If you are reading this article, it is because you have a business or you plan to start one. But did you know that sometimes, contrary to what everyone else says, relocating your business is a bad idea for some companies? And other times, that’s what to do in the EMERGENCY …
Does expatriation concern you?
First of all, the question of expatriation of your business depends on it. You’ll tell me it’s okay, but I wanted to tell you.
Regarding people who have not yet created their box, but who are already afraid of taxes and certain charges, production costs (the difference between costs and margins in order to have a turnover at maximum), I strongly advise them to think about asking the right questions.
Besides, I recommend this additional article which gives you the 10 most important criteria to create your business.
So, before asking yourself the question of tax optimization for your business, whether it is on the web or not, you must already have designed it. And sometimes, the procedures are simpler in the country you know the most than where the taxes are “cool”, but where you are highly likely to have a much more difficult time designing your business.
Of course, this is more about physical business. For online business, all you need is a computer to work, but be aware that you will also be taxed.
My answer to this first problem (which is to know whether to expatriate from the start) is that you must first design your business first. Remember that to pay taxes, you have to have a lot of cash from CASH in your business. But your business must also be created!
So, create your business in England, then relocate it when the time comes. But as long as you don’t have to do it (CA not big enough, etc.), don’t expatriate your business.
If yes, what to do ?
If, on the contrary, it is much better if it was not in England (or in a country with taxes … too heavy), which countries are best suited to your situation?
Here is a list of the places best suited to expatriation … those “where winter is not felt”:
- Gibraltar (United Kingdom);
- Antigua and Barbuda.
There are also the other less sunny countries, but with a fairly nice tax system:
- Portugal ;
- Delaware (United States);
- Hong Kong.
Here, these are the main places where you can expatriate.
Regarding administrative procedures, this article would be far too long to explain them to you, but I am sure that you will find everything you need by doing your own research.
Be logical (sometimes)
Speaking of logic, you’ll need to find a good reason to expatriate your business. If you only have one reason for tax purposes (which is surely the most popular reason), find other reasons for your relocation. It’s not that complicated, don’t worry.
Here are for example the reasons to justify your expatriation:
- Living with a loved one;
- Progress in your professional life;
- Have a better standard of living;
- Discover new landscapes, simply travel and go on an adventure;
- Take long-term training;
- Learn a foreign language ;
- Enjoy a more pleasant climate;
- Develop your business.
Analyze the pros and cons
If you are seriously thinking about expatriating yourself, you must also do the pros and cons of things.
- Better tax situation (if you are going to a country that offers good tax rates)
- More experiences;
- Discovery of a LOT of things!
- Better living environment;
- … And the pros of your personal situation.
- Away from your family, loved ones, friends, etc. ;
- Integration time in your new country;
- The assimilation of the language (communication difficulties, but less present if you speak good English);
- Assimilation with currency so different from your original currency;
- … And the ups and downs of your personal situation.
Here, you have all the keys in hand, it’s up to you!