JOHNNY DOETHE LIFE WHISPERER

Request for comments - offshore service or subsidiary model and good jurisdictions

johnnyw

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johnnywNew MemberAuthor
Joined
May 2025
Messages
1

#1

Hi,

A long time reader, first time poster”¦!

I'd like to gauge ideas and practices for offshore service company model, and hints on good jurisdictions. I've used different setups over the years, gradually moving eastwards (Latvia/Cyprus -> Seychelles).

Background:
* running a service company in the EU for consultancy / software development that charges EU and UK clients
* aspiration to charge this service company from an offshore supplier or parent, from a jurisdiction with lower taxes; the old ”˜Starbucks buying coffee beans from Switzerland' adage

My first level service company is in Estonia currently, this could also be Lithuania / Georgia - seeing these come up a lot in the forums recently.

What I have been thinking about based on the forum ”˜trends':
- would a Dubai residency based setup be better in terms of reduced CRS reporting and better banking capabilities vs Seychelles
- in general, would a subsidiary or 2nd (independent) service company be better for invoicing the 1st tier, to reduce potential local tax authority attention (for example nominee for 2nd tier)
- any other considerations that my modest experience and ability is preventing me from seeing?

Cheers

JohnnyW

PS Should any service providers have some fresh off-the-shelf ideas feel free get in touch.

jayMFake user - Alias of JohnLocke
Joined
Jun 2012
Messages
155

#2

It all depends on your budget and what you're trying to avoid, besides taxes! A Seychelles company can go a long way in helping you minimize taxes in your service company, since you can load that company with enough expenses that there's very little left to be taxed.

It also depends on where your service company is based. The UK or Cyprus, like you mentioned, don't really care much about foreign-owned companies.

ilkeActive Recruit
Joined
Oct 2023
Messages
487

#3

- Where are you willing to move?
- What is your citizenship? Are there other shareholders?
- Is anonymity important to you?
- What monthly/yearly turnovers are we talking about?

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