We can say in advance that it is not worthwhile for German, Austrian and Swiss companies that make very small profits to open an additional EU company far away from home. With an annual profit of 1-3% is not advisable. However, if you want to make profits and to grow with your company in the profit zone, then this model will stand up to any cost comparison. Office, accounting and personnel is very affordable in Eastern European countries. A tax of only 1% on the turnover is hard to beat.

Quite the opposite. Setting up an EU company as a foreign permanent establishment is particularly interesting for small and medium-sized enterprises. As you already know, tax is paid on sales of up to EUR 1.5 million per year - and only at 1%. More details in another article from us. So much for 1-20 employees companies - but now the special advantage for self-employed: Romania has one of the most liberal small business regulations in the EU. The upper limit is 60,000 EUR per year and not 22.000 EUR as in Germany - to be completely exempt from VAT. This means that you can confidently generate more than 5,000 EUR per month in sales, pay no sales tax and tax your company income at only 1%!

We know from our experience how time-consuming bureaucracy in Eastern European countries can be, paperwork from post-communist times, as well as that a foundation including a bank account remotely is not possible at all. And if you want to open the company from the home country but without a bank account, it would take several months, because notary appointments including sworn interpreter still have to be provided with an apostille in Germany.

After years of efforts, we have now created a setup that allows us to offer a company formation including bank account within 5 days turnkey accompanied on site. For example, you arrive in the best case on Monday and we set up together with you all the necessary steps, accompanied every day at offices, notaries, bank appointments, accounting. On Friday you leave 100% ready to start the business - with a newly established company including company address, bank cards of the company account and accounting.

The company formation includes:
- Shareholders agreement drawn up by a notary
- Sworn interpreter at all notary appointments (mandatory)
- Registered office of the company - possibility of a company address
- Signature specimen of the managing director prepared by a public notary
- Company registration application
- Proof of deposit of the share capital
- Bank account opening
- Authorization of an accountant/tax firm by a notary

Of course. We do not charge any ongoing consulting fees. Since to date our clients are very satisfied - we are always happy about recommendations - and coach you until you have earned at least 10.000€ through tax savings!

It is perfectly legitimate and legal to open and run a company branch in an European country - due to the freedom of establishment in the E.U., such company openings take place thousands of times a day by small, medium and large companies. The decisive factor is the approval of the double taxation agreement or the avoidance of double taxation in both countries.

The DTA is a bilateral agreement between 2 countries. Now, in order to pay taxes only on income earned in the "foreign company", the activity has be part of the list of the agreement - i.e. the activity of the company or the phisical person. Many services and types of trade are covered by the agreement or are exempt from double taxation.

Yes, this is also possible - but very difficult to implement in practice. There has to be a real business operation in that respective state far away from home, like all managing directors meetings and decisions, office, etc.. This is how the legislator prescribes it. If this is not the case, the "foreign company" is only seen as a permanent establishment and the right of taxation stays in Germany. Therefore, it is much easier to establish a company that is also located in the EU, so that it only pays taxes in the country of incorporation and not in Germany. In addition, an EU company does not cause any stir at the local tax office - in contrast to a Dubai offshore company.

The worst possible case scenario that can happen is that double taxation occurs - i.e. I pay additional taxes on the income not only in the foreign country, but also in the home country or country of residence (in the example Germany). The foreign EU company should be notified to the tax office in the country of residence (DE) from the beginning. If this is the case, no complications with the domestic tax authorities are to be expected. Such EU company formations are common practice and take place 1000 times a day. Up to now, all our clients have been successfully recognized by the local tax office.

Yes, that is possible! This is also used more often than you think. However, since such an application is very time-consuming and costly, due to the fact that the hourly rates of the tax office employees plus fees must be taken over, this is only recommended for companies of a certain size. This is very common for auditing companies such as Deloitte, PWC, EY and KPMG. However, you need to pay attention! It is only a company branch in an EU country and it is not a tax constructs. If a few things are taken into account, then nothing stands in the way of recognition even without an application! The worst case scenario we have clarified in the previous question and is more harmless than you might think - namely paying taxes in 2 countries instead of only one - without consequences or being branded in any way at the tax office. Until now, approval from the local tax office has worked successfully for all our clients without exception.