• Raul Bloodworth |

    Apologies, but I do not speak Estonian.

    I am considering moving to Estonia, creating an OU, and trading stocks from there to reduce my taxes. The 0%-25% tax structure could be phenomenal for compounding profits. Also, Tallinn seems like a very livable city.

    As a one man OU, are you allowed to pay in dividends only? If a salary must be paid, the higher this number is, the less appealing 0%-25% becomes.

    So far I’ve found 3 conflicting interpretations of the tax law:

    1. You do not have to pay yourself a salary. You are allowed to withdraw only dividends.
    2. You must pay a salary, but it can be the minimum wage.
    3. You must pay yourself a salary in an amount that is commensurate with your profession.

    In the case of #3, how much should a trader managing his own money be paid? Trading is my only source of income.

    There are also several articles about the Estonian tax authority suing one man OUs but never winning a case. As many others say that dividends may not replace salary.

    Thank you in advance for your help.

  • Pedant |

    You wish to reduce taxes and also get free tax planning advice???

  • olivia |

    you must have some kind of service that gives the company a turnover, because you can use it to pay dividends.
    in Estonia, it is possible to pay the board member’s fee instead of salary

  • Kristiina |

    All options are OK,. The 2nd one is better from the 1st one cause it provides you with health insurance as well. The 3rd one of course is a dream come true for Estonian tax departement and suits also for us, the natives :)
    I cannot give any adivse about how much tax traders earn in our region. Should depend on working hours … if it is a part-time job for you (40 hrs weekly is full time), then minimum wage is quite enough.
    Appologies for my rusty English.

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