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  1. #1
    Join Date
    Jul 2004
    Posts
    74

    * Question regarding income derived from online service

    Hello @ all:

    I am a German citizen who has never ever worked in Germany and as a consequence I have never ever paid taxes in Germany.

    I am building a website which offers several services automatically. I will make money through my website.

    I intend to incorporate my company in Panama. Because the company makes money outside of Panama my company does not need to declare taxes in Panama.

    As I do not have $40k to get a permanent residency for Panama, I cannot stay in Panama the whole year. I can stay in Panama for up to 3 months as a tourist.

    I intend to spend 3 months in one country, 3 months in another and so on until the year is over. Thereby I spend the whole time of the year as a tourist in several countries.

    As I do not stay in Germany I will not be registered in Germany any more. I would not be registered in any country as I do not reside in any country permanently.

    Do I avoid paying taxes as a global trotter?

    My website would be hosted in UK.
    My bank would be in Panama.
    My company would be incorporated in Panama.



    Thanks in advance for your competent response.

    Haary

  2. #2
    You are a citizen of Germany and you have to pay tax to Germany. I'll suggest you to consult your Accountant and ask him the solution as its not that easy to run away from tax.

  3. #3
    Join Date
    Jul 2004
    Posts
    74
    Yes, as you have written I am a citizen of Germany.
    BUT: I am not a slave of Germany. (Well, I hope not. That's my actual question...)

    US citizens are slaves of USA because no matter in which country they are living they have to file personal income tax on their WORLDWIDE income in the US every year and if the country where they are living has no double-taxation agreement with USA the US citizens have to pay taxes to USA as long as their annual income is over $88k.

    Is there a EU citizen in this forum who has some knowledge in this matter?

    I have to emphasize that I have never ever worked in Germany and I have never ever had to pay taxes to Germany. That's why I am asking whether persons like me would still have to pay taxes to Germany no matter in which tax haven they are living.

    Haary

  4. #4
    Where are you depositing your money ? you will need to pay tax to the country where you deposit your money or from where you withdraw your money. I am not sure if you will find anyone like you in this forum but you should take some legal advice from a accountant in the country where you deposit your money or from where you withdraw your funds.

  5. #5
    Join Date
    Jul 2004
    Posts
    74
    As I have written above, my bank will be in Panama. That means money derived from the website would be deposited in my bank account in Panama.

    I withdraw money from ATM machines and this is possible from any ATM machine in the world. If you are in Canada spending your holiday you don't have to pay taxes just because you have used an ATM machine in Canada!!

  6. #6
    Join Date
    May 2005
    Location
    belgium
    Posts
    1
    im sorry harry but what you intend to do here is just called money laundering.
    i understand you hates germany taxes as im living in europe too and know how bad it is to do busines in here..
    if you really want to do your busines in panama you will have to be a panama citizens and have an adress there and live there not only as a tourist and you will have to check if germany as a law that disable the double taxation between panama and germany.
    if not you "may" have to pay taxes in both the countries...

  7. #7
    Join Date
    Jan 2004
    Location
    Germany
    Posts
    359
    Originally posted by Haary
    Yes, as you have written I am a citizen of Germany.
    BUT: I am not a slave of Germany. (Well, I hope not. That's my actual question...)

    US citizens are slaves of USA because no matter in which country they are living they have to file personal income tax on their WORLDWIDE income in the US every year and if the country where they are living has no double-taxation agreement with USA the US citizens have to pay taxes to USA as long as their annual income is over $88k.

    Is there a EU citizen in this forum who has some knowledge in this matter?

    I have to emphasize that I have never ever worked in Germany and I have never ever had to pay taxes to Germany. That's why I am asking whether persons like me would still have to pay taxes to Germany no matter in which tax haven they are living.

    Haary
    I am from Germany too and run a business here. Where your server or your bank is located is not of interest as long as you are a German citizen. Also if you havenīt pay taxes never ever before in Germany does mean nothing. As soon as you make income here (and even if your company is in Panama) you will have to file taxes from now on (even if you do not have to pay income-tax in Germany in case there is a agreement between Panama and Germany) for the rest of your life (even if you decide to close your company somewhen in the future). Remember, Germany has one of the most complicated and biggest tax-system of the world, to avoid paying taxes here as soon as you have your foot in this country is basically impossible.

    Your best bet is to contact a lawyer and accountant from each of the 2 countries to clarify your situation and how to make the best out of it tax-wise. Otherwise you risk to go to jail in the worst case in both countries because of malicious avoidance of taxes.

  8. #8
    Your best bet is to pack your bags and head to panama. So long as you do not do business within Panama you do not have to pay their taxes.
    If you are in Germany, they are similar to the US in that if you are a citizen and do any business you will need to report your income and pay taxes.
    I would also discuss this with your lawyer or account in further detail.

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