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,
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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.
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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).
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Good.

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

agentsmithhhhh said:
to then use on IBKR.
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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.
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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.
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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?
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The main issue is that you are planning to give away precious crypto for worthless fiat.

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[agentsmithhhhh]

I appreciate your concern about moving︀ into fiat. After being almost 100% in crypto for many years, I'm looking for a︁ 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 to︃ Switzerland, am looking to eventually settle down in Central or South America. I also never︄ fully disclosed the extent of my crypto in Switzerland in the past, which is why︅ I lean towards establishing a tax residence in a different jurisdiction vs. running into issues︆ with the tax authorities.

I was of the impression that simply printing hundreds of pages︇ of transactions wouldn't work when approaching a new bank., which is why I’m looking for︈ 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.

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[agentsmithhhhh]

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

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[WorldCitizen99]

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...)
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 may︀ NOT like it. They could deny you access because of this.

 

[agentsmithhhhh]

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 its︀ nature. If it were only a matter of capital gains, keeping a Swiss residency would︁ definitely make sense!

 

[ActionMan]

Hello
Forget both. Go for Uruguay, boring, but the best developed of︃ the bunch, tax breaks, money comes in & out without too much scrutiny, you being︄ swiss is a plus, absolutely no questions asked! you are the perfect fit for the︅ type of people that they want to bring in . or if it's absolutely necessary︆ Go for Paraguay.
Chase, sygnum, B.Frick and︈ Standard bank IOM are all available options for you. DBS in Singapore if you are︉ willing to trade some of your Crypto assets with their DDex.
neither. A holding in Dubai, Singapore or HK should be sufficient. Estonia︌ if you are Creative, BVI is also a solid option.
answered. there is more, but︎ it depends on what you are trying to achieve, about SOF. it can be done️ 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 and︀ learn and you will be alright.
You are welcome. Consider subscribing to the mentor︂ Group gold, you will find good info and even greater networking opportunities.

Good luck!

 

[agentsmithhhhh]

Thank you @ActionMan, this is extremely︈ helpful information! Will dig into the options you mentioned, am thankfully not in a rush︉ 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?
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You send crypto to the seller.

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

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[WorldCitizen99]

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. We︀ can all simulate direct payment using a hardware wallet, an exchange, an EMI plus or︁ 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?
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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
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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&%#

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[WorldCitizen99]

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[JohnnyDoe]

You need to quote properly

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[WorldCitizen99]

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]

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 if︀ this is a legitimate worry though.

I am to reallocate some of my crypto into︁ 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% safe︃ in 2022/2023. I definitely believe in crypto, but there's no denying it's an extremely volatile︄ space