Comment by yayr
2 years ago
Be careful regarding taxes and "Betriebsstätten". If you are living in Germany and your company management is mainly operating in Germany you are liable still for local taxes ("Hinzurechnungsbesteuerung"). There are also special rules depending on how much of the company stock you own. Also you may have to register a "Gewerbe" in certain cases if you are doing business in Germany (e.g. selling something) from a foreign entity.
So in a bad case as majority owner you will then have to do the taxes and other admin topics in the country of your company AND in Germany and you'll always have a special relationship with a curious tax office.
So the only way to have really a startup in a non-German jurisdiction is to make sure that your management decisions (and usually also some infrastructure) is set up there.
The general name for these are CFC laws, and most developed countries have them in some form.
https://en.m.wikipedia.org/wiki/Controlled_foreign_corporati...
Yes, that is a good point which applies to a lot of high-tax countries. If you are a single company founder and run a company in jurisdiction B from country A then country A will usually have provisions that the company will be resident in A.
The question that I am wondering about is more like - you have four founders with 25% each who live in four different countries.
Where is the company resident in that situation?
I have had this issue in NL and ES; both tax offices accepted that the the decision making was not in respectively NL or ES because most of the decision making (directors and shares) were not in either country.