5 ms·

The issue is with paying high taxes and getting services of a quality comparable to hu, bg and so on. Things are really that bad in the UK (albeit more friendly

The issue is with paying high taxes and getting services of a quality comparable to hu, bg and so on. Things are really that bad in the UK (albeit more friendly and relaxed). You can indeed create a company in a few clicks, but the system has so many small issues here and there that it becomes frustrating real fast. Post brexit uk is seriously under skilled (the media calls it under staffed, but we all know whats really happening).

Beijinger 3y ago
Well, in HU and BG you pay around 10% company taxes. HU has low income taxes too but for a big salary, social security, retirement payments etc. is also pretty high. "but the system has so many small issues here" You can always abandon a company. Especially as a foreigner and online? Forget about it. I have no experience with the HMRC and I am sure every British person hopes for a better service. But please keep in mind that AFAIK life expectancy is still higher than in the US.
- gumballindie 3y ago
  So that proves my initial point - taxes are lower in hu and bg. Shame they dont do online company registration. Life expectancy likely _was_ higher in the uk than the us but given that the nhs is in shambles i’d be surprised if it isnt dropping. To digress, the nhs is in such a bad state that guaranteed east europe will overtake the uk in terms of health care unless anything changes. The tax money is being wasted by the government either on inefficiencies or corruption. And now they cant blame europeans anymore.
  - d1sxeyes 3y ago
    Hungary has high taxes for the vast majority of tax payers, because it is not at all progressive. Personal Income Tax is relatively low at 15%, but due to the fact it applies to every forint you earn, personal income tax is higher in Hungary until your salary reaches about 50 000 GBP (more than three times the median Hungarian salary), after which the UK is higher (noting that the median salary in the UK is already around twice what it is in Hungary). Capital gains are taxed at the same rate of 15% with no allowance, while the UK has a 6 000 GBP allowance, and after that there's a system which has 10% for lower income tax payers, or 20-28% otherwise, meaning capital gains of less than around 25 000 GBP are taxed higher in Hungary than in the UK (assuming a higher rate tax payer, for lower rate tax payers, it's cheaper in the UK for a bit longer). VAT is at 27% in Hungary compared to 20% in the UK. Inheritance and gift taxes are 18% in the UK with no allowances while in the UK you pay 40% of everything above 325 000 GBP (meaning inheriting under around 600 000 GBP is more expensive in Hungary). Corporation tax is 9%, with additionally a possible 2% local tax. In short, for the majority of tax payers, taxes are lower in the UK. The more money you make, the more favourable Hungary becomes. Corporation tax though is indeed lower than the UK, at only 9%, compared to the UK's 19-25%.
jokethrowaway 3y ago
That's ridiculous, HMRC, despite its warts, is light years ahead other European countries where people usually want to move to (Italy, France, Spain, Portugal, Cyprus, Malta). Estonia (and I've heard good things about Poland - and I'm sure I'm missing something) are even better than the UK but I see very little reasons to move there. I moved to Europe (purely for the weather and food, everything else is better in the UK: job prospects, crime, services) but keep my UK limited because it's so much nicer to work with. With the right international structure and the ability to shift profits corporate tax is not that important.
- Beijinger 3y ago
  "I moved to Europe (purely for the weather and food, everything else is better in the UK: job prospects, crime, services) but keep my UK limited because it's so much nicer to work with." Where did you move from? Has the UK not only left the EU but also Europe? That would be a real tragedy.

Beijinger 3y ago

Well, in HU and BG you pay around 10% company taxes. HU has low income taxes too but for a big salary, social security, retirement payments etc. is also pretty high. "but the system has so many small issues here" You can always abandon a company. Especially as a foreigner and online? Forget about it. I have no experience with the HMRC and I am sure every British person hopes for a better service. But please keep in mind that AFAIK life expectancy is still higher than in the US.

gumballindie 3y ago
So that proves my initial point - taxes are lower in hu and bg. Shame they dont do online company registration. Life expectancy likely _was_ higher in the uk than the us but given that the nhs is in shambles i’d be surprised if it isnt dropping. To digress, the nhs is in such a bad state that guaranteed east europe will overtake the uk in terms of health care unless anything changes. The tax money is being wasted by the government either on inefficiencies or corruption. And now they cant blame europeans anymore.
- d1sxeyes 3y ago
  Hungary has high taxes for the vast majority of tax payers, because it is not at all progressive. Personal Income Tax is relatively low at 15%, but due to the fact it applies to every forint you earn, personal income tax is higher in Hungary until your salary reaches about 50 000 GBP (more than three times the median Hungarian salary), after which the UK is higher (noting that the median salary in the UK is already around twice what it is in Hungary). Capital gains are taxed at the same rate of 15% with no allowance, while the UK has a 6 000 GBP allowance, and after that there's a system which has 10% for lower income tax payers, or 20-28% otherwise, meaning capital gains of less than around 25 000 GBP are taxed higher in Hungary than in the UK (assuming a higher rate tax payer, for lower rate tax payers, it's cheaper in the UK for a bit longer). VAT is at 27% in Hungary compared to 20% in the UK. Inheritance and gift taxes are 18% in the UK with no allowances while in the UK you pay 40% of everything above 325 000 GBP (meaning inheriting under around 600 000 GBP is more expensive in Hungary). Corporation tax is 9%, with additionally a possible 2% local tax. In short, for the majority of tax payers, taxes are lower in the UK. The more money you make, the more favourable Hungary becomes. Corporation tax though is indeed lower than the UK, at only 9%, compared to the UK's 19-25%.

jokethrowaway 3y ago

That's ridiculous, HMRC, despite its warts, is light years ahead other European countries where people usually want to move to (Italy, France, Spain, Portugal, Cyprus, Malta). Estonia (and I've heard good things about Poland - and I'm sure I'm missing something) are even better than the UK but I see very little reasons to move there. I moved to Europe (purely for the weather and food, everything else is better in the UK: job prospects, crime, services) but keep my UK limited because it's so much nicer to work with. With the right international structure and the ability to shift profits corporate tax is not that important.

Beijinger 3y ago
"I moved to Europe (purely for the weather and food, everything else is better in the UK: job prospects, crime, services) but keep my UK limited because it's so much nicer to work with." Where did you move from? Has the UK not only left the EU but also Europe? That would be a real tragedy.