3 ms·

No. Your freelancing contractor business may pay less taxes but when you pay yourself a wage you will pay income taxes for your actual residency.

kimi 4y ago
And tax authorities may wonder whether setting up a foreign company was for tax reasons only, and decide that you still owe taxes on everything and that you are a tax dodger. So talk to a specialized tax accountant who know their stuff (and that won't be cheap).
CalRobert 4y ago
I have a limited company in Ireland. I am the only employee. I pay myself a wage from that company. One thought I had was that I could live modestly, pay myself a fraction of what the company takes in, let my company take advantage of Ireland's famously low corporate tax rates and invest accordingly, and then cash out, perhaps after moving somewhere without 52% taxes on all income over (70-90k depending on spouse, kids, etc.) Alas, I am not the first person to think of this. The Close Company Surcharge effectively means I have to pay out on a given timeline and as such incur an income tax liability.
- luckylion 4y ago
  > after moving somewhere without 52% taxes on all income over Does Ireland not have some form of expatriation tax? In Germany, this doesn't work, because they'll tax you "as if" you've sold your company at the time of emigration.
  - CalRobert 4y ago
    Perhaps! Honestly I didn't research it too much after discovering the close company surchage. I also considered it even if I stayed in Ireland; have the company sock away €200k a year for 5 years and then pay myself €35k for life at Ireland's low income tax rates (taxes here are among the most progressive in the EU - low earners are taxed very little, or none at all, while people only a bit above the median income are taxed very heavily). Alas, it was not to be.

3 ms·

No. Your freelancing contractor business may pay less taxes but when you pay yourself a wage you will pay income taxes for your actual residency.

by iLoveOncall 4y ago

kimi 4y ago
And tax authorities may wonder whether setting up a foreign company was for tax reasons only, and decide that you still owe taxes on everything and that you are a tax dodger. So talk to a specialized tax accountant who know their stuff (and that won't be cheap).
CalRobert 4y ago
I have a limited company in Ireland. I am the only employee. I pay myself a wage from that company. One thought I had was that I could live modestly, pay myself a fraction of what the company takes in, let my company take advantage of Ireland's famously low corporate tax rates and invest accordingly, and then cash out, perhaps after moving somewhere without 52% taxes on all income over (70-90k depending on spouse, kids, etc.) Alas, I am not the first person to think of this. The Close Company Surcharge effectively means I have to pay out on a given timeline and as such incur an income tax liability.
- luckylion 4y ago
  > after moving somewhere without 52% taxes on all income over Does Ireland not have some form of expatriation tax? In Germany, this doesn't work, because they'll tax you "as if" you've sold your company at the time of emigration.
  - CalRobert 4y ago
    Perhaps! Honestly I didn't research it too much after discovering the close company surchage. I also considered it even if I stayed in Ireland; have the company sock away €200k a year for 5 years and then pay myself €35k for life at Ireland's low income tax rates (taxes here are among the most progressive in the EU - low earners are taxed very little, or none at all, while people only a bit above the median income are taxed very heavily). Alas, it was not to be.