I’m a freelancer in IT, based off Norway invoicing monthly to clients in Europe and moving to France next year.
Currently I have a Norwegian company, but considering setting up a OÜ and use Xolo to invoice customers no matter where my personal residency is. Is using Xolo and a dedicated accountant (even for just 5 transactions a month) enough to have the company fiscally attached to Estonia? Without any other business in Estonia, I am struggling to see how permanent establishment in Estonia can be justified.
I understand you’ve already spoken to one of my colleagues but for anyone else out there with a similar question here’s our two cents; To avoid the risk of permanent establishment (PE), focus on minimizing physical presence and control over business activities within the country where you have your tax residency.
You can significantly reduce the risk of triggering a PE and the associated tax implications if you operate remotely only, hire contractors instead of employees, and avoid anything that links your company directly to any other specific country. However, it’s crucial to consult with a local tax advisor to understand your obligations (or the lack of) in this case.
I hope you got your questions answered, otherwise you’re always welcome to reach back out to us
