Which EU country is best for offshore company formation?

[yellowneck]

Hiya Everyone,

I'm hoping someone with much more know-how than me can make some suggestions to solve my problem.

I'm a UK citizen, tax resident in South America. The tax situation here is fab so no problems there. My only problem is that I need a business banking account that accepts USA ACH transfers (like Wise does) and I can't open one from Ecuador.

So I'm thinking about opening an offshore company so I can get a business account. I realise that a USA LLC pass through entity would work, but to be honest, the IRS seems terrifying. So I'm thinking a European option would be good. Because I already pay tax here, I'd like the lowest tax possible, easy set up etc. Any ideas?

Thanks so much in advance people 🙂

 

[Jerry1911]

yellowneck said:
Any ideas?
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Yes, UK LLP

 

[Martin Everson]

yellowneck said:
My only problem is that I need a business banking account that accepts USA ACH transfers (like Wise does) and I can't open one from Ecuador.
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You checked if ItalBank cannot help you here? Otherwise you can look at PaxumBank.

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

 

[yellowneck]

Jerry1911 said:
Yes, UK LLP
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But I'm British. So I'd be taxed 19% no?

Martin Everson said:
You checked if ItalBank cannot help you here? Otherwise you can look at PaxumBank.
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Hiya, yes I tried ItalBank but they can't help with ACH transfers which seems to be the sticking point. I could accept wires but that's costly. I'll check out PaxumBank. Thanks so much!

 

[Sols]

yellowneck said:
Because I already pay tax here, I'd like the lowest tax possible, easy set up etc. Any ideas?
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The far and above most popular are Malta and Cyprus. In Malta, you're looking at an effective corporate tax rate of 5% and in Cyprus 12.50%. If you can demonstrate that a company incorporated in Cyprus is in fact managed from Ecuador, you could qualify for 0% in Cyprus and only pay Ecuadorian tax (without having to worry about tax treaty or double taxation of the company).

yellowneck said:
But I'm British. So I'd be taxed 19% no?
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Corporate taxation is not based on citizenship of the owners. But a private limited company would be taxable as UK resident (unless treaty non-resident).

An LLP ”” the proposed entity ”” is a tax transparent entity which requires a minimum of two members and does not incur any corporate tax in the UK. Instead, its members are taxed on personal income. If you are non-resident, you are not in scope for any UK taxation generally speaking.

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This is the probably the answer to your question.

 

[CyprusLawyer101]

yellowneck said:
Hiya Everyone,

I'm hoping someone with much more know-how than me can make some suggestions to solve my problem.

I'm a UK citizen, tax resident in South America. The tax situation here is fab so no problems there. My only problem is that I need a business banking account that accepts USA ACH transfers (like Wise does) and I can't open one from Ecuador.

So I'm thinking about opening an offshore company so I can get a business account. I realise that a USA LLC pass through entity would work, but to be honest, the IRS seems terrifying. So I'm thinking a European option would be good. Because I already pay tax here, I'd like the lowest tax possible, easy set up etc. Any ideas?

Thanks so much in advance people 🙂
Click to expand...

Hello, if you are interested for a free phone consultation on your queries, kindly let me know and I can PM you to set it up.

 

[blizz]

Cyprus, Malta, Romania and Switzerland are very popular destinations.

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[icecold]

It all depends on what you are really going to use the company for and what else you want to have under the company. For instant, if you want to lease a car it would not work with a Belize company!