3 ms·
> paying yourself/co-founders [Tax Free] dividends. I'm not a tax expert but I don't think you can do it. Dividends are not tax free. You have to pay 28%(IRS)
by galfarragem 8y ago
> paying yourself/co-founders [Tax Free] dividends.
I'm not a tax expert but I don't think you can do it. Dividends are not tax free. You have to pay 28%(IRS) + ~20% (IRC) so in the end you pay more than a regular freelancer (for salaries below €80K).
edit: except if you are a non-habitual resident..
- watoc 8y agoAs a non-habitual resident in Portugal or Spain, it seems that the dividends are tax free if they come from a foreign source but you still have to pay taxes in the country of origin [1]. So maybe if you set up your company in another tax friendly country, you would be able to pay your corporate tax and taxes on your dividends there. [1]: http://www.newco.pro/blog/en/portugal-or-spain-two-tax-regimes-for-non-habitual-residents-to-consider-in-the-eu/ http://www.newco.pro/blog/en/portugal-or-spain-two-tax-regim...