Incorporation in the Netherlands — Less Taxes and a Reliable Company Location

Psoted on: March 22, 2021 at 1:25 pm, in

Overview:

  • The Netherlands offers feasible tax policies to companies registered here.
  • The country’s economy is stable and has a moderate growth rate, which plays a key role in the prosperity of businesses in this jurisdiction. 
  • Forming a company in the Netherlands provides an excellent way to enter the EU market. 
  • Clevver offers support for the incorporation in the Netherlands and digital access to all business registration documents.

The United Kingdom of the Netherlands is one of the most developed countries in Western Europe. It is distinguished by economic stability, a low level of crime and unemployment, and an advantageous geographical position. All this, as well as the presence of double taxation treaties, allowed the Netherlands to gain high popularity in foreign entrepreneurs who want to incorporate a business here. 

Many business owners register companies here in order to optimize taxation without harming the business’s financial reputation. If you have far-reaching plans, and they imply cooperation with significant business partners in Europe, then, there is no better state for registering a company than the Netherlands.

The Netherlands Tax Policies

To date, the Netherlands is a respectable jurisdiction, a member of the European Union, which offers loyal tax conditions for doing international trading. A country is a good option for registering a business aimed at the EU market. In general, the Netherlands has a fairly high level of taxes – income tax ranges from 20% to 25%.  

However, a special tax regime exists for holdings: it is possible not to pay taxes (or pay, but at low rates) on dividends, capital gains, and royalties. For this, certain conditions must be met. 

Here, they are: 

  • Firstly, the holding must own at least 5% of the shares of the subsidiary.   
  • Secondly, the subsidiary must pay taxes at the place of registration at a rate of at least 10% or invest in other companies at least 50% of the assets. Also, the subsidiary must not be a portfolio investment for the holding.

Dutch holdings are very often used for asset protection, intellectual property ownership, or as the headquarters of international holding companies. This is due to the country’s good business reputation and tax incentives. The most famous transnational companies with headquarters in the Netherlands are Nike, Netflix, Google, Fujifilm, and many more. 

Regardless of the industry your business operating in, the Netherlands can open the door to success in Europe and beyond it. Clevver is ready to provide you with the possibility to incorporate a legal entity in the country remotely. Click here to see details.

Benefits of Incorporating in the Netherlands

  • Loyal tax legislation for foreign entrepreneurs. Only those entrepreneurs who receive income in the country pay taxes. If it was received outside the Dutch state, then the tax payout is not required.  
  • Wide opportunities for establishing business relations and cooperation with European companies. The opportunity to raise profits by several times rockets by increasing the number of export-import transactions.  
  • Strong government support for business. Company owners are under the legal protection of the state. For entrepreneurs, including non-residents, the state has developed many preferential programs. In the Netherlands, low-interest rates are offered to business owners by banks.  
  • Respectable jurisdiction. The Dutch legal system is clear and transparent. It eliminates the risk of any kind of economic manipulation and any kind of fraud. The presence of a Dutch company increases the reputation of the legal entity in the international market.

Incorporation in the Netherlands

Company registration in the Netherlands — it is always close attention to the aspects of the matter, a highly qualified team of professionals, and the digital process of Clevver’s assistance in company formation.

What we offer:

  • Online process of cooperation with Clevver;
  • Provision of a comprehensive set of documents for incorporation of a BV; 
  • All documents for business registration are available digitally;
  • Consistent customer support.

Final Thoughts

If you want to minimize tax burdens on your business and maintain an impeccable business reputation in the eyes of potential European partners — choose the “right” country for incorporation — the Netherlands fits the concept in the best way.  

Clevver.io is ready to take care of all organizational issues related to the incorporation of a business in the Netherlands. Use the services of our company and make your business prosper. Make an inquiry now!

DISCLOSURE NOTICE: Any legal or tax advice in this communication (including any attachments) is for information purposes only and is not intended to be used, and cannot be used against Clevver or its Sender. The sender is neither an Accountant nor a Lawyer and cannot be made liable. Please, contact your tax accountant for individual consultation. Clevver does not provide any legal advice itself. Clevver works together with a network of lawyers and tax advisors that provide all necessary individual legal advice.


Fully-Remote Registration of a Company in Belize!

Psoted on: March 18, 2021 at 2:10 pm, in

Overview:

  • Belizean government provides high confidentiality for the business structures incorporated here; 
  • In Belize, there is a closed registry of business owners; 
  • The country maintains moderate tax policies;
  • It takes little time to open a company in this jurisdiction; 
  • No annual financial and tax reports are required, no audits are conducted in Belize; 
  • Clevver is ready to assist with the setup of a company in Belize remotely. We provide digital access to the incorporation documents.

In the context of current international activity, Belize is attracting more and more attention from business owners seeking to move beyond their state, to countries with a stable economy and a favorable tax climate. In 1981, freed from the colonial rule of England, Belize became an independent jurisdiction. The official language of the country is English.  

Company registration in Belize requires a professional approach, which can be obtained when cooperating with Clevver. Our experts are well-versed in the matter; we provide a full package of essential documentation on incorporation in the jurisdiction digitally and constant customer support.

Company in Belize — Legislation

Legislation of Belize regulating business structures incorporated here:

  • Belize International Companies Act, 1990. 
  • Belize Trusts Act, 1992. 
  • Belize Private Foundations Act, 2010.

Company Structure and Mandatory Requirements

  • To register a company in Belize requires a minimum of one shareholder and a minimum of one director (director and shareholder may be the same individual, resident, or non-resident of the country of incorporation). 
  • There is no prerequisite for the presence of local shareholders/directors in the company; 
  • Shareholders and directors can be legal entities; 
  • It is mandatory to have a registered address and a registered agent in Belize;
  • The company name must be in English and checked for presence in the registry. 
  • Nominee service is permitted.

Tax Rates in Belize

In a case, the incorporated company in Belize is non-resident, it is fully exempt from VAT except for a fixed annual fee and local taxes. The tax rate for international commercial companies is as follows:

  • 1.75% of taxable income in excess of $1.5 million; 
  • 3% on taxable income of less than $1.5 million.

Corporate tax rates range from 1.75% to 19%, depending on the activity. For example, most businesses pay 1.75% of the corporate tax rate; professional business services pay 6%. 

The resident company must pay to the state 25% of the financial turnover of the company, and the profitability level of the business does not matter. The amount of the annual fee of companies in Belize depends on the amount of previously declared share capital, the rates are fixed and have the following values:

  • For the amount of capital up to $50,000, the fixed fee to the state budget is $100 per year; 
  • For the amount of capital of $50,000 or more, the fixed fee to the state treasury is $1,000 per year; 
  • If a company issues shares at no par value, it must remit $350 annually to the local state treasury.

Economic Substance Act (ESA)

The IBCs (international business companies) must comply with the Economic Substance Act (ESA) in Belize, which came into force on October 11, 2019. They are required to report annually under the ES. The compliance with the ESA as well as reporting deadlines depends on the date of incorporation of the company. You can apply to our specialists to find out more on the matter.

Incorporation in Belize

Incorporation of a business in Belize with Clevver’s support — it is always close attention to the aspects of the matter, a highly qualified team of professionals, and the digital process of company registration.

Contact Us to Receive:

  • Assistance of the qualified specialists;
  • The entirely digital process of cooperation with Clevver;  
  • Provision of all the essential documents for company formation remotely;  
  • Individual and highly professional approach to each customer.

Bottom Line

Belize is a great place to register your organization because the government of the country has done everything to make this process as painless and fast as possible. The online company registration with Clevver’s hand is swift and remote, allowing you to start a business in Belize effortlessly.

The talented professionals at Clevver will help you incorporate your company in Belize in the shortest possible time and on great terms. For more information click here.

DISCLOSURE NOTICE: Any legal or tax advice in this communication (including any attachments) is for information purposes only and is not intended to be used, and cannot be used against Clevver or its Sender. The sender is neither an Accountant nor a Lawyer and cannot be made liable. Please, contact your tax accountant for individual consultation. Clevver does not provide any legal advice itself. Clevver works together with a network of lawyers and tax advisors that provide all necessary individual legal advice.


Start a Business in Ireland with Clevver’s Help Remotely!

Psoted on: March 11, 2021 at 3:16 pm, in

Overview:

  • Ireland is a member of the European Union and the European Economic Area. The establishment of a company here allows trading easily in services and products throughout the European market.
  • Government policies of the country are designed to create a stable economic environment that encourages investment;
  • Under the laws of Ireland, the corporate tax is 12.5%; 
  • The Irish government has signed extensive double taxation agreements with 63 countries. These agreements cover direct taxes (income tax) and the capital gains tax.
  • Clevver provides comprehensive support for the company incorporation on a remote basis in Ireland. All the corresponding documentation on the business registration is available digitally.

Ireland has been one of the best countries for starting and growing a business for many years in a row. In spite of the global upheaval caused by the pandemic, the Irish economy remains at a high level thanks to the decisive actions of the country’s government. 

Many businessmen choose Ireland for their business projects, as the country is economically stable with a favorable environment for doing business and also allows companies to enter the global market while taking advantage of the effective taxation of the European jurisdiction.

Ireland is an independent country, which occupies a leading position in top world business rankings (ease of doing business, ease of business registration – 2016). If you are looking for a prestigious jurisdiction in Europe with minimal taxation and a good business reputation, then Ireland is definitely worth considering. For those who are ready to choose this jurisdiction as the business location, Clevver offers a service of professional assistance for the remote registration of an LTD company in Ireland. Our experts can also provide many additional to Irish company registration services on request. Visit our website to find out the details.

Taxation of Limited Companies (LTD) in Ireland

Businesses in Ireland are generally subject to a variety of taxes. Their levels are usually set in the national budget, which is published in December each year. Typically, limited companies are liable to the following types of taxes:

  • Corporation Tax is 12.5% for trading companies and 25% for non-trading ones. Non-trading companies are organizations deriving income from mining, profits from dividends, profits from trading activities from overseas sources, as well as profits that are not related to trading activities;
  • Capital Gains Tax is 33%;
  • VAT on sales (within Ireland) is 23%. There are compulsory and voluntary VAT registration procedures. Obligation to register for VAT arises if the annual turnover of the company in goods exceeds 75,000 Euros, and services — 37,500 Euros. In other cases, voluntary VAT registration is possible. Companies that do not sell any goods or services within Ireland are not required to register for VAT ID in Ireland.

10 Reasons to Incorporate in Ireland

  1. The government of the country pursues a policy aimed at creating a stable economic environment, which facilitates the inflow of foreign investments into the state; 
  2. Ireland is a prestigious jurisdiction for business and is not present on the “black” or “grey” offshore lists; 
  3. Presence of preferential taxation in the country, for example, the corporate tax is 12.5%, and for some businesses, it can be reduced to 0%; 
  4. Ireland is a member of the European Union and the European Economic Area. The European Economic Area allows the companies registered in Ireland to expand easily the sphere of rendering services all over the EU territory with access to the world market; 
  5. There are convenient and loyal banking and tax systems in the state; 
  6. The Republic of Ireland is the only English-speaking state that is a member of the European Monetary Area; 
  7. There are programs of state support and business financing in Ireland; 
  8. There is free access to the country from continental Europe and North America; 
  9. The government of Ireland provides grants for research and development; 
  10. There is an absence of currency control in the country.

Irish Company Formation

We provide our clients with the support for the business formation in Ireland (and many other countries) of the highest quality. Our company strives to do it as efficiently as possible and in compliance with existing standards of professional ethics.

Incorporate in Ireland with Clevver’s help to receive:

  • The assistance of the high-level professionals; 
  • Entirely remote process of cooperation with us; 
  • Digital access to the comprehensive package of documents on the company formation; 
  • Possibility to obtain many additional to business registration services (company secretary, tax registration, registered address in Dublin, and many more);
  • Consistent customer support and individual approach to each client.

Final Thoughts

Ireland is an independent Western European state, the center of the business interests of both large corporations and young entrepreneurs. Clevver is more than ready to assist with the registration of an LTD in this jurisdiction — a company with limited liability, which is by far one of the simplest, most accessible, and understandable forms of business ownership on the international market. 

If you are interested in starting a company in Ireland, you can contact our team for more information right now!


DISCLOSURE NOTICE: Any legal or tax advice in this communication (including any attachments) is for information purposes only and is not intended to be used, and cannot be used against Clevver or its Sender. The sender is neither an Accountant nor a Lawyer and cannot be made liable. Please, contact your tax accountant for individual consultation. Clevver does not provide any legal advice itself. Clevver works together with a network of lawyers and tax advisors that provide all necessary individual legal advice.


Global Real Estate Investment. What to Expect in 2021?

Psoted on: March 9, 2021 at 10:25 am, in

Overview:

  • Experts predict that despite the Covid-19 pandemic, the global real estate investment market will remain at a decent level in 2021.
  • Industrial and residential real estate types have shown enviable resilience to the global pandemic crisis. They experienced a subdued drop in transaction volume.
  • According to reputable experts, the main countries for investment in real estate in 2021 will be Germany, the USA, Canada, Australia, and Great Britain.

In 2020, the world has experienced unbelievable events and major changes. The pandemic and subsequent lockdowns around the globe have caused uncertainty not only for the average person but also business people who are involved in real estate investments have felt strong fluctuations in this area.

As for 2021, the use of the Covid-19 vaccine and the anticipated overcoming of the global pandemic gives good reason to think that the world economy will enter a phase of a strong recovery during this period. This fact in turn directly affects the real estate investment market and should boost property investor confidence in “tomorrow”.

A large number of developed countries are trying their best to keep their economies at an as acceptable level as possible. To do this, they are taking drastic measures to support economic development through ultra-low interest rates and quantitative easing programs. These low-interest rates will be able to support real estate investment in 2021.

Lockdown restrictions and widespread economic uncertainty have caused deal volumes to decrease in 2020. Experts estimate that global investment volumes have fallen by about 28% in 2020. However, it should be noted that the 2020 crisis did not affect all types of real estate in the same way. The industrial and residential divisions experienced more reserved drops in transaction volumes, increasing the market share, which accounted for 21% and 28% of total investment, respectively. The resilience of these sectors to changes in the past year of pressure gives strong hope that this inclination is likely to persist in 2021.

2020 was a challenging year in every way, and it didn’t spare the real estate investment sector. This is a truth that is hard to argue with, but despite the short-term uncertainty associated with the pandemic, real estate has been and remains an attractive capital-raising tool for investors in the long term.

What Real Estate Sectors Should Investors Pay Attention to in 2021?

  • Experts predict that office real estate will remain one of the largest property sectors for investment. The focus is expected to be on lower-risk assets with stable yield characteristics in the world’s best locations.
  • The residential sector will be able to attract an ever-increasing share of global investment, subject to the support of strong fundamentals and the growth and consolidation of portfolios of cross-border investors.
  • Elderly housing and healthcare are operating asset classes with long-term income potential. The accent on health and wellness in 2021 is expected to drive the investment share.

Where to Invest?

For those who are planning to make real estate investments in 2021, we have prepared a shortlist of countries that would be comprehensive for this purpose. You’ll be happy to know that there are many potential countries where you can invest your capital in residential property.

Germany

Growth in real estate prices in Germany will continue despite the pandemic and temporary economic difficulties, experts predict. The housing market in Germany is surprisingly resistant to the negative effects of the Covid pandemic. Only a slight slowdown in price growth is expected: apartments and houses will rise in price by about 4% in 2021 instead of the 5-6% forecasted earlier.

Reputable real estate investment specialists claim that the factors that influenced price increases earlier will persist in 2021: demographics that support the high demand for housing, a shortage of land for construction, as well as low-interest rates and a lack of alternative investment opportunities amid the instability of other markets.

The United States of America

The economy is showing good signs of recovery from the 2020 crisis: an overall unemployment rate is low and businesses are generally booming. These factors can’t but encourage new investment in real estate. Attention should be paid to cities such as San Diego, Los Angeles, and San Francisco, which are additional major destinations for real estate investment.

Australia

The Australian residential real estate market has seen extraordinary changes in property value over the past few decades. It has skyrocketed in significant and expensive cities like Sydney, Melbourne, Adelaide, Perth, Brisbane, and Hobart. Despite the recent tightening of credit policies, the country is recording a surge in investor interest.

Canada

Canada’s real estate market has shown great momentum and can even be said to have prospered recently. Home values rose about 10% last year in major cities, twice the long-term average. Metropolitan areas such as Toronto and Vancouver have consistently high real estate prices. Low-interest rates, moderate currency value, and tax abatements are factors that urged foreign venturers to increase their investments in real estate in 2020.

The United Kingdom

Great Britain’s real estate market has always been stable and has attracted the attention of global investors. At the moment, it is still a great place to invest in a stable asset for long-term benefits. The interest rate on the prime rate of the Bank of England has dropped to 0.1%. This in turn has increased investment opportunities. To give a necessary boost to the real estate market, the UK government has modulated the size of the temporary Stamp Duty Land Tax (SDLT) on real estate sales in order to attract new buyers.

Bottom Line

Investing in residential real estate is one of the most reliable ways to increase capital with a low risk of losing the assets invested.

Clevver always works with its clients in mind. We have released a comprehensive whitepaper on residential real estate investing and the taxation associated with it. Don’t hesitate to check it out absolutely for free!

DISCLOSURE NOTICE: Any legal or tax advice in this communication (including any attachments) is for information purposes only and is not intended to be used, and cannot be used against Clevver or its Sender. The sender is neither an Accountant nor a Lawyer and cannot be made liable. Please, contact your tax accountant for individual consultation. Clevver does not provide any legal advice itself. Clevver works together with a network of lawyers and tax advisors that provide all necessary individual legal advice.


Double Irish with a Dutch Sandwich — Legal Cuisine

Psoted on: December 17, 2020 at 11:36 am, in

It’s about time that we educate you about the most appetizing tax scheme known by the name Double Irish with a Dutch Sandwich. What does it do? It is associated with minimizing the tax burden when using intellectual property. This system is widely used by American corporations and is slightly less common among European companies, but it is still present there.

Why Do Companies Use “Double Irish with a Dutch Sandwich” Scheme?

So, to begin with, we should turn attention to the prerequisites for using this method of minimizing taxes. If we consider the United States, then income received from intellectual property (royalties) is subject to a very significant tax – 35%. At high turnovers, this interest rate is incredibly burdensome for companies. As a consequence, many firms use tax optimization. This should not be confused with tax evasion. Optimization is the reduction of the tax burden by applying legally acceptable mechanisms.

Famous companies such as Apple, Google, Facebook, Coca-Cola, and others appear among the notorious cases of the “double Irish with a Dutch sandwich” scheme. For example, Google allegedly underpaid about 1 billion Euros in taxes to the French budget for 2016, due to tax optimization.

“Double Irish with a Dutch Sandwich” Peculiarities

Now, let’s move on to the “tastiest” part, and consider the structure of such tax planning and how the above media giants managed to significantly save on tax payments.

This scheme is a kind of chain, through which intellectual property rights are transferred from one company to another. This chain uses two Irish companies and one company registered in the Kingdom of the Netherlands (hence the name “double Irish with a Dutch sandwich”).

Under Irish law, a company is considered a resident of the country from which it is directly managed. Thus, a company incorporated under Irish law with an office and a current director in another country will be considered a resident of the latter. The first Irish company (hereinafter we will call it I1) is geographically located in an offshore zone – in Bermuda or the Cayman Islands, in which dividends and royalties are not subject to income tax. The second Irish company (hereinafter I2) is already registered and located in Ireland, but at the same time, it is a 100% subsidiary of I1. The third company is registered in the Kingdom of the Netherlands (hereinafter – N).

The very scheme of interaction between companies is as follows: A company that owns the intellectual property (located in a high tax area, for example, the United States) transfers intellectual property rights to I1 through a licensing agreement, then I1 sublicense these rights to the company N. The Dutch company, in turn, also transfers sublicense agreement with the same rights to I2. It directly collects profits from the use of intellectual property rights and conducts real business (excluding US consumers). This is because Ireland does not tax funds that are transferred by its residents to some countries of the European Union, incl. Kingdom of the Netherlands. In this case, I2 must pay tax only on the part of the income received from royalties, which it retains with itself (at a rate of 12.5%). From the Netherlands, funds are transferred to I1 (also bypassing taxation), which is a tax resident of the offshore zone, in which it is exempted from paying taxes for royalties. As a result, money is concentrated in the offshore jurisdiction. The popularity of the described scheme is confirmed by media reports, according to which foreign companies carried about 13 trillion euros through the Kingdom of the Netherlands in 2012.

Final Thoughts

It is worth remembering the worldwide trend towards de-offshorization and the introduction of BEPS rules, which are aimed at eradicating such phenomena. This means that in the near future such ways of tax optimization will be closed and global corporations, together with their lawyers, will have to look for new options for tax planning or pay taxes in the form in which they are provided by law. Already in 2017, US authorities directed corporations to end the system. Ireland is pressured to close this loophole.

Our Offer to you

Clevver can assist with the establishment of a Dutch Sandwich for you on demand. Also, Clevver can support the company formation in other alternative European jurisdictions like Switzerland or Malta.

Get in touch with us at [email protected] for more information.

DISCLOSURE NOTICE: Any legal or tax advice in this communication (including any attachments) is for information purposes only and is not intended to be used, and cannot be used against Clevver or its Sender. The sender is neither an Accountant nor a Lawyer and cannot be made liable. Please, contact your tax accountant for individual consultation. Clevver does not provide any legal advice itself. Clevver works together with a network of lawyers and tax advisors that provide all necessary individual legal advice.