I get it, but its a lot more money than just 24K per year ... and she's not a fan of her Italian bank ... so gotta research more options ... first is to understand if the brokers she likes will work with offshore banks ... or if it will have to be all crypto transfersYes and no
12K is a regular live in Ecuador, with 24K, you can have a good mid-class life.
You just need to take advantage of deductions, so you just pay around 300 USD each year
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Italian Friend living in Ecuador - Needing a reliable offshore personal bank
- Thread starter OCT2023
- Start date
The use of cryptocurrencies in Ecuador, as a means of payment, is prohibited . The only currency allowed for the purchase and sale of goods and services is the dollar. So why do Ecuadorians acquire cryptocurrencies? To have them as a form of investment because there is no legal norm that prohibits it.
Ecuatorianos, los que más compran criptomonedas en la región
After further research into this. If she trades personally, she'll be responsible for 10% Capital Gains Tax.
If she trades through an offshore company, she will not be subject to taxation as long as the company is the legal entity and her name does not show up as the owner.
So the question will be, based on where she can create an offshore company with 0% taxation and a decent corporate bank, will the money she makes off of investments that is taxable in Ecuador be more than the company formation and maintenance of an offshore company.
In this case, I think it might be that a company formation is worthwhile.
So, a few things:
1. Her Forex Broker only works with certain countries, so countries like Seychelles, BVI, etc will not be on the list.
2. The easiest way to move money around is with Crypto, so a crypto-friendly country/bank would be preferred.
3. If she is doing extremely well, she may want to open up investment services to friends/family or more.
Based on this ... I'm going to look into the Cayman Islands ... first as an Offshore Corporation for Personal Trading and then as an Offshore Corportation for a Segregated Sub-Fund.
If anyone has alternative ideas, they are more than welcome to share.
Well, I of course do not know what you have found in the meantime (I'm a little bit late to the party as sometimes...) but just a few remarks:
1) I have no clue who is the quoted Forex Broker, however if they do not like countries like Seychelles and BVI, I doubt they will like Cayman Islands.
2) To get “a decent corporate bank” for a newly established company at Cayman Islands is next to impossible. Nowadays.
3) I agree that a company formation is generally worthwhile (in a reasonable jurisdiction).
4) If she eventually wants “to open up investment services to friends/family”, it's highly recommendable not to mention it anywhere (including here perhaps with the exception of Mentor Group). (I presume she has no intention to do it formally, i.e. to get an appropriate licence/s/, establish KYC/AML/XXX teams, etc. etc.) It means, that the words “or more” should be totally forgotten
1) I have no clue who is the quoted Forex Broker, however if they do not like countries like Seychelles and BVI, I doubt they will like Cayman Islands.
2) To get “a decent corporate bank” for a newly established company at Cayman Islands is next to impossible. Nowadays.
3) I agree that a company formation is generally worthwhile (in a reasonable jurisdiction).
4) If she eventually wants “to open up investment services to friends/family”, it's highly recommendable not to mention it anywhere (including here perhaps with the exception of Mentor Group). (I presume she has no intention to do it formally, i.e. to get an appropriate licence/s/, establish KYC/AML/XXX teams, etc. etc.) It means, that the words “or more” should be totally forgotten
Thanks for the response, based on some professional feedback, I'm looking into Anguilla (No License Needed) and Flow Bank (No License Needed) for her. Anguilla qualifies for Flow Bank and they are working on a Debit Card program in Q3/Q4. But I've been pivoting almost every other day lol as I learn new information.Well, I of course do not know what you have found in the meantime (I'm a little bit late to the party as sometimes...) but just a few remarks:
1) I have no clue who is the quoted Forex Broker, however if they do not like countries like Seychelles and BVI, I doubt they will like Cayman Islands.
2) To get “a decent corporate bank” for a newly established company at Cayman Islands is next to impossible. Nowadays.
3) I agree that a company formation is generally worthwhile (in a reasonable jurisdiction).
4) If she eventually wants “to open up investment services to friends/family”, it's highly recommendable not to mention it anywhere (including here perhaps with the exception of Mentor Group). (I presume she has no intention to do it formally, i.e. to get an appropriate licence/s/, establish KYC/AML/XXX teams, etc. etc.) It means, that the words “or more” should be totally forgotten
You are welcome.
Do you have in mind FlowBank in Switzerland (https://www.flowbank.com)? (Honestly, I am hearing for the first time that they are open to onboard Anguillan company... but maybe everything is possible nowadays
)Yes, I contacted them and they are open to Anguillan Businesses ... he sent me a PDF of countries they accept. However, he did say that they might have problems working with Crypto Exchanges who want to exchange fiat. That's not really a problem as long as they accept the Forex Broker (HFM). (Additionally, they'll work with Panama it looks like).You are welcome.
Do you have in mind FlowBank in Switzerland (https://www.flowbank.com)? (Honestly, I am hearing for the first time that they are open to onboard Anguillan company... but maybe everything is possible nowadays
Well, really interesting. Thanks for sharing.
On condition that it was not marked as confidential, would you mind sharing it here?
Yes, understandable...
Here you go!
I'm doing this in reverse order, trying to find a reputable bank first, then creating the corporation .. its been interesting to say the least!
Extremely interesting. Thanks a lot, really appreciated. (Recommended reading for anyone willing to understand better what's behind the bank's door.)
This is my recipe for many situations, too...
Interesting how Seychelles is low risk, Belgium is blacklisted (on the same list as Liberia, Afghanistan, ...) and Gibraltar is listed under "others"
haha yes, it was Definitely not what I was expecting ... and for Anguilla to be "Medium" when its blacklisted on other lists was surprising as well.
that is the plan as a second account, prefer a Bank as Primary and an EMI as secondary
.......
I received word from Flag Theory (an offshore company creation firm) the following for Forex Trading:
additionally, for banking:
Yes, banking secrecy is over, unfortunately. However, I would not touch Revolut/Wise for such a business even with a 10 meter pole. For more detailed reasoning, look e.g. here If Wise is going to close accounts and is not the best, how diversify the money? (I think that my general attitude to Revolut/Wise is quite known here).
Thanks for sharing. As I see, the guys from Flag Theory are quite smart (I am looking mainly at the banking list, the first part is well-known). Probably I will check them in more detail
Super interesting, do you also have the rest of this document? Did they say anything else about crypto associations for business accounts?
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