Taxes on corporate profits are fairly high in most countries. In the UK for example it is 20% if your company has profits below £300.000. Corporate taxes can be a considerate amount, and it may be worth looking into relocation of the business to another country. However, it is not simply possible anymore to establish a letter box company in a tax haven, it is important that legal tax optimisation techniques are followed and that you live in the country, or the business operations are there where you are claiming the tax benefits from.
Depending on your individual situation it may be worth looking into the company relocation to Malta. The country in the heart of the Mediterranean offers a tax refund of 6/7 of the corporate tax, if the operating company is owned by a foreign shareholder or holding company. In this case, it would be an effective corporate tax rate of 5%. This means that you actually can save taxes abroad, but it is a process that needs to be carefully considered.
Moving your company to Malta to save taxes also has other advantages, such as beautiful weather, high-speed Internet connections and an international workforce.
However, when relocating your company you will also need to consider certain other factors, such as availability of workforce and how important it is how close your company is to your target market. It is generally a very simple decision for Internet-based companies, as they can operate from pretty much anywhere in the world. However, if you have a manufacturing business other aspects need to be factored in. For a personal consultation, you are welcome to contact the office of Dr Werner & Partner. We are specialised in company relocation, and we can help you with a tailored plan for your business.
