Quote:
Originally Posted by Gary_CSI
What are the benefits of owning a corporation and bank account offshore, if you live in one of the EU countries and you're not a US citizen? I guess this depends on the laws of each country, but overall...complete tax free living?
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No Gary... it would be normal if you are still actually resident in your "home country" to pay any tax element coming from any benefits in your offshore corp. In other words (and this can vary depending on the specifics of tax legislation of the country in which you reside) - any financial reward you get from your offshore (or any corp) would normally be taxable in your country of residence.
From a legal angle, it sure would not be complete tax free living and most probably, if that was attempted, would be a violation of tax laws - not worth the hassle/penalty.
In it's simplest form and towards "complete tax free living", this normally requires living in a no tax or low tax jurisdiction. Even then, there are taxes of some form or other - ie on importation of goods, sales tax in restaurants etc, but no personal or corporate taxation. We have been operating from bases in offshore jurisdictions for a good few years now and there is a benefit to not paying taxes, but other benefits in lifestyle - and these can be more relevant.
There is the option of setting up structures as Jayson mentioned - and these are probably more relevant to people who wish to remain "onshore" and, most are likely to minimize taxation to varying degrees, but there will remain laws in your country of residence where reporting and tax payment will be required.