Bank Account in Cyprus or UAE?

[orangeye]

It's been a long time since I've been around offshorecorptalk - great place, waow. I am looking for a bank account for our Swedish company that runs Internet trading. To make things a little easier for us, we are thinking of setting up a company with a bank account either in Cyprus or in the UAE. What do you think is easiest for our situation?

 

[Sols]

Why not get a bank account in Sweden?

Unless you have close ties to Cyprus‌ or UAE and/or a very attractive business case, I'm not sure your chances are all‍ that great.

 

[Konstanz]

Try fintech companies like Bankera.⁣ They provide EU IBAN accounts and payments

 

[cyprusbanker]

Can we relay on Bankera as a trusted bank account for our Cyprus company?

Is there a thread with reviews, good or bad or similar?

 

[Konstanz]

I am using them and I am happy with their service. Yes there is thread⁠ about them.
https://www.offshorecorptalk.com/threads/any-bankera-feedback.28936/

 

[Gediminas]

Yes, you can totally rely on them. I know them very well. Their customer support⁠ is great!

 

[JustAnotherNomad]

To make what easier for yourselves?
Have you heard about CFC rules?

 

[rowena]

It is very unlikely to open a bank account for a foreign company in the‌ UAE. You probably need to establish a branch company and apply it via that license.‍ It is better to go with EMIs.

 

[CaptK]

UAE mainland can be registered in a day and you will need to go there‌ to open your bank account. Think of it as a working holiday.

You can use‍ an EMI until you get there and so long as you can prove your current⁠ business is running well they will open you an account.

It's a lot easier then⁤ Cyprus and costs a little bit more but they won't give you any headache after⁣ that.

 

[Konstanz]

Maybe a little headache when there are CFC and⁣ PE rules enforced if not properly established business. Cyprus is EU country, it's a bit⁢ different in that view
I suggest to firstly consult with tax advisor before doing such︀ incorporations
Regarding accounts EMI's are much faster than banks..

 

[CaptK]

CFC & PE rules will be the⁤ same in both situations. To that regard the UAE is more advantageous overall.

 

[JustAnotherNomad]

No, not necessarily. It’s not‍ unusual for the rules to be different for EU and non-EU companies, or rather, for⁠ EU treaties to set some limits to what the taxman can do.

I haven’t read⁤ the whole document, but since the original question mentioned Sweden, this might be interesting, it’s⁣ in English:
https://www.skatter.se/?q=node/1345
You can clearly see that the CFC rules are different for EU⁢ and non-EU companies. On top of that, you can expect that a UAE company will︀ invite more scrutiny than a company in another EU state - though I guess Cyprus︁ is almost as much of a red flag.

 

[CaptK]

Yes totally agree as you can appreciate Cyprus is viewed as negatively︁ as the UAE tax wise, so you might as well go all out with no︂ restrictions.

 

[pesto]

how old are they and what is your‍ relation to them? you look to be one of the owners.

 

[Gediminas]

If I remember right, they started‍ their eco-system back in 2012.

They are my partners, I bring part of my clients⁠ to their financial insitututions. And I can say they are my best partners.

Unfortunately I⁤ am not the owner. I wish I was. 🙂

 

[JustAnotherNomad]

Read the rest of my comment. The Swedish CFC rules specifically make⁠ a distinction between EU and non-EU companies. You can have as much substance as you⁤ want with a non-EU company, it will be a CFC. If it’s an EU company,⁣ if you have proper substance, it’s not a CFC because that would violate EU treaties.⁢
That’s how I understand it at least.

 

[CaptK]

Do you currently live in⁣ Sweden?

 

[orangeye]

yes I do.. I will not be able to relocate!

 

[CaptK]

Then both structures are not really going to benefit you much. You maybe better looking‍ at Estonia from my understanding unless you actually employ staff and have a running office.⁠
What will you be trading?

 

[JustAnotherNomad]

Unless Estonia is whitelisted in Sweden, I don’t see how Estonia would have an advantage‌ over Cyprus.

@orangeye
You need to read this:
https://www.taxathand.com/article/1...ent-adopts-proposal-to-amend-CFC-legislation-
And this:

https://www.skatteverket.se/service...edenornot.4.71004e4c133e23bf6db800094764.html
Just forget about‍ your whole plan, it’s not going to work out this way.
If you cannot relocate⁠ to a different country entirely, you can choose 2 out of 3 for your structure:⁤
- cheap
- legal
- substantial tax savings

Maybe there’s a third way, by using⁣ a foreign holding company:
https://www.offshorecorptalk.com/threads/paying-corporate-income-tax-only-cashing-out-later.30816/
But even if that should indeed work (which I’m not⁢ sure about), it’s going to cost you a good deal of money. And it would︀ only allow you to save your money for later, while still paying Swedish corporate income︁ tax. Just find a good Swedish accountant and work with them to get the maximum︂ deductions you can get. Forget about offshore companies.