Hi everyone!
I’m planning to start a digital business based on a mobile application. I currently live in Hungary, where my family (parents, grandparents) and my own property are located. Since I don’t yet have an official company, I want to plan ahead — especially regarding where it would make the most sense to set up my company and live in order to optimize (or even minimize) my tax burden.
I’ve been considering the Estonian e-Residency program: as I understand it, profits reinvested in the company are not taxed, but dividends are subject to a 20% tax. That in itself wouldn’t be too bad, but if I live in Hungary, I’d also have to pay personal income tax on top of that. However, if I were to become a kind of digital nomad — moving to a new country every three months and not spending more than 183 days a year in Hungary — how would taxation work in that case?
Another option I’ve seen (yes, on YouTube 😅 — I know, not the most reliable source) is a U.S. LLC + UAE Free Zone structure. The idea is that money would flow from the LLC to the UAE company, resulting in roughly 0% tax overall. Supposedly, the company profits aren’t taxed, and when transferring money to the Free Zone company, there’s also no tax applied.
To be honest… I’m a bit lost. I’d love to hear any methods, ideas, or experiences that might be useful in my situation.
My goal is to handle income from the digital business in the most tax-efficient and legally compliant way possible. I’d really appreciate your insights or opinions on which structure might be most practical for a beginner entrepreneur starting out from Hungary who doesn’t want to be heavily burdened by taxes.
Posted by Aggravating_Term637