European Country for taxation?

[Fred Bloggs]

For those who wish to work/live abroad without UK tax liability....

https://www.gov.uk/tax-foreign-income/residence

Yes, I tick those boxes -

You’re automatically non-resident if either:

You spent fewer than 16 days in the UK (or 46 days if you haven’t been classed as UK resident for the 3 previous tax years)

OR

You work abroad full-time (averaging at least 35 hours a week) and spent fewer than 91 days in the UK, of which no more than 30 were spent working

[northernladyuk]

Bulgaria has 10% income tax rates and good beaches, I would imagine.

http://en.wikipedia.org/wiki/Tax_rates_in_Europe

[stek]

For those who wish to work/live abroad without UK tax liability....

https://www.gov.uk/tax-foreign-income/residence

[northernladuk]

We had a very interesting thread business related travel expenses from a fella in a similar situation awhile ago....

[SuperLooper]

My current contract is 100% remote and I could work from pretty much anywhere in the world as long as I have a reliable and fast internet connection.

I'm not planning on upping sticks, but like the OP I'm curious to know which countries in Europe, or indeed anywhere in the world, would work well. Good transport and internet infrastructure, contractor-friendly tax regime, low cost of living, nice climate or sightseeing opportunities, etc. So far, from the suggestions in this thread, Portugal sounds more appealing than the Isle of Man.

[hugebrain]

I have a new long term gig which is very lucrative and Any suggestions for a country with lower taxation in Europe when your self employed? I can invoice as self employed according to my client if legal in my country of residence.
(I'm paying 20% Corp Tax plus 33% Div tax and then London living costs (2k per month) which leaves surprisingly little left.

I hear Portugal has max 20% income tax for foreigners, maybe less for dividends. It's also cheap and sunny. I think you have to spend at least six months there in a calendar year and make sure you're not UK resident.

Perhaps someone who knows more than me can confirm or deny?

[SueEllen]

for scenario 1, 2 or both?

All of them.

It's your business plus you're the one who will end up fined/imprisoned if you do it wrong and get caught.

Edited to say: You have clearly not heard of cases where employers have lied to employees and they have been told off by immigration.

[Lance]

@Lance you need to know the specific tax laws of each country.

for scenario 1, 2 or both?

[SueEllen]

@Lance you need to know the specific tax laws of each country.

[Lance]

1. Tax is due where the work is done.

I'm not doubting you as you seem to know what you're on about. I have a couple of scenarios that I've done in the past and I'd be amazed if they were both dodgy but I am interested in your opinion.

1. As a permie for a consultancy firm I worked in France for some months and a few trips to the far east. In China it was only 'meetings' I went to due to visa restrictions.

2. As a contractor I did some work for a UK based company. As part of that project I needed to go to Dublin for around 3 weeks. All billing done between my LTD and the UK agency and the client was always the UK based one.

In both cases all my tax affairs were dealt with in the UK as though I had worked in the UK. For the former I cannot imagine that was being done incorrectly, but then again it wasn't really my concern (perhaps it should have been).

Thanks in advance.

[Fred Bloggs]

Try The Vatican. They have no tax. Monaco is pretty good too.

Pay yourself in dividends, IIRC, then there's no tax in the IoM either. Just income tax there, no corporation tax or dividend tax for a typical MyCo Ltd. As usual > DYOR.

[VectraMan]

Try The Vatican. They have no tax. Monaco is pretty good too.

[Fred Bloggs]

For ten years I was in a different (mostly) European country almost every week. I was living and taxed in the UK. Isle of Man? Ideal for you, I would have thought.

[stek]

I have a new long term gig which is very lucrative and where I am:
- in one of about ten countries for 1-4 days a week for about 2 weeks a month
- working from home for the other 2 weeks a month.
Now I need to move out of my expensive London accommodation and thought why not move to somewhere else in Europe with lower taxation and lower cost of living given it makes no difference where I fly home to each week I'm away.

Any suggestions for a country with lower taxation in Europe when your self employed? I can invoice as self employed according to my client if legal in my country of residence.
(I'm paying 20% Corp Tax plus 33% Div tax and then London living costs (2k per month) which leaves surprisingly little left.

A few things....

1. Tax is due where the work is done.

2. If you are still tax resident in UK, and it's very difficult not to be if you have a residence, close family etc in UK and you are in UK for 91 days or more per year subject to a sliding scale for part years remembering the that in most of Europe the tax year is Jan-Dec you will pay the difference in tax to HMRC anyway making the low European rate of tax a bit pointless, you'll end up paying the higher of the two part to cheap-EU-State and balance to UK.

3. There is no EU tax harmonisation (or non-EU) so you can't pick and choose, you pay tax where your are perhaps more tellingly, where the individual States' Tax rule say you are for tax purposes.

4. With all those countries involved I'd bin it. Would cost you 1,000's a month for tax advice!

[infosec]

I have a new long term gig which is very lucrative and where I am:
- in one of about ten countries for 1-4 days a week for about 2 weeks a month
- working from home for the other 2 weeks a month.
Now I need to move out of my expensive London accommodation and thought why not move to somewhere else in Europe with lower taxation and lower cost of living given it makes no difference where I fly home to each week I'm away.

Any suggestions for a country with lower taxation in Europe when your self employed? I can invoice as self employed according to my client if legal in my country of residence.
(I'm paying 20% Corp Tax plus 33% Div tax and then London living costs (2k per month) which leaves surprisingly little left.