I get it, but its a lot more money than just 24K per year ... and she's not a fan of her Italian bank ... so gotta research more options ... first is to understand if the brokers she likes will work with offshore banks ... or if it will have to be all crypto transfers
Italian Friend living in Ecuador - Needing a reliable offshore personal bank
- Thread starter OCT2023
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The use of cryptocurrencies in Ecuador, as a means of payment, is prohibited . The only currency allowed for the purchase and sale of goods and services is the dollar. So why do Ecuadorians acquire cryptocurrencies? To have them as a form of investment because there is no legal norm that prohibits it.
Ecuatorianos, los que más compran criptomonedas en la región
After further research into this. If she trades personally, she'll be responsible for 10% Capital Gains Tax.
If she trades through an offshore company, she will not be subject to taxation as long as the company is the legal entity and her name does︀ not show up as the owner.
So the question will be, based on where she︁ can create an offshore company with 0% taxation and a decent corporate bank, will the︂ money she makes off of investments that is taxable in Ecuador be more than the︃ company formation and maintenance of an offshore company.
In this case, I think it might︄ be that a company formation is worthwhile.
So, a few things:
1. Her Forex Broker︅ only works with certain countries, so countries like Seychelles, BVI, etc will not be on︆ the list.
2. The easiest way to move money around is with Crypto, so a︇ crypto-friendly country/bank would be preferred.
3. If she is doing extremely well, she may want︈ to open up investment services to friends/family or more.
Based on this ... I'm going︉ to look into the Cayman Islands ... first as an Offshore Corporation for Personal Trading︊ and then as an Offshore Corportation for a Segregated Sub-Fund.
If anyone has alternative ideas,︋ they are more than welcome to share.
Ecuatorianos, los que más compran criptomonedas en la región
After further research into this. If she trades personally, she'll be responsible for 10% Capital Gains Tax.
If she trades through an offshore company, she will not be subject to taxation as long as the company is the legal entity and her name does︀ not show up as the owner.
So the question will be, based on where she︁ can create an offshore company with 0% taxation and a decent corporate bank, will the︂ money she makes off of investments that is taxable in Ecuador be more than the︃ company formation and maintenance of an offshore company.
In this case, I think it might︄ be that a company formation is worthwhile.
So, a few things:
1. Her Forex Broker︅ only works with certain countries, so countries like Seychelles, BVI, etc will not be on︆ the list.
2. The easiest way to move money around is with Crypto, so a︇ crypto-friendly country/bank would be preferred.
3. If she is doing extremely well, she may want︈ to open up investment services to friends/family or more.
Based on this ... I'm going︉ to look into the Cayman Islands ... first as an Offshore Corporation for Personal Trading︊ and then as an Offshore Corportation for a Segregated Sub-Fund.
If anyone has alternative ideas,︋ they are more than welcome to share.
Well, I of course do not know what you have found in the meantime (I'm a little bit late to the party as sometimes...) but just a few remarks:
1) I have no clue who is the quoted Forex Broker, however if they do not like countries like Seychelles and BVI, I doubt they will like Cayman Islands.
2) To get “a decent corporate bank” for a newly established company at Cayman Islands is next to impossible. Nowadays.
3) I agree that a company formation is generally worthwhile (in a reasonable jurisdiction).
4) If she eventually wants “to open up investment services to friends/family”, it's highly recommendable not to mention it anywhere (including here perhaps with the exception of Mentor︀ Group). (I presume she has no intention to do it formally, i.e. to get an︁ appropriate licence/s/, establish KYC/AML/XXX teams, etc. etc.) It means, that the words “or more” should︂ be totally forgotten 😉
1) I have no clue who is the quoted Forex Broker, however if they do not like countries like Seychelles and BVI, I doubt they will like Cayman Islands.
2) To get “a decent corporate bank” for a newly established company at Cayman Islands is next to impossible. Nowadays.
3) I agree that a company formation is generally worthwhile (in a reasonable jurisdiction).
4) If she eventually wants “to open up investment services to friends/family”, it's highly recommendable not to mention it anywhere (including here perhaps with the exception of Mentor︀ Group). (I presume she has no intention to do it formally, i.e. to get an︁ appropriate licence/s/, establish KYC/AML/XXX teams, etc. etc.) It means, that the words “or more” should︂ be totally forgotten 😉
Thanks for the response, based on some︄ professional feedback, I'm looking into Anguilla (No License Needed) and Flow Bank (No License Needed)︅ for her. Anguilla qualifies for Flow Bank and they are working on a Debit Card︆ program in Q3/Q4. But I've been pivoting almost every other day lol as I learn︇ new information.
Yes, I contacted them and they are open to Anguillan Businesses ... he sent me a PDF of countries they accept. However, he did say that they might have problems working with Crypto Exchanges who want to exchange fiat. That's not really a problem as long as they accept the Forex Broker (HFM). (Additionally, they'll work with Panama it looks like).
Yes, banking secrecy is over, unfortunately. However, I would not touch Revolut/Wise for such a business even with a 10 meter pole. For more detailed reasoning, look e.g. here If Wise is going to close accounts and is not the best, how diversify the money? (I think that my general attitude to Revolut/Wise is quite known here).
Thanks for sharing. As I see, the guys from Flag Theory are quite︁ smart (I am looking mainly at the banking list, the first part is well-known). Probably︂ I will check them in more detail 🙂
Thanks for sharing. As I see, the guys from Flag Theory are quite︁ smart (I am looking mainly at the banking list, the first part is well-known). Probably︂ I will check them in more detail 🙂
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