I'm surprised no-one's mentioned Estonia so far. I looked into it a while back, and it all seemed very easy to set up. You just needed to get an e-Resident ID (which was pretty simple) and there were cheap local companies to handle all the paperwork for you. Corporation tax was low, and importantly was only charged if you paid dividends: profits retained for future investment were not taxed. Perhaps I misunderstood things (I wound up not going ahead with it) or things have changed, but it looked like a great option, and they were marketing it for people exactly in your situation.
Ask HN: Where should I incoporate my business
61–70 of 97 posts
Re: Ask HN: Where should I incoporate my business
#62Earlier quoted context omitted.
>Maybe also Germany. Ah Germany, world famous for low company taxes, high government efficiency, great use of your taxes, low bureaucracy and start-up friendliness.
??? It's world famous for a lot of other things like good public transportation, good parental leaves, good social security, good unemployment benefits, good health care system, &c. Of course to use tax money you need to collect tax money... Most countries have lower taxes than Germany but most countries have worse living conditions. All the people like OP are quick to go back to their tax heavy hell homecountries as…
>Most countries have lower taxes than Germany but most countries have worse living conditions.
The famously worse Scandinavian, BeNeLuxian and Swiss living conditions, that's why they emigrate out of there to work in Germany's factories.
Re: Ask HN: Where should I incoporate my business
#63Taxes pay for society: education, healthcare, infrastructure, defence, culture. You benefit from these, and expect to benefit in the future from them (e.g. expecting to employ someone with a good education). You should pay your share.
I would really love the hypothetical world you describe. Unfortunately it doesn't work that way in many parts of the world. Mine included. And no, you can't change it that easily even if you decide to dedicate your life to this.
Despite all of that you can still do your part if you truly believe it.
Re: Ask HN: Where should I incoporate my business
#64Earlier quoted context omitted.
Nowhere does the OP suggest that a jurisdiction with easy tax evasion possibilities is of interest. One picks the size of one's share when making a choice like the OP. (Love the username in the context of your pay-yer-share non sequitor).
OP literally said "I am mainly trying to save money on taxes"... My 2 cent: Pay your taxes to support the infrastructure, services and development in the region you actually use most in your life activities.
So if you were choosing a town to live in and one has a 2% tax rate and the other a 30% tax rate, you'd surely choose the 30% tax rate because you want to support your regional community?
More likely when you get past the virtue signaling, you'd choose the one that fits your needs with taxes as one of many variables. It comes down to taxes as a form of price discovery, tax rates vary greatly and at least at the federal level don't translate at all into your day to day life unless you work in the military or politics.
Re: Ask HN: Where should I incoporate my business
#65Earlier quoted context omitted.
Nowhere does the OP suggest that a jurisdiction with easy tax evasion possibilities is of interest. One picks the size of one's share when making a choice like the OP. (Love the username in the context of your pay-yer-share non sequitor).
OP literally said "I am mainly trying to save money on taxes"... My 2 cent: Pay your taxes to support the infrastructure, services and development in the region you actually use most in your life activities.
Look, for many people using a 401k is saving money on taxes. Does that imply 401k users are generally societal moochers?
There's nothing ethically wrong with optimizing inclusive of taxes. It's stupid not to. The OP is not stupid.
Re: Ask HN: Where should I incoporate my business
#66Earlier quoted context omitted.
??? It's world famous for a lot of other things like good public transportation, good parental leaves, good social security, good unemployment benefits, good health care system, &c. Of course to use tax money you need to collect tax money... Most countries have lower taxes than Germany but most countries have worse living conditions. All the people like OP are quick to go back to their tax heavy hell homecountries as…
>Most countries have lower taxes than Germany but most countries have worse living conditions. The famously worse Scandinavian, BeNeLuxian and Swiss living conditions, that's why they emigrate out of there to work in Germany's factories.
Good good, you cited five countries, now what about the ~190 others ?
You might want to look up the definition of the word "most"
Also: https://files.taxfoundation.org/20210505165000/Top-statutory...
Re: Ask HN: Where should I incoporate my business
#67Hong Kong is another option, incorporation fees are quite low + ongoing cost is relatively low. Corporate fees capped at 16.5%, with the first 2 million HKD only 8.25%. Can all be done online and remotely as well. Additional benefit that you can apply for an APEC visa to make traveling around easier.
As far as I understand, Hong Kong has this Offshore Tax Exemption, where your earnings will be tax-exempt as long as you can demonstrate that your earnings are from foreign sources (i.e., offshore sources outside of Hong Kong).
Re: Ask HN: Where should I incoporate my business
#68Earlier quoted context omitted.
>Most countries have lower taxes than Germany but most countries have worse living conditions. The famously worse Scandinavian, BeNeLuxian and Swiss living conditions, that's why they emigrate out of there to work in Germany's factories.
Good good, you cited five countries, now what about the ~190 others ? You might want to look up the definition of the word "most" Also: https://files.taxfoundation.org/20210505165000/Top-statutory...
Except OP is not looking at the best place to get a middle class job, but the best place to incorporate a tech company, so obviously you're going to look at the better options, not the 190 worse ones.
Re: Ask HN: Where should I incoporate my business
#69Hong Kong is another option, incorporation fees are quite low + ongoing cost is relatively low. Corporate fees capped at 16.5%, with the first 2 million HKD only 8.25%. Can all be done online and remotely as well. Additional benefit that you can apply for an APEC visa to make traveling around easier.
As far as I understand, Hong Kong has this Offshore Tax Exemption, where your earnings will be tax-exempt as long as you can demonstrate that your earnings are from foreign sources (i.e., offshore sources outside of Hong Kong).
I believe that in the example you’ve given, you also need to demonstrate that the person who provided the services was also outside of Hong Kong.
I haven’t really looked into this offshore exemption, since I’m living here as well.
Re: Ask HN: Where should I incoporate my business
#70I'm surprised no-one's mentioned Estonia so far. I looked into it a while back, and it all seemed very easy to set up. You just needed to get an e-Resident ID (which was pretty simple) and there were cheap local companies to handle all the paperwork for you. Corporation tax was low, and importantly was only charged if you paid dividends: profits retained for future investment were not taxed. Perhaps I misunderstood t…
Stupid question that probably depends where you live, but if I register a company in Estonia and do all my work through them, do I have to pay taxes in my country too?