Correct setup for cryptotrader?

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iamafrog

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Feb 9, 2021
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Hello everybody. I bought some bitcoins in the past and now I want to cash them out.

I'm currently living in Spain and I'm considering to move for more than 183 days to another country so I can become a tax resident there. What I don't know is what country should I move to, and what setup would suit me the best. I've been researching Cyprus, Georgia, Malta, Portugal, Andorra and Slovenia. I want to create an LLC or an LLP in that (or in other country) so I can back to Spain later on with a company in whethever country is best.

I am reading horror stories about banks blocking transactions from exchanges. I want to be careful with this too.
What do you think it would be the best setup? Thanks 🙂

P.S. Aditional info: I'm into I.T. creating a startup right now.
 
We can help you if you can consider the UAE for yourself as well.

0% tax - no headache.

Just recently made the setup for Crypto YouTuber MMCrypto that is German like me.

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iamafrog said:
iamafrog said:
Hello everybody. I bought some bitcoins in the past and now I want to cash them out.

I'm currently living in Spain and I'm considering to move for more than 183 days to another country so I can become a tax resident there. What I don't know is what country should I move to, and what setup would suit me the best. I've been researching Cyprus, Georgia, Malta, Portugal, Andorra and Slovenia. I want to create an LLC or an LLP in that (or in other country) so I can back to Spain later on with a company in whethever country is best.

I am reading horror stories about banks blocking transactions from exchanges. I want to be careful with this too.
What do you think it would be the best setup? Thanks 🙂

P.S. Aditional info: I'm into I.T. creating a startup right now.
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Legally it might not be possible as you probably have to pay tax to Spain on the unrealised capital gain if you move out.
 
@Fred do your crypto trading clients have issues with exchange coverage? For example neither Coinbase nor Gemini list UAE as supported countries, is there a workaround?
 
khinkali said:
khinkali said:
@Fred do your crypto trading clients have issues with exchange coverage? For example neither Coinbase nor Gemini list UAE as supported countries, is there a workaround?
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Kraken is working perfectly fine. That's the main exchange we suggest the clients to use for personal account.

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Thanks @Fred. Binance, Kraken, Bittrex and Huobi Global cover UAE. Coinbase, BitFlyer and Gemini don't seem to. Maybe there's some way round it.
 
khinkali said:
khinkali said:
Thanks @Fred. Binance, Kraken, Bittrex and Huobi Global cover UAE. Coinbase, BitFlyer and Gemini don't seem to. Maybe there's some way round it.
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Yes we work with Kraken, Binance and Bittrex regularly as they fit for 99% of the crypto space.

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Fred said:
Fred said:
Kraken is working perfectly fine. That's the main exchange we suggest the clients to use for personal account.
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What made you choose Kraken specifically?

What makes it better than Bitstamp / Coinbase?
 
DavidS said:
DavidS said:
What you don't like about coinbase?

And what do you think of Bitstamp?
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Okay I'll help you with your question, and hope you can help me with my OP xD

If you trade using Coinbase, as soon as we reach the top of the bubble the exchange will stop working. Moreover Coinbase will tell the IRS what you are doing, even if you are not from the USA, and finally they have blocked accounts in the past (for example from Cuban traders because of U.S. sanctions).

About Bitstamp, I have the suspicion that he also snitches but the exchange is quite robust, so I use it to trade what I'm going to declare (not shady transactions). For the later I use a Binance anonymous account. Which is reliable and doesn't give info (for now)

And now... What is the best setup to escape from taxation? Georgia, cyprus..? 😀
 
iamafrog said:
iamafrog said:
Okay I'll help you with your question, and hope you can help me with my OP xD

If you trade using Coinbase, as soon as we reach the top of the bubble the exchange will stop working. Moreover Coinbase will tell the IRS what you are doing, even if you are not from the USA, and finally they have blocked accounts in the past (for example from Cuban traders because of U.S. sanctions).

About Bitstamp, I have the suspicion that he also snitches but the exchange is quite robust, so I use it to trade what I'm going to declare (not shady transactions). For the later I use a Binance anonymous account. Which is reliable and doesn't give info (for now)

And now... What is the best setup to escape from taxation? Georgia, cyprus..? 😀
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Bitstamp could be snitches per CRS as they are in EU while Bitstamp and Kraken are in US.

Best way to escape taxation I think is getting second citizenship or second tax residency somewhere and then establishing a really complex and convoluted offshore structure that would be too costly for tax man to research and they would just not bother with it.
 
iamafrog said:
iamafrog said:
Hello everybody. I bought some bitcoins in the past and now I want to cash them out.

I'm currently living in Spain and I'm considering to move for more than 183 days to another country so I can become a tax resident there. What I don't know is what country should I move to, and what setup would suit me the best. I've been researching Cyprus, Georgia, Malta, Portugal, Andorra and Slovenia. I want to create an LLC or an LLP in that (or in other country) so I can back to Spain later on with a company in whethever country is best.

I am reading horror stories about banks blocking transactions from exchanges. I want to be careful with this too.
What do you think it would be the best setup? Thanks 🙂

P.S. Aditional info: I'm into I.T. creating a startup right now.
Click to expand...
Click to expand...
Just moving to another country for 183 days, withdraw a profits which would be taxable in a Spain in case of not doing it, and comming back next year is considered by spanish tax authorities as abuse of law.
And you will be liable for income tax as well as all penalties and criminal prosecution in Spain.

Do not believe to people who are trying to sell you just a dream about moving to UAS for some time, cash out your cryptos and move back to Spain afterwords. This is not how it works. One day, when you will be crying in a jail for a tax fraud, they will just declare, everything is your responsibility.

To cash out a crypto, you need more sophisticated structure. It is not cheap nor easy, But is it still possible. Do not believe those who promise you easy and cheap solutions. Expecialy if you are resident of high tax western country, what Spain is. They are just trying to sell you their services and they do not care about you in real.

Just moving to Dubai for 6 months, botain tax residence certificate, cash out crypto and come back to Spain, will be conssidered by spanish tax authority as abuse of law and they will deny to accept your UAS tax residence certificate as result of abuse of law and you will be taxed from all income + penalties + late tax payment interest + criminal prosecution..
 
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