Cyprus Account Benefits for US Citizen?

[allthewayup]

So my business is ALL online. We get paid by companies all over the world and actually probably very little by any US companies.

My question is if I open a Cyprus corp can I take advantage of the low corp tax even tho I live in US?

or would I have to move there?

Not sure because my accountant says I have to claim worldwide income being a US citizen and I would still end up paying the same amount of taxes no matter where the corp is set up.

sorry for the newbie answer but this still confuses me

thanks!!

 

[negon]

FATCA will block for this option since you will get reported by the Cyprus banks! That's‍ the beauty of FATCA 🙁

Only way around is to setup a anonymous company without a⁠ real bank account, you may know what I talk about since you are a Mentor⁤ Group member!

Otherwise you will need to establish a real office in Cyprus, with staff,⁣ phone, utility supply etc. and have a good US CPA available. That may work but⁢ not sure.

 

[JohnLocke]

Yeah I believe you will get trouble with your authorities there! FATCA has destroyed almost‌ all "normal" banking options for US citizens!

 

[Internationaloff]

I agree with‍ you. Nowadays US citizenship is a problem for offshore business. doh948""
One of the alternatives could⁠ be an IBC company with NO public registry, Bearer Shares, Nominee Director and Fiduciary service⁤ or an IBC company with NO public registry, Bearer Shares, Nominee Director as Shareholder of⁣ an EU company with Fiduciary service.

 

[negon]

No bank will allow this now a‌ days! Or how do you managed to do that if you did?

 

[Internationaloff]

I have IBC companies with Bearer‍ Shares and bank accounts.

 

[Internationaloff]

PS: Bearer share certificates must be kept by the registered agent.thu&¤#

 

[Flycatcher]

This is interesting, mind telling us a bit more? I've also thought that there aren't‍ any banks accepting bearer shares. Unless you @Internationaloff are filthy rich then I'd imagine you'd⁠ be granted exemptions.

 

[Internationaloff]

If the bank don't accept Bearer share⁠ certificates, you can use a Nominee Shareholder.

 

[Flycatcher]

@Internationaloff Really? I've thought that banks require the UBO, specifically if there are nominee shareholders.‌ Perhaps you use different banks than I do.

 

[Internationaloff]

If you‍ use Bearer Shares + Nominee Director or Nominee Shareholder + Nominee Director, the bank knows⁠ you as UBO. The alternative is a Fiduciary service (the bank don't know you as⁤ UBO).

With a Fiduciary service the customer has the Privacy, but NO access to the⁣ bank account.

 

[crownblown]

The bank will ask to have the bearer shares in custody they asked me for‌ that!

 

[allthewayup]

How does that work with Fiduciary?⁤ If the owner has no access to bank account, just wondering how you move your⁣ money?

 

[crownblown]

You are using‍ their account and instruct them what to do each time! They will charge transaction fees,⁠ monthly fees and what else comes into their mind! It is only something for people⁤ with million of $$ and don't do many transactions in a year.

 

[Internationaloff]

Exactly.
One of the alternatives is a new residency (for⁤ example in Panama or UAE).

 

[bountymounty]

What about the majority that can't move out of their own country... they are pretty‌ much lost!!

 

[Internationaloff]

If a customer can't move out of their‍ own country, the alternative is a panamanian residency exclusively for Business.

 

[belarus]

As mentioned here a few times already! US citizens have no chance any longer to‌ setup any offshore account outside of the USA without to get reported! However, why don't‍ you setup something in the offshore states in the USA i.e. Rhino, Delaware, Nevis and⁠ so forth?

 

[allthewayup]

well my hole idea was maybe I can⁤ have a cypruss bank account and pay the %12.5 (or whatever the rate of CYP)⁣

my biz set up as of now is, international companies wire money to my company⁢ and I end up paying US tax on that
I am based in US and︀ so are my companies (yes I can create companies in the best US states for︁ tax, but it still alot of tax in US)
From what I understand as a︂ US citizen you have to claim worlwide income, so even if i had an account︃ in CYP i would be filing twice and still end up paying the same amount︄ AS LONG AS I LIVE in US.

maybe if I move to Cyprus? that would︅ help? i was wondering if there is a way to be more efficient and still︆ live in US

I do have a EU passport tho, I have dual citizenship btw︇
thanks for your help guys, im just trying to figure this out and if there︈ is something that cant be said please PM me 🙂

 

[belarus]

Sorry for‍ that part, didn't read it.
You are right if USA has double tax treaties with⁠ Cyprus you can setup something more tax efficient. I try to find the thread where⁤ this was already asked and I read...