Panama ( CFC/PE + offshore company + crypto)

[offsiteguy]

Tax resident of Panama with an offshore holding company that owns a crypto portfolio.

Tax resident executes occasional trades for the company on offshore exchanges while both in and outside Panama.

Company earns fiat income from crypto disposals and staking dividends in the form of crypto. Neither are remitted to Panama.

Is this company at risk of PE/CFC rules?

 

[JackAlabama]

offsiteguy said:
Tax resident of Panama with an offshore holding company that owns a crypto portfolio.

Tax resident executes occasional trades for the company on offshore exchanges while both in and outside Panama.

Company earns fiat income from crypto disposals and staking dividends in the form of crypto. Neither are remitted to Panama.

Is this company at risk of PE/CFC rules?
Click to expand...

nah its all good in panama. Viva Panamà! Olé!
What visa are you on btw?

 

[offsiteguy]

Not a resident as yet - dont have a Visa. Just looking at options.

You like it there? Any tips?

 

[JackAlabama]

offsiteguy said:
Not a resident as yet - dont have a Visa. Just looking at options.

You like it there? Any tips?
Click to expand...

Panama is ok, I prefer other places tho, but that doesnt mean its not good or not your ideal place.

 

[offsiteguy]

JackAlabama said:
Panama is ok, I prefer other places tho, but that doesnt mean its not good or not your ideal place.
Click to expand...

If you buy a property to get a residence visa, are you likely to pay tax on the money used to buy the property?

I.e. in 2024 you buy a 500k property and get tax residency. As a tax resident you are then obliged to pay tax on any income you remitted in the fiscal year. Does that include the 500k to buy the property?

 

[JackAlabama]

offsiteguy said:
If you buy a property to get a residence visa, are you likely to pay tax on the money used to buy the property?

I.e. in 2024 you buy a 500k property and get tax residency. As a tax resident you are then obliged to pay tax on any income you remitted in the fiscal year. Does that include the 500k to buy the property?
Click to expand...

No.

 

[Kakashi]

offsiteguy said:
Tax resident of Panama with an offshore holding company that owns a crypto portfolio.

Tax resident executes occasional trades for the company on offshore exchanges while both in and outside Panama.

Company earns fiat income from crypto disposals and staking dividends in the form of crypto. Neither are remitted to Panama.

Is this company at risk of PE/CFC rules?
Click to expand...

You are fine.

May I ask what offshore country you use while a PA resident? It's a set up I am considering too, and want to ensure the offshore corp I choose is in a country that doesn't scare away the PA banks receiving the funds...

 

[JackAlabama]

Kakashi said:
You are fine.

May I ask what offshore country you use while a PA resident? It's a set up I am considering too, and want to ensure the offshore corp I choose is in a country that doesn't scare away the PA banks receiving the funds...
Click to expand...

pa banks are mostly scared by the correspondence banking, the blacklists, fatf etc etc,