The Estonia Advantage – Tax, Residency, Corporate Structures

INTRO:

This podcast channel is about you- a successful international entrepreneur -successful ex-pat successful investor sponsored by HTJ.TAX.

DERREN JOSEPH:

All right. So we all live. Thank you for joining us here at HTJ.tax. We do these live streams every week when we talk about all things International Tax, and today we have Georgi Dzani and we're going to talk about this Estonia advantage and we also have Dagne Aaremze. So we're going to talk about all things Estonia. So For those joining us on Zoom note that this is being recorded. So if you do not want your image to be shown, you need to keep your cameras switched off. If you have submitted questions in advance, thank you for doing that. We will ask them in the order in which they're received. If you have questions right now, feel free to type in the box below. If you're on zoom, if you're on LinkedIn, or on Facebook, you can type in the box below as always. This is not meant to be tax advice. If you need advice, you need to actually reach out to Georgie or one of his team members and get advice that's tailored to your situation. We're talking, this is general principles, and hopefully give you the key issues and the key ideas that you need to take up when you are looking for the right team to help you deal with taxes or anything to do with Estonia, right? So again, and this is super important. This is not advice. What you can consider is, education or entertainment, but it's not advice. So with that, and without further ado, I handed over to Georgie, the stage is yours.

DAGNE AAREMZE:

I would firstly like to say a few words about the Silva Hunt. So as you mentioned, my name is Dagne. I am the sales and marketer here at Silvant and who we are. We are a premium service provider for EU residents, helping them set up companies in Estonia, doing the tax, advising the accounting, the legal work, but not only that, we help experienced entrepreneurs who have more ambitious plans who want maybe to do a business that needs a license, or maybe they want to set up a holding structure. So that is what we help with. And to cut off, we do the boring business stuff, but also not only that we help with networking. So we have a network of experienced entrepreneurs amongst our clients, and we do these monthly meetings. And sometimes we even gather in real life, it's rarer these days, but this year we are, for example, seeing each other, when the latitude a conference in a stone now comes latitude 59. So this is something you can expect from us. And yeah, as I said, maybe your next business partner is amongst our experienced entrepreneurs. So who knows, we're really excited that you have asked us here. So yeah, Georgie can take over.

GEORGIE DZANI:

Thank you. Yes. My name is Georgie. I am a lawyer in historian. I have experienced more than about 10 years in corporate law, Labor law, Civil law, and taxation. So I work with foreign clients all there. Like 80% of my clients are foreigners and the other locals. So why do we speak today about Estonia? Estonia is the if you know about this country, this is the digital country, the first country which had, which made own ER, residency cards on a system, which allows you to incorporate the firm without being physically in Estonia. So you can just apply for this card and make an application for the company in Estonia, you may hold you, you can like use your bank account and other things for your business also from another country. So this is, this is the main thing why you should choose dystonia. And, secondly, if we were talking about taxation, we have a pretty simple taxation system. So if you're talking about the companies, so you don't need to pay your income tax. So you pay only the dividend tax when you pay out the money. So we also have the VAT, but you need to register it only if your turnover of the company is more than 40,000 euros per year. So this is, you should decide for yourself. If you want to register before this 40,000 years, or you just wait until this obligation will become the law. Also, have a lot of programs for entrepreneurs in Estonian. They'll have Estonia. If I'm, if I know correctly, we have a lot, the dumbest, the biggest number of the unicorns in Europe. So all tech people and startups are coming to Estonia to find here, the business angel, the investor angels, or another from private equity, because we have a simple ecosystem that helps startups to rice. For example, in this year's residency program, we have a lot of startup incubators, for example, latitude, a garage, and a technipole. I think if you Google, these names, you will simply find out how you can apply for this. I think Dagne can help me with this information about the programs that you have. Can you mention something else?

DAGNE AAREMZE:

There are several programs. So you already mentioned startups. We have the startup visa. So if you have a scalable business that is usually ready later to software or an app or something like that, that can be, can be taken globally. Then you can come to Estonia and apply for the startup visa. And since we have a lot of great human resources here, we have a lot of great talent. So this is why many startups come here and the establishment and maybe yeah, get the startup visa to, to then grow in this ecosystem because we have a really nice support system for that. And yeah, you can apply for either CVS or D visa, whatever you would need, or a residency permit when you would already be having gone through the startup visa application and be approved, then you can apply for five years of living here. The other thing is a Digital Nomads visa, which is also possible. So this is possible for Digital Nomads people who can work remotely, who only need their laptop. So to say for working and the most limiting requirement for that is that a person needs to earn at least 3,504 euros before, prior to applying for that monthly. So that's one of the limiting things. So yeah, these are like the programs right now.

GEORGI DZANI:

Yes. I will continue with the companies to establish the company. You have two options. First of all, you receive this era dental card and open it by yourself. I will show it like, it's like this small card you just put inside the computer, you have two-pin codes and you can enter the whole government system of Estonia and use it another way is if you don't want to have this erased card, you can, you can go to your local lottery, make a power of attorney for the lawyer in Estonia or another person who, you know, and they can establish the company for you. So the timing depends only on timing. How in Russia are you, or do you want to manage your company by yourself? Or you want to have somebody who will make this registration things ministerial locally. If you are talking about the companies, we also need to mention the bank accounts. The banking system for all foreigners is welcome to have a company in Estonia. So there is not a big problem to open a bank account, but it all depends on your business. What business do you have if you have like no sense, if your business doesn't have any sense with dystonia, not physically and remotely, then I think the bank will ask you to have any substance or create any substance in Estonia to have a bank account in Estonia, but you don't need to have it? You can have a bank account in your own country where you are representing or in any other country in the world. So for example, you are a resident of Spain and you open a bank account. You open the company in the stone. So you can go with the registered guard of your Estonian company, to your Spain bank. When you have your own bank account and open the bank account for the company there because they already know you. They trust you and you have the reputation. This is simpler, by the way, you can open a bank account in the payments system, not only in the bank but independent in the payment institution, for example, why pay Sarah Revolut or any other? So there is no limit for this also Estonia like technical, the country, which provides everything with innovation with we like crypto. But we can say that government a hundred percent likes it because every, we can say like every two years they make the rules stricter. So from this year, we have from March already, we have a new law, the amendment to the legislation about cryptos. So you can, you should have the license to operate your crypto company. So if you provide exchange crypto exchange services or crypto wallet services, you should have the license. So you can't operate without, but if you are just paying in crypto for yourself, you don't need to have any license or register. Okay, we'll go further. Dagne if you want to add something that I said before.

DAGNE AAREMZE:

Well, just that too. I second, second what you say. And when you use, I don't know, blockchain technology, you also don't need a crypto license for that. Or for example, you are just holding crypto assets, you're investing in it yourself. Then this crypto assets, are treated as other investment assets as well. So deferred profit taxation still applies. They are not different in that sense. So, yeah.

DERREN JOSEPH:

Sorry. Can I ask a question just to clarify? Yes. Right. So, so yeah, that, that, that's a hot topic, at least in my little ecosystem, the new licensing requirements. So for example, so I get it. So like, if you're just holding crypto, or if you get paid in crypto, no license is required, right. But if you're a crypto trader, do you require?

GEORGIE DZANI:

If you trade for yourself, you don't need the license. If you trade in the other marketplace, not yours, but if you trade with other people's money. So in this case you need the license.

DERREN JOSEPH:

Okay. That's great. And when you, I want to clarify something on the VAT as well. What if someone has no domestic activity in Estonia? So they set up the company, but there's no real what we call as you know, an economic substance in Estonia. So is, does that 40,000 Euro threshold still apply?

GEORGIE DZANI:

It depends if you didn't register the permanent establishment in another country. So if you didn't register it, you, so you have this PE in Estonia. So this applies,

DERREN JOSEPH:

Okay. Understood. Thank you very much.

GEORGIE DZANI:

I wanted to mention those so that this year's residence card doesn't mean that you have like a permanent resident in Estonia. These are two different things. In so eras, DNCs only have access to the digital services of the country. But if you want to be a resident like a permanent resident, you should apply like other people too, for example, for business, to go to the university. So if you are married to somebody in Estonia or another, other options. So when, if we go back to the taxation system, if you have a company, you don't pay tax before you pay out dividends. The dividend tax rate is 20%, but if you pay in three years ago, the same amount of dividends comes, it goes lower to 14 presents, but you also need to be sure with, your personal resident taxation system. For example, if you are from Germany and pay out dividends in Estonia, you should pay the additional taxation in Germany, also like a physical person, natural person. So it all depends on your own tech residency. When, where you live, or where you pay Texas for yourself, there are no limits to opening the company for a non-resident shareholder and being a director in the company. So you don't need to have anybody from Estonia. You can be by yourself, in your company, with the management board members, shareholders, and also employees. If you are talking about payments and salary, you don't need to pay the for yourself as a management board member salary, it's only at your own discretion, but if you decide to be an employee, then you need to pay salary. It's all dependent. The salary amount depends on the work that you are doing, but we have the minimum. It's like 600 euros in one month and the employee in Texas are high in Estonia. So for example, if you want to have a 1000-year-olds Neto that money, like in your pocket, the company should pay for at least 500 Texas, like above this thousand years. So to make the companies easy to have, because we don't have this income tax, but if you want to have employees, so you should think more about the structure, how to make it profitable to you, but that's what we have now for today. But this is not a bad thing.

DAGNE AAREMZE:

Yeah. I would like to add maybe that detail, that it's important, whether the worker is in Estonia or somewhere else, because when they're working somewhere else, then they will declare their taxes wherever they live. Not in Estonia.

GEORGIE DZANI:

Yes. It all depends on where, where are you doing a job? If you can, the remote, if your employee can remotely work from his country, then the seller will be taxable. They're not in Estonia. So I think this is a short overview of dystonia. If any questions we can discuss them.

DERREN JOSPEH:

Right? So thanks a lot for giving that overview. And I think that clarifies some common, sometimes misunderstandings because it's called E residency. There's this perception in some spaces that it confers actual immigration status and Estonia, and you've made it clear that that is, is not the case that's for that. And also people think, you know what? I just, I'm just going to set up a company in Estonia and then I'm going to be tax-free, you know? And so that's an important point. Another important point that you need your attention. Let you know, one has to be conscious of management and control. Where's the place of effective management. And if it's in Spain, as you mentioned, or if it's in the US or wherever it is, then the Estonian company may be taxable with these key decisions being made. So, so just stepping back in, in the introduction, you did mention that there are so many unicorns. And as, as I think about it, I think I use off and on loan relatively regularly for unicorns from Astonia Skype, TransferWise, and bolt when I'm in Europe and IDP, because of the internal revenue service, the IRS in the US, and the United States uses ADME. So, so I mean, you did mention, okay, like there's a lot of the e-government program, but what at, you mentioned the e-government program, you mentioned the ability to defer paying taxes until there's the actual distribution. So that does make a huge difference. If you have a startup, what else do you think contributes? I mean, this tiny country, relatively speaking, small country, like with 1.3 or so million people, the so successful is anything else you think that is important?

GEORGIE DZANI:

I think the main thing is that, that we are so small and we don't have any natural things golden on the other stuff. We, we made everything to have at least something that the whole world will know that dystonia is a big country in at least in, on the internet, at least in the, in the future meta and the other places. So yes, a lot of its specialists are coming to Estonia. They, want to come here because they know that they can grow up here with other companies with startups. So we have in the last year we had free unicorns. Plus if I, if I'm right extreme, correct? Yes. It's like pipe drive very ID me. Yes. So, okay. We need to have something, at least.

DERREN JOSEPH:

It's a, so that's fantastic. So, so what if somebody does one, two, okay. They don't just want to take advantage of, you know like the banking infrastructure has to set up a company and they want to relocate the team to Estonian what programs exist in terms of becoming if you're not a member of the EU because I guess if you're in the zero. So I guess if you're outside of the EU, how can you migrate and set up a team to work in Estonia?

GEORGIE DZANI:

If you're, if you're talking about its company, for example, its specialists can simply come and become and have the permanent residence without boats. So for example, this year, we have the boats for this permanent residence for 1,300 per year. So it's not so much, but it specialists and other, other specialists who are like high-level specialists can apply for the permanent residence without these quotes. So every day, they can do it, but they have another look, my requirements of the salary, they need to pay a double, double salary. No, the company should pay them to double the salary. It's the costs for the company will be like 4,000 euros per person, but it is easier. It's simple. It takes one or two months maximum. So for these companies, it is very easy. Another thing is if they are a startup, they can come to Estonia and show to the local authorities that they are up and they receive this mark, the startup, and then take all or persons from another country who work for them, easier to Estonia. To relocate them, I think in the future, the government will make it even easier to relocate to Estonia.

DERREN JOSEPH:

Okay. So when you said 4,000, that's the salary that you need to pay?

GEORGIE DZANI:

No, this is the whole budget for one person.

DERREN JOSEPH:

Right.

GEORGIE DZANI:

With Texas. So the seller with Texas,

DERREN JOSEPH:

Right? So, so in terms of a budgeting exercise, you'd need to pay 4,000 per month per

GEORGIE DZANI:

Employee, as a company.

DERREN JOSEPH:

Company. Okay. Understood. Understood. And, okay, well, so let's talk about the companies there. What's the most popular type of company to incorporate and roughly how much would that cost?

GEORGIE DZANI:

The most popular is the limited liability company. It costs, it depends on how you open it. If you open the notary, it's the state fee, 265 a year. If you open with I'm sorry. Why is the worst? If you open with the note, eight is 200, but if you open with the residency 265, and if you open with the notary, you should that the notary fee also, no, it's for example, not 100 years plus or something like this, but you will need the, also the local lawyer services. It depends on the service provider. So in, in, if we say like maximum how much it can take, it's 800 euros plus VAT, but it also depends. Do, do we need to translate the power of attorney or not and other things, so it should take this.

DERREN JOSEPH:

Okay. That's so generally speaking, I guess, is between, let's say 2000 and well it's VAT as well. How much is VAT?

GEORGIE DZANI:

20%.

DERREN JOSEPH:

20%. So let's say a thousand euros somewhere in that.

GEORGIE DZANI:

This is the maximum, but I don't think that it's even come to this. It all depends on the other costs like translation and notary.

DERREN JOSEPH:

Okay. Gotcha. I was going to ask it how crypto-friendly Estonia is, but I think, you answered that already. So I'd ask about the banks. I mean, because the government could try to be whatever they want to be, but you know, banks tend to be challenging. How easy is it to, if it is your crypto startup and you meant, and you mentioned to the bank that you are, how easy is it or how difficult is it to get a bank account?

GEORGI DZANI:

To be honest, it's difficult, if you are talking about the big banks, the local ones. So, they are afraid because this is new for them. And they want to stay a very traditional bank to be only with the money. They want to know that your business is clear. Crypto is something new and they can not understand what is your business model really is. It can be clear. It can be super, super profitable. It can be without any break, you don't break a law or AML, but they just see the crypto and they start to be suspicious. It's I think it's everywhere in each country, but with the payment institutions, it's a simple, not simpler, but not so difficult, like with the banks, but it all depends on how we negotiate with them because some entrepreneurs just, they just want to open this bank account and they don't show the real business plan. They don't show the good things of your, of their own business. And that's why the bank will say, sorry, we don't want you, but if you come to them and show everything, talk with them. And I think, in this case, it's simpler to open.

DERRREN JOSEPH:

Okay. So you mentioned that the traditional ones are more challenging than the platforms by platforms. Do you mean the challenger banks like online guys?

GEORGI DZANI:

Yes. No. Like why is a seven another?

DERREN JOSEPH:

Okay. So like, if you had to, from your experience in dealing with your clients, what would you say are the three or four? Not friendliest, but the most open-minded when it comes to crypto-type companies or projects,

GEORGIE DZANI:

I can say that Revolut is good. If we're talking about banks in Estonia, we have an LHV. So it's, it's, it's a modern bank. It's not, it, it doesn't have this, doesn't have the history of 50 or so, or 100 years. It has 20 years in Estonia. I think it is. So with this bank, we can try, but we can say in a hundred percent, even 90% that it is simple or not. Even with traditional business, sometimes it's difficult to open the bank out because a bank you don't describe the bank. What are you doing?

DERREN JOSEPH:

Okay. Understood. And so, so, okay. You mentioned the regular limited liability companies, but are there any other interesting structures that are available in Estonia? Like maybe, probably not trust because that's more common law, but like foundations or partnerships and anything interesting that you know, to be considered, if you are a startup entrepreneur,

GEORGIE DZANI:

All startups are open to aligning with a limited liability company, but you can open a public company. So it we'll have like stock options and other things. Also, you can make a partnership, with other companies, but this one is like one big entity, the only just one company will take all the responsibility for the ship itself. And the second one will be just like Partner.

DERREN JOSEPH:

Okay. Understood. Understood. Okay. And let's talk more about the tax side. So as an individual, so, okay. Let's look at an employee. So if I set up a company and I, obviously hire someone, what would their Mo and they're based in Estonia because obviously if they're outside, they'll be taxed elsewhere. But if they're based in Australia, what are they, the marginal tax rates and the like, and also what are the payroll taxes and social charges like for that employee?

GEORGIE DZANI:

So the social tax is 33%. This is the highest, highest what to have. So this pays a company, the income tax is 20% the space employee. And also we have the insurance from unemployment. It's about 2% and pension, 2%, also 2, 2, 1, 2, and five. So in the whole jar.it's like 50%. Plus

DERREN JOSEPH:

I understand that that, I mean, that's, that's worth considering of course, but then when it's in Europe, I think it is not unusual to have such.

GEORGIE DZANI:

And we've compared the salary rate with other Europeans who have a lower than others, for example, in Finland, there is I think, twice higher than in Estonia, the salary rate, but they are near the US.

DERREN JOSEPH:

Right, right, right. Okay. Gotcha. And what about companies? I know you, I know you mentioned for the most popular structure that a limited liability company, there's no tax until there's like a profit deck. Right. So when that happens, what are the taxes like on the profit and on the distributions?

GEORGIE DZANI:

So you take out with, for dividends, it's 20% and that's all it is this base company and the natural person who receives the money in that. So, and I said before, and if you, if the company pays the same amount for years in a row, for example, 10,000, 10,000 to 10,000, the rate goes lower to 14%. So this is the government's decision to stimulate the companies to pay out dividends. Because in one moment we had a lot of companies with a huge amount of money, but they didn't pay dividends out on the small salary, for example.

DERREN JOSEPH:

Okay. So there's no withholding tax on dividends to shareholders? No, none at all. Okay. All right. So they'd get it. So it's, it's, there's no tax at all. Okay. That's fine. That's fine

DAGNE AAREMZE:

Keep in mind if there are residents of Estonia or not.

DERREN JOSEPH:

Right. So then non-residents, if there's a non-resident issue,

GEORGIE DZANI:

If, if non-resident, you should look at what tax system you have in your country for like, for the natural person. And then we should look, do have a disagreement of our avoidant of double taxation. And, and then we analyze everything this, and do, we can say the doing, do you need as a natural person pay something additional in your country or not?

DERREN JOSEPH:

Right. Okay. Because, so, so I get that. So even with a non-resident shareholder from this stone, your side, there's no withholding on the dividends. Okay. But if, if it's a resident shareholder or resident, or

GEORGIE DZANI:

Because the company pays already 20%.

DERREN JOSEPH:

Right.

GEORGIE DZANI:

And that's all, but if you are going back to this 14% when it went lower, then the company pays 14, but natural persons should pay seven because they, He is the income tax is 20, like the space back.

DERREN JOSEPH:

Okay. All right. So I mean, I hesitate to bring it up, but I guess it is still a concern. And unfortunately, there are some, some troubles in the neighborhood rates. So relatively close by, is that impacting Estonia at all? Or do you see any, do you foresee impact?

GEORGIE DZANI:

Nowadays? Where, well, as, as, as it was nothing changed in Estonia, so we still working, everybody's doing business, the new clients are coming. They're opening companies in Estonia. So I don't see that there is any panic or something like this. So only if we are talking about the residents from our neighbors and that they have problems because of sanctions and other things. So we just like each European country now should look and then analyze more than the earlier the sanctions, this list of the persons with whom you can make business and so on and so on. So this is the, which makes difficult of the local entrepreneurs' life only. But if you don't cooperate with the Russian Federation and their citizen's business, so it is easier.

DERREN JOSEPH:

Okay. Gotcha. Thank you very much for that. I have a question. Someone asks a question and one of the other platforms, and again, if you have any questions, feel free to type in the box below. So the person JJ says, I'm a freelancer and I've applied for the residency. Once I get it, can I start my company, I guess, with a relevant service provider in Estonia and accept payments from my clients? Just don't your banks. Thanks in advance.

GEORGIE DZANI:

Yes. When you receive this card, you just go to the web, to our commercial registry website, and registered the company. If you know-how, how to do this, if you don't know, you can, you can ask us, we will help with the big pleasure. And after this, we can talk about the bank account or any other payment institution. It all depends on the activity that your company will have to decide where you should open it.

DAGNE AAREMZE:

Also the nationality of the person. So are they, man, then it's a problem.

DERREN JOSEPH:

Okay. So what nationality? Well, I guess some of the obvious ones next door, right? But any other nationalities are less say they will face additional challenges in dealing with banks and incorporation in Estonia,

GEORGIE DZANI:

Sanction.

DERREN JOSEPH:

Sanction coming. Okay.

GEORGIE DZANI:

It depends on the because Iran has a lot of sanctions. Also, the banks are afraid of them too, but it's, it's, it's their internal rules. These is internal rules. We can't affect this. I will do something.

DERREN JOSEPH:

Of course, all

GEORGIE DZANI:

Of this, for example, this country, not only around another country and North Korea, for example, yesterday, if they are under the section and they have a lot of sanctions. So for them, it will be very difficult to make a business in Europe, unfortunately.

DERREN JOSEPH:

Okay. Understood. We have another question here for us. Okay. He's asking what about IP holding companies, any advantages in Estonia, any trends because I'm guessing, you know, because some of the other jurisdictions in the neighborhood, they have IP boxes or, you know, special tax provisions for those who would want to, you know, house or base their intellectual property in their jurisdictions, any sort of incentives.

GEORGIE DZANI:

No, we don't have any, any additional package or something like this, or even in taxation for IP holders. I wish we have.

DERREN JOSEPH:

Okay. Gotcha. Understood. I'm just going to have a quick look around, and see if anybody else has any questions for guys who are watching, then feel free to just type your questions in the box below and we'll get to them in the order in which they're received. Let's see. Okay. All right. So when the residency program came out, like some years ago, I remember there was like a real buzz in that community of like, especially like Digital Nomads, remote workers, that there was a real buzz about it, but it seems as if, I guess, you know, they say that imitation is it's in Sarah's form of flattery, right? So other jurisdictions, so what dystonia was doing and copied it, I mean, so what, so given the pre to competition in this space, how do you see things evolving? What, trends and what should we look out for in the future from Estonia?

GEORGIE DZANI:

I think that the trend is always the number of private equity companies in Estonia. So they are opening here, the companies in their structure, in the whole structure, the trend is that they use, for example, Luxembourg and Estonia in, in one structure because they, in Luxembourg is a, is a big chance to this company and have the license necessarily license and Estonia. It is also a big trend. And not only with the private equity, the venture capital, but we were also talking about this and the business Angeles investing in Rangers are coming more than more. So the trends will go in with the tech Further and further. And as we see the government plans to make it simpler, to have non-resident employees in Estonia, also not only in tech companies, but in the small shop for, in, in the building sector or another, they want to give, not only like for example 20 to 12 months to be in Estonia, but the two years, for example, the this is the plan to, so this will be the trend because we need the employees and we need the hands and mind. So this is the trend and money also. So this is about investment and the funds.

DERREN JOSEPH:

So it's all about funding and investments. Okay. That's fair enough. I have some clients that are, I mean, quite a few, like most people who do what we do, we have many clients in the crypto space, but also with crypto or crypto-related casinos of gambling are there. So that leads me to think, are there prohibited activities? No. So if someone did have a casino and wanted to relocate it to?

GEORGI DZANI:

Online

DERREN JOSEPH:

Yeah. Online casinos. Yeah.

GEORGI DZANI:

But they don't, as far as I know, that, which are in Estonia, which has office has offices in Estonia, they have the Campbelllock license, not in Estonia, in another country.

DERREN JOSEPH:

Islands. Yeah.

GEORGIE DZANI:

Yes.

DERREN JOSEPH:

Okay.

GEORGIE DZANI:

So this is the trend also. I think we have three or four companies, big companies in Estonia. I won't name their names to not promote them, but I know that they are based in Estonia.

DERREN JOSEPH:

Okay. Right. So the license elsewhere, but they are the operations, certain aspects of the operations. I'll allow it.

GEORGI DZANI:

Here. A simpler, you just need one car then and the office. That's all.

DERREN JOSEPH:

Okay. Understood. So I'm just having a quick look to see that any more questions, or if everyone's happy, then we have answered all the questions that they, yeah.

DAGNE AAREMZE:

I would like to add about the part of the trend. Right? So what we have seen personally, for an, our clients amongst our is that the holding structures are really popular. So many of our clients have some kind of subsidiary elsewhere and a holding strategy, the holding company in Estonia holds all of these things and can manage them. So that is really lucrative, especially when we think about defer profit taxation, right? So that's, that's one of the things that really comes to play. Another thing, when we're talking about startups, then SPVs, SPVs are a big topic when people want to invest together. That's another trend we see. So definitely holdings need to be mentioned here.

GEORGI DZANI:

I forgot one thing to establish the company as a natural person, you don't need to pay the share capital at this moment when you register a registered company. So it will be written that you have a share capital of 2,500 years the minimum, but you don't need to pay it. Now you can pay it the next year next door for five years. But before you decide to pay dividends out, the capsule shall be paid.

DERREN JOSEPH:

Right? You

GEORGIE DZANI:

Can use it in your business.

DERREN JOSEPH:

Exactly.

GEORGIE DZANI:

This is simple, very simple for the natural person to open the company. So don't need, they don't need a big budget. This is a big plus.

DERREN JOSEPH:

That is a huge plus because you know, yeah. That is a trend in some of the jurisdictions and it is, especially if you start up, you know, to have to tie up capital and in that way, it probably is not as attractive. So, so yeah, that, that is good to know. Okay. Anything else you Dagne George, anything else?

DAGNE AAREMZE:

Maybe, you mentioned that there's a little bit of competition, Lithuania of course made theory residency, but you would have to physically go to Lithuania in order to obtain this. So there are some limitations there and they don't do the due diligence part so thoroughly, so they take the risk with that.

GEORGIE DZANI:

So we feel, we compare with the 20th, no offense to anyone, but it's like five, six years ago is Tanya. They are just starting this journey.

DERREN JOSEPH:

Oh, that's good to know that, you know, still continues to innovate just like the companies that it attracts is Stoney itself is very ahead of the curve. Now, if someone wanted to find out more, what's the best way of finding you guys. What's the best way of contacting you guys.

DAGNE AAREMZE:

Yeah. So obviously our website www.silvahunt.ee and also info@silvahunt.edu  is a great place. So yeah, we are looking forward to your questions, and yeah. We'd love to meet new people.

GEORGI DZANI:

Yeah. You can also write to LinkedIn to me and we can have a chat after I have another call, but peer-to-peer makes things greater.

DERREN JOSEPH:

Okay. So just for, because many people will be listening to this and they won't be able to see, so it's silvahunt.ee.  Right. So that's the best way to find you guys.

DAGNE AAREMZE:

Yeah. I wrote that in the chat as well.

DERREN JOSEPH:

Wonderful. Okay. Yeah, I see it. Wonderful. Thank you very much for your time. Sharing your insights and, you know, providing an avenue for those entrepreneurs, for those tech companies that want to take their business to the next level. Thank you very much.

GEORGI DZANI:

Thank you for writing. It was, eh, it's useful.

DERREN JOSEPH:

It certainly was.

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