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Timson
15-08-2013, 12:22
Hello everybody.
I have a business in Belgium that is doing very well. It is an online shop but with a real showroom where people who are interested can first come and test and ask questions in person. We are market leader in the Benelux after only 3 years, because of our great service and cheap prices.

Originally I had planned to sell it this summer but I changed my mind. It's pretty stupid to sell a business that is generating so much money with hardly any effort (although I get really depressed about the incompetence of our tax government and all the stupid rules). Luckily we hadn't signed anything yet.

However, since I hardly have any costs to deduct I'm thinking of opening a showroom in Tenerife. It doesn't matter if it generates any sales, If I can rent a showroom with appartment and have a way to deduct my airway tickets and things like that I'm a happy man. I come over about 6 times every winter.

My accountant says it should be no problem (I also have a showroom in Holland) but asked me to try to gather some information, since this is new as for him as well.

Are there any rules for opening a hub from an oversee company? Of course my business just stays in Belgium.
Or do I just rent a space and send the contract and all my costs to my accountant?

Thanks you for any relevant information!
Kind regards,
Tim

Medanoman
17-08-2013, 23:33
Hello everybody.
I have a business in Belgium that is doing very well. It is an online shop but with a real showroom where people who are interested can first come and test and ask questions in person. We are market leader in the Benelux after only 3 years, because of our great service and cheap prices.

Originally I had planned to sell it this summer but I changed my mind. It's pretty stupid to sell a business that is generating so much money with hardly any effort (although I get really depressed about the incompetence of our tax government and all the stupid rules). Luckily we hadn't signed anything yet.

However, since I hardly have any costs to deduct I'm thinking of opening a showroom in Tenerife. It doesn't matter if it generates any sales, If I can rent a showroom with appartment and have a way to deduct my airway tickets and things like that I'm a happy man. I come over about 6 times every winter.

My accountant says it should be no problem (I also have a showroom in Holland) but asked me to try to gather some information, since this is new as for him as well.

Are there any rules for opening a hub from an oversee company? Of course my business just stays in Belgium.
Or do I just rent a space and send the contract and all my costs to my accountant?

Thanks you for any relevant information!
Kind regards,
Tim

Hi Tim...You really need to see a professional as i can only guess at the advantages and disadvantages but here are some thoughts....I am not sure that setting up a business here as a tax write off is a good idea...It could workout quite expensive if you are contemplating this on a small scale.

Renting a shop unit, getting it licensed to sell what ever it is you deal in is only half of the story, where are you going to be based tax wise? Belgium or Spain?

Normally when setting up a business here means that someone is resident, is registered as autonomo or self employed with the local tax office. Then Modulos or tax and social security will have to be paid regardless of where you are...If the shop is closed you will still have to pay lots in tax and social security before you sell anything.,,,


BUT if you relocated to Tenerife and moved your whole company here , i think you might be able to get special tax status for your company enabling you to only pay 4% corporation tax...there are catches of course.....like a director has to be resident here, You have to employ local residents and you have to have to invest in a non moveable asset , ( just buy a small apartment) http://www.zec.org/en/

put your head office in Tenerife , employ 10 people say and you would be allowed up earn up to 2 million a year and only pay 4% tax on it ( http://www.zec.org/en/Impuesto_sobre_sociedades.jsp) (Rates vary with numbers of residents employed.)

Let you Belgium office "Buy " your services here at a stupid loss producing rate in Belgium thus avoiding tax there..

just buy me a pint next time you see me..lol

Angusjim
18-08-2013, 08:30
Hello everybody.
I have a business in Belgium that is doing very well. It is an online shop but with a real showroom where people who are interested can first come and test and ask questions in person. We are market leader in the Benelux after only 3 years, because of our great service and cheap prices.

Originally I had planned to sell it this summer but I changed my mind. It's pretty stupid to sell a business that is generating so much money with hardly any effort (although I get really depressed about the incompetence of our tax government and all the stupid rules). Luckily we hadn't signed anything yet.

However, since I hardly have any costs to deduct I'm thinking of opening a showroom in Tenerife. It doesn't matter if it generates any sales, If I can rent a showroom with appartment and have a way to deduct my airway tickets and things like that I'm a happy man. I come over about 6 times every winter.

My accountant says it should be no problem (I also have a showroom in Holland) but asked me to try to gather some information, since this is new as for him as well.

Are there any rules for opening a hub from an oversee company? Of course my business just stays in Belgium.
Or do I just rent a space and send the contract and all my costs to my accountant?

Thanks you for any relevant information!
Kind regards,
Tim

If your accountant cannot come up with a better way of saving you tax and getting " expenses" & cash out of your business bin him now

tracey
18-08-2013, 09:27
sound like a ´laundry´ business :laugh:

Goldenmaniac
18-08-2013, 10:34
You need a company accountant versed in Dual taxation issues - but there is some good general information here in English http://www.agenciatributaria.es/AEAT.internet/Inicio_en_GB/English/Non_residents/Non_resident_Income_Tax/Non_resident_Income_Tax/Non_residents_with_permanent_establishment/Non_residents_with_permanent_establishment.shtml re taxes for foreign companies with a permanent establishment in Spain. There is also some info here about the ZEC - Zona Especial Canarias and the incentives to do business here http://www.zec.org/en/ also in English

Timson
18-08-2013, 21:02
It was not my accountant's idea, but mine...

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Hello,
I checked out the ZEC. This looks like an opportunity for me. However, registration is only possible until end of this year (why didn't I know this before :cry:
So if anyone knows a Dutch or English speaking professional who can advise me on this matter that would be great!!)