The Estonian company pays the Spanish resident money to them personally. Indeed it is normal that the Spanish resident has to deal with the Spanish taxes on this money only.

If the Estonian company is supposed to be considered a separate legal person based in Estonia, it shouldn't have to deal with anything Spanish.

▲

an hour ago | parent | next [-]

[deleted]

▲

embedding-shape 3 hours ago | parent | prev [-]

> If the Estonian company is supposed to be considered a separate legal person based in Estonia, it shouldn't have to deal with anything Spanish.

If the Estonian company has employed a person located in Spain, shouldn't the laws of both countries apply to this employment then? The employee lives in Spain, so obviously Spanish labor laws should be followed, and the company is in Estonia, so obviously Estonian law should apply.

I'm not sure why the Estonian company wouldn't have to follow Spanish law if they've decided to employ a Spanish person? What laws should cover the person living in Spain, Estonian laws, although they don't live there?

▲

alibarber 3 hours ago | parent [-]

For labour - the laws of where that labour is actually being conducted are the ones that are followed. Spanish prosecutors can for sure bring a case against an Estonian company if they are not. In theory at least.

But for company tax law, that company is a tax resident in Estonia, not Spain.

Also, we harmonise laws such as traffic laws (for example, in Finland, all solid yellow central lines were painted white) so that people have the chance to work across the whole union as transport operators, why not do the same for entrepreneurs?

▲

2 hours ago | parent | next [-]

[deleted]

▲

embedding-shape 2 hours ago | parent | prev [-]

> where that labour is actually being conducted are the ones that are followed.

So in that particular case, would be in both Estonia and Spain, just so we're on the same side?

> But for company tax law, that company is a tax resident in Estonia, not Spain.

Indeed, and I don't think the Estonian company would pay Spanish taxes, correct? Unless they have a presence (subsidiary for example) in Spain, then they would have to pay Spanish taxes. But if not, it's only the employee who pay Spanish tax. Or did I understand incorrectly?

> why not do the same for entrepreneurs?

I think this is exactly what we're doing right now :) Small steps, but EU-INC seems to be one of those steps in that direction.

	▲	alibarber 2 hours ago \| parent [-]
		> So in that particular case, would be in both Estonia and Spain, just so we're on the same side? It sounds like we are. If labour is being conducted in both of those countries then yes. And the same anywhere else where someone might join the party. And on the tax thing - yes again, but what I see happening now in European countries, is that, if a person of significant control resides in another country, then that other country considers the company a tax resident of that country too. E.g: I live in Finland. If I were to open an Estonian company and have it literally do nothing all year, not only would I have to file a company report in Estonia, (fine, that's why I chose to start a company there, perhaps it's really easy) but also file a company report in Finland as if the company were a Finnish company. I think this is an overreach of bureaucracy and adds a friction to entrepreneurship. Others might think differently - which I completely accept. Unfortunately for me, I do not think that this initiative here will change this, much. Perhaps I am mistaken. Either way, it is in the right direction and I support it.