Below you will find information on our most popular applications for European onshore and offshore companies. They are rightly referred to as Onshore European Companies (tax residents) and Offshore European Companies (non-residents) for ease of comparison. Note that both types of European structures offer tax optimization schemes, each with its own approach.
Onshore and Offshore companies in Europe
Tax resident company
- In countries with high onshore taxation, tax rates can be minimized through advance tax rulings ( The Netherlands ). Or using sophisticated tax reduction structures, such as in Austria .
- Other countries have low, flat corporate taxes. This allows a simpler approach to corporate structuring ( Cyprus , Latvia ).
- VAT numbers are available for all tax resident companies. They are easier to acquire and maintain in countries such as Cyprus , Latvia , The Netherlands , Poland .
- Double tax treaties can be applied with a tax resident company. This is to reduce or eliminate withholding tax on dividends, interest and royalty payments.
- Substance requirements are essential in tax planning situations. As well as for the approval of tax residency.
- Most popular applications:
- 0% tax realized through territorial tax regimes (e.g. Gibraltar ) or limited partnerships not resident in the Kingdom - United Kingdom , in Scotland at the Denmark ).
- An effective tax rate of 3 to 5% can be achieved using the Agency's structures (for example, Kingdom - United Kingdom, Cyprus or Ireland ).
- VAT registration for non-resident companies is complicated. If a VAT number is required, we suggest you purchase a shelf company with VAT, for example in Ireland.
- Financial statement requirements are simplified (e.g. Irish and British agency companies) or not required at all (e.g, Scottish Limited Partnership ).
- Business administration is easier and cheaper, especially for companies that do not need to declare VAT.
- Most popular applications: General trading if VAT is not required
Make no mistake: offshore strategies always work. And offshore structures are alive and well. However.., With repression and a global offensive towards fiscal transparency, it is increasingly important to include onshore structures in your global offshore plan.
As the reputation of your company is more important than jamais - "thanks" to tax evaders, money launderers and autres - créer an onshore company becomes a necessity.
Adopting an onshore-offshore strategy is now the way forward.
For more information on traditional offshore jurisdictions, read our specialized site on this subject.