Yet another Digital Nomad from EU

[gnud]

It's the opposite. You need to get RO tax residency so that other EU countries won't have questions for you. You don't need to pay anything that you mentioned above since you are going to get money through dividends (5% tax paid by company ).
So after initial setup, you only pay: rent (300e+), accounting( mine is 45e/month), 3% revenue tax and 5% dividend tax. If you invest personally or through the company then there is also 10% Capital gains tax. After all that it's still a bargain if you compare RO to other EU countries. Best part is that there is no 6 months bulls**t residence requirement.

The only reason to pay salary/social/health insurance is to hire yourself for a minimum wage. If you have an employee(you), your revenue tax drops from 3 to 1%


I actually decided to stay in my country while keeping Romanian one. So I'll pay 3% revenue to RO, then around 17% to my own country as corporate tax. But after 5-10 years I will retire, move to Romania, take all the money out and move again somewhere warm and nice. So basically it will be 20% corporate, 10% Capital gains and 5% dividend at the end. Which is way better than just using LLC in my country ( 20% corporate, 20-30 dividend, 30-35 capita gains ).

How does it work exactly? Did you report it to your home tax authorities? Or did they find out? How do they decide what part of the profit is taxable where?

 

[kkein]

Why do you recommend Romania, Bulgaria or Cyprus for incorporation if he wants to spend a substantial time in Germany? Wouldn't that give Germany an opportunity to claim permanent establishment of effective place of management of the company? How can he avoid being appropriated by Germany?

Romania seems a lot easier here. Easy to get in and out of it from germany, and to stay under the radar while in germany.

 

[gnud]

Romania seems a lot easier here. Easy to get in and out of it from germany, and to stay under the radar while in germany.

Not sure how you can stay under the radar. I think foreign bank accounts are being reported automatically under the CRS, so if you have a residency in Germany and you open a bank account for your Romanian company it will be reported back to Germany, no? Also I think you have an obligation to declare your foreign company if you reside in Germany, no? And even if you get away with not declaring it, if you keep receiving regularly money from abroad to your German account, or pay all the time with a bank card that's not with a German bank, or access your Romanian internet banking from Germany all the time, eventually you will be marked and someone will start asking questions probably.

Under the DAC there's way more information exchange within the EU between administrations than just the CRS like with other countries.

 

[RealDude]

@leaveNet
Any news on your topic?

 

[pixbix]

Go to Romania and open a "microintreprindere" , you will pay only 1% up to 500 000 euro, of all money that comes in. And you can 3 in your name, and those 3 can also have 3 more, so it will always be 1%. You need to hire yourself, but you also need health security and a pension., so it will work in your favor. Diviedents it's 5%, so total will be 6%,but you can keep it at 1%, if you for example earn 70700 and buy a 70 000 TESLA CAR.
If you can care to limit the 5% , you need to find a country that excepts dividents from taxations, like NHR portugual if i am not wrong. but it's not worth it. 5000$ for 100 000 , airplane tickets are more expensive.

Not sure how you can stay under the radar. I think foreign bank accounts are being reported automatically under the CRS, so if you have a residency in Germany and you open a bank account for your Romanian company it will be reported back to Germany, no? Also I think you have an obligation to declare your foreign company if you reside in Germany, no? And even if you get away with not declaring it, if you keep receiving regularly money from abroad to your German account, or pay all the time with a bank card that's not with a German bank, or access your Romanian internet banking from Germany all the time, eventually you will be marked and someone will start asking questions probably.

Under the DAC there's way more information exchange within the EU between administrations than just the CRS like with other countries.

He can pay 1% taxes in Romania and also hire himself here.

No, every year, but it's easier to move your company to Cyprus or UAE later, without triggering expensive exit laws. That was what I was trying to say.

Nobody will know how much time he stayed or not stayed in Romania, because it's in EU as Germany is. He is not aware Romania is 1000% times safer than his homeland

 

[ImKing]

Go to Romania and open a "microintreprindere" , you will pay only 1% up to 500 000 euro, of all money that comes in. And you can 3 in your name, and those 3 can also have 3 more, so it will always be 1%. You need to hire yourself, but you also need health security and a pension., so it will work in your favor. Diviedents it's 5%, so total will be 6%,but you can keep it at 1%, if you for example earn 70700 and buy a 70 000 TESLA CAR.

how sure are you about this? all 3 companies will need to have a different activity right?

 

[pixbix]

how sure are you about this? all 3 companies will need to have a different activity right?

I live in Romania. I am very sure you can have 3 companies on your name. till now it was 1% for first 1 million. now they reduced it to 500 000 euro. and no VAT
and they imposed another rule: "not for consultations" , so you can't get 500 000 euro for consultations'. 1 accountant here is like 50$/month, and you also need a space for the company. but it's far less expensive then having the company in a "offshore land". he can also get a revolut card for him or his business or a mortal and brick bank card.


it is widely used here by photographs or car mechanicals guys.

 

[Jerry1911]

how sure are you about this? all 3 companies will need to have a different activity right?

Be careful because some EU countries interpret this as aggressive tax planning.

 

[pixbix]

Be careful because some EU countries interpret this as aggressive tax planning.

not in romania

 

[blizz]

Be careful because some EU countries interpret this as aggressive tax planning.

yeah, but will they do in Romania?

 

[pixbix]

no. there are no laws for "agrresive tax planning" here. everyone is sneaky and gets away.

 

[myshufflemix]

no. there are no laws for "agrresive tax planning" here. everyone is sneaky and gets away.

I can imagine it is like that.

Beside that, OP are you still around and if, what did you do?

 

[pixbix]

I am fine. I just don't want to get intro troubles because i haven't kept papers that are 15 years old. and i moved money like crazy. money i can't prove are from 2008 , and not from 2018 for example

and no more news/words about the "jihad taxes" they planned to unleash on 50% of population

 

[blizz]

so you move around and are no place longer as 180 days and avoid taxes legally that way?

 

[BillBong]

so you move around and are no place longer as 180 days and avoid taxes legally that way?

That would very much be living the dream

 

[blizz]

OP an almost one year after you created this thread, can you tell us where you are and how it is going for you ?

 

[benbao]

Nobody will know how much time he stayed or not stayed in Romania, because it's in EU as Germany is. He is not aware Romania is 1000% times safer than his homeland

While I'm a big fan of Romania and would likewise take it over Germany every time, as someone who lives on Romania you should know that you have to enter and exit using passport/id card. It's not Schengen and Germany will know every time you return and leave.

 

[kkein]

@leaveNet

Here is my opinion. With 50k earnings in your first year UAE & Cyprus will bleed you dry. UEA becomes interesting once you earn more than 250K a year. Malta can work but you got to like living on a dusty island. Get over your fear of Romania, it is the perfect place with low tax for startup businesses. Once you have grown the business substantially and can built some substance, then move to Cyprus and create a parent company to get divi from Romania without withholding tax.

There are a few forum members including me that use Romania.

The parent company in Cyprus is to avoid dividend tax in Romania?

 

[pixbix]

While I'm a big fan of Romania and would likewise take it over Germany every time, as someone who lives on Romania you should know that you have to enter and exit using passport/id card. It's not Schengen and Germany will know every time you return and leave.

They do not register anyone. They just look at your ID. at less when going with a car or bike. But i saw , if the guy is from another "state/zone" of romania, they do an "ID search on it" but never to local ones. I don't know why. they also don't stamp any passport,etc.

 

[benbao]

They do not register anyone. They just look at your ID. at less when going with a car or bike. But i saw , if the guy is from another "state/zone" of romania, they do an "ID search on it" but never to local ones. I don't know why. they also don't stamp any passport,etc.

When you enter Romania you need to pass immigration and they will scan your ID card or passport at their counter (or you do it yourself when using the auto gate). This is creating a record about when you entered Romania or Schengen when you return to Germany/other EU country. Hence there is no question when you left Schengen and when you entered/remained in Romania.