That means you pay German taxes + double amount of compliance ( because you have to file everything in Germany+ Estonia ).
Double taxation is not better.
https://www.e-resident.gov.ee/understanding-cross-border-tax...
Estonian CIT is 0%. If you pay dividends (which is not required), or if you pay director’s salary (optional if you’re a one-man company without a ton of admin), those will be taxed in Estonia. If you only pay yourself for your actual services – no taxes in Estonia.
Germany might tax your Estonian company if they determine the company is a German resident. Check with your accountant.
(IANAL)
If you do business in Germany you are evading taxes just by the fact of doing business. Everything and anything you make belongs to the government. It is an unfortunate loophole in the law that temporarily permits you to steal some of your profit back from the government where it rightfully belongs.
Yeah, this is sarcasm, but not really. The practical reality is that it simply makes no sense to incorporate in Germany. For example, the OP missed six months of opportunity just to please the bureaucracy and it's not even the end of it.
OP missed six months of opportunities because he is an idiot, that has been scammed by a tax consultancy that is interested in his money.
He should have setup a UG, start the business and invest into building a GmbH.
Or change something. But yeah, I agree that leaving a country that you don't like is a good solution. I did that myself.
> There is no justification for tax evasion
The basics of philosophy behind taxation state exactly the opposite: it is an obligation of a business to evade as much tax as possible - as long as it is legal.
I'm sorry, but Germany is democratic country, and citizen of the country can choose by definition.
Leave your motherland because your government is crazy in one way or another? It is nonsense.
In reality, sometimes people need to do it (because it becomes too dangerous to stay), but it should not be this way. In any country.
A lot of the entrepreneurs I meet become tax & social insurance fraudsters as soon as I mention this, because they think they can setup a company somewhere but live in Spain, without paying or registering companies here.
But if you are some noname making maybe up to a few mils per year income, nobody is going to chase you and prove you are avoiding local taxation. You are always "in a short holiday trip" :).