Tax avoidance in different countries of the EU
November 3, 2016
In spite of the fact that many countries became members of the European Union for the purpose of standardization of certain legislation and rules, nevertheless, there are some differences in the law of each country. First of all we talk about taxes.
Tax policy varies in different countries. While some governments have simplified taxation rules, other offshore countries (for example, Cyprus and Switzerland, so-called “tax haven”) have changed tax policy to more strict because of foreign influence. Let’s consider some popular countries with acting tax avoidance policy.
Latvia became a member of the EU in the beginning of 2014. Along with it the government has accepted new taxation rules aiming to attract big investors to this country. According to the tax policy of Latvia foreign investors do not pay taxes on profit from stock sales, dividends and transfer of profits out of the country. Besides it, Latvia strives to satisfy wishes of investors and proposes the corporate tax rate of just 15%.
Another little country which offers varied benefits for investors from all over the world – is Luxembourg. But investors from Great Britain are always very prudent with tax laws of this country. Not so long ago Luxembourg decided to give to authorities of Great Britain information about assets of British investors. But despite it Luxembourg continues to conduct a tax saving policy regarding capital gains, bank percents and investment dividends for foreign investors.
As for Austria there was some pressure regarding information of foreign investors, but the government took a decision to protect the privacy of investors and to guarantee confidentiality. So, from one side, overseas accounts in Austria stay anonymous, reliable and perspective for investors. But from the other side, it doesn’t mean that a pressure won’t grow and investors can meet difficulties while investing in banks of Austria. That’s why they need to receive help of a professional consultant.
Evolution of economic and political improvements has led to the situation when investors are looking for strategies of tax optimization. Some countries became popular because they have made changes in tax laws and offer different options of tax saving strategies. Other countries undertake measures that help to protect assets of investors.
Learning of foreign tax legislation in most cases is difficult and complicated. A lot of business owners get confused while choosing the off shore jurisdiction to incorporate a company that has to suit concrete requirements of investors.
To be sure you found the best conditions you need, contact our consultants. They will help you to take the right decision in tax avoidance strategies.