TMI specialists in “onshore” entities
Moving your company to a tax haven may seem like a perfect solution to escape the tax burden of the country you are established in. However, there are many dangers for those who build “offshore” companies: is it really worth it when it is possible to benefit from very favourable conditions, even identical conditions within the European Union, thanks to “onshore” solutions?
Did you know that depending on the country chosen and the activity, the corporate tax rates can be 0%, or 3% of your turnover, without ever exceeding the generally accepted flat rate of 16% on your profits?
Why in this case take the risk of exotic “offshore” jurisdictions when the European Union brings you the same facilities with much less risk? For example:
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- Corporate taxes of 0 to 16% depending on the country;
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- Flexible and low-cost work teams (logistics, research & development…);
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- The establishment of a succession with the profits of your company through low-taxed dividends;
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- VAT exemption (intra-community area).
It is perfectly legal to establish a company abroad, pursuant to the International Hague Convention, which provides that “any natural or legal person resident in the European Community has the right to establish a company in the country of his choice without having to reside there fiscally”, Decree No 92-521 of 16 June 1992.
The very low taxation of dividends and company vehicles (without limitation with respect to models or power) are also arguments that weigh in favour of “Onshore” against “Offshore” in the considerations of an entrepreneur.