Does it mean that "all" you have to pay is only 9% tax on Hungary ?
Best Country for Trading (Tax efficiency)
- Thread starter ET873
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If you incorporate a company in Hungary then yes, the entity will pay a flat 9% corporate tax regardless of the nature of the income. The money that you withdraw from the company in the form of dividends is free of withholding tax if you live somewhere else. If you live in Hungary and you get dividend from a company then you have to pay an additional 15% income tax on the dividend you received.
If you want to withdraw everything then Estonia is better with flat 20% and 0% on undistributed profit or Bulgaria with 10% flat on all income whether personal income tax or corporate. The dividend tax is flat 5% in Bulgaria if you want to stick to a company.
So you'd pay a combined ~22.65% with a Hungarian company if you're a resident of Hungary, 20% in Estonia or 14.5% in Bulgaria with a Bulgarian company. These rates includes the corporate tax + dividend tax.
If you really want to pay tax then Bulgaria is hard to beat.
your information was great in various posts & was superior to anyone.you mentioned many options & revealed many misconceptions .this post was interesting ,but it can be completed even more due to your recent posts .for example Hungary tax is much lower than tax heavens like Singapore or HongKong or Panama !! (if you don't live there)
in the section of "interesting" places (in your previous post) you can add Hungary , Bulgaria etc...
now another parameter is came into this equation .the place of living can be different than place of corporation and as a result different tax and new combination .i'm really interested to see new options on different interesting places and update on that post .
in the section of "interesting" places (in your previous post) you can add Hungary , Bulgaria etc...
now another parameter is came into this equation .the place of living can be different than place of corporation and as a result different tax and new combination .i'm really interested to see new options on different interesting places and update on that post .
consider someone is living in a country which foreign source income is tax free like Malaysia,Panama etc... , and in the meanwhile he/she has a corporate in Hungary for trading .as a result he pays only 9% tax on his all income and 0% to the country he lives . am i right?
PS, you mentioned EEA shares tax is 0% in Europe . does EEA future products like Eurex (FGBL/FESX = German Bund / DJ Euro Stoxx) is the same in Europe ?
PS, you mentioned EEA shares tax is 0% in Europe . does EEA future products like Eurex (FGBL/FESX = German Bund / DJ Euro Stoxx) is the same in Europe ?
Unfortunately, the site doesn't let me edit that post anymore so it will stay that way.
The thing is, you'd pay 9% corporate tax with a Hungarian company but why would you do that if you have no intention to live there?
You can pay 0% corporate tax with a company in Singapore, Hong Kong or Panama or even with an LLC in the US. Please bear in mind that you as an individual will have to pay personal income tax in your country of residence if you use an LLC in the US. If you use an LTD in Singapore, Hong Kong, Panama or anywhere else then chances are that company will become a resident in the same country where you live and the company will be subject to the local corporate tax rates and rules thus it will eliminate all the possible benefits. They may even add an additional CFC tax on top of your corporate income tax and personal income tax.
Like I have said numerous times, if you're trading then the income from such activity becomes taxable where the trading occurred unless the trader was a third party with an appropriate financial license and the trades was done on a discretionary basis.
If you live in Malaysia for instance and you have a company in Hungary that you're using to trade with then the following happens:
- your Hungarian company must pay 9% corporate tax to Hungary
- your company must pay an additional 25% to Malaysia
- you'll have to pay dividend tax in Malaysia on the personal level
Now your next question will be hiring someone as a director, right? Sure, but don't forget to give him an appropriate salary and he must have the appropriate financial experience, education and license. The authorities won't belive that your director is trading for an annual salary of $1,000 while the trading resulted in a $100,000 profit and he has zero license and experience in the field of his claimed work.
I never said that EEA share trading is tax free in Europe
If you trade stocks on EEA markets, lightly on your own name while you are a resident in Bulgaria then it's tax-free. All other trading profit is taxed at 10%.
If you consider that taxes are a problem, it means that you make enough money to ask professional advice instead of posting on ET.
Probably another dreamer.
But the only thing he should already understand is that fake construction were easy in the past but all the doors get closed, one by one. So get a real solution.
Probably another dreamer.
But the only thing he should already understand is that fake construction were easy in the past but all the doors get closed, one by one. So get a real solution.
