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The constitution of European societies is an alternative to traditional offshore companies, providing a solution of prestige and numerous tax planning opportunities.
The creation of European companies for tax planning purposes is a growing trend. International pressure and legislative changes that are happening in certain offshore jurisdictions have brought back the eyes of many entrepreneurs to the old Europe. The entry into the EU of new members with more advantageous tax system, competition among states to attract investment and increasingly powerful EU legislation ensuring competition and freedom of settlement of individuals and businesses have led to a favorable business climate, that opens up a world of new opportunities for business.
European taxation is extremely varied. Depending on where you are domiciled company, corporation tax can vary from 10% in the case of Bulgaria and Cyprus, to almost 50% in Germany. Established, either physically or virtually in another EU country, can therefore be a very important tax savings. The existence of the "Directive on the taxation applicable to parent companies and subsidiaries of States", also guarantees a very favorable treatment of dividends received from another EU country. By European companies operate not only gives prestige and well accepted by banks, financial institutions or business partners, but also provides access to numerous treaties and double taxation agreements with third countries.
Some of the options for formation of onshore company in Europe are: UK, Ireland, Luxembourg, Switzerland, Cyprus, Bulgaria, Slovenia, Slovakia, etc.