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Expansion of current UK business in Greece

#1 Mar 4 2016 3:49pm

Expansion of current UK business in Greece

We are looking to expand our current London based Design and photographic studio business in Paros Greece. The purpose is to open a new and larger studio where we can offer our existing clients better shooting conditions and experiential courses. We are registered in UK as a limited company. What is the best thing to do to in this case when UK based yet expanding here with relation to tax.

We are looking to expand our current London based Design and photographic studio business in Paros Greece. The purpose is to open a new and larger studio where we can offer our existing clients better shooting conditions and experiential courses. We are registered in UK as a limited company. What is the best thing to do to in this case when UK based yet expanding here with relation to tax.
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#2 Jun 1 2016 3:06pm

Re: Expansion of current UK business in Greece

Your Greek-sourced profits will be taxable at 29% whether you use a local subsidiary company or a branch of your English company (or Scottish/NI company, depending on where you're incorporated). These profits shouldn't be taxed again - Greece has no branch remittance tax, nor would a dividend withholding tax apply since you'd meet the requirements of the EU's parent-subsidiary directive. The UK probably won't tax them again either at the company level, so paying the UK's 20% on the remitted profits won't happen.

The best thing to do will be to see how you can maximise the share of profits realised in the UK company instead of the Greek one, so that you benefit from the 20% tax rate instead of Greece's 29% rate. You'll need to talk to your accountants to see how you achieve this through transfer pricing, but the English company could legitimately take fees from the Greek company for back-office support, marketing, use of the brand, etc.

If you'd like more input from us, please visit www.osire.co to speak with us further.

Your Greek-sourced profits will be taxable at 29% whether you use a local subsidiary company or a branch of your English company (or Scottish/NI company, depending on where you're incorporated). These profits shouldn't be taxed again - Greece has no branch remittance tax, nor would a dividend withholding tax apply since you'd meet the requirements of the EU's parent-subsidiary directive. The UK probably won't tax them again either at the company level, so paying the UK's 20% on the remitted profits won't happen. The best thing to do will be to see how you can maximise the share of profits realised in the UK company instead of the Greek one, so that you benefit from the 20% tax rate instead of Greece's 29% rate. You'll need to talk to your accountants to see how you achieve this through transfer pricing, but the English company could legitimately take fees from the Greek company for back-office support, marketing, use of the brand, etc. If you'd like more input from us, please visit www.osire.co to speak with us further.
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#3 Jul 11 2017 10:37am

Re: Expansion of current UK business in Greece

Send more info to bcrandall03@gmail.com

Send more info to bcrandall03@gmail.com
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#4 Dec 20 2017 5:00pm

Re: Expansion of current UK business in Greece

Hello,

We are yacht charter company based in London.

For 8 weeks in the summer, we would like to operate charter trip out of Greece mariners.

We believe we need to set up a limited liability company. Am I right in saying that we do not need a Greece resident to do so, nor do we need an office or home base for the business?

Hello, We are yacht charter company based in London. For 8 weeks in the summer, we would like to operate charter trip out of Greece mariners. We believe we need to set up a limited liability company. Am I right in saying that we do not need a Greece resident to do so, nor do we need an office or home base for the business?
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