Reliable Onshore Centers within Europe
August 25, 2017
The offshore industry exists and develops in the world for years now and helps individuals and corporations to conduct effective tax planning and create mechanisms for tax reduction. For a while, businessmen who are involved in activities abroad have been using services of offshore companies and transferring their firms to jurisdictions with lower restrictions and monitoring. Moreover, they have been multiplying their income, using completely legal loopholes in international tax law. It is common to consider that for such purposes specific countries, so-called tax havens, are used. The latter are mainly further situated islands and exotic locations, where corporate services of company incorporation constitute the basis for the economy, such as Seychelles, Mauritius, Belize, Panama, and so on.
Nevertheless, some European countries also offer financial services for foreign entrepreneurs, and make money on them. Western Europe can rightfully be called the “grandmother of offshores” and is often chosen as destination for tax planning activities. This article will examine the most popular and successful examples of European states,where you can significantly reduce or get rid of taxes that you would normally pay to domestic authorities.
First, let’s briefly discuss main advantages of establishing an enterprise in Europe. If you care about prestige – this is a perfect option for you. Europe is a successful finance center, globally respected, and has economic relations with countries all over the world, which is definitely attractive for foreign investors. The image of European trustworthiness will certainly assure your clients of professionalism, therefore, bringing you more useful partnerships. The region also guarantees legal tax savings for enterprises registered on its territory. Another great advantage is the simplified trading conditions within EU borders. Due to the fact that member-states are some of the world’s wealthiest countries with high level of productivity, EU is not only a huge consumer market but also a great source of goods’ and services’ suppliers. It is a place to find partners and begin cooperating for future growth and development of your business. An additional benefit is the fact that English is widely spoken in business circles, which greatly simplifies operation. Last, but not least, VAT tax for entities with a registered number constitutes 0% on import and export transactions.
After introducing the prospects you receive by registering a company in Europe, OEC team offers the list of three currently most popular and attractive jurisdictions. The legislation of countries listed below is adjusted specifically to enable low to no-tax offshore company incorporation. These states have modern, innovation-driven economies, but tax rates are quite low compared to other developed countries.
Taxes on business are low, just like others, such as interest and licensing income taxes. With the help of an attractive fiscal policy, multinational entities added $127 billion to state’s economy in 2010. An interesting fact is that 48% of Fortune 500 firms have established limited liability firms here. The state hosts numerous subsidiaries and headquarters offices due to its attractive conditions concerning transnational taxation. Elimination of tax burden on dividends and capital gains generated worldwide as well as theelimination of tax on royalties create a pleasant environment for business development. Here, you will not be concerned about the operation issues and have more time to dedicate towards profit earning.
This is a particularly interesting case, due to specific regulations and traditions carried through years of financial services practice. The country proudly boasts well-known banking secrecy policy. Although banking institutionshave no permission to operate anonymously here, banking system still guarantees confidentiality of all information provided during various procedures. Indeed, numerous tax evasion investigations have been initiated by international authorities, as nations (e. g. Russia) have accused Swiss government of being an offshore haven that does not provide necessary information on account holders upon official request. After such accusations Switzerland has reviewed its juridical system, but law enforcement was not subject to dramatic changes. Regardless of similar issues that appear from time to time, jurisdiction remains a reliable place for tax optimization and client’s interests remain a priority.
The jurisdiction is not officially considered “offshore” in its conventional meaning, which is the main benefit for businessmen willing to establish a firm in a prestigious and low-tax jurisdiction. The banking and juridical systems here operate on a high expertise level, and the services offered will satisfy any business needs. Corporate tax amounts to 19% for small, medium, and large companies. There are also mechanisms that enable you to write off costs on certain business expenses, and consequently reduce tax burden. On UK’s territory trusts and foundations are typical vehicles for business operation and management. Foreigners, conducting international activity, enjoy protective wrappers around their accumulated assets.
Another important fact is that 47% of corporate investment into onshore companiesis carried out through Netherlands (23%), United Kingdom (12%), Switzerland (6%), Singapore (2%), and Ireland (1%). This gives you an idea about the standing of three jurisdictions listed above. Moreover, 18 out of 24 most popular tax havens worldwide are the past colonies of Great Britain, and some of them maintain this status until today.
Our company cares a lot about the quality and the relevance of the services we offer. Therefore, we try our best to improve ourselves through the method of research and data analysis. We are convinced that company incorporation on the territory of EU is profitable and provides numerous benefits just like typically known offshore regions do. Our team is ready to cooperate with businessmen from all over the world willing to run an enterprise in a European state, and provide the best solution currently existent on market.