Say you had to incorporate an Ecommerce startup that's based in Portugal, currently sells in Portugal and the Netherlands and plans to sell all over Europe? Main issue is tax planning.
Ask HN: Where would you incorporate your European startup?
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Re: Ask HN: Where would you incorporate your European startup?
#2EIS & SEIS [1] tax breaks for UK angel investors are a strong argument for the UK. Also R&D investment has tax credits too, so startup salary spend on new product dev is treated well by the UK tax office [2]. Don't know if PT & NL offer any similar breaks for startups & their investors.
[1] https://www.crowdcube.com/pg/seis-tax-relief-42 [2] http://forrestbrown.co.uk/rd-tax-credits-explained/
Re: Ask HN: Where would you incorporate your European startup?
#3I would have listed Lisbon as one of the places I'd choose. Guess not.
Taxes? What about Tallinn?
Re: Ask HN: Where would you incorporate your European startup?
#4For what purpose? Normal corporate tax planning? A neutral entity so you you can raise investment from European investors?
Does Portugal have CFC laws?
Re: Ask HN: Where would you incorporate your European startup?
#5I would definitely check out estonia, you are not taxed on profit but only when you get money out of the company.
https://en.wikipedia.org/wiki/Taxation_in_Estonia#Corporatio....
On wage there is a 33% social tax with is pretty much the same in Italy and I suspect to be pretty much standard across europe.
Re: Ask HN: Where would you incorporate your European startup?
#6I would definitely check out estonia, you are not taxed on profit but only when you get money out of the company. https://en.wikipedia.org/wiki/Taxation_in_Estonia#Corporatio... . On wage there is a 33% social tax with is pretty much the same in Italy and I suspect to be pretty much standard across europe.
thanks!
Re: Ask HN: Where would you incorporate your European startup?
#7I would have listed Lisbon as one of the places I'd choose. Guess not. Taxes? What about Tallinn?
Why did you change your mind about Lisbon?
Re: Ask HN: Where would you incorporate your European startup?
#8For what purpose? Normal corporate tax planning? A neutral entity so you you can raise investment from European investors? Does Portugal have CFC laws?
Yes, Normal corporate tax planning, while maintaining the simplicity of doing business within the EU.
Re: Ask HN: Where would you incorporate your European startup?
#9Ireland perhaps.
Forming a Limited company in Ireland is cheap and straightforward. That is compared to a GmbH in Austria or Germany where you need thousands of Euros in share capital just to form.[0]
Ireland uses the Euro, which might be an advantage over the UK with Pounds Sterling. No forex worries.
Ireland also has a low corporation tax rate of 12.5%
The only two trickier bits are setting up a registered address in Ireland (not P.O Box) and opening a bank account. Not insurmountable tasks, and various organisations can assist for a few hundred Euros.[1]
[0] https://en.wikipedia.org/wiki/Gesellschaft_mit_beschr%C3%A4n...
[1] http://www.companyservice.ie/ (€255 for the basic service. Not affiliated, don't even know this particular company, just found with a search)
Re: Ask HN: Where would you incorporate your European startup?
#10In Luxembourg you should also have a low capital limited company by now.
Income tax + social security is approx. 1/3, so for each 1k net invoiced (excl VAT) and paid in salary, you'll receive ~667
In addition, interest rate payments on loans are tax-deductible. Locals speak French, German, English and Portuguese (and Luxemburgish of course).
My second choice would be Estonia but maybe only because I don't know Ireland that well.