May I ask how you decided on this way of organising your business? Did you research it all yourself or did you get some expert help?
* I consulted my accountant in .be (not connected to this project).
* I took advice from a trusted Latvian accountant. Trusted, as in doing the books for the company of a close friend since years.
* I attentively read the double taxation treaties myself.
* Close friends advised me on practical arrangements: where to get an office, ...
1) "Company in foreign country does not really mean lower taxes." It does in my case, and in plenty of others. 15% instead of 33.99% corporate income tax for example. Legally.
2) "You still tax your income in country of residence." One's personal income is indeed taxed in one's country of fiscal residence (except for the exotic regime US citizens are subject to). My company's income is taxed in its country of residence.
3) "But it often means lower administration." Not always. Luckily true in my case.