EMI beginner questions

[Bartos]

Apologies for the dumb question/s. Most discussion on here is from people who are already across the basics of EMI.

Why do most people use an EMI?

- Because it's easier to set up (less docs required)?
- Unable to get a trad bank account considering the business they are in?
- Privacy?
- Speed of transfer?
- Borderless banking?
- Fan of the technology?
- Better security than local banks?

Can someone please elaborate why many use EMI's?

 

[void]

Remote opening and no CRS reporting are probably the biggest advantages over banks - others may see it differently though.

 

[Bartos]

So you can essentially hide money from your Govt? How do you spend it? Obviously anything with electronic payment, but what if you want to buy a car? Apologies for being a dumb-a*s.

 

[void]

So you can essentially hide money from your Govt?

Nowadays and with most EMIs yes. In future probably not.
Some people also don't trust EMI providers that they are not reporting even if they declare it - it's your decision to make.

How do you spend it? Obviously anything with electronic payment, but what if you want to buy a car?

Like with any other account - make wire transfers, use your card or withdraw money from ATMs. No magic.

 

[TurnedToRobot]

You can use an EMI the same way as you do with your local bank account. The reason for why people look into EMI's at all is that they can't get an offshore account. Some people around here say it is not reported what you have in there, I doubt that is true, but it is another reason.

 

[bastard]

I agree with @darkster I was in same situation for one company

 

[robotoa]

You can use an EMI the same way as you do with your local bank account. The reason for why people look into EMI's at all is that they can't get an offshore account. Some people around here say it is not reported what you have in there, I doubt that is true, but it is another reason.

which EMI is most reliable?
and why you doubt they don't report income?

 

[barnabas]

Do EMI's give you a card?

 

[mike123456]

For your information Leopay (via Satabank) & iCard are reporting the EU citizens. I've been reported in 2016 and 2017. So be careful if you are a EU citizen. I closed all my accounts...

 

[JohnLocke]

That's what I fear would pop up here on the forum. I didn't trust this bank which started out to be an EMI or at least trusted by the majority here on the forum.

For your information Leopay (via Satabank) & iCard are reporting the EU citizens. I've been reported in 2016 and 2017. So be careful if you are a EU citizen. I closed all my accounts...

 

[Silvio]

For your information Leopay (via Satabank) & iCard are reporting the EU citizens. I've been reported in 2016 and 2017. So be careful if you are a EU citizen. I closed all my accounts...

Wow, and what were the implications? You actually got a letter from your local tax office?

Thanks for sharing

 

[mike123456]

Yes correct. I got a letter from the local tax office explaining that they had received information about my accounts held abroad through the CRS information exchange process.
I even received a link where I saw all details about my accounts (IBAN, amounts per account, country of origin...)
I just declared those accounts to the authorities and till now no news or issues. After information they want you to declare these accounts because it’s the law but I’m not sure they will tax you for that. I think it’s case by case. Nevertheless I closed my accounts! We never know...

 

[JohnLocke]

LeoPay is registered as a real bank and not a EMI as far as I know for that reason you should have expected them to report you.

 

[mike123456]

Ok I didn’t know to be honest with you. And Paysera? Have you any idea? Thank you!

 

[kkein]

Where's iCard from? I mean, before your local tax authority gets the notification, to which tax authority of "theirs" do they send it?

 

[reesek]

it is always sent to your residential country
so if you can change your residence for more than 6 months per year you will change your tax residency and thus reporting

 

[kkein]

it is always sent to your residential country
so if you can change your residence for more than 6 months per year you will change your tax residency and thus reporting

Can, again, someone confirm this dubious info? This is not how it works AFAIK (Common Reporting Standard - Wikipedia). Institutions have to report info to their local tax authority which will then forward the data to the authority of the customer's tax residency.

 

[reesek]

There are two strategies to hide clients from CRS: Use a fake weakness or exploit a real loophole

I. Fake a weakness It's astounding how many FIs misinterpret the CRS, incorrectly concluding it's a legitimate loophole.

www.linkedin.com

 

[justnew]

- Because it's easier to set up (less docs required)?
- Unable to get a trad bank account considering the business they are in?

that's the two main points for me to go for EMI's. traditional bank accounts we know are complicated and almost impossible to setup