https://www.theguardian.com/money/2017/may/27/tax-britons-pa...
I can tell from experience that the Australian taxation authorities make the US taxation authorities look like a gift-giving Santa. I also dealt extensively with Europe, and Europe is by far worse than Australia in that respect. (A note to the dear Americans, I am not an American who went to Australia, it's the other way around.)
And then they mix in mandatory pension contributions for some, which makes the comparison even weirder.
Also note that this comparison is for long-term residents, not for expats or entrepreneurs that are there for a few years and may not be as interested in the social programs.
I do not think taxation should get singled out as a deciding factor where to setup a business, but could be considered in the round with all the other operational costs.
Low taxes might seem good, but if the key services are non-existent or corrupt, then your costs of operation will be significantly higher than in a place that has high(er) taxes, but civil society is run efficiently.
Simple math. Say, if your venture succeeds, you net a lump sum of, say, $300K - $500K? Plus, in the advanced stages, you'll be paying yourself around $80K - $100K p.a., which falls in the high tax bracket everywhere. The difference between high taxes and low taxes may make a difference between you being able to buy a new home for cash or not.
If you're planning to spend a few years to have fun and immerse in a different culture and believe your venture is likely to fail, sure. If you are there to make money, think again.
Of course, it's not the primary consideration. The primary consideration should be whether there is a market for your products and services.
> Low taxes might seem good, but if the key services are non-existent or corrupt, then your costs of operation will be significantly higher than in a place that has high(er) taxes, but civil society is run efficiently.
That's not necessarily how things work. I live in Singapore now, where the income tax is in single digits and the foreign sources of income are not even taxed, so if you're not an American, you can have your passive income tax-free. The key services are anything but non-existent or corrupt.
Options received under an EMI scheme are tax-free, although you may eventually have to pay capital gains tax at time of exercise.
I mean, it may not be very interesting in the beginning when the earnings are not very far from zero, but as the startup grows, and the stock incentives become more tangible, it's becoming relevant. I was personally looking at Barcelona once but the moment I looked at how much taxes they pay, I dropped the idea.