6 ms·

you really can't, if you want to live in western europe and don't want to do shady stuff, you have to accept the social solidarity system we live in here. I'm

you really can't, if you want to live in western europe and don't want to do shady stuff, you have to accept the social solidarity system we live in here. I'm not a lawyer or accountant, and I cant give business or legal advice and the following is "sarcasm" etc etc... in theory, slovakia, dividend tax for residents is 7%, you don't have to pay social or health deductions when taking out dividends from the company you own. you can employ yourself in said company with base salary and pay minimal deductions from that, the rest you can take out as dividend. your home residence still matters, this means you would also have to live there for majority of the year. otherwise you would have to pay additional deductions and tax in country of your residence austria. this is still somehow considered legal and "perfectly ok" thing to do, i bet they will change that in couple of years due to pressure from the EU. you might be able to effectively pay only up to 20% of your gross this way + you get to business expense. really, just move to switzerland, at least that's my plan a few years down the road.

mathverse 5y ago
I am not sure "home residence" matters. It's the tax residence that's matters AFAIK.
- isbvhodnvemrwvn 5y ago
  It's difficult to have tax residence in the place you don't live at without committing fraud, typically tax residence is linked to the place where you spend most of the year or which is the center of your personal life (e.g. where your family lives) if you move around a lot.
  - mathverse 5y ago
    It's not difficult it's just not used for tax fraud/avoidance. The way it typically works in Europe is with double taxation agreements. You can earn & get taxed in Austria and live in Czech Republic.
    - iExploder 5y ago
      this works only for permanent employees, it goes out of the window if you are sole proprietor or managing director, in this case the residence matters a lot and you will be taxed additionally in country u reside in
privacyking 5y ago
Doesn't the company have to pax tax though on earnings before that 7% rate?
- stansm 5y ago
  Yes, you have to pay 15% tax first (if turnover is < 49 790 €) or 21%. Then you pay 7% dividend tax
- iExploder 5y ago
  yes, however the effective overall tax (21% + 7%) on dividend and the social and health care deductions - 0%, is much smaller than similar scenario in austria

mathverse 5y ago

I am not sure "home residence" matters. It's the tax residence that's matters AFAIK.

isbvhodnvemrwvn 5y ago
It's difficult to have tax residence in the place you don't live at without committing fraud, typically tax residence is linked to the place where you spend most of the year or which is the center of your personal life (e.g. where your family lives) if you move around a lot.
- mathverse 5y ago
  It's not difficult it's just not used for tax fraud/avoidance. The way it typically works in Europe is with double taxation agreements. You can earn & get taxed in Austria and live in Czech Republic.
  - iExploder 5y ago
    this works only for permanent employees, it goes out of the window if you are sole proprietor or managing director, in this case the residence matters a lot and you will be taxed additionally in country u reside in

privacyking 5y ago

Doesn't the company have to pax tax though on earnings before that 7% rate?

stansm 5y ago
Yes, you have to pay 15% tax first (if turnover is < 49 790 €) or 21%. Then you pay 7% dividend tax
iExploder 5y ago
yes, however the effective overall tax (21% + 7%) on dividend and the social and health care deductions - 0%, is much smaller than similar scenario in austria