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I think you would pay taxes in monaco [1], barring any crazy corporate structure shenanigans that would certainly smell of tax avoidance. So, the government of
by gen220 6y ago
I think you would pay taxes in monaco [1], barring any crazy corporate structure shenanigans that would certainly smell of tax avoidance.
So, the government of Monaco would tax the corporate profit from Year 3 onward, assuming your genius SaaS is a startup, at a rate of at least 25%. You wouldn't evade taxes altogether.
For the corporate tax, you'd either convert to Euros to pay taxes (at which point, your USDs flow back into the international monetary system that eventually leads back to Uncle Sam), or you'd pay in USDs, and the government of monaco would do the same dance.
But, you'd get 75%ish tax-free USDs, to pay yourself an untaxed salary with! That's a good amount.
[1]: https://en.service-public-entreprises.gouv.mc/Tax/Other-taxes-and-duties/Taxes-on-profits/Corporate-income-tax https://en.service-public-entreprises.gouv.mc/Tax/Other-taxe...
- dkjaudyeqooe 6y agoNo because I have no corporate entity in Monaco, it's strictly a US company and I am sole shareholder. Monaco doesn't tax US companies unless they do business there.
- nodamage 6y agoIf you lived in Monaco and operated your business from there presumably that would trigger a nexus requirement for "doing business there"?
- dkjaudyeqooe 6y agoNo, the business has to be resident, which means it has an office there or sells locally. A resident shareholder or employee doesn't count. Monaco goes out of its way not to tax its residents, other than VAT on local purchases.
- acabin 6y agoIn that scenario you may create a permanent establishment in Monaco.
- ksec 6y agoYou may want to edit your original post with more context.