Have a Tax Question? Ask a Tax Expert
Hello and thank you for using Just Answer,As you are resident in Greece your worldwide income will remain taxable to Greece regardless of the payment coming from a company established in DR.
I hope this information is helpful as you make your choices.
Thank you, you mention this:"A company is resident if it is incorporated under the laws of the Dominican Republic or if its place of effective management is in the Dominican Republic."I would set this up through a company who specialise in offshore accounts and would make this DR company incorporated under the laws of DR.So if the company is resident of DR, does this mean i still remain taxable for this income in greece ?
Unfortunately you would then be taxed in both places.
The company in DR and you in Greece on your personal income from the company
so i am taxed on money i withdraw from the DR company or the DR company has to pay tax to greece ?
You would be personally taxed in Greece regardless because you are resident there. So any income you receive from that DR company is taxable to you in your resident country. The DR company would pay tax in DR.
so if i dont withdraw any personal income and just use this account for savings is it ok ?
If the account is in your name it is taxable. Earnings would be deemed back to you. The profits of the company (as long as you are not receiving any sort of income from the company would not be taxable to you. You would need to check into Dominican entities to see if you are required to take compensation (some countries require this). I am not familiar with DR tax rules on this.
I could research butit would take me a little bit.
A quick look at the DR rates is not really beneficial sounding.
There is a 25% rate on corps and then any payments to foreigners is another 25%
Corporations must retain 25% of the dividends paid to shareholders (Art. 308). The amount retained becomes a credit against the income tax of said corporations.
Getting the credit is pretty good but then those dividends would be taxable to you in Greece.
They do required executive compensation be paid
http://www.dominica-corporations-ibc-incorporate-in-dominica.offshore-companies.co.uk/, it says "Dominica IBCs are exempt from all taxes for a minimum of twenty years." is this correct or are the making a misleading statement
So you would not really get around having to pay yourself some compensation. This would mean
I would have to look deeper as I advised I am not a DR expert and as they do not have a tax treaty with any countries I have dealt with it is possible.,
ok thanks robin, what do i need to do to get more help on this ?
I can continue to check. You know that site you sent me is on Commonwealth of Dominica not the Dominican Republic
You can contact the site
sorry this is what imeant to describe to you
i have but im not sure i trust them, on one hand i have people in greece telling me what you say, and on the other hand people in the uk saying this is possible
so i need to know for sure if this is legal
Any thing is possible
I too do not believe you have no tax in Greece
Again legal would be one thing as long as you still declare your income in your resident country
I do not see how you can get around this
I am happy(for me) and unhappy(for you) that others have advised as I have.
yes i just am looking for a 100% answer on this as the savings are a big difference and the penaltys if wrong could be disastrous
Greece just recently decided to step up it's investigation of offshore
You would be deemed to have a registering requirement in greece for the offshore company becaus eyou are going to be doing the business in Greece.
I would advise no, if you were my client.
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