Our valued sponsor

Relocate to Switzerland, how to?

Register now
You must login or register to view hidden content on this page.
Bl7QgO.jpg


https://www.fin.ee/en/taxes#corporate-income-tax
Perfect thanks. Do you have a holding company in Estonia?
 
Perfect thanks. Do you have a holding company in Estonia?
I don't but @Don could surely help you with anything Estonia related.
Sure, feel free to get in touch. Can provide turnkey solutions (EE, CY, MT, and others)
A great solution is to have a holding company in Estonia with a branch office in Cyprus:
  • Profits from the Cyprus branch (PE) can be redistributed tax-free on the Estonian level (think about securities trading with 0% tax, IP Box 2.5%).
  • Estonian company itself can keep Estonian trading income at 0% tax (assuming you don't distribute profits directly and reinvest)
  • There is no WHT tax on dividends; you either pay 20% on a local level or redistribute foreign permanent establishment profits tax-free.
  • There is no WHT on interest on loans from Estonian companies to non-tax residents. The entity owner can give himself a loan with certain structures.
  • In Estonia, taking assets out of a permanent establishment is not deemed to be taking out assets or posting them as collateral in connection with financing securities if the assets are brought back, or the collateral is released within a period of 12 months.
  • Tax residency doesn't require physical presence, and you're not on an island. You get a tax residence certificate based on whatever DTT automatically issued to you any day you want. Coliving space rental can cost as little as ~100 EUR/month with mail handling, or you can acquire a cheap property for less than 10k.
  • For regular trading income, another great structure is to have a fiscal unit in Malta with the EE holding; this way the effective tax is 5%.
+ more structuring possibilities exist for a 0% tax income, income deferral (recommended when you have higher risk), avoiding disclosures, etc.
 
Sure, feel free to get in touch. Can provide turnkey solutions (EE, CY, MT, and others)
A great solution is to have a holding company in Estonia with a branch office in Cyprus:
  • Profits from the Cyprus branch (PE) can be redistributed tax-free on the Estonian level (think about securities trading with 0% tax, IP Box 2.5%).
  • Estonian company itself can keep Estonian trading income at 0% tax (assuming you don't distribute profits directly and reinvest)
  • There is no WHT tax on dividends; you either pay 20% on a local level or redistribute foreign permanent establishment profits tax-free.
  • There is no WHT on interest on loans from Estonian companies to non-tax residents. The entity owner can give himself a loan with certain structures.
  • In Estonia, taking assets out of a permanent establishment is not deemed to be taking out assets or posting them as collateral in connection with financing securities if the assets are brought back, or the collateral is released within a period of 12 months.
  • Tax residency doesn't require physical presence, and you're not on an island. You get a tax residence certificate based on whatever DTT automatically issued to you any day you want. Coliving space rental can cost as little as ~100 EUR/month with mail handling, or you can acquire a cheap property for less than 10k.
  • For regular trading income, another great structure is to have a fiscal unit in Malta with the EE holding; this way the effective tax is 5%.
+ more structuring possibilities exist for a 0% tax income, income deferral (recommended when you have higher risk), avoiding disclosures, etc.
Ok and what about trading of physical products? Can this also be achieved that way?
 
Ok, so trading (physical goods) income would be possible at 0% tax with MT-EE? Can you please PM me with the prices for setup and running costs?
It is possible but somewhat complex as when we talk about achieving zero tax we need to consider both your personal tax residency and corporate taxes.
 
You guys turned the thread into an Estonian company thread! I would like to know what OP figured out during all this time.
 
Switzerland is not a tax haven (except for lump sum deals, which are being phased out). It just has a below average tax pressure, but high costs of living more or less even things out for average income people/households. By and large, you need to have a very high income to notice any meaningful savings compared to just living across the border.

Go somewhere else if you want low/zero tax.
I see people wanting to move to Lugano but don't realize that even if you live in one the lowest tax municipality in Ticino like Porza (assuming 1M income/10M wealth) you'll pay 44,5% tax effectively (income+wealth+SS combined against gross income) without any deductions whatsoever... Definitely not a tax haven unless you choose for the lump sum taxation

It's still better than West EU countries where they tax you at least 55%+ effectively, 20-25% VAT and crazy registration car tax
 
  • Like
Reactions: JohnLocke
Lugano may indeed be too expensive unless you go for the lump sum taxation. However if tax isn't the only reason for relocating there it may be worth it.
 
  • Like
Reactions: Alonzo
I see people wanting to move to Lugano but don't realize that even if you live in one the lowest tax municipality in Ticino like Porza (assuming 1M income/10M wealth) you'll pay 44,5% tax effectively (income+wealth+SS combined against gross income) without any deductions whatsoever... Definitely not a tax haven unless you choose for the lump sum taxation

It's still better than West EU countries where they tax you at least 55%+ effectively, 20-25% VAT and crazy registration car tax
You forgot about the 10% AHV contributions, which are of no value above 70k CHF.