4 ms·

What do you mean?

• anovikov 3y ago
  Well, substance is a way to domicile your company in a certain jurisdiction in a way that passes checks according to the rules of tax authorities of necessary countries. I saw people doing it in Madeira, in fact with German clients, and had German cops/tax officers fly to them to Madeira, check compliance, and agreeing that they conform - you need to do a certain minimum set of things like keep an office, papers, minimum number of employees etc. - there, and that will be enough. As for your own tax residence, some countries offer shortened terms of annual stay to qualify, Cyprus offers 60-days scheme for example (that again comes with a certain set of rules to obey). Simply put, there's a massive demand for the "i want to pay as little tax as legally possible on my IT business" thing, and many countries lined up to do it as conveniently as possible for people from all kind of places. Only country for which it doesn't work is good ol' USA, because of world-unique system of citizenship-based taxation.