A UK citizen opening a foreign company

Let’s say you wanted to open a company in a foreign country like Chile for example and let’s say the corporation tax rate happens to be lower than in the UK (19% in the case of an LLC).

Is this perfectly legal and ok to do? How is this treated when it comes to tax treatment? You pay the foreign corp tax and then pay the difference to the UK?

Hello,

Yes, in most cases, when you have a foreign entity you owned and its register elsewhere your residential country , you first should declare this entity and tax treaty if its in place , then regular corporate tax in the domicile country and while you reporting the foreign entity or personal tax report based on the tax treaty you pay the gap.

However, to avoid any issues with tax authorities the annual arrangement better to do with local accountant/tax advisory in your home country

Good luck

Sarah