EU tax optimization

alphabit said:

Hi,

Im a dev with multiple multi year contracts bringing in about 150k a year.
Im in the eu and cant relocate.
I need 60k a year to live.

My idea was to create a company that has the contracts for my development/consultant work and gets payed by my clients.
This company hires me and my wife as feelancers paying 40k each.
Me and my wife both pay taxes over that 40 so we have money to live.

The remaining 70k id like to "store" somewhere as savings.
Any advise is appreciated.

You cannot live in an EU country for more than 183 days in a year in order not to be tax resident there. This means that you will be taxed in the country you spend that time in.

alphabit said:

My idea was to create a company that has the contracts for my development/consultant work and gets payed by my clients.
This company hires me and my wife as feelancers paying 40k each.
Me and my wife both pay taxes over that 40 so we have money to live.

The remaining 70k id like to "store" somewhere as savings.

This is illegal and called tax evasion. It can cost you much, much more than simply paying taxes.

There are short-term ways to hide money from your local tax authority, such as banking in non-CRS territories. But if you have a family, think long-term. If you manage to hide 70,000 EUR/year somewhere for a couple of years but then CRS reporting catches up to you, you're facing repercussions ranging from back taxes plus penalties all the way to prison time.

And it's not just CRS. You also need to be mindful of data leaks, such as the ones that end up in media or data obtained by tax authorities by buying it from whistleblowers.

alphabit said:

Any advise is appreciated.

The best advice you can get is to either relocate and, since that isn't an option, optimize your taxes locally. Find a good local tax adviser/lawyer and make sure you are claiming the most possible deductions, rebates, and other tax incentives.

Hi,

Maybe you can ask your clients to pay partially in crypto. Depending on your country in may be not taxable until you sell it - so leaving you a chance to relocate later. Well, check with a lawyer, just an idea. Good luck.