I am planning a venture where all the income will come from Europe. I was thinking to incorporate a company in Lithuania in Eastern Europe. I want to structure it so that the company pays taxes in Lithuania and then withdraw from the after tax profits to South Africa to spend here.

Will that money be taxed again as dividends? I think so.

Now I was thinking of incorporating another company in a low/prefferably no tax country like the Cayman Islands and transfer the profits there.

Then I can use a bankcard from that bank to withdraw cash and purchase items in South Africa. In that way I will only pay indirect taxes.

It is of course more complex than this, but is the principle sound?

What are the caveats? Am I missing something?

Regards