Tax Options - Working in Europe

Hi,

I have been recently offered a 12 month contract in Finland as an IT contractor and I am looking for advice on what my best options are for paying Tax while working in this country.

I have come across the 183 day rule which indicates that if I am out of Ireland for more than 183 days of the year (which i will be) I apply for the country I reside in's Tax Bracket.

This is not ideal from my perspective as Tax in Finland is higher than in Ireland so I am asking.. what options do I have (if any) in terms of gaining tax breaks / paying less tax?

I would be taking on the postiion as either a sole trader, employee for a management company or at worst as a Limited company.

Thanks for any help on this.

You could set yourself up as a Ltd company in IOM, 10% tax and pay yourself from there. Lots of UK companies for freelance operatives used to use this.

I doubt you'll find many here with enough knowledge of the Finish tax system to be able to give you meaningful advice. Better consult the experts I say.

Tax treaty with Finland can be found [broken link removed]if that's of any use. I have not read it.

Thanks for all comments.

Charlie the option you have mentioned looks like a feasable option.

Does this option have any set backs do you know?

Thank you for all help on this.

Living in Finland and working for a Finnish company? You will almost certainly have to pay tax in Finland.

As you are not resident, you might be able to exploit the offshoring option, but I'd be very careful about it and get proper professional advice.

mimes said:

Thanks for all comments.

Charlie the option you have mentioned looks like a feasable option.

Does this option have any set backs do you know?

Thank you for all help on this.

Click to expand...

It all depends on how easy it is for you to set up a ltd company and then pay yourself from it. You will need to consult an accountant but we have lots of Freelance Engineers and Site Managers that work for us on this basis in the UK.

The only set back is the notice period you work to, you could also negotiate into the contract when they employ your company that they give you a set period when they/you want to end it, as some employers are poor and give a couple of days.

If you look into the areas with low tax and the rates payable on dividends and the limits you can pay in a year.

You will also need to prob take legal advice on the contract you sign with them to ensure it then suits your personal and company needs.

You could prob also charge all your travel expenses etc straight to the company?

Hope it all goes well.

Charlie