2 Friends in Bulgaria and Dubai :))

[mandarine]

Hi all, my first post hurray!

I work as a freelancer, living in an EU country...
Which is better of the 2:

1. Payments are sent to my good friend in Bulgaria, I pay for him the taxes.
He sends me a credit card in his name so I can withdraw cash and pay in-store in the EU

2. Payments are sent to my good friend in Dubai - he has no taxes to pay.
He sends me a credit card in his name so I can withdraw cash and pay in-store in the EU

Thank you, smart people!

 

[i888]

If they send you a debit card and don't run away with those money, yeah they are good friends.

 

[mandarine]

If they send you a debit card and don't run away with those money, yeah they are good friends.

Hah, those are few of my good friends

 

[avalanche]

Hi all, my first post hurray!

I work as a freelancer, living in an EU country...
Which is better of the 2:

1. Payments are sent to my good friend in Bulgaria, I pay for him the taxes.
He sends me a credit card in his name so I can withdraw cash and pay in-store in the EU

2. Payments are sent to my good friend in Dubai - he has no taxes to pay.
He sends me a credit card in his name so I can withdraw cash and pay in-store in the EU

Thank you, smart people!

You would open yourself to risk of being accused of stealing the card, unless your friend signs a document where he explicitly allows you to use his card. Some shops may also require you to prove the ownership of the card or sign the receipt.

Also if you open freelancing account under your friend's name you may open yourself to identity theft claims

 

[mandarine]

You would open yourself to risk of being accused of stealing the card, unless your friend signs a document where he explicitly allows you to use his card. Some shops may also require you to prove the ownership of the card or sign the receipt.

Also if you open freelancing account under your friend's name you may open yourself to identity theft claims

You are right, thanks for sharing your ideas...

He will surely be familiarized with the agreement with the company, and he will sign it...

As for that approval for me to use his card...yes I can ask him to do it too...

 

[Vampp]

You could open a Belize IBC, open a Transferwise account on the entity and spend money as much as you would like, all company paid. Sure most countries will make you pay tax on company gifts. I'm not even sure how we allowed them to get to this point.
You can even open a Wyoming LLC and possibly do the same ( i'm not 100% sure about this, i'm documenting on this to put savings on that LLC for Robinhood ).

At this time it still works to mingle between continents, if you are European get some US cards or Asian cards or vice versa. They brag about everything communicating and such but they are far from there, nonetheless take extra caution, split your money.
Under 5k a month ( any currency ), nobody will search for you.

 

[GPT]

None of the above.

Setup a managed company in Dubai and be "hired" as an employee with a company credit card for expenses.

Depending on where you live (or how long you stay somewhere) you might still end up paying income tax. If you are constantly traveling then not so much of an issue. If you physically do work in the country where you reside and route money via an offshore country then you are evading taxes.

What you want is not impossible. It requires thought and following strict rules. Are you able to abide by those rules?

 

[Vampp]

@GPT , yes indeed you are right, but think of it like this:

1. It's 10k a month or under - I'm not sure there is a sane sort of IRS in any country that will investigate someone for that sum.
2. If higher, it all depends what you do with your money, do you plan to buy a sports car? Do you want to brag with expensive sports or items? This is what usually attracts unwanted eyes.

Personally I know folks in Romania, sitting well over 10M, that have a modest lifestyle (nice apartment, a stylish cabin, some studios they rent ) and nobody ever knocked on their door.
Well for a country like Romania ( like most Eastern Europe ), communisms felt 30 years ago, for 2 years we did not even had laws, until the constitution was copied from the France socialists. We have to declare our income started since 2018, nobody knows from who or from where.
For example sake, if I had 10M cash, with no bank traces to myself, I could state my Grandmother left me this money, she could have got coffee, jeans, stereos, TV's etc. after the communism felt and it wasn't a crime. Unfortunately she died and left me the suitcase. If she did the money from 1990-1992 there was basically NO LAW in order, we didn't even had a constitution. Only by late 2004 we started having import taxes and fees etc.

Ex communist countries ( Romania is still a communist country in most ways ), do have the "Us against them" ideology. Meaning they tacitly accept and promote TAX evasion.

 

[GPT]

@Vampp

1. In some parts in Romania an average monthly salary of 300-500 euro is common. 10k is then definitely a lot. Where does your 10k come from? If you refer to it as the amount you that is allowed to take with you when traveling without reporting then clear. If it is the amount that doesn't cause any triggers when depositing or using for cash payments. Keep up with what is going on. Besides Italy there are more EU countries that have lowered the amount for cash transactions and or deposits. If im not mistaken Italy has 3000 right now.

2. And if you want those things... Not an issue if planned properly. The biggest problem is that most people think they have money and are not willing to set up correctly. The result being unhappy clients and bad reps for offshore providers because they weren't asking the right questions to begin with, and probably don't even know the right questions to ask.

Rule of thumb; live >180 days in any country? accept the taxes of the country of choice. You can mitigate them if, and only if, you structure properly. If you are flexible (no fixed residency) then you can get to zero income tax if you structure properly.

All the other options are on the edge of avoidance and evasion where in many EU countries avoidance is treated the same as evasion. In most countries that is now a criminal offence (except in Switzerland).

 

[JimBeam]

In both cases, the bank my ask details about the origin of the funds especially if the sums are larger and you are a new client.

If you are performing some kind of work (for eg. freelancing, trading etc) and you're doing that without a proper license in Dubai, your friend might get into trouble (at least that's what what I have heard, not sure if it's correct).