I'm in the very nice position, that my small company pays off all the work & money I invested. It's a internet service and is today official located in germany. Till now I'm resident there too. After outsourcing everything, I'm travelling and work wherever the sun shines. Since it now makes a good profit, I think about relocating it to a country where the taxes are low. But where to go and how to do, when the taxable income is about USD 70 TSD? Or makes it not sense yet?
Welcome to WebmasterWorld. Sounds like you are in a great position! I'm not sure the specifics of your question make sense to me, but I do understand you are looking for a country with a low tax rate. I'm just not sure how low...
The US tax rate is lower than many European countries, but I don't know how "low" you want to go. Maybe someone else here has some options for you...
I think that an offshore company is still the best way to screw the taxes down. Usually, there is a fixed yearly tax - no matter how much profit did your company got in a year. Some of them have no income taxes at all (like Seychelles). The registering is about $2000 and the yearly costs are about $700. I wish i could sticky the website of a reliable international company offering those services, but i noticed that i have lost the bookmark during the latest Win reinstall (greets from M$). I only have an offshore comparison table in russian if you wish :)
Msg#: 1226 posted 10:05 pm on Feb 21, 2004 (gmt 0)
70 000 isn't much when you're thinking about relocating. Specially for Germans there are quite some tricky laws regarding relocation to places considered as tax heavens - read about the Boris Becker case and his conviction and ask a specialised lawyer about it.
We've had our company located in the german low-tax heaven Norderfriedrichskoog (0% Gewerbesteuer) for some time but moved away as the advantages of that place didn't outweight the disadvantages.
There are certainly many possibilities for you but not with a revenue of only 70k - sorry if that isn't the answer you expected.
Your (european) customers payments to you won't be tax-deductable for them anymore once they have to pay a company sitting on the cayman-islands. This and many disadvantages add up so that I suggest you to think about your idea and get some serious advice from the pros.
I think German tax rates are pretty high in terms of the Eu overall. With freedom of movement you should be able to do better elsewhere in the EU. Might not be the exotic climate you crave but could certainly save you a chunk of cash.
I know someone in a similar situation that moved from UK (UK resident) to Gibraltar that has very favourable tax breaks apparently. It saved him allot of money. OK Gibraltar is a British protectorate so relatively easy for him to do but you get the idea. I would certainly expect taxation rates overall in Spain and Portugal to be quite a bit less than Germany for example. Plus you get nice weather!
With a bit of investigation I am sure you can find somewhere that offers what you are looking for.