Hello,
I have an idea, and I want to share it with you. I am curious about your opinion!
It's not offshore and needs pay tax, but it will be low as much as possible.
We have webshops in the EU with digital and non-digital products, but the non-digital is dorpship.
My setup idea:
1. company in the UK
UK company with VAT registration who sells the products on the internet. The corporation tax rate for company profits is 19% in the UK, but it will be 17% in the next year. It's clear, the UK company is working well, but this 17-19% is not a good deal.
Setup cost with accountant and address: max. 1000 GBP / year
2. company in Romania
Romanian micro companies benefit from advantageous taxes, applicable for companies with turnover below EUR 1 million, as follows: a corporate tax rate of 3% without employee and 5% dividend tax.
If you have more turnover than 1M, you can make another company in RO.
Start cost: 500 EUR
Accountant: 30 EUR / month
Personal address: 500 EUR / 5 years
The monthly maintenance fee for two companies is: 100-200 EUR
For example:
The UK company generates 1 million EUR profit. The Romanian company issues an invoice for 998.000 EUR.
Corp. TAX in the UK: 1M - 998K = 2000 * 0.2 = 400 EUR
Profit: 1600 EUR
Corp. TAX in romania:
998.000 - (998.000 * 0.03) = 968.060 EUR
Profit: 968.060 EUR
Dividend tax:
968.060 - (968.060 * 0.05) = 919.657 EUR
Summ:
Profits:
UK: 1600 EUR
RO: 919.657 EUR
------
921.257 EUR
Other fees:
maintenance fee: 150*12 = 1800 EUR
921.257 - 1800 EUR: 919.457 EUR
919.457 EUR!
YOUR TAX IS 8,05% with all fees. And it's taxed, legal income!
