Offshore Company Options for Bitcoin Trading?

[CoinBoss]

Hello guys! I'm looking to set up an offshore company to trade crypto without having to pay taxes. I'm currently based in the UK but will move to the US in a year, so anything I set up needs to be legit in both countries. I'm doing this to save tax, not to hide anything.

1) I heard that Belize would be a good place to set this up, or are there any better alternatives?
2) Is there a safe way to store large large amounts of USD (500k+) if I want to cash out, wait, and then buy back at lower prices? Usually buying US treasury bills is one of the safest options, but not sure if that's possible from Belize?

Thanks, any hep is much appreciated!!

 

[JohnLocke]

Welcome aboard 🙂

1) IT's an option, you may look into St. Kitts as well as Puerto Rico as alternatives.
2) You may check with trading platforms like Kraken to check which countries they accept. Most often Cyprus as an EU low tax jurisdiction works if everything else fails.

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[negon]

CoinBoss said:
1) I heard that Belize would be a good place to set this up, or are there any better alternatives?
Click to expand...

What would be wrong with Belize, it works most often fine with the bitcoin exchanges around.

 

[diablo]

I own a Seychelles and a Belize Company both setup with several EMI's Works just great for my crypto setup.

 

[CoinBoss]

I had some advice from a CPA and offshore companies do not have an advantage for crypto traders as the company is seen as a CFC and any income is taxed as "subpart F income" in the US.

 

[diablo]

CoinBoss said:
I had some advice from a CPA and offshore companies do not have an advantage for crypto traders as the company is seen as a CFC and any income is taxed as "subpart F income" in the US.
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That's nonsense, there are benefits as crypto does not require any license! Any CPA that tell you something different does not know what the hell he is talking about or simply want to upsell something!

 

[CoinBoss]

@diablo Could you explain what license you refer to? I assumed that any 'controlled foreign corporation' would have to pay tax no matter what.

Can you recommend anyone who I could talk this through in more detail? Please PM me if you like.

Thanks for your help!

 

[lostman]

No, if you setup the entire think say in Belize, Seychelles, St. Kitts etc. you won't have to pay a single penny tax from the earnings!

 

[CoinBoss]

I still don't understand why this would not be seen as a 'controlled foreign corporation (CFC)' (assuming it's done legally of course)?

"The CFC structure was created to help prevent tax evasion, which was done by setting up offshore companies in jurisdictions with little or no tax, such as Bermuda and the Cayman Islands, historically."
Controlled Foreign Corporation - CFC

The article says the same as the tax advisor I asked, i.e. there no longer is any point in setting up an offshore company unless you're a big business with lots of shareholders. The new US tax laws are also designed to encourage companies to declare profits in the US rather taking them offshore.

I really appreciate all the help from everyone on this forum! I order for me to consider an offshore company, I would however need more than people just saying "it works, believe me". If you could point me in the direction of some credible sources, articles or advisors that have experience with this that would be very helpful. Thanks!

 

[diablo]

CoinBoss said:
The article says the same as the tax advisor I asked, i.e. there no longer is any point in setting up an offshore company unless you're a big business with lots of shareholders. The new US tax laws are also designed to encourage companies to declare profits in the US rather taking them offshore.
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for US Citizens I agree, there is no way out of the tax hell! You get taxed on Worldwide income so for Crypto Currency! Only way out of it is to setup something fake!

 

[CoinBoss]

Thanks for being honest!

 

[GCE]

Hello, @CoinBoss !
There is a certain way around the CFC. Not all countries around the world have implemented such legislation.
Belgium, Bulgaria, Cyprus, Croatia, the Czech Republic, Ireland, Luxembourg, Poland, Romania, and Slovakia for instance do not have rules on international tax laws enforced.
Theoretically if you are citizen of one of these countries in EU (or Malaysia, Colombia, Chile, Mauritius out of EU) you won't be required to declare ownership on foreign entities, thus you can freely manage your offshore setup.

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[Spinat]

GCE said:
Hello, @CoinBoss !
There is a certain way around the CFC. Not all countries around the world have implemented such legislation.
Belgium, Bulgaria, Cyprus, Croatia, the Czech Republic, Ireland, Luxembourg, Poland, Romania, and Slovakia for instance do not have rules on international tax laws enforced.
Theoretically if you are citizen of one of these countries in EU (or Malaysia, Colombia, Chile, Mauritius out of EU) you won't be required to declare ownership on foreign entities, thus you can freely manage your offshore setup.
Click to expand...

What does that mean, sorry stupid question! But If I'm a Citizen say from Cyprus, and want to setup a offshore company in Seychelles, then I don't have to pay tax from the profits made in the Seychelles corp?

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[Spinat]

OP did you actually find a good place for your crypto Exchange business or are you still looking for something?

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[GCE]

blueweb said:
What does that mean, sorry stupid question! But If I'm a Citizen say from Cyprus, and want to setup a offshore company in Seychelles, then I don't have to pay tax from the profits made in the Seychelles corp?
Click to expand...

Correct. As long as Cyprus doesn't have CFC rules enforced you won't be required to declare ownership of offshore companies. Thus all the profit of these entites remained no-taxed.

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[suzy]

CoinBoss said:
1) I heard that Belize would be a good place to set this up, or are there any better alternatives?
Click to expand...

Belize is great for this type of business! Actually I would say most jurisdictions are perfectly fine. It is most often not the company and location that will bring you trouble it is most often the banking you will need for the entity!

 

[void]

GCE said:
Correct. As long as Cyprus doesn't have CFC rules enforced you won't be required to declare ownership of offshore companies. Thus all the profit of these entites remained no-taxed.
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this is not true - at least not for Slovakia nor Czech Rep, not sure about others from your list
any company (world wide) will be taxed in these countries if controled from there

 

[GCE]

@void , it depends on the DTT applicable between both countries.
Each case is individual but specifically on these countries with effective CFC rules domestic taxation on controlled foreign companies cannot be evaded.

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[Me2]

Hello Diablo, which provider helped you to open in seychelles,i just need recommendation .When opening do i have to tell the company that i opening a crypto business?

 

[theogimm]

Diablo also what EMI do you use along with your Belize corperation for crypto?
Thank in advance