Freelancer working from home United States with Offshore in Cyprus

[terminus1]

Hello,

Case:

Freelancer (programmer) working from home (United States) and issuing bills from my offshore company in Cyprus, and getting paid in my Cyrpus bank account, then I go to United States at closest ATM and I cashout money from attached debitcard to Cyrpus bank account.

Is this legal?

Is this evasion?

Do I need another company in United States too ?

Thanks.

 

[laurie]

It'a legal if you declare your revenue to the IRS. Else it's illegal and a‌ bad way to do it this way I think.
Just, be aware than when you‍ charge a Company with an Offshore Jurisdiction you may attract the eye of the IRS.⁠

When you withdraw with an "anonymous" debit card you may attract the eye of the⁤ IRS.

Sound like a bad Idea to me but there must be expert of Cyprus⁣ Jurisdiction arround.

 

[JohnLocke]

second that!

You want to consult a tax lawyer in your country to help you with‍ an offshore setup that is legal.

 

[goldies]

You have to pay taxes in the United States on your Worldwide Income. By the‌ way as a BANK account holder in Cyprus, the bank will submit your account info‍ to the IRS in the United States. (FATCA) You have almost 0 benefits going offshore⁠ if you live in the USA. However you have the right to maintain profits in⁤ the company and re invest it under the name of the corporation. Some tax advantages⁣ will apply if you have a good accountant in Cyprus and United States. (Good accountants⁢ dont come cheap) If you use a cyprus company with nominee dont be fooled, you︀ will still need to submit all the info the IRS. Beneficial Ownership, Income, etc...

 

[Juoffshore]

Agree with Laurie, It's legal if you declare your revenue to the IRS or if‌ you move to cyprus.