Next move - CY/BVI

[boom123psy]

- Living in a high tax EU Northern country for the past 8 years (unregistered as a physical person)
- CY company
- BVI company
- The CY company invoices the clients in Northern EU
- The BVI invoices the CY company
- CY company pays tax on the remaining profits (not a lot)
- As a physical person I do not pay tax, nowhere.

Now with the DAC6 directives, the BVI maybe needs to go out of the scenario thus I am looking for alternatives.

scenario 1:
- I close BVI and create a company in UAE, the rest stay the same. The CY company revenue is a bit more than 100k yearly, so I am not sure this is the way to go

scenario 2:
- I declare my self as an employee in the CY and give myself a small salary (<20K year)
- Start declaring expenses on the CY company to increase my yearly allowance (currently company expenses are zero.)
- In the end, I will have a small pension out of this and have a valid TIN to declare when asked.

scenario 3:
- I try to find an a CY accountant that wont need to report the BVI transactions (DAC6)
- Keep the rest as the same and/or declare myself as an employee in the CY (as with scenario 2) but maybe this is a bit risky?

scenario 4:
- Following another member advice and create an UK LTD which will invoice the CY company and then invoiced by the BVI. I am not sure about this but it sounds complicated

something else?

Objectives:
- Become legal in EU and have some valid proof of assets for the future.
- Minimize the tax

Please for your comments/suggestions/proposals

 

[Martin Everson]

boom123psy said:
- The CY company invoices the clients in Northern EU
- The BVI invoices the CY company
- CY company pays tax on the remaining profits (not a lot)
Click to expand...

This falls under BEPS and is classic profit shifting to low tax jurisdiction 😕. Are you in control of the BVI and is BVI invoicing down at arms length from you?

I would seriously reconsider this strategy going forward.

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

 

[boom123psy]

Martin Everson said:
This falls under BEPS and is classic profit shifting to low tax jurisdiction 😕. Are you in control of the BVI and is BVI invoicing down at arms length from you?

I would seriously reconsider this strategy going forward.
Click to expand...

thank you for the answer. Well yes indeed, maybe its time to reconsider.

 

[CaptK]

If you require to have an EU Company then use a UK LLP.
If not then use then the move everything to the UAE, therefore you are good on all fronts.