Malta Remittance Taxation

[Jillinger]

Hi guys, I have a question that I am having a little bit of a hard time to get a clear answer to.

A friend of mine 😀 has maltese residence and will be living in Georgia, probably for less than 6 months during one tax year.

He happens to have some XMR and he wants to cash out and keep this money on reliable EMIs, fore example Revolut, N26, Bunq and possibly a normal bank account (opened to suggestions).

He was thinking of creating an offshore company in a 0 tax country and pay himself payslips that he would show as proof of funds to the EMIs when they ask, because they ask after you deposit over 20k on them.

What would be the best way to produce proof of funds and pay zero tax on this income declaring it as offshore income? Considering that if he doesn't bring it inside of Malta it does not count as remitted.

 

[Martin Everson]

Georgia has a territorial tax system he can make use of. He can cash out offshore and not pay tax as long as he does not bring the money into Georgia. I am guessing he cannot prove source of funds for XMR hence he wants to invoice a shell company to get source of funds right? Issue is always gonna be with banks or EMI's getting nosy. Best option is to have a legit source of funds for a decent amount of money and then spread the money around multiple EMI and banks re-using the same source of funds document multiple times with each Bank/EMI.

Living in Georgia is nice but as a residential address he will not be able to open with N26 and Bunq and a lot of good retail banks in fact if he tries to use that residency. I have Georgia residency although I don't spend much time there and I run into problems banking wise if I try using it.

He can switch XMR to BTC and cash out via Bitonic directly into a Bunq account as Bitonic use Bunq to bank. Back in day I cashed out this way with no questions asked. You just need to let Bunq know in advance what is going on. A statement to them showing trading profits from a recent defunct cryptoexchange they cannot verify works well and provides a logical reason for the selling and getting out of crypto.

btw N26 and Bunq are both real licensed banks and not EMI's. Revoult is in process of becoming a bank in Lithuania and holds a license there.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Jillinger]

Thank you very much for your reply, it totally makes sense.

Martin Everson said:
Georgia has a territorial tax system he can make use of. He can cash out offshore and not pay tax as long as he does not bring the money into Georgia. I am guessing he cannot prove source of funds for XMR hence he wants to invoice a shell company to get source of funds right? Issue is always gonna be with banks or EMI's getting nosy. Best option is to have a legit source of funds for a decent amount of money and then spread the money around multiple EMI and banks re-using the same source of funds document multiple times with each Bank/EMI.
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How would a couple of fat payslip from a shell company do? Are they Bank/EMI suspicious if someone receives salary in crypto in your experience?

Martin Everson said:
Living in Georgia is nice but as a residential address he will not be able to open with N26 and Bunq and a lot of good retail banks in fact if he tries to use that residency. I have Georgia residency although I don't spend much time there and I run into problems banking wise if I try using it.
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He already has all of them, some registered with maltese residence some spanish residence. I guess none of those countries would give a f**k since he does not live there nor bring money on their territory. Please correct me if I am wrong.

Martin Everson said:
A statement to them showing trading profits from a recent defunct cryptoexchange they cannot verify works well and provides a logical reason for the selling and getting out of crypto.
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For example?

Sorry for my ignorance. I know a few but solid exchanges who did not fail, btw if the said exchange failed how can you make a fake statement without a sample?

 

[Martin Everson]

Jillinger said:
How would a couple of fat payslip from a shell company do? Are they Bank/EMI suspicious if someone receives salary in crypto in your experience?
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i.e you receive your salary from a Belize shell company in XMR. It don't get more fishy than that. Ask yourself what would you say if you worked at a bank/EMI and saw that sort of paperwork? 😕. The reality is nothing may happen but then they may ask for company accounts, company customers etc. Remember KYCC (Know Your Customer's Customer) is now in effect and is core to Anti-Money Laundering and terrorist financing (AML/CFT). Your best best would be to find a weak link institution that crypto payments are not against their terms and conditions and don't implement KYCC yet.

Jillinger said:
He already has all of them, some registered with maltese residence some spanish residence. I guess none of those countries would give a f**k since he does not live there nor bring money on their territory. Please correct me if I am wrong.
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Your correct. If he has local accounts linked to local addresses with no indication on those accounts of foreign residency i.e foreign telephone number, foreign mailing address etc then no issues.

Jillinger said:
Sorry for my ignorance. I know a few but solid exchanges who did not fail, btw if the said exchange failed how can you make a fake statement without a sample?
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People have been using sham profit statements from sham forex companies for years to show proof of funds. You don't really need a sample as the EMI can't verify anything if crypto company is gone and just a website with a closure statement is all that remains.

btw I guess you have no source of funds proof at all?

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[hevocon]

Martin Everson said:
but as a residential address he will not be able to open with N26 and Bunq and a lot of good retail banks in fact if he tries to use that residency. I have Georgia residency although I don't spend much time there and I run into problems banking wise if I try using it.
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why? it turns out that using a georgian residency and georgian adress is a bad idea?

 

[Martin Everson]

hevocon said:
why? it turns out that using a georgian residency and georgian adress is a bad idea?
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Because most retail banks and EMI's in EU won't accept it. I would say start asking around now banks and EMI's before thinking of utilizing that address. Please try and see what the results are.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[hevocon]

Martin Everson said:
Because most retail banks and EMI's in EU won't accept it. I would say start asking around now banks and EMI's before thinking of utilizing that address. Please try and see what the results are.
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they are not accepting any georgian address or any non eu address?

 

[Martin Everson]

hevocon said:
they are not accepting any georgian address or any non eu address?
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Have you not asked your bank or EMI yet? Please do so before doing any planning as the only way people can understand the issue sometimes is to experience it first hand unfortunately.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.