4 ms·

I am thinking between Estonia with their e-residency program or Portugal with their 0% tax for the first 10 years. (Non-US and Non-EU resident)

jdmoreira 5y ago
Can you point me in the direction of finding more about Portugal's 0% corporate tax for the first 10 years?
- hwbehrens 5y ago
  The parent may be referring to the Nonhabitual Resident Status exemption, which provides reduced (potentially to 0%) tax rates for different types of income. However, it appears that this may be changing [0]. "Portugal Golden Visa" is a good search to start. [0]: https://home.kpmg/xx/en/home/insights/2020/04/flash-alert-2020-192.html https://home.kpmg/xx/en/home/insights/2020/04/flash-alert-20...
lars512 5y ago
It seemed to me that if you’re in fact working from another country, then you could be considered headquartered there, now you have two countries corporate tax systems to deal with.
- isbvhodnvemrwvn 5y ago
  It depends on the laws, yes. I do recall someone getting burned by using Estonian 0% CIT while living in another country because it was ruled that they are running a controlled foreign corporation, with effective CIT rate of 0%, and they have to retroactively pay off the difference for the last few years, along with high interest.
jokethrowaway 5y ago
Portugal still requires you to actually have a foreign business, not just setting up a company in a remote country. A popular setup is living in Portugal and setting up a Maltese company and pay 5% corporate tax rate - and several accounting firms are more than happy to setup such structures. If your company doesn't have a reason to be incorporated in Malta (clients, employees, shareholders' meetings), Portugal could argue that's a Portuguese company and that you should pay taxes in Portugal. I haven't heard of Portugal pursuing this people, but it's not unheard of countries cracking down retroactively on businesses evading taxes, especially in times of crisis. Estonia's e-residence is not that attractive for one man operations for similar reasons.

jdmoreira 5y ago

Can you point me in the direction of finding more about Portugal's 0% corporate tax for the first 10 years?

hwbehrens 5y ago
The parent may be referring to the Nonhabitual Resident Status exemption, which provides reduced (potentially to 0%) tax rates for different types of income. However, it appears that this may be changing [0]. "Portugal Golden Visa" is a good search to start. [0]: https://home.kpmg/xx/en/home/insights/2020/04/flash-alert-2020-192.html https://home.kpmg/xx/en/home/insights/2020/04/flash-alert-20...

lars512 5y ago

It seemed to me that if you’re in fact working from another country, then you could be considered headquartered there, now you have two countries corporate tax systems to deal with.

isbvhodnvemrwvn 5y ago
It depends on the laws, yes. I do recall someone getting burned by using Estonian 0% CIT while living in another country because it was ruled that they are running a controlled foreign corporation, with effective CIT rate of 0%, and they have to retroactively pay off the difference for the last few years, along with high interest.

jokethrowaway 5y ago

Portugal still requires you to actually have a foreign business, not just setting up a company in a remote country. A popular setup is living in Portugal and setting up a Maltese company and pay 5% corporate tax rate - and several accounting firms are more than happy to setup such structures. If your company doesn't have a reason to be incorporated in Malta (clients, employees, shareholders' meetings), Portugal could argue that's a Portuguese company and that you should pay taxes in Portugal. I haven't heard of Portugal pursuing this people, but it's not unheard of countries cracking down retroactively on businesses evading taxes, especially in times of crisis. Estonia's e-residence is not that attractive for one man operations for similar reasons.