy quickly.

I'm not a big fan of high tax countries like Denmark, Germany, France, Sweden etc. if you are healthy and without kids you get a much better life avoiding such countries.

 

[Alonzo]

One of the wises methods to get rich. If you add this in combination with relocating to i.e. Dubai with no income tax or other low tax low living cost countries you can get very wealthy quickly.

I'm not a big fan of high tax countries like Denmark, Germany, France, Sweden etc. if you are healthy and without kids you get a much better life avoiding such countries.

I'm pretty sure EU's anti-capitalist master plan is forcing all high tax countries to implement an exit tax and then once that high tax country introduces a (global) wealth tax, Staying or move out, you are screwed in both ways... I would move out of EU forever if that's the case. All that hard earned wealth you built over the years...