Misc Questions on ltd

[Whippino]

Hello,

I have some questions regarding a company my friends and I would like to start:

Business will be to manage holiday houses in Italy. In a nutshell: We pay the landlord a lump sum for the summer season and any income from rental is ours.

- If I open an ltd in uk and the rental income goes to a UK account, in which country the ltd has to pay the corporation taxes?

- regarding the dividends of each associate, does everyone pay the taxes in their own residence country? (I am uk resident the others are italian residents)

- if we decide to have a monthly salary, how does it work in different countries?

Thanks

[AmanSood]

Hi

There are a lots of different considerations and each country is different. On the basis that it's a UK resident Company then corporation tax will be due in the UK. However, given some of the Directors are in Italy, the Italian authorities may look to tax some of the company profits in Italy as well. The dividends would be taxable based on the country of resident of each shareholder and if a salary is paid then consideration would need to be given to each local countries rules. There are ways of structuring the arrangement to minimise your taxes so worth getting professional advice.

Aman