OVZA
New Horizons Paraguay
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Looking for someone to consult me on the best way to cash out Crypto with minimal tax.

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You just need sufficient posts here as well as likes and reputation so you will‌ be able to PM! But don't play games by spamming, trolling or post nonsense on‍ the forum so you will get warning points which will set you back.

If you⁠ are a service provider you may read this, Important! - What can I do with⁤ my Mentor Group subscription?

So, please back to topic or start a new thread in⁣ the proper forums if you want to discuss this further 🙂
 
Just discussed this with a friend. There is actually a rather simple 4th option.

Bulgaria has a double tax treaty with the UAE. In the UAE there is no income‌ tax, VAT registration threshold is 375,000AED which is just below 89,000 €. He rents a‍ storage facility located in the UAE which he sublets on paper. He uses a made⁠ up sublease contract with an offshore company that says the company rents the storage facility⁤ from him as a virtual address. Income from renting out a permanent establishment in the⁣ UAE is taxable in the UAE (at 0%) according to all OECD double tax treaties.⁢ This way he can cash out 89000€ worth of crypto a year (he does the︀ same for his wife and his dad so 3×€89k/year actually) proving with the sublease contract︁ to his local tax man that he earns this amount completely legally with a 0%︂ tax.
 
You need to use OTC trading desk in order to cash out your crypto assets.‌ I recommend opening a Private wealth client account at Barclays in UK as they do‍ not tax for non-residents.

The other way is to use some kind of Family office⁠ to hide your details.
 
He stated multiple times throughout the thread that he doesn't‍ want to hide the income, but want's a way to be able to freely spend⁠ the funds under his name and be able to show something to the tax man⁤ where the funds are from that has a less than 10% tax should thay start⁣ asking questions.
 
That is indeed very interesting. So, I would effectively︄ be paying 0% total and be able to show source of income?
I suppose the︅ only expense will be the cost of renting that space though?
And establishing the other︆ offshore company that pays me the rent, or it will be a made up, non︇ existent one? And they will be paying me with crypto directly which Ill be cashing︈ out myself?

How about this.
A company of a friend who needs expenses pays my︉ HK company for consulting in crypto. Since this is foreign income for HK I owe︊ 0% income tax there. Then the HK company sells that crypto using business account at︋ an exchange and wires it to the company bank account. Then from that bank account︌ I wire it to my personal bank account as dividend and pay 5% dividend tax︍ in my country.

Only thing is Im not sure if Bulgaria has tax treaty with︎ HK, so far Im unable to find such online, which would be a shame.

Selling the crypto for cash is the⁠ easy part. I need a way to pay minimal tax on that income and report⁤ it so I can openly spend it.
 
Bulgaria DOESN'T have a DTA with HK.

Comprehensive Double Taxation Agreements concluded

Yes.

Yes.

You only have to show⁣ the tax man the sublet contract so the company that rents it from you only⁢ appears there as a name, and that's all. You don't have to establish one, you︀ have a HK one currently, haven't you?

Depending on how you cash out the crypto︁ to your local IBAN the tax authority will see something like the following: You have︂ received incoming wire transfer from a payment processor, lets say Mistertango. If they ask you︃ for the source of funds you provide the contract as proof. If they contact Mistertango︄ to provide data about your personal account with them, and they do they will only︅ see that you received bitcoins to your MT account won't they? So all they can︆ see is you provided a contract for source of funds that rhymes with your wire︇ transfer/MT data.

And it since Bulgaria DOES have a double taxation agreement with the UAE︈ renting a storage facility in the UAE creates a permanent establishment there, which make it︉ a business income that is taxable there (at 0%).
 
You my friend are a genius!

I doubt even a consulting agency would have come‌ with something better.
That's why I like internet forums!

By the way, do you think‍ someone might find suspicious the big different between the price which i pay to rent⁠ it and the major markup i have when subletting it?

Actually do I even need⁤ to rent a real space or just make the papers?

Ok that's quite a bummer BUT what if⁢ I get nominee director that is Chinese? That would fix that need to pay corporate︀ income taxes here in Bulgaria on the profit of that company since it will not︁ be deemed controlled from Bulgaria and I'll still owe only the 5% dividend?
 
I honestly don't know⁤ the answer to that question. You are the only shareholder? Ask a local accountant how⁣ Bulgaria treats dividend income from a non treaty country, and don't forget if it is⁢ considered a CFC by your local laws chances are likely you'll have to pay more︀ than 5%...

I wouldn't make the papers. It is always nice to be able to︄ show the tax authorities your original contract too that you rented it in a way︅ that allows you to sublease. Also you'll be able to provide a bank statement showing︆ you actually paid for it before renting it out.

A major markup is not a︇ problem.
 
I thought you were talking about millions but it seems 5 digit thing. It's not‌ easy to cash out 7 or 8 digits worth Crypto. I never trust nor use‍ an EMI account for this.
 
I can cash out 7,⁠ 8 digits but in this case I need to make it in a way where⁤ it is legal, i pay some minimal tax and can openly spend the money.

You don't have to cash out everything of course but would be nice to have few⁣ M clean income that can be proven and shown.
 
I think PwC can help you in this case. They can⁣ prepare this for you. DIY is hard. PwC also writes a letter that you can⁢ show to anyone.
 
I wonder why you are here on the forum and asking for all these questions‌ with so much money available! PwC or some of the other TOP 5 world accounting‍ firms should be the first and only stop for you in order to get help.⁠

What is the problem to spend 10 or 20,000 euro for consultancy and help with⁤ one of these if you have millions you can get clean??
 
@negon, check the title of the thread.
Obviously im looking to hire someone.

I wasn't even aware of PwC or that such white hat companies can do that kind‌ of consulting adequately.

Which are the top consulting firms that are appropriate for that kind‍ of consultations?
 
and why didn't you asked some of the posters here for advise if that is‌ what you are looking for? Alternative you could try Turner Little they advertise here even‍ with a fat banner 😀
 
PwC is not white hat. They are the grey hat. They do not advertise in‌ Public but you can see their work from Paradise papers.
 
You could write on their walls as many are doing here,‍ since it's not allowed to contact people around unless they are asking for it this⁠ is your best option. Or, you check signatures on the few around.
 
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