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I think a well developed tech culture and VC companies for example are more important.
- Internet connection.
- Internet and Digital Laws.
- Banking Options.
- Administrative complications.
- Accounting and Legal infrastructure.
- Office space, living costs, labor work-force...
To pay taxes there has to be a profit first. The concept of a startup in general is complete focus on fast growth: every penny earned, borrowed, received is invested and therefore no profit is made. So most startups will not pay taxes anyway, wherever they are. I think a well developed tech culture and VC companies for example are more important.
Not that anyone would actually want to have a company in Albania, unless they had to. Bulgaria, Cyprus, Estonia, Gibraltar, Malta etc. are good options in Europe.
Switzerland is also good. Very low taxes, high living standard, well-educated workforce, rule of law etc. Read my story here: "Eight reasons why I moved to Switzerland": https://medium.com/@iwaninzurich/eight-reasons-why-i-moved-t... - If you are interested in coming to Switzerland, just shoot me a mail.
Startups and small businesses in the United States organized as "S corporations" also pay zero taxes, and the qualification rules are a lot more permissive. To be a United States S corp the rules are: 1) Number of shareholders 2) All shareholders are humans and U.S. residents 3) There is only one class of stock For more, see: https://en.wikipedia.org/wiki/S_corporation
> Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns. That's not what I imagine when reading "zero taxes".
Startups and small businesses in the United States organized as "S corporations" also pay zero taxes, and the qualification rules are a lot more permissive. To be a United States S corp the rules are: 1) Number of shareholders 2) All shareholders are humans and U.S. residents 3) There is only one class of stock For more, see: https://en.wikipedia.org/wiki/S_corporation
> Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns. That's not what I imagine when reading "zero taxes".
To pay taxes there has to be a profit first. The concept of a startup in general is complete focus on fast growth: every penny earned, borrowed, received is invested and therefore no profit is made. So most startups will not pay taxes anyway, wherever they are. I think a well developed tech culture and VC companies for example are more important.
sadly, not necessarily, i.e. you can have taxes on gross revenue[0]
To pay taxes there has to be a profit first. The concept of a startup in general is complete focus on fast growth: every penny earned, borrowed, received is invested and therefore no profit is made. So most startups will not pay taxes anyway, wherever they are. I think a well developed tech culture and VC companies for example are more important.
Investment is considered as asset gain in some accounting systems, leading to taxes. I am not an accountant, though.
Now, in order to have some cash at all, you probably need some income - and that income, minus your costs is the profit, which will be taxed. So you want to turn your cash out for investment into cost, so you could minimize your earnings before taxes.
The catch is, that the investment is going to serve for years, so you can't deduce it all at once - you have to depreciate it (put a fraction of it's price into current years costs). [Of course, another reason is, that your country wants as much as taxes as possible right now, so for it more taxes paid now are better than zero taxes now and higher taxes next year.]
-- This is not an accounting advice, it is very simplified. Limitations apply. Consult a professional if you need it. There might be error due to printing or mistranslation. You know the drill.
Not that anyone would actually want to have a company in Albania, unless they had to. Bulgaria, Cyprus, Estonia, Gibraltar, Malta etc. are good options in Europe.
Switzerland is also good. Very low taxes, high living standard, well-educated workforce, rule of law etc. Read my story here: "Eight reasons why I moved to Switzerland": https://medium.com/@iwaninzurich/eight-reasons-why-i-moved-t... - If you are interested in coming to Switzerland, just shoot me a mail.