In Finland, the first part of the dividend is taxed very lightly. That's not the case in Germany, where all dividends are taxed at the regular capital gains rate. Which yes is generally lower than your income tax rate.
But you're also paying corporation tax, which pushes the tax rate a bit above what you'd pay if you just paid the regular income tax. And then you're in another level of bureaucracy and accounting.
That was the rough situation when I was considering incorporation and abandoned the idea. Others have taken the company route and may have found ways to make it work for them.
But you're also paying corporation tax, which pushes the tax rate a bit above what you'd pay if you just paid the regular income tax. And then you're in another level of bureaucracy and accounting.
That was the rough situation when I was considering incorporation and abandoned the idea. Others have taken the company route and may have found ways to make it work for them.