Do you, or do you know anyone, who sells on Amazon UK as a resident and, for tax purposes, holds an e-residency and a company in another country (preferably in the EU) and saves money that way?
The laws in the UK regarding foreign income are a bit messy.
Thank you.
I believe that everything should be fine. But once you withdraw any profits from the business, the income is supposed to be taxed depending to the rates in your country of residency as opposed to where you registered the business. I would speak to an accountant.
if you’re UK tax-resident, routing your Amazon UK income through an EU e-residency company almost never “saves” tax the way YouTube gurus imply, and can easily make things more complex or risky.
Under UK rules, HMRC generally taxes you on your worldwide income if you’re UK-resident, so even if the Amazon payouts go to, say, an Estonian company, they will usually still want to tax you on the profits or on the dividends you extract, and there are controlled foreign company / management and control concepts that can treat that foreign company as UK-tax resident anyway if you’re running it from the UK.
People do use EU companies for things like easier banking, VAT, or marketplace access, but doing it mainly “to save tax” while living in the UK is a minefield and could be seen as avoidance rather than planning.
If you’re seriously considering this, I’d speak to a UK tax adviser who understands cross-border structures (UK + that specific EU country) and get a clear written opinion before opening anything, because one decent consultation is cheaper than trying to unwind a structure HMRC later challenges.