Incorporating abroad


Registered User
Hi all,

I have a few questions, and I understand that some of them might be better addressed to an international tax consultant, but if anyone can help / comment on my assumptions and questions, I'd highly appreciate it.

I'm currently employed full time (on a higher tax band) and on the side have been building an internet business that is starting to pick up, considering incorporating an LLC company. I'm also planning to move from Ireland at the end of this year and with that in mind have started to look into how to optimize the tax structure (within the law).

If I incorporate an LLC in Ireland and reside in Ireland my effective tax rate would be around 54% (12.5% corporate + around 48% personal). If I then relocate (to let's say the Netherlands), but keep the Irish entity and stay its director I will be paying the same 12.5% + 48% (as according to Revenue 'Directors of Irish companies must pay tax in Ireland regardless of their residence position or where they carry out their duties' plus will pay the difference (if any) in the tax if the NL one is higher (double taxation agreement). I'm not settled on the Netherlands, might be another country or even take a gap year or two and travel the world.

Should I consider starting a company somewhere else, a 3rd country with low corporate tax (Cyprus, Malta) this way if I move abroad (let's say NL) I won't have to pay the personal tax in Ireland, only the corporate one (+ obviously the personal one in the NL)?

Is it ok with Ireland in general if I am director of a company incorporated abroad, any unwanted repercussions here? Any downsides of being a director in a country you don't live in (besides minor things like language barrier, different accounting system, etc)?

And anything I'm missing here in general?

Any constructive comments are appreciated!



Registered User
You really need some tax advice here. Using offshore companies comes within the transfer of assets abroad legislation which is more of the more complex provisions in the tax code. Additionally you will continue to be within the ambit of Irish tax for three years following your departure as you will be ordinality resident for three complete tax years following your move abroad. Complex stuff.