Moving to Spain and looking for new plan

[The Hun]

Hello everyone! I joined the Mentor Group today and I want to explain a bit about my situation as I am looking for a plan for my future move to Spain.

This in my background:

I work for a Hong Kong company as a freelancer and I am also going to receive some equity from this company. Currently I'm invoicing them as a private individual but I could also do this as an offshore company (that would receive the shares as well).

I need something that:
- will allow me to bypass the voracity of Spanish tax regulations (bank account and company in non-CRS/AEOI country)
- will allow me to withdraw money from ATMs and buy stuff online and in shops without drawing any attention

I will be renting a house from a family member, for which I don't need a contract (paying in cash), and most of my other expenses can also be paid in cash. I might consider becoming a freelancer and invoicing my company for some small amounts every month if that helps me draw even less attention.

I have been looking into the popular options such as BVI, BZ, etc., but my impression is that since they joined CRE/AEOI these structures are no longer private. What remains still to be used? Puerto Rico or other unknown (and therefore risky) non-reporting countries such as Paraguay, Armenia, etc.?

Thanks in advance!

 

[Banker89]

What I would do is get residence in Paraguay/Panama/UAE etc to show to your banks, and just be a "tourist" in Spain.

 

[The Hun]

Banker89 said:
What I would do is get residence in Paraguay/Panama/UAE etc to show to your banks, and just be a "tourist" in Spain.
Click to expand...

I have been considering such an option , but since my daughter will be going to school in Spain I'm not so sure that I can get away with it.

 

[negon]

So you don't want to move anywhere? That leave you only with limited options 1. 2nd citizen passport in the hope they won't report you to spain, requires that you are able to get a utility bill from the "new" country that fits the passport or 2. you use darks for the entire setup, it's not easy to setup up but well possible.

Alternative to above would be to find a offshore jurisdiction for banking and which is not going to join the CRS etc. information exchange, I doubt you will find any country for long term use.

 

[Martin Everson]

Since a few years Spain stopped joking around with expats and has gone after them aggressively as they simply can't get any more taxes out of the local population. You will have no choice but to declare all the income in Spain you receive anywhere in the world.

The other option is to defer the income from the HK company and get paid only what you need in Spain. You then pay taxes in Spain on that income. The deferred income just builds up with HK company until you decide you have outgrown Spain. The only other options are gray area stuff :-(

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

 

[The Hun]

auric said:
So you don't want to move anywhere? That leave you only with limited options 1. 2nd citizen passport in the hope they won't report you to spain, requires that you are able to get a utility bill from the "new" country that fits the passport or 2. you use darks for the entire setup, it's not easy to setup up but well possible.

Alternative to above would be to find a offshore jurisdiction for banking and which is not going to join the CRS etc. information exchange, I doubt you will find any country for long term use.
Click to expand...

To add to what I stated in the OP:
- I have 2 passports of different EU countries (no Spanish passport)
- I used to live and work in Spain many years ago and I still have my permanent residence permit there (since I never "unregistered" officially when I moved to Germany). I could get an utility bill from one of them, but I don't know if that will suffice the Spanish authorities.

About darks, I thought the following:
1. set up an offshore company with darks
2. use this company to invoice the HK company for services and to transfer shares
3. have the invoices paid in ETH/BTC instead of using bank accounts (this should be possible)
4. invoice legally the offshore company a small amount to my name every month just to justify some income (also paid in BTC/ETC)
5. every month find a way to convert the rest of the crypto to fiat via Localbitcoins (P2P transactions ) or similar, maybe keeping a part of it in crypto for the long term. Pay as many expenses as possible with this cash.

What do you think of this setup? The most critical part I see is point 5. I fear too much cash might accumulate in my hands and that I will eventually need to find a way of laundering it.

Is this preferable to using a bank account in a country such as Paraguay that for the moment doesn't report CRS?

Martin Everson said:
Since a few years Spain stopped joking around with expats and has gone after them aggressively as they simply can't get any more taxes out of the local population. You will have no choice but to declare all the income in Spain you receive anywhere in the world.

The other option is to defer the income from the HK company and get paid only what you need in Spain. You then pay taxes in Spain on that income. The deferred income just builds up with HK company until you decide you have outgrown Spain. The only other options are gray area stuff :-(
Click to expand...

I know, it's really sad how much pressure they are putting on people 🙁

I do realize that the solution I find (if any) won't be 100% clean. I also don't want to defer any income since what I'm getting is a kind of "salary" for the moment, I'll only be a minor shareholder of this company (and hopefully get some dividends in the future).

 

[Clip]

Did you finally found tax efficient way to move to Spain?

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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