A while back there was a simple scheme available that allowed you to avoid taxes on the first few hundred thousand / million of taxes.
- You created an LLC in Cyprus and transferred some IP (usually a trademark) to it
- You licensed that IP to your LLC in an EU country for the amount that basically erased any profit that LLC made
- Cypriot LLCs were not taxed on non-Cyprus income
- Each of non-resident director (or board member, I don't remember) of a Cypriot LLC was not taxed on first 400k euro of income from those LLCs. Double taxation deals Cyprus had protected you from being taxed on that income back home.
I know this is no longer possible with Cyprus, but a variation of that is now happening with e.g. many EU clothing brands having their brand ownership transferred to Egyptian LLCs.
- You created an LLC in Cyprus and transferred some IP (usually a trademark) to it
- You licensed that IP to your LLC in an EU country for the amount that basically erased any profit that LLC made
- Cypriot LLCs were not taxed on non-Cyprus income
- Each of non-resident director (or board member, I don't remember) of a Cypriot LLC was not taxed on first 400k euro of income from those LLCs. Double taxation deals Cyprus had protected you from being taxed on that income back home.
I know this is no longer possible with Cyprus, but a variation of that is now happening with e.g. many EU clothing brands having their brand ownership transferred to Egyptian LLCs.