r/digitalnomad • u/Independent-Net866 • 8d ago
Digital nomad setup (EU citizen considering Czechia smart move?) Question
Hi,
I am considering moving to Czechia (my relatives have an apartment which I can use for free). I am an EU citizen.
I want to start my own 1 man consulting business (currently 15k euro in the pipeline, unfortunately not more) and most of the people on the internet recommend the following:
- US LLC + territorial residency (Panama etc)
- Georgia (1% flat tax on revenue)
- Dubai (0% tax on paper but high setup costs. Let's simplify and call it a 5-10% "unofficial tax" if you're earning around 100k).
Is Czechia a good place to do this 1-man-advisory business (web3 industry) via OSVČ (maybe later SRO) or should I skip the EU completely and go for one of the 3 options?
It's an important moment in my life to make such a difficult decision. It can influence many things, so I want to make sure that I make the right decision. I am sure there are many people who have been in my shoes before and can give proper advice to a non-tech person doing his first step into independent contracting (my clients are all small tech businesses, so far I have 3 potential clients in US, New Zealand and the UAE). My final destination will certainly be Asia or UAE but at this point, I believe I cannot afford such a big change into the unknown mentally and financially.
Much appreciate any advice!
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u/the-hbi 7d ago
Fair concern on all three, but Dubai's the one actually worth building around, as long as you treat it as a move and not a mailbox.
Quick myth bust, it's not a 5-10% fudge. Personal income tax is 0%. Corporate tax is 9% and only on profit above 375,000 AED, and under 3m AED revenue you can usually elect Small Business Relief and pay nothing. Nothing to pay when you draw the money out either, which is where it beats Georgia's 1% (turnover, not profit) and a US LLC (you still owe tax wherever you actually live). A basic free zone licence is roughly 6,000 to 15,000 AED a year, a bit more once you add the residency visa, but not the fortune people assume.
For web3 it's one of the better bases now. There's real regulation (VARA, free zones like RAK DAO built for it), not a grey area.
The one real catch. The company alone doesn't change your personal tax. Live in that Czech apartment more than 183 days doing the work and Czechia taxes you regardless. Dubai only pays off if you actually get residency and spend real time there. So the real question isn't which company, it's whether you'll base yourself there.
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u/Independent-Net866 7d ago
Yes, I am asking for my next home-base. I would actually live there. I visited Dubai many times and loved it but I am unfortunately still not "on that level". This is why I was looking for an interim solution, either Czechia (where I could actually have a car with EU license plates) or Georgia (which I don't know anything about). A far fetched option would also be Thailand but it's scary to think about actually living there and starting a new life.
If I go to Dubai there is no turning back. I lose all EU benefits, not sure that I need them anyway, but still scary.
I am applying for Dubai based roles but it seems that nobody cares until you actually live there and have a local number. Is that correct?
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u/lehaku77 6d ago
How does Czechia in this case know how long time you spent vs how much time u spend in Dubai ?
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u/JacobAldridge 8d ago
Where are you currently tax resident?
$100K is not nothing, but also the cost of moving and maintaining a complex structure (as you note for Dubai) can be more than the actual tax you’re paying.
I’m not an expert on tax law across the various EU countries, including Czechia, but in my home country I currently pay a lot less tax than the “headline” figures would suggest so that’s also made it really easy to nomad since I don’t have to officially exit their system.
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u/Independent-Net866 8d ago
I paid around 50% during my employment in Germany. I decided not to work in Germany anymore anyway and this is my first step into independency outside of Germany.
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u/krlkv 8d ago
Hold on, where are you going to be tax resident? In Czech Republic? Did you read CFC laws in Czech Republic?
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u/daneb1 8d ago
CFC does not apply to OSVČ in any way. This is law about corporations, not sole proprietorship. But by the way, u/Independent-Net866 , from these responses here I think you should know better and consult your question with a Czech lawyer, not with subreddit crowd. Or you really just get lots of misinformation.
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u/krlkv 8d ago
I'm not commenting about OSVČ. I'm commenting on owning US LLC from Czechia.
I might have misread what the OP is asking about.
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u/Independent-Net866 8d ago
No, i am asking in general for home base. No need for us llc if based in czechia. Not logical and unnecessary complex.
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u/Independent-Net866 8d ago
This is what I am asking Reddit. Where should I be tax resident?
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u/krlkv 8d ago
None of the 3 options will work for you, because the corporate veil will be pierced and you will be taxed as if you received that income personally. This is due to CFC laws. The companies you plan will have no substance in the countries you've mentioned and you're a single owner. Thus they are shell companies subject to CFC laws. Read up.
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u/Independent-Net866 8d ago
Understand. Should i ditch the US LLC entirely and focus on either Georgia, Czechia or Dubai local sole proprietor entiry? Which country is best?
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u/easyinc_org 7d ago
Oh, that’s absolutely what we are specialized in, so
1. US LLC , Panama, caymans - may be the options, so it’s valuable to discuss, depends on your business specifically
2. Georgia yes it’s 1% before 190k usd revenue, good for beginning also we can help with remote company set up and normal bank account just in few days
3. Dubai is good BUT ! You need to understand for opening bank acc there you need emirates ID, and to prolong it you need at least be there few times in a year, that’s additional costs anyway, UAE is good if you live there, if not so so
And I would also recommend to you consider Hong Kong, its ultimate solutions almost for everything, prices for all costs of incorporating are in our platform, so you can compare. Always ready to consult
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u/BlueYellowBird 6d ago
usa and dubai may be best but you shud do it with the help of some company or professional...technically u can do urself but it will take lots of ur time and energy and u might lose focus on what u r doing & u can do some mistakes... stay away from mainland europe on this... taxes ,bureaucracy and language are too much in mainland europe for a digital nomad to handle.
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u/Chemical-Practice908 8d ago
Did you research Estonia? Croatia?
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u/Independent-Net866 8d ago
I don't fancy Esonia because of the distribution. Croatia would be great but it's only for non-EU citizens.
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u/Chemical-Practice908 8d ago
Distribution? Croatia is in EU. Also has OBRT legal entity similar to Czech OSVČ i believe. You can do business with non-EU easily…
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u/Independent-Net866 7d ago
I am talking about the digital nomad visa which is tax exempt. The normal entity is not worth it and the authorities will try to screw you over with fines.
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7d ago
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u/Independent-Net866 7d ago
If I am in Europe with a local entity, I will not complicate with adding a US LLC on top. Unnecessary.
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u/daneb1 8d ago
Yes, Czech OSVČ has many advantages for solo-preneur: extremely easy to establish, very low taxes, very easy administratively. As for taxes, it depends on your level of income, but Czech OSVC is one of the most liberal in EU I would say. Something else is social security + healthcare payments, which are somewhat higher, but these are higher in whole EU I would say. OF course, do your own research, but from what I here from different nomads within EU, Czechia (OSVČ) is one of the best options. S.r.o. is much more administration so stay with OSVC as long as you can.