Revolut - Address Proof?

[Tommy1981]

Hello! So I'm a resident in Hungary. I have been able to set-up a company in Gibraltar. I'll be doing business with UK companies (selling online generated customer leads). Expected turnover £150k-£200k/month due to very good experience in this area and good contacts.

As an EU citizen I've set-up a business bank account with Business revolut. They are asking for proof of operating address? Does anyone know how to go about this - e.g I will be working from home, it's a non-resident company. But will it matter to them? Or better to set-up an office in say Gibraltar and use that - I can travel back and forth and say I work from there as an EU citizen!!

Anyone know how to best approach this? Will they dislike it if operating address is my home address?

Or are there better alternatives to revolut out there?

I would prefer revolut as love their personal cards and everything looks super easy

Thank you in advance!

 

[David97255]

There's alternatives to Revolut, you may have a look to mistertango and others
But about Revolut what about giving them a rental agreement?

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Scammed people on the forum!

 

[Tommy1981]

Thanks David

They're asking for proof of operating address - so invoice / bank statement which shows company name and address

not an issue to get an invoice, but do they want to see the gibraltar address or will any address in the EEA do? (like my home address in hungary)

I'll look into mistertango. as part of my business plans i'd be spending a good sum of money with google and facebook - so need to be able to spend on a card. Does mistertango have good daily card spend limits?

 

[happyjohn]

Tommy1981 said:
They are asking for proof of operating address?
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Is this difficult for you to get? usually it's just a utility bill you need to send them and good is?

 

[Martin Everson]

Tommy1981 said:
They're asking for proof of operating address - so invoice / bank statement which shows company name and address
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You opened a shell company in Gibraltar and now they need to know where your company is operating from. The company is transparent for tax purposes and you will pay taxes in Hungary where the place of operation is. You might as well have opened a Hungarian company as the tax treatment is the same - your completely wasted your time 🙁. Hopefully you did not open the company for tax purposes. thu&¤#

A corporation is resident in Hungary if incorporated in Hungary or if incorporated abroad its place of management and operation is in Hungary.

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

 

[blizz]

But if he can proof the operation, control and management is in Gibraltar he is home free and not taxed in Hungary am I right ange¤%&

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[Martin Everson]

blizz said:
But if he can proof the operation, control and management is in Gibraltar he is home free and not taxed in Hungary am I right ange¤%&
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Not under Hungarian CFC rules. He 100% wasted his time.🙁

According to the CFC rules, as from 18 January 2017, the following entities may qualify as a CFC:

Ӣ A foreign entity, if a domestic taxpayer holds a direct or an indirect interest exceeding 50% of the voting rights or the share capital of the entity, or is entitled to more than 50% of the profits of the entity; or
Ӣ A foreign permanent establishment (PE) of a Hungarian taxpayer.

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

 

[Tommy1981]

The plan now is to have a local director there and to employ 1 person at least or take on a freelancer. advice I was given was not the best in hinsight

I suppose i could move there if need be myself. there are significant savings (vat etc)

what I'm unsure about is why revolut ask this question - do they want to make sure there is a real operating home for the company (and they don't care where it is), or do they want to match the operating office and ensure it's in the same country as the incorporation country?

bearing in mind i'm an eu citizen here and the company is in the eu too - gibraltar.

does anyone know why this question is asked? it's a digital business so it's not really operating from any one place but i suppose the control / decision aspect is something i need to reconsider.

 

[Martin Everson]

Tommy1981 said:
The plan now is to have a local director there and to employ 1 person at least or take on a freelancer. advice I was given was not the best in hinsight
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The company will be taxed in Hungary no matter if you have 80 Gibraltar directors and 100 employees in Gibraltar. As I posted above the company ownership is in Hungary so will be taxed there period.

Tommy1981 said:
I suppose i could move there if need be myself. there are significant savings (vat etc)
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Gibraltar March 2019 will be outside the EU. Without a Brexit deal you are potentially moving from Hungary to a third country with all what that entails 🙁.

Tommy1981 said:
what I'm unsure about is why revolut ask this question - do they want to make sure there is a real operating home for the company (and they don't care where it is), or do they want to match the operating office and ensure it's in the same country as the incorporation country?
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Revolut use Lloyds bank in London. They need to know the place of operation of the company for compliance reasons. They want to know ultimately from where is the company operating i.e is it Gibraltar or Hungary or Afghanistan etc etc.

Tommy1981 said:
bearing in mind i'm an eu citizen here and the company is in the eu too - gibraltar.
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After March 2019 Gibraltar won't be part of EU.

Tommy1981 said:
it's a digital business so it's not really operating from any one place but i suppose the control / decision aspect is something i need to reconsider.
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Look up EU laws on delivery of digital services. I won't go into that here.

Tommy1981 said:
advice I was given was not the best in hinsight
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This is an understatement 🙁. I would consider cutting your loses now and throw the Gibraltar company in the bin rather than dig yourself further into a rabbit hole. Alternatively move country at end of tax year or simply pay Hungarian taxes thu&¤#.

P.S Gibraltar does not even have any Double Taxation Agreements why on earth did you choose Gibraltar?

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

 

[anticfc]

Martin Everson said:
The company will be taxed in Hungary no matter if you have 80 Gibraltar directors and 100 employees in Gibraltar. As I posted above the company ownership is in Hungary so will be taxed there period.
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Also the CIT isn't bad in Hungary!

That said, one option is to make use of some anti-CFC setup. You share ownership of an offshore / low-tax entity with others so you get less than 50% ownership. You lose control, you lose ownership. The trick is to use contract theory and game theory to keep the entity stable.

 

[Martin Everson]

anticfc said:
Also the CIT isn't bad in Hungary!
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Exactly corporate income tax in Hungary is just 9% 😱. If he has to make the Gibraltar company local to Gibraltar and Hungarian CFC compliant the CIT in Gibraltar its 10%. You do the maths on that one 😕

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[1nomad]

in Hungary is CIT 9% (for small companies), but VAT 27%

 

[Martin Everson]

1nomad said:
in Hungary is CIT 9% (for small companies)
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What do big companies pay?

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[1nomad]

IMHO big companies pay nothing...😉 it was 19%, but it seems that there's just 9% for all companies

 

[Martin Everson]

1nomad said:
it was 19%, but it seems that there's just 9% for all companies
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😉

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[anticfc]

Martin Everson said:
What do big companies pay?
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At a minimum, big companies package up most of what they do as intellectual property which is taxed at 4.5% in Hungary.

But that's just the start. Most of them pay 0.X% where X is a very small number.

 

[Martin Everson]

anticfc said:
At a minimum, big companies package up most of what they do as intellectual property which is taxed at 4.5% in Hungary.

But that's just the start. Most of them pay 0.X% where X is a very small number.
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Same all over the world if you know what you are doing.

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