Business Overseas Relocation: Where In The World Should You Go?

Collaborative post – may contain affiliate links

The idea of moving your business can be a daunting one, but there are numerous upsides to consider. There are many countries dotted around the world with lower levels of corporation tax, meaning that you could save a substantial amount of money on your operating costs– even when you factor in the potential expense of such a move.

According to the Tax Foundation, the US has the third-highest corporation tax rates in the world, so it’s easy to contemplate the savings you could make. If you decide to make a move, where in the world should you aim to go?

Macau

With a top rate of corporation tax of just 12.0% — which is less than half the US rate — it’s easy to see why Macau has become such a business center in recent years. A former Portuguese colony, Macau has been under Chinese sovereignty for nearly 20 years, and has flourished in this time.

Singapore

A corporation tax rate of 17.0% and a low-regulation style system has meant Singapore has created a powerful reputation as a business haven. The top rate corporate tax is still nearly half of what it is in the US, and an established foreign infrastructure can help you make the transition with ease.

While there will be new laws to adapt to, the general low levels of regulation mean that there are fewer bureaucratic hoops to jump through, which is well worth taking into account.

The UK

The UK’s top rate of corporation tax of 20.0% is not the lowest in the world (though still lower than the US), but is noticeably low for a developed country. What makes the UK such an intriguing investment is the uncertainty created by the Brexit vote. The right wing of the (minority) governing Tory party have made it clear they believe the UK’s future involves styling itself as a “Singapore-style low tax, low regulation economy”. The center wing of the party disagrees, but it’s fair to say current Brexit negotiations are not going well, meaning that a “Singapore-style” economy could ultimately be born from the chaos.

There will be new-to-you laws and legislation to adapt to, meaning you may need help with key legislation, but there’s plenty of help around. If you need to figure out IR35 then expert advice and resources from Qdos Contractor will get you up to speed, while PAYE advice can be found from most accounts. Ultimately, if you prefer the idea of moving to an Anglophone country with a potentially lucrative future, then the UK might be a good bet.

Ireland

Ireland has one of the lowest corporate tax rates in the world, at 12.5%. The downside is the country has a history of economic instability — the so-called “Celtic Tiger” that ultimately proved unsustainable — which may give you pause. The economy is relatively stable at the present time and notably business-friendly, so if you don’t mind the potential for future unrest, then Ireland could be a viable option.

If you want to cut your operating costs — and particularly your corporate tax rate — then any of the countries above are well worth considering.

The Truth Behind Millennials & Avocado Toast

Real estate mogul Tim Gurner recently took a shot at Millennials by telling them to lay off the avocado toast in order to afford buying a new home.

Of course he took heat on social media for it, but instead of getting involved with the debate let’s get deeper: what does avocado toast really represent?

Fact: it takes an exorbitant amount of money to afford a home (in a favorable city) and your dining out habits do add up.

From someone who works closely with Millennials, avocado toast is more about lifestyle choices.

Anyone in their 20’s and early 30’s prior to having kids wants to travel. It isn’t Millennial-specific.

Companies like Whole Foods 365 have capitalized on convenience over budget with products such as ready-made food that saves time (not money).

Living a nomadic lifestyle means spending less on housing while splurging on amenities like coffee, massages, etc.

In ways, what’s going on here is minimalism 2.0 – where travel meets technology and experiences.

No one wants to look back on life and have regrets, plus what’s important to one generation isn’t to others.

For instance home buying: Boomers and Gen X’ers value having a place to call their own while Millennials welcome it, but won’t sacrifice dining out and travel in exchange for it.

Millennials are disrupters and the best example of that is: Uber.

Instead of purchasing a car and having monthly expenses, the alternative is to pay only when you need transportation. This avoids gas, repairs and insurance. Besides taxi drivers, this invention has given a desirable option for both riders and drivers alike.

Air B&B is another example of not accepting the norm: hotels while paying less for housing in different cities/countries.

Avocado toast itself is an overpriced indulgence. But what it represents is choosing lifestyle and experiences over possessions.

Millennials want to have their avocado toast and eat it too.

There’s nothing wrong with that as long as it aligns with your personal values.