This is a more theoretical question to find out if I understood it correctly. I think to answering the question it is irrelevant where I have to pay taxes since it's more of a number game.
Information
I have to pay taxes in Austria. Personal income-tax on salary (and rentals income combined) depends on the amount you make. The percentage is higher the more you make. For example 20%, 30%, 41%, 48%, 50%
If you found a limited company it has to pay a corporate-tax of 25%. If you take money out of the company you have to pay additional capital-gains-tax of 27.5% which combined is 45.625%. However if you leave it in the company you only have to pay 25% (but get no money out). You could also pay a salary to yourself, which would be subjected to the personal income-tax mentioned in the first paragraph and additional to insurance and so on -> really bad idea.
There are additional cost for limited companies, this would be one time payments to found it and regular ones like bookkeeping (double entry) and publishing the yearly results,...
Question
I want to reinvest all my money gained from renting out flats (or other business ideas) to get compound interest and take something out later (about 10-20years) when I need it (while then paying combined ~45%).
My question is if my personal tax class is for example 45% any they company is only paying 25% corporate-tax would it make sense to found one? The one condition which must be fulfilled in my eyes is that the additional reoccurring costs have to be (way) less then the tax savings. (and I have to have a regular job being taxed at about 41%)
e.g annual revenue of 8k would be taxed at 2k (25%) or 3.28k (41%) so the additional fixed costs must be lower than 1.28k to start making sense.
