Hello,
I’m looking for a single digit taxation jurisdiction to set up a company, anyone know of one?
And preferably with low tax responsibilities that can be entirely outsourced to 3rd parties.
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I think you might get better responses if you provide a bit more detail on the type of business it is, e.g. are we talking online sales, consulting, physical goods, etc? Are treaties with certain countries important? Can it be in any region, or do you have any preference? And so on… 
Hey,
Thanks. Good point.
It’s digital good, an online course and mentoring.
A region that is able to have PayPal, or Adyen as payment gateway. With low single digit tax rate, and low tax administrative work where I can outsource to any company that does this kind of stuff.
Preferably a jurisdiction that doesn’t cost a ton of money to set up a company. If it can be done in the hundreds, and it’s quick and easy. Even better.
Also interested in this.
Need some more information - are you a US Citizen, Resident/Green Card holder?
No. I am a Maltese citizen.
Then why not something like a single member US LLC owned by an offshore company (BVI, Marshall Islands, Belize etc) ? Cheap and easy to setup and maintain.
Very tax efficient structure and since you’re not a US Citizen, Resident or Green Card holder, there’s no tax due (if you satisfy the ECI test – basically if you’re doing stuff online and have no “staff” or “agent” on the ground in the US, you’re fine).
Gives you access to the US banking system as well as Paypal, Stripe etc.
Of course, you’re still liable for tax where you “live”, but the US for non-US persons is still a great option.
[disclaimer: seek your own professional advice from your lawyer, accountant, priest etc - the above is my opinion]
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Hey,
Thanks for the tip. I’ll keep that in mind.
Take away some of the risk. Use an existing trusting company to do everything for you.
Pay them a portion of your sales and you have almost no administration to deal with.
3party is where the PARTY is.
Not sure if this is excessive self promoting (my 2nd post and I see this green box on the right with Guidelines. I guess there is a PM function here otherwise how can people really get any frigging information from others.
Interesting. Any resources you could point me at to read up those options?
Would freelance Upwork writers count as staff in the US?
UAE free zone company maybe. Zero tax and no audit or accounting requirement. Its not going to cost you “in the hundreds” but a low couple of thousand EUR should get you there. Plus having a company like that also enables you to get an “Investor Residency/Visa” in UAE if you want to live/relocate there.
I’m looking as well. Regarding UAE, I’d prefer to deal with more democratic persons, European backgrounds, also its not cheap to setup a company there.
Maltese citizens definitely get the screws put to them with the progressive 0-35%… However, as a foreigner, I have benefited greatly from Malta as I “plant flags” in different jurisdictions. In combination with a tax-efficient but legitimate structure, foreigners can actually pay very little tax in Malta. However, as is the case with everywhere else, the citizens don’t get the same treatment.
[disclaimer: seek your own professional advice from your lawyer, accountant, priest etc. - the above is my opinion]
Has anyone here set up a company in Andorra?
I have been reading about it, it seems to be quite a good deal. 10% tax at most, but possible to pay 2%. Accounting is apparently straightforward if you don’t employ locals.
I’ve never met someone who has done it though - have any members here done it?
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Hi @nonresident
I’ve been operating in Andorra for a few years now. It’s a fair system but is not without it’s challenges like anywhere off the beaten path.
Generally though, bureaucracy is low and if you make mistakes people sort it out without hassle or serious penalty.
For traders it also has the benefit of basically no capital gains tax, which can be lucrative.
I do know the 2% rate is becoming harder to get, and for what it’s worth local banking has been a challenge but due to a changing environment is becoming easier again. That said, you don’t have to bank in Andorra. It makes things a lot easier but technically it’s not required.
Transferwise Borderless does work with an Andorran company, which is also an interesting proposition. I know a lot of people now who keep a local bank for paying local fees then a TW Borderless for receiving in different currencies.
Stripe will NOT open for you, but Braintree will. FWIW, Braintree is 1.9% which is better than Stripe US anyway.
I think you’ve already found the website Andorra Guides - there should be a lot of information on there that can help you out.
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Hi Jase, I had heard this too but don’t know if I fully understand it. From what I have learned:
- You buy a 1000 shares at $10 each.
- You sell those 1000 shares at $20 each.
- You make a capital gain of $10000.
- You do not pay any tax on that.
Is this correct?
I’m no tax advisor but as it understand it, you’re correct.
We covered it here: Capital Gains Tax in Andorra | Andorra Guides
For this reason there are a lot of full time traders living in Andorra. Don’t quote me on this but I’ve heard of some of the professional poker guys managing to claim the income that way too.
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Cayman Islands and BVI are the go to.
Apart from that you have many options - Andorra, Belize, Canary Islands, Marshall Islands, and Caribbean, Jersey islands, Monaco, UAE, Maldives, Seychelles