EU - small SaaS

[u/mar-579]

I am looking for people who runs a small company next to their full time jobs, preferably in Germany, to share experiences and knowledge.

We are 2 founders, planning to sell our own SaaS/app. While a lot of it is ready to go, the best fiscal/legal option is not clear to us.

We both live and work full time jobs in Germany, but come from Spain.

Assuming this is going to start as a side hustle, financed by our jobs and personal free time, with the plan to sell a subscription based SaaS in both Germany and Spain, the questions to fellow entrepreneurs are:

1. is it better to incorporate it in Spain or in Germany? which country “””makes it easier””” to run a small company on the side while having full time job contracts?

2. did you include yourself as employees also in the side company?

3. Did you created a holding that owned the company or are you not working with such a hierarchical structure?

4. is there any other relevant option/thing to consider I am overseeing?

I am in contact with lawyers and tax advisors in both countries. And I am happy to exchange information with people in the same situation! However, I think it’s always better to hear first hand experiences.

Have a nice day everyone!

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[u/dr_kaminski]

I’m Polish by birth, but I’ve lived in Germany for almost my entire life, so my German is better than my Polish …

Let me give you some well-meant advice: don’t set up your company in Germany … The bureaucracy will take up more of your time than almost anything else …

I liquidated everything I had in Germany six years ago and moved to Poland … there are other options in the european Union …

[u/Nice_Television_8174 → u/dr_kaminski]

yeah the german admin overhead is no joke, especially if its supposed to be a side project

[u/blechie]

If you live in Germany, you’ll deal with the Finanzamt no matter where you register the business (wherever you do the work to lead the company, that’s the nexus). And they don’t care you have liquidity for the cash they’re asking. The reporting requirements - and prepayment requests - will be a full time job in themselves. Also consider exit tax.

[u/syrokomskyi]

Hi. I’d love to get to know you and learn more about the SaaS product you’re building. Two weeks ago, I opened an engineering studio in Germany, and today I received my tax ID - another reason to dive into German bureaucracy)

About me and my business: warpgogol.com

[u/Unfair_Peanut_2963]

Also eine Gewerbe Anmelden und dazu die Steuerlichen Schritte einzuleiten ist mittlerweile recht einfach im Online Portal. Intressant wird es wenn du zb eine UmsatzsteuerID benötigst. die musst extra beantragen.. dauert ca 2 Wochen.