boelectra

Hi

I understand that most Eurpoean countries have a reciprocal tax agreement with the UK, so if you pay tax there you don't pay in the UK?

I'm interested to know which country offers the lowest overall rate of tax for either an individual or Ltd Co?

Thanks

Tableview

A dual taxation agreement means that you won't be taxed twice on the same income. Usually it means that you will pay at the higher rate of the two countries involved.

HM Revenue & Customs: Tax Treaties will give you more information.

Dg800

I believe the current top ranking European country for low taxes is Switzerland, especially if you're a big earner (Google Pauschalbesteurung if you think you fall in this group ).

Jinkster

Sadly, if you are PAYE it is a shame you cannot choose where to pay tax!!

The EU works when it is suited by others!

Min Drag

It's not as simple as it might seem as residency plays a big part. As an example if you work, let's say on a contract based in France, but are deemed by HMRC to reside in UK (a minefield on its own) then you will pay tax and social contributions (high) in France but then HMRC will calculate what tax you would have paid in UK and clobber you for the difference but to make matters worse won't take into account the social contributions you made

All the double taxation treaty does is protect you paying full tax in one country and then full tax in the UK. The only solution is to move to the country of contract if doing so attracts a total tax advantage.

Um... lifting...

All that and the 2012 Nobel Peace Prize. Europeans are so fortunate.

Heathrow Harry

welll Um Lifting - if you live in the USA or Australia you pay tax on world wide income

if you live in the middle east you pay almost no tax but then you have no social cover such as a pension, a decent law system or a lot of basic amenities

in general you get what you pay for in this world - I can see the benefits of a low tax but who in their right mind would want to be stuck in a tax haven for the rest of their lives?

evyjet

You do not pay tax on world wide income if you're Australian. If you are a resident overseas and satisfy certain criteria you are considered "non resident" for tax purposes. It's still restrictive, but not a blanket tax like the US citizens have to put up with.

Um... lifting...

Same is the case for the U.S. You must declare worldwide income, but if one meets certain criteria, a portion can be excluded.

Full Left Rudder

Heathrow Harry - I get the general feel of what you are saying, but not all tax havens are unpleasant places to live. Quite the opposite in fact.

Consider Switzerland, Jersey, Isle of Man, Bermuda, Cayman Islands, Monaco, British Virgin Islands...... The list goes on.

All of which are beautiful places to live and offer very good to excellent social services at a very low tax rate.

Tableview

I can only assume from that you've not spent much time in Monaco!

Full Left Rudder

yeah yeah. I knew someone would pick on one of my list.....

Still it's hardly a third world country....

ZFT

or Switzerland

lexxie747

paying tax is for idiots

Heathrow Harry

so who pays for the schools, the police, the armed services....................

Heathrow Harry

"Consider Switzerland, Jersey, Isle of Man, Bermuda, Cayman Islands, Monaco, British Virgin Islands.."

The Isle of MAN????

Once described to me by someone born there as "50,000 alcoholics clinging to a wind-swept rock in the middle of the Irish Sea...."

Full Left Rudder

I think you'll find it's 80,000....

Of course in the UK the weather is superb and there is nothing like a severe binge drinking problem. The Isle of Man is totally different. Hmmm......

Sorry to be sarcastic but you get my point. The Isle of Man is a beautiful island with a slow pace of life and a very low tax regime. If there were any decent pilot jobs there I would be there in an instant.