Tax Free Companies In Europe That Work With The Paypal Payment Processor
There are a couple of countries in Europe that many Europeans do not even know about, that allow non residents of their country to form a company under their laws that will legally allow non residents to accumulate business profits tax free through the online business company that is set up using the special rules of the jurisdiction.
The rules surround the nonresident corporation structure that is provided to non- resident online business owners: If you do not reside, do business in, or bank in one these countries, you are exempt from income and VAT taxes in these countries of incorporation. Set up one of these special companies and follow the rules.
To be a non-resident company, a company has to satisfy the following criteria.
- The company must be owned by persons or companies, who are not resident in the country the company is domiciled in.
- The company must be controlled (directed) by persons who are not resident in the country the company is domiciled in.
- The company may not trade or carry on business with residents of the country the company is domiciled in.... It may however trade with other exempt or qualifying companies or non-resident persons.
- The company must maintain its Company Register, Registered Address and any resident secretary if there is one in the country the company is domiciled in.
- The company must not collect income to a bank or payment processor that is located in the country the company is domiciled in.
The last requirement effectively means that in order to maintain its no-tax status a non-resident company should not hold any bank accounts in a bank within the country. This simply means that the non-resident company would usually operate its bank accounts in another country. Often it would be just a different jurisdiction - like, Latvia or St. Lucia, or Nevis, for example. It may also be practical to open the bank account in a country situated closer to the actual location of its beneficial owners if need be.
If the above five criteria are satisfied, the company formed will be legally considered "non-resident". As such, it will not by definition fall under the local tax system and will not be required to pay any income taxes to the country of incorporation. This also means that the non-resident company can under no circumstances be considered as a taxpayer of the country under whose laws the company is incorporated.
You can get more information about these two companies in our Offshore Paypal Company Info. Package. Click here now.
Warning: You most likely will have tax obligations to the country of your citizenship and/or residency if you remove money from your company bank account and take it for your own use. Then, under the laws of most countries you most likely will encounter laws that require you to pay tax to your own country of citizenship. So please be aware of this and please always check with the current tax laws of your country of citizenship.
This information package is not sold to U.S. citizens or residents so do not try and order it. If you are a U.S. citizen or resident you can purchase a domestic asset protection information package from our store.