0% Tax Setup (Advice please)

[GiveMeFreedom]

Hey everybody, I'd really appreciate any advice/help!

Here is my situation:
- I am a citizen of an EU country
- I live in another EU country
- I have an accountant
- I receive payments from affiliate networks for my website via PayPal, and bank transfers
- I also receive payments from crypto exchanges' referral programs*
* I'm registered on those exchanges with a document from my country of citizenship, and I used different emails/phones for each exchange

- I declare an annual revenue of €250,000+ and pay taxes on that
- I also receive crypto referral commissions
- My accountant told me that the law here is not clear regarding the crypto referral commissions, that it's very chaotic and vague, and that I shouldn't do anything about them, to just keep receiving them
- I'd have no problem in paying taxes on those commissions as I do for my regular revenue, but as it stands, it's too confusing, and trying to understand the situation would probably create more problems rather than finding a reasonable solution

What I'm looking to do:
- Move my residency to a country where I get to a situation by which I have to pay zero taxes and just stop worrying about it

Would the following scenario be the best option?
- Buy Caribbean CBI (Antigua/St. Kitts, etc)?
- Move to that Caribbean country?
- Open business in Seychelles or similar jurisdiction with 0% corporate tax for affiliate earnings?
- Receive crypto commissions without having to declare them?

Otherwise, what would you suggest? Thanks in advance!

 

[luckystar]

What about Cyprus non-dom with Maltese residence? I haven't done it myself but seem like that could be an option. Or a flat tax European country?

 

[houston7]

What about the BVI? Have you done your research? Banking would be more tough but I'm sure someone here might have a solution

 

[sergeylim88]

luckystar said:
What about Cyprus non-dom with Maltese residence? I haven't done it myself but seem like that could be an option. Or a flat tax European country?
Click to expand...

what does this mean?
if a person in non-dom in cyprus, it means he/she is resident there, what's the point of another residency in Malta which also has to be non-dom?

 

[Marzio]

He is possibly talking about CY non resident company?

GiveMeFreedom said:
- I receive payments from affiliate networks for my website via PayPal, and bank transfers
- I also receive payments from crypto exchanges' referral programs*
Click to expand...

GiveMeFreedom said:
- I also receive crypto referral commissions
Click to expand...

Technically you are not selling anything, you only send traffic to third parties s that do the selling and give you a commission.

Based on that moving to a territorial taxation country would work.

If you want to stay near EU zone then Gibraltar could probably work since foreign income beside interest income and royalty income is not taxed in Gibraltar.

There are other options like Georgia, Panama, and so on depending on your personal prefererences.

Last edited: Mar 30, 2024

 

[daniels27]

I think the ones you can consider are
- St Barths
- Cayman Islands

houston7 said:
What about the BVI? Have you done your research? Banking would be more tough but I'm sure someone here might have a solution
Click to expand...

BVI has a 18% payroll tax. If you check the internet, there are discussions between taxpayers and the tax department on what a reasonable salary is. I would expect you to pay about 30k USD on payroll tax per year. With that amount, you can also consider Gibraltar and any other Caribbean Island.

 

[GiveMeFreedom]

Thank you everybody for the helpful replies!

So, do you all think getting a Caribbean CBI isn't needed in my situation? Would I be able to find somewhere where I'd have the same benefits I would get for having my tax residency there, without having to go through the hassle of getting the CBI? Would there be any benefits in getting a CBI in my case?

Would you recommend a specific service for assisting me with finding the best offer? I thought about Nomad Capitalist, but that's probably not the best option smi(&%

luckystar said:
What about Cyprus non-dom with Maltese residence? I haven't done it myself but seem like that could be an option. Or a flat tax European country?
Click to expand...

Do you mean setting my tax residency in Malta and having a company in Cyprus?

houston7 said:
What about the BVI? Have you done your research? Banking would be more tough but I'm sure someone here might have a solution
Click to expand...

As a tax residency? Or for the company? I haven't looked into it yet, I'll check it out, thanks!

Marzio said:
He is possibly talking about CY non resident company?




Technically you are not selling anything, you only send traffic to third parties s that do the selling and give you a commission.

Based on that moving to a territorial taxation country would work.

If you want to stay near EU zone then Gibraltar could probably work since foreign income beside interest income and royalty income is not taxed in Gibraltar.

There are other options like Georgia, Panama, and so on depending on your personal prefererences.
Click to expand...

I hadn't thought of it that way, if an affiliate website can be seen as foreign-earned income, and exempts me from territorial taxation, then that opens up a lot of other options, thanks! What about the crypto referral commissions? Would I have to declare that somehow?

Also, I don't mind moving to a country that's not in Europe. just looking for peace of mind, not having to deal with so much bureaucracy, paper work, etc.

daniels27 said:
I think the ones you can consider are
- St Barths
- Cayman Islands


BVI has a 18% payroll tax. If you check the internet, there are discussions between taxpayers and the tax department on what a reasonable salary is. I would expect you to pay about 30k USD on payroll tax per year. With that amount, you can also consider Gibraltar and any other Caribbean Island.
Click to expand...

St. Barths for the tax residency, and Cayman Islands for the business?

Thank you again! 🙂

 

[JustAnotherNomad]

Didn't we have a thread with a list of countries with no PE laws and/or weak enforcement? @Marzio
Seems like this is basically what OP is looking for...

 

[Marzio]

JustAnotherNomad said:
Didn't we have a thread with a list of countries with no PE laws and/or weak enforcement? @Marzio
Seems like this is basically what OP is looking for...
Click to expand...

Here it is: List of Territorial Tax Countries with formal and de-facto treatment of foreign income

 

[GiveMeFreedom]

Marzio said:
Here it is: List of Territorial Tax Countries with formal and de-facto treatment of foreign income
Click to expand...

Nice, but would those countries work for receiving the crypto referral commissions tax-free? I receive them on a personal level

 

[JustAnotherNomad]

GiveMeFreedom said:
Nice, but would those countries work for receiving the crypto referral commissions tax-free? I receive them on a personal level
Click to expand...

That would depend on the country. Some of them tax remitted income (so as long as you don't spend it in that country, you're good), others don't even care if you bring the money into the country.

 

[GiveMeFreedom]

JustAnotherNomad said:
That would depend on the country. Some of them tax remitted income (so as long as you don't spend it in that country, you're good), others don't even care if you bring the money into the country.
Click to expand...

Would you know which ones? Otherwise, can you recommend a service that could help me understand the best route? Thanks!

 

[GPT]

Marzio said:
Here it is: List of Territorial Tax Countries with formal and de-facto treatment of foreign income
Click to expand...

Crosscheck with the list of countries that forbid crypto transactions all together.

 

[JackieTsan]

GiveMeFreedom said:
Thank you everybody for the helpful replies!

So, do you all think getting a Caribbean CBI isn't needed in my situation? Would I be able to find somewhere where I'd have the same benefits I would get for having my tax residency there, without having to go through the hassle of getting the CBI? Would there be any benefits in getting a CBI in my case?

Would you recommend a specific service for assisting me with finding the best offer? I thought about Nomad Capitalist, but that's probably not the best option smi(&%



Do you mean setting my tax residency in Malta and having a company in Cyprus?



As a tax residency? Or for the company? I haven't looked into it yet, I'll check it out, thanks!



I hadn't thought of it that way, if an affiliate website can be seen as foreign-earned income, and exempts me from territorial taxation, then that opens up a lot of other options, thanks! What about the crypto referral commissions? Would I have to declare that somehow?

Also, I don't mind moving to a country that's not in Europe. just looking for peace of mind, not having to deal with so much bureaucracy, paper work, etc.




St. Barths for the tax residency, and Cayman Islands for the business?

Thank you again! 🙂
Click to expand...

But you need to stay at St Barths for 6 months in the country, correct??

 

[GiveMeFreedom]

Which service should I use for helping me sort this out?

 

[daniels27]

GiveMeFreedom said:
Which service should I use for helping me sort this out?
Click to expand...

Andrew Henderson?

 

[GPT]

Most important question; where do you want to live?

The taxfree company isn't the biggest problem. That is just a list of requirements and ticking of boxes of wants and needs.

The two remaining items are then personal income. Here I follow a different approach. The zero tax game on a personal level is only attracting negative attention.

Because of that i recommend finding a payroll company in the country you want to live and just pay some social contributions. That will buy you peace. The payroll invoices the offshore.

Remaining one is then the ownership of the company. This depends a bit on where you want to live and how that country is judging and taxing owning a foreign company.

 

[GiveMeFreedom]

GPT said:
Most important question; where do you want to live?

The taxfree company isn't the biggest problem. That is just a list of requirements and ticking of boxes of wants and needs.

The two remaining items are then personal income. Here I follow a different approach. The zero tax game on a personal level is only attracting negative attention.

Because of that i recommend finding a payroll company in the country you want to live and just pay some social contributions. That will buy you peace. The payroll invoices the offshore.

Remaining one is then the ownership of the company. This depends a bit on where you want to live and how that country is judging and taxing owning a foreign company.
Click to expand...

I was thinking somewhere in the Caribbean, Europe, or maybe South America. I'd like to avoid Africa, and Asia. My problem is how to receive the crypto referral commissions tax-free on a personal level, because it's hard to declare it due to the constant influx, and price fluctuation, and I can't create a business account on most of the exchanges to receive it through a business.

daniels27 said:
Andrew Henderson?
Click to expand...

Has anyone used his services? I was thinking about it, but read a lot of negative feedback

 

[daniels27]

I think his service in 2015 was good and fair. You pay 7000, he takes 5 clients and helps each over one month. Now, he has a cash cow and 50 employees and really does not need you anymore.

You better not spend 70000 the but support @JohnLocke and the forum. We have people like @jafo @Sols @Forester @JohnnyDoe @0xDEADBEEF @baltic7 @crassus54 @Barney2201 that made money elsewhere and are happy to give something back to the community.

What is the crypto referral? You get paid in crypto for a transaction in crypto between two third parties? Is all legal?

 

[GPT]

GiveMeFreedom said:
I was thinking somewhere in the Caribbean, Europe, or maybe South America. I'd like to avoid Africa, and Asia. My problem is how to receive the crypto referral commissions tax-free on a personal level, because it's hard to declare it due to the constant influx, and price fluctuation, and I can't create a business account on most of the exchanges to receive it through a business.
Click to expand...

Caribbean, Europe or South America each have a different approach.

Corporate crypto income lands where it's not being taxed. Once it's converted to fiat you can move it anywhere. I'm not addressing legal or illegal. I assume you do the good thing in this case.

Understand furthermore that taxfree today is taxed tomorrow. It's better to accept some form of level of tax. This will buy you peace. Or if you so prefer, chase the next country that hypes tax free.

Also, what is being setup today needs to be evaluated at least every 5 years. Things constantly change and that for sure applies to cryptos.