Jurisdiction with minimal/easy accounting to hold crypto with zero tax and bank account/EMI access

[oxymo]

Hello!

I'm looking for a zero tax jurisdiction to set up a company that will hold my personal crypto assets and where I will still be able to get a bank account or EMI approved.

It needs to have simple accounting rules because I do a bit of trading, lending, and work with liquidity pools. It's important that I don't have to track every transaction in USD, as that would be too complicated.

A little bit further down the line, I would also like to convert part of the crypto holdings to FIAT and invest in traditional stock markets through companies like Interactive Brokers.
That's why also the need for a bank account or at least a good EMI with low fees.

Anyone has any suggestions?
Browsing through the forums, it appears that Nevis may be an acceptable option, but I'm not sure. I looked into classic offshore jurisdictions like Seychelles, BVI etc, but the main problem seems to be the banking/EMI access for these jurisdictions.

I hold EU passport and am UAE resident. Preferably my UAE company should be 100% shareholder of that new company.

 

[Wellington]

Anguila may be a good place.

 

[FDS ADS]

Saint Vincent and Grenadines.︆

 

[oxymo]

I read a couple of posts‌ on this forum where people talked very negatively on SVG.

Important aspect for me is‍ definitely also to get a bank account or at least a decent EMI to move⁠ higher 6 figures.

Also I would need a good service provider who could help me⁤ build up decent substance.

 

[FDS ADS]

What kind of substance do you need? Can you explain in detail what is your⁣ business requirement?

 

[oxymo]

I currently have a UAE company that holds Dubai properties and crypto assets. Not taking‌ any third party funds, just managing my own assets.
Till now, the crypto in the‍ company was no problem, but with corporate tax in UAE from next year, capital gains⁠ on the crypto assets would be taxable. However UAE banks don't allow incoming transfers from⁤ crypto exchanges, so even if I wanted to pay the tax on the crypto, it⁣ would be hugely difficult to start with.
Plus with the new corporate tax comes proper⁢ accounting requirement which make everything hugely complicated.

That's why I want to outsource the crypto︀ to some offshore company. As said in the future, I would like to invest in︁ the traditional stock markets as well.
That's why I need a jurisdiction where I will︂ also be able to open a bank account. For crypto only I could go without︃ that, but I want to plan for the future and do one setup properly that︄ will allow me both.

Substance in the new company I need, because otherwise it would︅ be regarded as managed from UAE and therefore again subject to corporate tax.
With substance︆ I basically mean a local director plus probably some small office, so that it can︇ be argued that it's managed locally.

 

[FDS ADS]

Let me know if︈ you need any suggestions about potential service providers.

 

[oxymo]

Yes, any advise towards good service providers is appreciated.
Again, the main question for me‌ at this stage is jurisdiction. I want to set this up only once and do‍ it properly.
So need to find the right place for that.

 

[FDS ADS]

To whom I worked with and it's okay I can say ConsilInternational and GERAI⁤ LTD. Both doing consulting and arrangement.

 

[Gediminas]

Hey,

It could be︆ one of the “offshore” islands.

They will not apply tax on gains, accounting standards will︇ be simple.

I would probably do SVG, because of low-level requirements which means easy maintenance.︈ Or BVI, if you wish to invest more money to cover administration expenses, but have︉ a bit more reputable jurisdiction.

As long as you can prove the source of the︊ funds and you have a proper setup in your case you could set up trustful︋ EMI in both options, i.e. SVG or BVI.

I would prefer having a person as︌ a shareholder, it would help to open an account a bit easier.

From a theoretical︍ perspective you have PE risk in Dubai (which means 9% CIT on gains), on the︎ other hand, if you don’t spend significant time there it might not be relevant.

 

[FDS ADS]

Can you show us your EMI options︂ for BVI and SVG?

 

[DSoz]

What did you end up going with?

 

[Gediminas]

Hey,

I think you︆ have a few options: either to set up an “offshore” entity, for example, SVG, or︇ to set up a non-tax resident entity in a high-tax country for example HK company.︈

Both structures would not be taxable at the corporate level (SVG, HK).

From the UAE︉ perspective, I would say that the UAE might try to tax received dividends from both︊ entities (the current version of the law on corporate income tax allows this).

Even in︋ such a case, you would avoid many accounting and audit issues in comparison if you︌ do the same on behalf of a UAE company. Plus in UAE you would be︍ able to reduce profits with bonuses and other allowable deductions.

The possibility of opening a︎ workable account at a reputable EMI depends not only on jurisdiction. SVG company can have️ proper EMI if it is properly organized from a legal perspective: all agreements are properly‌ drafted, the company has a legal opinion on activities, etc.

 

[FDS ADS]

For SVG, which EMI options you can propose us?

 

[Gediminas]

I could help to get the account opened at Bankera or Verifo, for example.

 

[FDS ADS]

Any opportunity in UK?

 

[redeye]

For everyone looking for decent services providers which we can trust in all areas they⁣ should have a look at the list published in mentor group
https://www.offshorecorptalk.com/th...hy-offshore-company-formation-services.26419/