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For me, it’s cheaper to run a company in Estonia than my country (an EU country). You don’t pay taxes if you company has benefits. You pay taxes for the dividen
by logronoide 9y ago
For me, it’s cheaper to run a company in Estonia than my country (an EU country). You don’t pay taxes if you company has benefits. You pay taxes for the dividends only, which makes the company perfect for very early stages.
Also, for an international business a company based in Estonia looks more reliable and “techie” than other countries. And this is important if You sell digital goods or services.
I think Singapore can be a good place too, but it’s much more complicated for me.
- vram22 9y ago>if you company has benefits. By "benefits" do you mean profits?
- aurelianito 9y agoI believe he means dividends.
- logronoide 9y agoCorrect, 'benefit' is a very common English-Spanish false friend for profit. Sorry!
- vram22 9y ago>Also, for an international business a company based in Estonia looks more reliable and “techie” than other countries. Not sure what you mean. Singapore seems quite international, reliable and techie, based on what I've read, as well as heard from friends and clients who work there. (There are tons of enterprises that have a base or regional office there, and many startups there too). Interested to know if I got you wrong, or am wrong.
- logronoide 9y agoAbsolutely, Singapore is a top place for tech companies. I was comparing Estonia and the country I live.
- kabes 9y agoI guess you can only do this for some kind of companies? I've got a Belgian company and it's mostly just me doing consulting work. I live in Belgium and most of my clients are other Belgian companies. So I guess Belgian taxes wouldn't allow me to invoice from my Estonian company?
- germanier 9y agoI don't know anything about Belgium but it's probably similar: If you have a branch located in Germany (which is definitely the case if you are the sole employee permanently living there) you need the pay the same taxes as an equivalent German company for all income derived from there. The Belgian tax authorities must allow you to invoice from the Estonian company (that's part of EU freedoms) but it probably won't save you much taxes.
- derda 9y agoIn this case you would still be subject to Belgian taxes and regulations, since your principal place of business is in Belgium. Arguing otherwise could be pretty complicated and would probably require an actual office with employees in estonia and a good tax lawyer.