Doing Business in EU? Consider these 5 jurisdictions.
May 13, 2016
Offshore banks have the reputation of the safest in the world, but the recent leaks in Panama have resulted into global hot debates as to the whole notion of wealth secured in the offshore hubs.
It goes without saying; everybody wants to secure his means and assets in the safest banks of the world, no matter where he lives. However, it’s not that simple on the personal level as well as in business cases.
How can the business in Eurozone be done then, especially at present, after the recent offshore scandal? Should you refuse your tax optimization plan?
In case you still believe that offshore company and offshore banking is a proper route for you and your business, just continue reading.
Which EU offshore dominions?
Find below the list of five offshore hubs, which you may consider doing business in EU – and considering tax minimization at the same time.
Tax rate: 12.5 %
Being the main tourist attraction in the Mediterranean, Cyprus catches business owners even more: the government of the country works hard to engage overseas direct investment. That’s why Cyprus has the lowest income tax rate – only 12.5%, the jurisdiction is extremely attractive for business owners.
Tax rate: 12.5 % on trading income
Though Ireland has no reputation of a secret hub, it has rules and regulations friendly for foreign investments. That’s why about 25 of the top world banks and 10 insurance companies incorporate their headquarters in the country. In the last decade of the XX century, the country has experienced the economic boom and has been stable ever since. Large corporations like Google, Facebook or Airbnb, and others seeking the jurisdiction economically stable, establish their headquarters in Ireland with the aim of business operations in Europe or even worldwide.
Tax rate: 15 %
Latvia – is a young Eurozone member, as it only joined in 2014. Still it has already been called the new Cyprus; even notwithstanding the fact the tax rate in the country is 15%. (Just think of the Belize, where it’s 0%!) Low corporate tax rate still makes it one of the best locations to incorporate a company. An additional attraction for the investors from other countries may become the new tax legislation, which allows an exemption for the dividends of non-residents got from the Latvian citizens and vice versa.
Those 2 facts actually benefit to the Latvia’s popularity in offshore commerce – for better or worse.
Tax rate: 15 %
Malta offers the business owners the low tax rate, confidentiality and opportunity to do business in Eurozone. But it’s not the full list of advantages: the Maltese government has refused to subject inheritance, wealth or property to taxation. That’s why entrepreneurs and workers, as well as retirees, find this jurisdiction attractive.
Tax rate: 15 %
Most businesses, non-resident legal entities are among them, are taxed at 15 %. The tax rate for small businesses is even lower: in case your revenue does not exceed 300,000 Euro, and you have less than ten employees – you can be qualified for a 5% tax rate.
Besides, Lithuania is one of the fastest growing EU states, which makes it an ideal Launchpad for the entrepreneurs willing to ‘conquer’ the European and Russian markets.
Please, keep in mind – the 5 tax havens mentioned above are only our advice.
At all times, in any cases, before making the final decision do your due diligence and turn for the consultancy of a trusted expert on the questions.
The choice is vast, but you are the only one who is aware what matters most for your business. Do you have a concealed agenda with your offshore head office? In case it’s only business, do the tax planning legally and properly and you’ll be fine.
Mind that, creating an offshore presence, you should ask yourself the right question “why”, not “how”.
To get the expert opinion as to the question in the most professional way – take our consultancy. It’s 100% free.