So, I’ve been looking into e-residency and moving my business to Estonia the past few weeks.
I’m still a tax resident in Germany and therefore fear I’ll be suspect to CFC laws. I somehow can’t find any reliable info on this and I don’t feel like reading through the whole law, so just wondering if anyone knows how CFC laws in EU countries come into practice. What taxes do I need to pay exactly? As soon as I cash out (dividends), as far as I can see I need to pay 20% income tax in Estonia. Then what? Of course, I would need to pay income tax in Germany. What taxes do I need to pay besides these?
And if I keep the money in Estonia/reinvest it, am I right that I wouldn’t need to pay any taxes at all? Only for the money I cash out of Estonia/the business?
I’m by the way not doing this to evade taxes, taxes are secondary. I primarily simply want to move my business activities out of Germany + the all-digital concept and the bookkeeping service of agencies like leapIN are interesting.