I'm a tax resident of Malta which is a territorial taxation country. I own a crypto portfolio and want to set up an offshore company and move my cryptos into this company. Any income or gains thereafter that are not remitted will be tax free and protected.
I did some research (before finding this site) and decided upon a Nevis company. However, it appears there may be better options for my needs. Im looking primarily for tax optimization and asset protection, but I want to do everything legally. I also want to set it up quickly.
My company will be involved in "staking" cryptos with the earned cryptos being sold on reputable exchanges for fiat and transferred into the company bank account. Ive been informed the major exchanges: Binance, Kraken etc. accept Nevis companies. I can get a bank account for my Nevis company. While my company wont have a physical office in Nevis, Nevis bank account, or remit any income to Nevis, Im unsure if I my company will have to pay CGT or tax on the disposal of the cryptos for two reasons:
1. My company earning income through staking cryptos may not be opertaining in Nevis, but its not operating in any country specifically such is the nature of the enterprise. Therefore Im not sure if by law its required to designate a country.
2. According to Deloitte, Capital gains are not subject to tax unless the asset is sold within one year of purchase. My company will sell cryptos held for less than a year so Im not sure if CGT would apply.
I think both these scenarios are very unlikely, but I thought I should also consider other options with guaranteed zero corporate tax to negate them entirely. Alternatively, I also like the look of Belize: cheap, popular and rapid set up time.
Additionally, I am in the EU and I think their laws changed last year regarding offshore companies and Im not sure how this affects me. I got this response from my accountant in regards to assisting me in transferring my assets to the offshore company: " If I advise on offshore jurisdictions, as these are black listed non-cooperative jurisdictions, I would need to report any advice to an EU database and this will be shared among all EU Member States". I havent asked him to elaborate on why this but it also sounds alarming. Perhaps someone can provide guidance on how personally held assets by EU residents are sold into offshore companies, or does that depend on the location and company?
I did some research (before finding this site) and decided upon a Nevis company. However, it appears there may be better options for my needs. Im looking primarily for tax optimization and asset protection, but I want to do everything legally. I also want to set it up quickly.
My company will be involved in "staking" cryptos with the earned cryptos being sold on reputable exchanges for fiat and transferred into the company bank account. Ive been informed the major exchanges: Binance, Kraken etc. accept Nevis companies. I can get a bank account for my Nevis company. While my company wont have a physical office in Nevis, Nevis bank account, or remit any income to Nevis, Im unsure if I my company will have to pay CGT or tax on the disposal of the cryptos for two reasons:
1. My company earning income through staking cryptos may not be opertaining in Nevis, but its not operating in any country specifically such is the nature of the enterprise. Therefore Im not sure if by law its required to designate a country.
2. According to Deloitte, Capital gains are not subject to tax unless the asset is sold within one year of purchase. My company will sell cryptos held for less than a year so Im not sure if CGT would apply.
I think both these scenarios are very unlikely, but I thought I should also consider other options with guaranteed zero corporate tax to negate them entirely. Alternatively, I also like the look of Belize: cheap, popular and rapid set up time.
Additionally, I am in the EU and I think their laws changed last year regarding offshore companies and Im not sure how this affects me. I got this response from my accountant in regards to assisting me in transferring my assets to the offshore company: " If I advise on offshore jurisdictions, as these are black listed non-cooperative jurisdictions, I would need to report any advice to an EU database and this will be shared among all EU Member States". I havent asked him to elaborate on why this but it also sounds alarming. Perhaps someone can provide guidance on how personally held assets by EU residents are sold into offshore companies, or does that depend on the location and company?
