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I am a Greek (freelancing) software developer interested in forming a company to be able to legally invoice my clients. Crazy taxes in Greece prohibit myself from running a company in my own country (according to my budget) therefore I'm looking for another solution.

Case:

Product: I will be selling software (code)

Average annual income: 10k-20k euros

Company type: From my research I think I should either register for a sole proprietorship (sole trader) or an ltd company.

My Citizenship: US and Greek citizenship

Some more info:

Let me tell you that I need to pay less than 100 euros per month to run it. (wether that is accountant costs, virtual office rents or anything) and I WILL be working from home.

What would you suggest is the BEST value for money road to choose?

Thank you.

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    I would be careful as you may end up paying tax in your own country plus the one you are choosing to be based. – Terry Sep 8 '15 at 10:30
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    This might not be the best fit for this site - it seems more like an accounting question. – jimsug Sep 8 '15 at 11:13
  • Not an answer to your immediate question but another way to look at it is that you are not asking enough money from your clients. Would it make sense for you to ask for free electricity or a free computer because the costs of energy prevent you from running a company according to your budget? If you are not making a profit in the environment you are in, you simply don't have a viable business. – Relaxed Sep 8 '15 at 13:32
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    I'm voting to close this question as off-topic because it is absolutely not a question about law. – Nij Nov 17 '17 at 1:00
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You need to consult an accountant but, in general, if you live in Greece and earn money anywhere in the world, you will pay tax on that money in Greece.

If the country in which you earned the money has a tax treaty with Greece then, depending on the terms of that treaty, you will be entitled to a credit on your Greek tax for the foreign tax you paid.

For example, if the tax in Greece is 50% and the tax in the foreign country is 25% and you earned 20,000, then you would pay 5,000 foreign tax, you would owe the Greek government 10,000 and be entitled to a credit for 5,000 leaving you in exactly the same position as if you had set up business in Greece.

  • I believe it is also the case that the U.S. would claim it is owed income taxes, but that rates on such amounts would be lower than Greece and the U.S. credits you foreign taxes paid against what it claims it is owed. – feetwet Sep 9 '15 at 1:41
  • @feetwet It depends on if he is a "tax resident" in the US - US citizenship = US tax resident is not always true. – Dale M Sep 9 '15 at 1:42
  • Would it be possible to move residence somewhere else within the EU with lower income tax rates? For example UK, Germany, ...? – bbozo Jan 19 '16 at 16:21
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Probably Estonia at the moment because of their E-Residency program, it's especially suited for online businesses.

https://e-estonia.com/e-residents/about/

Ireland is also known to have very low taxes for tech companies, if you fit their criteria http://www.forbes.com/sites/timworstall/2015/10/15/ireland-reduces-corporate-income-tax-rate-to-6-5-good-but-correct-rate-is-0/#2eb18ed836d8

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    Important point on the Estonian e-Residency program page: "e-Residency does not automatically establish tax residency. To learn about taxation and to avoid double taxation please consult a tax professional." – jcaron Jan 28 '16 at 23:34
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The best place hands down to form a new business within the EU is actually Bulgaria. Flat profit tax of 10% - the lowest in EU, very fast (2-5 business days, easy (one page form) and inexpensive formation (1 EURO minimum capital requirement for LTD company), very reasonable (unbeatable actually) maintenance costs, easy access to banking, credit lines, credit card, multiple-currency banking, English spoken everywhere in the Capital, office prices - a steal, great staff - affordable. Bam!

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