As dutch resident having foreign companies

[casedo]

Hello everyone, 

I hope you don't mind that I am writing this message in English, my Dutch is in the greetings level and I found this site by translating search phrase from EN to Dutch (it's quite less information about these subjects in English)

My question may sound too generic but wanted to keep it as it is since all situations are unique and can be difficult to find an answer to specific questions. 
- In a nutshell, I am a Dutch resident, living & working fulltime in the NL for 1.5 years.
- I would like to know what happens exactly when you have ownership of foreign company when you are Dutch (tax) residence. 
- As far as I understand, it doesn't matter whether the company that you own (it doesn't have to be the whole company but as long as more than 5% of it) is local or foreign, I think it fits box II: substantial interest taxation. Is it? After paying corporate tax, when the company distributes the dividends, I need to also pay box II tax? Is there any difference in this flow between local & foreign companies? 

 

I am thinking two different foreign companies for
- one for property investment (buying, selling, renting, refurbishing) outside of the NL like can be in EU but also UK or US, will be in one country not many.
- one in Estonia with e-residency for the digital businesses (consultancy/development & digital asset running & trading such as websites, domain names, ecommerce sites etc.) 

In the short term period, I am not planning removing any money from the business(es), potential profit always keep in the system and be used for reinvesting as much as possible.
You can assume these 2 businesses as a wealth generation tool if it matters from taxation/legal perspective.

There is not specific questions, the questions are hidden between the lines above I think (or some of them just for me to verify my understanding up to now)
Maybe I can specifically ask, what do you suggest for one who wants to invest heavily outside of the NL while keep residing in the NL. Having parent company in the NL which has these international companies would make sense or simply as a private person can I be the owner of these foreign companies? Or even NL company can be used for the offshore investments (but I think people always suggest that have a local company in the place that you want to do business/invest, so this option may not be the one really.)

I have been trying to consume everything that I could find in this subject, any answer would be highly appreciated, can clear the things in my mind.
Many thanks in advance.

Best,

10 mei 2023 aangepast door casedo

[Hans van den Bergh]

Welcome to the HL-Forum

 

11 minuten geleden, casedo zei:

There is not specific questions...

 

I recommend you work out all the details in a businessplan after you have checked THIS SITE thoroughly. And feel free to return here with the more specific questions.

[Joost Rietveld]

welcome to the forum Casedo

 

As with all international topics, it is near impossible to obtain the answers you are looking for from a forum. We don't know your specifics and you are asking for advice on multi-country taxation differences. You should be just that lucky that any forum visitor knows about NL taxes in comparison to Estonian taxes and whatever other country you are willing to invest in. 

 

You are correct about the box 2 taxes though, as long as the companies are legal persons.

 

Next to taxation you are also looking at different laws per country. Perhaps it would be wisest to invest in off-forum legal and tax advice with subject matter experts. Usually to be found at the big firms. 

[Jeroen Kisters RPLU ARe]

Dear Casedo,

 

I concur with what Joost thinks is wise to do next i.e., to invest in off-forum legal and tax advice.

 

And if you follow Joost's suggestion you also should bear in mind to think about if you'll stay a Dutch (tax) resident forever. Dutch tax legislation has some nasty surprises if you move abroad and you're holding shares in a Dutch BV for example.

 

If you want to know about the workings of an Estonian OÜ send me a PM. Maybe I can also give you some pointers regarding the rest to put you on the right track.