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> If I had an accountant I wouldn't be searching for this info! Most accountants only know B&M, M&D, and SBOs. Accountants who know international tax laws, are
by kephra 12y ago
> If I had an accountant I wouldn't be searching for this info!
Most accountants only know B&M, M&D, and SBOs. Accountants who know international tax laws, are seldom seen in the wild, but mostly employed as specialist in big companies.
In Germany tax office is required to answer every question. They wont tell you how to reduce your taxes, so you need to ask the right questions. But you have a signed paper afterwards, that you can show, if your books are checked 10 years later, telling that a tax officer claimed you did it right.
I can only tell the other way round:
If you are a German, and have an LLC in Tennessee, then this LLC is a path through taxed company, so you have to pay US income tax on it. Germany and US has a double tax agreement, so I do not need to pay taxes on the US income, but the US income is added to my German income to calculate the percentage of my Germany income that I have to pay as taxes.
Its now a bit more complex for US citizen in Germany. You have to file your US taxes till 15. Juni, if living outside US at IRS Center, Austin, TX, 73301-0215, USA. And your German taxes 10th of Mai. I advise to file the German taxes as early as possible, if self employed. You dont need to worry about this, if you are employed in your own company with payroll tax. Just ensure that your German tax return is ready, before you need to file your US tax. The double tax agreement between US and Germany will cause IRS to look at German taxes, whine and laugh, because German taxes are higher, and tell you that you need not to pay additional taxes in US.
My advise is to ask IRS.Frankfurt@irs.gov to confirm this!
Coming back to paying low taxes, and getting good health care same time with an US/Germany combi: Regardless if you are German or US citizen, imho the best combination is being employed at your own uGmbH in Germany, for only €1000/month. The uGmbH is not funded and owned by yourself but by your LLC in US that owns the intellectual property of your business. File invoices from your LLC to your uGmbH regulary. Your LLC will have nearly no costs. File US taxes as early, and German as late as possible in this case. So you benefit from low US income taxes, and an incredible low health care and unemployement insurance based on your low German income. Add a PLC in Estonia if you need a tax free money sink.
Optimizing Spain/US might be totally different. But you likely will be paying US tax as happy as I do - even if I'm not a US citizen ;-)