Advice Needed: Tax Residency and Banking for Large Crypto Conversion

[agentsmithhhhh]

Hello everyone,

I'm a Swiss citizen, who has been traveling full-time in Central America without a tax residency for the past 2 years. I've legitimately accumulated significant cryptocurrency holdings (low seven figures). I am planning to convert a large portion of these funds to fiat within the next year, to then use on IBKR. I plan to continue traveling for the next few years but realized I need a tax residency to access legitimate banking solutions for cashing out and then transferring these funds to IBKR. I currently only have an account with Revolut. I'm aware proof of funds will be a deciding factor.

My Plan:
Ӣ Establish tax residency in Panama or Paraguay to benefit from its territorial tax system and get better access to banking solutions.
Ӣ Use a reputable international bank outside Panama that is crypto-friendly and capable of handling large transactions.

Seeking Advice On:
”¢ Experiences with establishing tax residency in Panama or Paraguay””any insights/challenges or alternative recommendations?
Ӣ Recommendations for banks that are suitable for my needs.
Ӣ Recommendations for software or agents capable of producing sufficient proof of funds. There are thousands of transactions over many wallets and years, so doing this manually would be rather tricky for me.
Ӣ Any potential issues or considerations with this approach?


I appreciate any insights or suggestions you can share.
Thank you!

 

[JohnnyDoe]

agentsmithhhhh said:
Hello everyone,
Click to expand...

Hello

agentsmithhhhh said:
I'm a Swiss citizen, who has been traveling full-time in Central America without a tax residency for the past 2 years.
Click to expand...

You can't be without a tax residency. You are most likely a Swiss tax resident.

agentsmithhhhh said:
I've legitimately accumulated significant cryptocurrency holdings (low seven figures).
Click to expand...

Good.

agentsmithhhhh said:
I am planning to convert a large portion of these funds to fiat within the next year,
Click to expand...

Very bad idea.

agentsmithhhhh said:
to then use on IBKR.
Click to expand...

For what purpose? To generate more useless fiat? doh948""

agentsmithhhhh said:
I plan to continue traveling for the next few years but realized I need a tax residency to access legitimate banking solutions for cashing out and then transferring these funds to IBKR.
Click to expand...

You can claim to be a Swiss resident.

agentsmithhhhh said:
I currently only have an account with Revolut. I'm aware proof of funds will be a deciding factor.

My Plan:
Ӣ Establish tax residency in Panama or Paraguay to benefit from its territorial tax system and get better access to banking solutions.
Click to expand...

Neither will be better than claiming Swiss residence.

agentsmithhhhh said:
Ӣ Use a reputable international bank outside Panama that is crypto-friendly and capable of handling large transactions.
Click to expand...

As a Panamian resident it might be challenging.

agentsmithhhhh said:
Seeking Advice On:
”¢ Experiences with establishing tax residency in Panama or Paraguay””any insights/challenges or alternative recommendations?
Click to expand...

Panama is easy, I can recommend a local lawyer for assistance in private.

agentsmithhhhh said:
Ӣ Recommendations for banks that are suitable for my needs.
Click to expand...

UBS or Cité Gestion. Or most US banks.

agentsmithhhhh said:
Ӣ Recommendations for software or agents capable of producing sufficient proof of funds. There are thousands of transactions over many wallets and years, so doing this manually would be rather tricky for me.
Click to expand...

What's so difficult with printing?

agentsmithhhhh said:
Ӣ Any potential issues or considerations with this approach?
Click to expand...

The main issue is that you are planning to give away precious crypto for worthless fiat.

Toggle signature

@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 

[agentsmithhhhh]

JohnnyDoe said:
Hello

You can't be without a tax residency. You are most likely a Swiss tax resident.

Good.

Very bad idea.

For what purpose? To generate more useless fiat? doh948""

You can claim to be a Swiss resident.

Neither will be better than claiming Swiss residence.

As a Panamian resident it might be challenging.

Panama is easy, I can recommend a local lawyer for assistance in private.

UBS or Cité Gestion. Or most US banks.

What's so difficult with printing?

The main issue is that you are planning to give away precious crypto for worthless fiat.
Click to expand...

I appreciate your concern about moving into fiat. After being almost 100% in crypto for many years, I'm looking for a slightly more conservative long-term approach, as 50%+ portfolio swings aren't the most stress free option. More of a reallocation than getting out for good..

I don't plan to return to Switzerland, am looking to eventually settle down in Central or South America. I also never fully disclosed the extent of my crypto in Switzerland in the past, which is why I lean towards establishing a tax residence in a different jurisdiction vs. running into issues with the tax authorities.

I was of the impression that simply printing hundreds of pages of transactions wouldn't work when approaching a new bank., which is why I'm looking for services to compile acceptable documentation.

 

[JohnnyDoe]

selling only part of your crypto portfolio for fiat is only a partially good approach.
You could instead use your crypto when and how you like without anyone annoying you and without risking to remain with worthless fiat or with a frozen account.

Toggle signature

@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 

[agentsmithhhhh]

JohnnyDoe said:
selling only part of your crypto portfolio for fiat is only a partially good approach.
You could instead use your crypto when and how you like without anyone annoying you and without risking to remain with worthless fiat or with a frozen account.
Click to expand...

are you referring to OTC transactions? Curious to find out more, as using crypto directly without going through too many different providers is also an interesting option to me

 

[JohnnyDoe]

agentsmithhhhh said:
are you referring to OTC transactions? Curious to find out more, as using crypto directly without going through too many different providers is also an interesting option to me
Click to expand...

Crypto credit card for your everyday transactions.
Directly crypto for everything else, from houses to cars to aircraft.
You don't need fiat!

Toggle signature

@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 

[WorldCitizen99]

JohnnyDoe said:
Crypto credit card for your everyday transactions.
Directly crypto for everything else, from houses to cars to aircraft.
You don't need fiat!
Click to expand...

I have crypto credit cards
But how does one do big purchases like houses with crypto directly?
This can be done in all countries?

 

[jafo]

Grüezi,

I would suggest you reassess your objective and give deference to @JohnnyDoe and @wellington (and a few others here) when it comes to these things...
I did and quadrupled my crypto value in less than one year!

Now...in case you may be on your chosen path (for whatever reason...)

agentsmithhhhh said:
Establish tax residency in Panama or Paraguay
Click to expand...

Why not both?
Maybe try the Bahamas, too?
Grow your portfolio a bit more, and do Monaco! (I'm here, but vanilla companies are in Zug)

Orrrrr....try this:

Source: https://www.vontobel.com/en-ch/insi...land-what-matters-for-cryptocurrencies-46863/

Speak to: https://www.linkedin.com/in/claude-frosio-65950794/


Freundliche grüsse,

Jafo

PS. Don't tell Calude where you found his info. Vontobel may NOT like it. They could deny you access because of this.

 

[agentsmithhhhh]

jafo said:
Grüezi,

I would suggest you reassess your objective and give deference to @JohnnyDoe and @wellington (and a few others here) when it comes to these things...
I did and quadrupled my crypto value in less than one year!

Now...in case you may be on your chosen path (for whatever reason...)

Why not both?
Maybe try the Bahamas, too?
Grow your portfolio a bit more, and do Monaco! (I'm here, but vanilla companies are in Zug)

Orrrrr....try this:
View attachment 8013

Source: https://www.vontobel.com/en-ch/insi...land-what-matters-for-cryptocurrencies-46863/

Speak to: https://www.linkedin.com/in/claude-frosio-65950794/


Freundliche grüsse,

Jafo

PS. Don't tell Calude where you found his info. Vontobel may NOT like it. They could deny you access because of this.
Click to expand...

I appreciate the input @jafo! I'm aware of the intricacies of crypto taxation in Switzerland - unfortunately a significant portion of my funds would likely classify as taxable income in Switzerland due to its nature. If it were only a matter of capital gains, keeping a Swiss residency would definitely make sense!

 

[ActionMan]

agentsmithhhhh said:
Hello everyone,
Click to expand...

Hello

agentsmithhhhh said:
I'm a Swiss citizen, who has been traveling full-time in Central America without a tax residency for the past 2 years. I've legitimately accumulated significant cryptocurrency holdings (low seven figures). I am planning to convert a large portion of these funds to fiat within the next year, to then use on IBKR. I plan to continue traveling for the next few years but realized I need a tax residency to access legitimate banking solutions for cashing out and then transferring these funds to IBKR. I currently only have an account with Revolut. I'm aware proof of funds will be a deciding factor.

My Plan:
Ӣ Establish tax residency in Panama or Paraguay to benefit from its territorial tax system and get better access to banking solutions.
Click to expand...

Forget both. Go for Uruguay, boring, but the best developed of the bunch, tax breaks, money comes in & out without too much scrutiny, you being swiss is a plus, absolutely no questions asked! you are the perfect fit for the type of people that they want to bring in . or if it's absolutely necessary Go for Paraguay.

agentsmithhhhh said:
Ӣ Use a reputable international bank outside Panama that is crypto-friendly and capable of handling large transactions.
Click to expand...

Chase, sygnum, B.Frick and Standard bank IOM are all available options for you. DBS in Singapore if you are willing to trade some of your Crypto assets with their DDex.

agentsmithhhhh said:
Seeking Advice On:
”¢ Experiences with establishing tax residency in Panama or Paraguay””any insights/challenges or alternative recommendations?
Click to expand...

neither. A holding in Dubai, Singapore or HK should be sufficient. Estonia if you are Creative, BVI is also a solid option.

agentsmithhhhh said:
Ӣ Recommendations for banks that are suitable for my needs.
Click to expand...

answered. there is more, but it depends on what you are trying to achieve, about SOF. it can be done with External Audits from reputable companies, accompanied By AML Score.

agentsmithhhhh said:
Ӣ Recommendations for software or agents capable of producing sufficient proof of funds. There are thousands of transactions over many wallets and years, so doing this manually would be rather tricky for me.
Click to expand...

Again, CSV files are all you need. leave the rest to the auditors, it's about 5-10 hours of work, give or take.

agentsmithhhhh said:
Ӣ Any potential issues or considerations with this approach?
Click to expand...

If not done right, you will shoot yourself right in the foot. Think holistically, explore all your options first, Listen and learn and you will be alright.

agentsmithhhhh said:
I appreciate any insights or suggestions you can share.
Thank you!
Click to expand...

You are welcome. Consider subscribing to the mentor Group gold, you will find good info and even greater networking opportunities.

Good luck!

Toggle signature

One-Stop Solutions​

Payment Processing ✓ | Offshore Bank Accounts ✓ | â‚¿ Crypto On-Off Ramping Services ✓ | High-Risk Industries ✓​

Let's connect: DM me on Telegram HERE

Russian, LATAM and MENA : SBP, Visa/MasterCard/JCB/MIR?/wallets available | local OTC/e-wallets available per request.​

 

[agentsmithhhhh]

ActionMan said:
Hello

Forget both. Go for Uruguay, boring, but the best developed of the bunch, tax breaks, money comes in & out without too much scrutiny, you being swiss is a plus, absolutely no questions asked! you are the perfect fit for the type of people that they want to bring in . or if it's absolutely necessary Go for Paraguay.

Chase, sygnum, B.Frick and Standard bank IOM are all available options for you. DBS in Singapore if you are willing to trade some of your Crypto assets with their DDex.

neither. A holding in Dubai, Singapore or HK should be sufficient. Estonia if you are Creative, BVI is also a solid option.

answered. there is more, but it depends on what you are trying to achieve, about SOF. it can be done with External Audits from reputable companies, accompanied By AML Score.

Again, CSV files are all you need. leave the rest to the auditors, it's about 5-10 hours of work, give or take.

If not done right, you will shoot yourself right in the foot. Think holistically, explore all your options first, Listen and learn and you will be alright.

You are welcome. Consider subscribing to the mentor Group gold, you will find good info and even greater networking opportunities.

Good luck!
Click to expand...

Thank you @ActionMan, this is extremely helpful information! Will dig into the options you mentioned, am thankfully not in a rush and want to weigh all options before doing anything

 

[AlicaFunk]

Uruguay is a great place for establishing a company, it's not very expensive, easy to maintain and secure. Just the reputation does that I won't deal with it for business towards customers, but that's not your issue here.

How about banking in Uruguay are they part of CRS and all this?

Uruguay was the USA's answer to Switzerland they call it USA's Switzerland. That's back 20 years ago at least.

 

[JohnnyDoe]

WorldCitizen99 said:
But how does one do big purchases like houses with crypto directly?
Click to expand...

You send crypto to the seller.

WorldCitizen99 said:
This can be done in all countries?
Click to expand...

Yes. Like you can buy houses in all countries in exchange for shells, stones, or any other in kind payment, including “special favors”. It's all up to the seller to decide what he likes to receive.

Toggle signature

@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 

[WorldCitizen99]

JohnnyDoe said:
You send crypto to the seller.

Yes. Like you can buy houses in all countries in exchange for shells, stones, or any other in kind payment, including “special favors”. It's all up to the seller to decide what he likes to receive.
Click to expand...

Out of 100 random sellers, how many do you think are plugged into crypto enough that they would accept payment in crypto for a house? You obviously know more about this, so I'd like to hear how common a practice it is.

I was thinking you knew of a mechanism to convert large sums of crypto into fiat and pay the seller in the currency I think most sellers still want to be paid in - fiat - (without a traditional bank) all in one seamless transation. We can all simulate direct payment using a hardware wallet, an exchange, an EMI plus or minus a bank.

 

[JohnnyDoe]

WorldCitizen99 said:
Out of 100 random sellers, how many do you think are plugged into crypto enough that they would accept payment in crypto for a house?
Click to expand...

Probably not many yet, but enough to make good deals about everywhere.

WorldCitizen99 said:
I was thinking you knew of a mechanism to convert large sums of crypto into fiat
Click to expand...

Many

WorldCitizen99 said:
and pay the seller in the currency I think most sellers still want to be paid in - fiat - (without a traditional bank) all in one seamless transation.
Click to expand...

Cash

WorldCitizen99 said:
We can all simulate direct payment using a hardware wallet, an exchange, an EMI plus or minus a bank.
Click to expand...

Simulate crypto payments? bor&%#

Toggle signature

@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 

[WorldCitizen99]

JohnnyDoe said:
>Probably not many yet, but enough to make good deals about everywhere.
OK but you made it sound like a person, in 2024, in most places, could pay for any given house or car in crypto, when the double-coincidence of wants still makes it rare that there will be a match between the house you WANT and the seller taking crypto.


>Cash
Maybe for a $50K house in cheaper countries, but what about when the house costs 1-2M? How many sellers want to manage that much cash? If I was the seller, I would rather the transaction be done electronically. I'm not smart enough to do things not-by-the-book yet. I need another year on OCT talking to JohnnyDoe and MartinEverson.
Click to expand...

JohnnyDoe said:
>Simulate crypto payments?
Direct payments, like where you hit the button to send crypto, the digital sausage-making happens and the seller receives fiat without any intermediate steps
Click to expand...

 

[JohnnyDoe]

You need to quote properly

Toggle signature

@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 

[WorldCitizen99]

JohnnyDoe said:
You need to quote properly
Click to expand...

Apologies - I never learned how to do it.

 

[uranium]

I see that you are in good position with swiss private banks since you are swiss
A perfect combination is uae residency with 0% tax and swiss crypto friendly bank
Why would you need to sell crypto if you have debit card from swiss bank to pay for everything with crypto card.
I don't feel south America is serious for 7 figures.

 

[agentsmithhhhh]

uranium said:
I see that you are in good position with swiss private banks since you are swiss
A perfect combination is uae residency with 0% tax and swiss crypto friendly bank
Why would you need to sell crypto if you have debit card from swiss bank to pay for everything with crypto card.
I don't feel south America is serious for 7 figures.
Click to expand...

That also sounds like a viable option - my only worry is that banking in Switzerland would cause the tax authorities in CH to get involved and potentially assert a claim. I know too little to determine if this is a legitimate worry though.

I am to reallocate some of my crypto into other investments via IBKR. When s**t eventually hits the fan again and crypto drops 70% +, it's more comfortable to be diversified. Even being in stablecoins didn't feel 100% safe in 2022/2023. I definitely believe in crypto, but there's no denying it's an extremely volatile space