Dual nationality and creating offshore company / banks

[user9823671]

If you have dual nationality: one in EU country (UK, no longer resident) and another in developing country (where you live). The two countries have no agreements with each other directly.

If you incorporate company and bank account with your EU details (passport address where you can receive mail - family member - etc). All reporting will go to the UK. But what then, you don't live there, what about CRS / CFC.

I am guessing this is illegal, but the country where you live has no way to know you own the business / bank account? Or are there other ways for them to get the info?
If moved back to UK 10 years from now, would they have a claim to the back taxes not paid over the last 10 years when you were not there? As you would have no way to show tax was paid (as is a 0% jurisdiction) no way to prove substance of business to justify that...

Is it just playing with fire?

 

[Spinat]

very well, this is a good question which I hope someone here is able to answer! thread bookmarked.

Toggle signature
Specialized in advisory service for tailor made Offshore setups with banking and payment processing. Privacy and Anonymity is my priority.
Contact

 

[John Andrews]

Where would the company be incorporated? Does the "developing country" have CFC rules for individuals?

It's very easy to check if you own a company in the EU, personally I think this is a bad idea.

 

[Clip]

From the EU country I used to be resident I've contacted banks and government to ensure they have my address in Hong Kong. So far they ignore me even when I do some Bitcoin transactions in my EU bank account that usually raises questions to the tax office.

If you don't stay more than 183 days and don't have any economic activity in UK I think you should be fine

Toggle signature
Expat in Hong Kong - There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt. - John Adams

 

[Joe Blasco]

the usual is, that every country you are citizen of considers you a tax resident also. Except if presented some other residency and tax residency to some country to the EU country you hold citizenship with. The other non EU exception is , if you hold some carribean bought passport, these countries in order to have less pressure from US and EU do not consider you tax resident ! The other rule of double citizenship is that each country you are citizen of, in its territory, recognizes you, ONLY as their citizen. You can make all business you wish with your different citizenships, but to be on the safe side , you need a third country to establish your firm, bank account etc where you can be citizen of the country you choose.

 

[user9823671]

Joe Blasco said:
the usual is, that every country you are citizen of considers you a tax resident also. Except if presented some other residency and tax residency to some country to the EU country you hold citizenship with.
Click to expand...

I know some EU countries are more strict that others. However I did not think the UK is one of them.

Just found this on UK gov site:

You're automatically non-resident if either: you spent fewer than 16 days in the UK (or 46 days if you have not been classed as UK resident for the 3 previous tax years) you work abroad full-time (averaging at least 35 hours a week) and spent fewer than 91 days in the UK, of which no more than 30 were spent working.
Click to expand...

Never presented them with proof of residency or tax residency, but going off the above, to my understanding that is not required to be no longer consider UK resident.

GiGoGo said:
From the EU country I used to be resident I've contacted banks and government to ensure they have my address in Hong Kong. So far they ignore me even when I do some Bitcoin transactions in my EU bank account that usually raises questions to the tax office.

If you don't stay more than 183 days and don't have any economic activity in UK I think you should be fine
Click to expand...

Haven't been back to UK for 10+ years. Possibly might visit for holiday of a few weeks, but that would be it.
Economic activity? Well I do have a bank account there

mange38 said:
Where would the company be incorporated? Does the "developing country" have CFC rules for individuals?
Click to expand...

Seychelles or other 0% jurisdiction.
No the country does not have CFC laws. But if they did, how would they know my UK self owns the company? When the UK gets the CRS from some offshore bank do they go "oh he isn't resident anymore, let us find out where he does live and pass this information on".

It's very easy to check if you own a company in the EU, personally I think this is a bad idea.
Click to expand...

Not sure I understand. I register company and bank account with my UK details where I have not lived (or visited) for 10 years.
The UK can / will know I own the company, but as a non-resident, what claim do they have?

 

[John Andrews]

If there are no CFC rules I don't see why you couldn't have a Seychelles company.

 

[daxbr]

Would be helpful to know what the developing country is.