Offshore company for my crypto trading outside of Europe

[landogarner]

Hello,

I (EU citizen living in Malta) have decided to create a company for my crypto trading activities (not my main source of income today) and to transfer all my crypto assets into that company.
Main reason are the EU traps becoming more serious every day.

My case becomes a bit more complicated as I would exclude some of the usual suspects as UAE / Dubai, Malaysia or Georgia as legislation for the entity. It should definitely be outside of the EU, better even outside of Europe.
Reasons for my exlusion are purely emotional and thus probably not clever but hey - I am human 😉
Reasons for excluding EU should be obvious.

Singapore would be too expensive for me. At this moment I am left with El Salvador, caribbean (Bermuda, Bahamas, BVI) or Hong Kong (also some headaches for the latter) from the list of "no crypto tax" countries.
However, I would ask for your advice trying to be as open minded as possible.

Taking residence in that country would be no option for me.

The jurisdiction should also be one that does not complicate the setup of company exchange accounts. Of course banking is important for a cash out and a subsequent use of the money.

Thanks in advance for your input !

 

[PhantomOf ThePits]

Hi,
As a Maltese resident trading actively, you're afraid MT tax office considers this activity as a business and hence you'd be liable to income taxes/social charges on that?

Cap gains in Malta if not remitted is tax free, but they may draw a line if your profits are much higher than your day job?

 

[landogarner]

Good morning.
My motivation for the question is not Maltese Tax but coming EU wealth register.
Frequent trading is taxable in Malta if executed from Malta. Only long-term holding gains are considered cap gains - similar to Germany and other countries.

 

[LegalConsultant]

landogarner said:
Hello,

I (EU citizen living in Malta) have decided to create a company for my crypto trading activities (not my main source of income today) and to transfer all my crypto assets into that company.
Main reason are the EU traps becoming more serious every day.

My case becomes a bit more complicated as I would exclude some of the usual suspects as UAE / Dubai, Malaysia or Georgia as legislation for the entity. It should definitely be outside of the EU, better even outside of Europe.
Reasons for my exlusion are purely emotional and thus probably not clever but hey - I am human 😉
Reasons for excluding EU should be obvious.

Singapore would be too expensive for me. At this moment I am left with El Salvador, caribbean (Bermuda, Bahamas, BVI) or Hong Kong (also some headaches for the latter) from the list of "no crypto tax" countries.
However, I would ask for your advice trying to be as open minded as possible.

Taking residence in that country would be no option for me.

The jurisdiction should also be one that does not complicate the setup of company exchange accounts. Of course banking is important for a cash out and a subsequent use of the money.

Thanks in advance for your input !
Click to expand...

Open company in Bulgaria, EU member, low regulations and can use the license for SEC all over the world. For more info, can reply or DM

 

[landogarner]

Thank you but I have pointed out : outside of EU

LegalConsultant said:
Open company in Bulgaria, EU member, low regulations and can use the license for SEC all over the world. For more info, can reply or DM
Click to expand...

Never thought about getting a license - as mentioned, I don't do this professionally.
Would you kindly give some further information about the benefits of such a license in my case (!!) ? And maybe about the disadvantages (compliance, paperwork) ?
Thank you

 

[PhantomOf ThePits]

landogarner said:
Good morning.
My motivation for the question is not Maltese Tax but coming EU wealth register.
Frequent trading is taxable in Malta if executed from Malta. Only long-term holding gains are considered cap gains - similar to Germany and other countries.
Click to expand...

In the past you could open BVI TradeCo and onboard with many Crypto Exchanges
Dont know if thats still the case.

However, if there's no substance in the BVI Malta may question Permanent establishment and hence you'd be taxed

Or you go easy route Malta TradeCo/CY HoldCo and have 5% effective tax rate if you pay out divs outside of Malta (I know not your preferred route, but maybe easiest if you'd plan to stay MT Tax reisdent)
But I dont know nowadays how easy it is to onboard Malta TradeCos with EXchanges keeping MICA Rules in mind...