Luxembourg company setup, what's your thoughts?

[Nicholas Van Orton]

I just need this explained in simple terms! So, if I am already being taxed in Germany on my personal income, does that mean I don’t have to pay tax on the dividends paid out from the company in Luxembourg because tax has already been paid on them?

That doesn’t sound entirely correct.

Hi @maxmoney, if you read my post again...I explicitly say that if you cash out as dividends, you'll get taxed in your home country as CGT. Pretty straightforward.

NVO

 

[JustAnotherNomad]

Yes and No. Yes if you cash out as capital gains tax (dividends) and No if you cash out as an employee (assuming you are the GP (general partner, the fund manager) in the structure), in which case you're already taxed in Luxembourg and thus would avoid double taxation in your home country.

Nonsense. Without substance in Luxembourg, the whole thing would always be taxable where you live.
It is not possible to live in e.g. Germany, register a shell company in some other country and reduce your taxes that way. You will always be taxed as if the company was registered in the country where you live.
Exceptions would only be if you can prove that you actually work from the foreign office every day, but who will believe you, unless you live very close to the border...

 

[Nicholas Van Orton]

OK, I've had it differently (from experience), but you're the boss, I guess. It's like online trading is not a thing these days and we all need to go to the phone desk, or better, the stock exchange booth, waving our hands and papers asking for trades to be filled. I'd only suggest, if I may, that you actually go to Luxembourg, and ask a few corporate and fund creation shops around (CreaTrust and Andbank come to mind). You might even get a discount for going in person. I'm not going to continue arguing with you. I only post when I have something to say, usually because I've lived it and may share the experience with others here, as a thanks for the many contributions and help I've received from this forum for quite some time now.

NVO

 

[JustAnotherNomad]

Your experience then means you simply weren't caught. This is a big problem - people running illegal/non-compliant setups and just not getting caught, believing what they did is correct, and then recommending it to others.

 

[brianK]

Now we have talked a lot about Swiss company formation in this area. I was wondering what your thoughts are about Luxembourg?

The benelux countries mentioned here already are not really discussing the Luxembourg benefits their have been in the past and may still be there.

They are known for a low- or no corporate tax at all, high privacy and almost no issues to transfer money around the world.

When I do my flag theory drawings I came across Luxembourg, some input maybe?

I wonder i you followed your own plans and setup a company luxembourg back when made the thread, it sounds to me to be a good viable way anyway.