Exporters to Europe need to investigate customs storage and bonded warehouses. Overall tax planning strategy involves push-down of expenditure to investee company. Holland, France, Italy and Germany levy tax on disposals of local investments. Withholding taxes on royalties, interest and dividends need to be addressed - e.g. through a holding company. The Dutch holding company is well-known.
Interest is deductible against non-exempt income.
Liquidation proceeds are not taxed. Germany imposes no capital tax and allows interest costs. The UK holding company offers credit against underlying tax but charges tax on capital gains. The route out of Luxembourg is by way of a further Luxembourg holding company, which is liquidated. EU Harmonisation Directives provide a single VAT zone and abolish inter-country dividends.