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Ask HN: Anyone doing business using Estonian e-residency?

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Re: Ask HN: Anyone doing business using Estonian e-residency?

#71

Post by sparkling »

throw130 wrote: post #68
sparkling wrote: post #6

After looking into it for a while, i decided not to do it. Context: I live in Germany for roughly 2/3 of the year, rest is traveling. Not sure where you are located, but if you spend the majority of your time in a other EU country (e.g. Germany) you will have a very hard time explaining to the local tax authorities that the company entity is not effectively being managed from Germany. And when you fail to explain thi…

Is it ok to operate an Estonian company from Germany though? Not for tax reasons (assuming you would pay the same tax for either a German or Estonian company as others said in the thread) but for bureaucracy reasons. Skipping the whole German procedure.

It is "okay", but you will end up with more bureaucracy. If, as mentioned, you are living in Germany 99% of the time and spend close to zero time in Estonia, the german tax authorities will (sooner or later) argue that the company is effectively being managed from Germany. Then you have to deal with tax nonsense in two countries and finding a tax consultant who will deal with this is rather expensive. Some basics (if you understand German), are explained here: https://www.ihk-berlin.de/blob/bihk24/Service-und-Beratung/r...

Re: Ask HN: Anyone doing business using Estonian e-residency?

#72

Post by tluyben2 »

linohh wrote: post #60
tluyben2 wrote: post #37

Earlier quoted context omitted.

Fines yes but felony charges? Any references to that for the weird EU VAT of that actually happening unless it was deliberate, large scale avoidance? I messed up with it a lot but (obviously) accidentally and on a small scale; I get a slap on the wrist and some back taxes when audited. Not even fines.

Yep. Of course you’ll have to be negligent if not willfully wrong in your returns. But VAT ain’t nuthin’ to fuck with. It will come back to you.

Well, I know a lot of small companies in NL from friends and people I met who are simply sloppy and negligent with VAT and taxes in general but not willfully wrong and nothing at all happens. Slap on the wrist and fines. Same in Spain (much higher fines).

So ok, I see in theory it can happen but is there any case where this actually happened in the EU unless it was willfully wrong or fraud in some huge company with an accountants scandal?

Re: Ask HN: Anyone doing business using Estonian e-residency?

#73

Post by mkbkn »

jdietrich wrote: post #21

Opening a UK limited company is at least as straightforward. Registering takes a couple of hours, it can be done entirely online and the fee is £12 ($15). You don't need to be a UK resident. You do need a registered office in the UK, but a company formation agent will provide one for about £20 ($26) per year. All your tax returns can be filed entirely online and HMRC provide a very helpful tax advice service. It real…

Wow. That's a lot cheaper than opening a company in Estonia.

How about the banking system for companies opened by non-residents? Can one get a multi-currency bank account easily?

Re: Ask HN: Anyone doing business using Estonian e-residency?

#74

Post by mkbkn »

sparkling wrote: post #6

After looking into it for a while, i decided not to do it. Context: I live in Germany for roughly 2/3 of the year, rest is traveling. Not sure where you are located, but if you spend the majority of your time in a other EU country (e.g. Germany) you will have a very hard time explaining to the local tax authorities that the company entity is not effectively being managed from Germany. And when you fail to explain thi…

Same kind of thing here in India. As per Indian tax authorities, if your "effective place of business" is India, you will be taxed as per Indian laws.

I believe many countries would have DTAA with Estonia.

Tax-wise Estonia may not be right for you, but starting a company is a lot easier depending upon where you live. In India, it takes about 30+ days to open a company, not to mention stupid, useless forms and KYC-terrorism.

Re: Ask HN: Anyone doing business using Estonian e-residency?

#75

Post by [deleted] »

ramraj07 wrote: post #38
p49k wrote: post #36

Earlier quoted context omitted.

Seems like something that could be greatly simplified to the point of being a non-issue by software (either standalone or a service), and if one doesn’t already exist, seems like a good opportunity. This is similar to how state taxes work in the US and many small businesses manage.

Isn't it just as simple as tax it if you have an actual store in-state and don't if not?

[deleted]

Re: Ask HN: Anyone doing business using Estonian e-residency?

#76

Post by joeseeder »

mkbkn wrote: post #73
jdietrich wrote: post #21

Opening a UK limited company is at least as straightforward. Registering takes a couple of hours, it can be done entirely online and the fee is £12 ($15). You don't need to be a UK resident. You do need a registered office in the UK, but a company formation agent will provide one for about £20 ($26) per year. All your tax returns can be filed entirely online and HMRC provide a very helpful tax advice service. It real…

Wow. That's a lot cheaper than opening a company in Estonia. How about the banking system for companies opened by non-residents? Can one get a multi-currency bank account easily?

Multi currency in UK with regular banks is dead. Some time ago, you were able to have USD, EUR and GBP , now they don't open new ones easily.

Alternatives likes Transferwise or Revolut would be the norm for operating across different currencies.

Re: Ask HN: Anyone doing business using Estonian e-residency?

#77

Post by linohh »

tluyben2 wrote: post #72
linohh wrote: post #60

Earlier quoted context omitted.

Yep. Of course you’ll have to be negligent if not willfully wrong in your returns. But VAT ain’t nuthin’ to fuck with. It will come back to you.

Well, I know a lot of small companies in NL from friends and people I met who are simply sloppy and negligent with VAT and taxes in general but not willfully wrong and nothing at all happens. Slap on the wrist and fines. Same in Spain (much higher fines). So ok, I see in theory it can happen but is there any case where this actually happened in the EU unless it was willfully wrong or fraud in some huge company with a…

At least in Germany this highly depends on your responsible internal revenue office (Finanzamt) which May Even vary within city limits. And of course there have been trials for seemingly trivial amounts of money never justifying the cost of persecution or tax auditing. While it may not put you on top of the most wanted list, there still is a risk and it’s not to be underestimated. Even though cum ex etc show ridiculously failing the checks and balances are
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