Holding Company Jurisdiction

[halaba]

Hi,

looking for a good location for a holding company (or trust).
Having German or Russian (just by ancestry) passports, living in eastern europe.
Currently involved in 8 companies (USA,UAE,Libya,AZ...) in some sort of "own nothing, control everything" schema, but in an unsafe matter.

As I might want to return to central europe somewhen, I'm wondering about the legality of such a holding/asset management structure.
Is it "fine" just to have a local director, in order for the company to be tax resident there?

My "I would like's" are:
1. A little asset protection
2. Non-public UBO register
3. Annual costs below $4k
4. Possibility of international banking (e.g. Switzerland); +$5 million assets in first year
5. Low/Zero withholding/dividend tax & territorial cooperate income tax or zero

---
I've read a lot of positive things about Nevis, but also a few bad things, what's your opinion on it, as an EU citizen?
Nowadays there are not many options for an EU citizen to do shady stuff, so I don't mind the reporting, if everything is legit.

Mr Anderson said:
I'll have to agree with this statement. I had a very bad experience with my Nevis IBC.
* About 2 years ago Nevis St. Kitts signed info sharing with EU. Meaning they report your sales data to a very large 3rd party. [Learned this after I formed.]
* Want you to pay filling fees so they can share your data with the EU. [Not making this up.]
* My registration agent sent every correspondence to their entire team. Privacy? lol.
* After registration, a few months later, a message stating they can review our books at any time.

Thank God I didn't use my IBC. Lesson learned. IMO, they shot themselves in the foot, and destroyed their industry.
Click to expand...

Last edited: Aug 20, 2023

 

[Martin Everson]

halaba said:
Having German or Russian (just by ancestry) passports, living in eastern europe.
Currently involved in 8 companies (USA,UAE,Libya,AZ...) in some sort of "own nothing, control everything" schema, but in an unsafe matter.
Click to expand...

Ok Russian passport and Libya company 🙁 . I would skip these two for now in any structure whether Libya company involvement is obscured or not.

halaba said:
My "I would like's" are:
1. A little asset protection
2. Non-public UBO register
3. Annual costs below $4k
4. Possibility of international banking (e.g. Switzerland); +$5 million assets in first year
5. Low/Zero withholding/dividend tax & territorial cooperate income tax or zero
Click to expand...

Well your not asking for much here at all are you? Considering for holding activity in an offshore tax neutral location these days your gonna need to pay for local Economic Substance to meet rules not sure how far $4k will go. Even in a Trust structure you may struggle.

I would firstly lower your expectations in terms of your wish list.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[halaba]

Appreciate the answer, yeah I was asking for too much, haven't been around this forum too much.
Anyway, it was not like a must have list, just good to have if possible, but well of course i will lower my list.

I don't know why i mentioned the russian passport, haven't used that anywhere except for visa free travel.
Even my private bank which makes 70% of intl profits in russia ironically, said last week I better don't report them the 2nd citizenship or they may close my accounts, no consequences for not reporting apparently 😵.

Until now I just got a C&P ad by dm about Cyprus, so I'm open to any suggestions.
After more research about the legality and more peace of mind, it probably should be a EU country like Cyprus or Malta with proper substance, office, administrator, employee and some stuff so I'd better triple or quadruple the 4k/y.

Not much room to manoeuvre as EU citizen nowadays apparently. cry&¤

 

[Meta]

halaba said:
I don't know why i mentioned the russian passport, haven't used that anywhere except for visa free travel.
Even my private bank which makes 70% of intl profits in russia ironically, said last week I better don't report them the 2nd citizenship or they may close my accounts, no consequences for not reporting apparently 😵.
Click to expand...

Haha, for real? You ask the banker if they need to update the profile with your Russian passport and he goes like "Oh I could not hear you, by the way if someone had a Russian passport he would be better off not mentioning or compliance may have to close that account"? Hilarious.

Do you do any business in EU? If you do or plan to return to Central Europe soon, Nevis and similar classic offshore places may be not a good idea. If no relation to EU, maybe you can try.

Local nominee director may be fine until the first tax audit; after that maybe not... The office-administrator-staff you mentioned above is safer since you can afford it.

 

[Henn and Rich]

halaba said:
Hi,

looking for a good location for a holding company (or trust).
Having German or Russian (just by ancestry) passports, living in eastern europe.
Currently involved in 8 companies (USA,UAE,Libya,AZ...) in some sort of "own nothing, control everything" schema, but in an unsafe matter.

As I might want to return to central europe somewhen, I'm wondering about the legality of such a holding/asset management structure.
Is it "fine" just to have a local director, in order for the company to be tax resident there?

My "I would like's" are:
1. A little asset protection
2. Non-public UBO register
3. Annual costs below $4k
4. Possibility of international banking (e.g. Switzerland); +$5 million assets in first year
5. Low/Zero withholding/dividend tax & territorial cooperate income tax or zero

---
I've read a lot of positive things about Nevis, but also a few bad things, what's your opinion on it, as an EU citizen?
Nowadays there are not many options for an EU citizen to do shady stuff, so I don't mind the reporting, if everything is legit.
Click to expand...

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