Any good setup for crypto developer in Portugal NHR or any Western EU?

[cryptocreat0r]

I am planning to move to Portugal, Portu via golden visa and incorporate two projects:

1. product company (VC-funded)
2. service company, solving different engineering tasks in crypto for different companies, not only for (1)

My team is small, but decentralized and living in different countries. I need your advice on the best setup. Interesting in tax optimization (not tax avoidance).
I heard, good ways are Malta for (1) and Romania or Madeira for (2). Is it working?

 

[CaptK]

UAE, Malta Montenegro and Romania are good.
The definition of NHR is that you don't undertake any work and you purely live of dividends and rent produced in other countries.

If you are actively consulting and they find out you will be hit with the tax and a fine.

 

[cryptocreat0r]

I consulting too, but the sense is the team is really decentralized and does work from other countries. So, you consider, no benefits from NHR in my case?

 

[CaptK]

I consulting too, but the sense is the team is really decentralized and does work from other countries. So, you consider, no benefits from NHR in my case?

You actively advertise, source and delegate to the team that's not allowed.

NHR is for people who have built up a business but other people run it you simply oversea the work as a chairman and have a board who do the day to day.

Whether they check or not is a lottery you could get lucky. With the debt the EU is in and every country looking for money they will be looking at the HNW first.

 

[Don]

I am planning to move to Portugal, Portu via golden visa and incorporate two projects:

1. product company (VC-funded)
2. service company, solving different engineering tasks in crypto for different companies, not only for (1)

My team is small, but decentralized and living in different countries. I need your advice on the best setup. Interesting in tax optimization (not tax avoidance).
I heard, good ways are Malta for (1) and Romania or Madeira for (2). Is it working?

If I were you, I would use multiple entities in different jurisdictions for tax-optimization and hedging certain risks.
There are definitely many things to consider here, such as:

1. Being decentralized, I assume your team is mainly working on a B2B arrangement. You might want to at least try to hedge the risk of the "independent contractor" relationships being misclassified.
2. Funding - How is it organized? And what amounts are we talking about? It's best to raise funds in the most tax and cost-efficient jurisdiction for yourself and the investors.
3. Where to register the intellectual property?
4. It would help if you shared a bit more information about the product to give meaningful advice.
5. Would you consider moving to other countries as well besides Portugal?

 

[cryptocreat0r]

If I were you, I would use multiple entities in different jurisdictions for tax-optimization and hedging certain risks.
There are definitely many things to consider here, such as:

1. Being decentralized, I assume your team is mainly working on a B2B arrangement. You might want to at least try to hedge the risk of the "independent contractor" relationships being misclassified.
2. Funding - How is it organized? And what amounts are we talking about? It's best to raise funds in the most tax and cost-efficient jurisdiction for yourself and the investors.
3. Where to register the intellectual property?
4. It would help if you shared a bit more information about the product to give meaningful advice.
5. Would you consider moving to other countries as well besides Portugal?

1. Yes, we are going to build different companies in different countries. Also, our service company will not have contracts only with a product company, but with the others (not mine) too.
2. We have a strong limitation of jurisdiction because of the product specifications. So, no Asia, Middle East, USA, or Latin America.
3. We do not need to do it
4. We develop a novel cryptographic protocol for blockchain
5. Yes. But it should be a developed country in Europe

 

[Don]

1. Yes, we are going to build different companies in different countries. Also, our service company will not have contracts only with a product company, but with the others (not mine) too.
2. We have a strong limitation of jurisdiction because of the product specifications. So, no Asia, Middle East, USA, or Latin America.
3. We do not need to do it
4. We develop a novel cryptographic protocol for blockchain
5. Yes. But it should be a developed country in Europe

I have some setups in mind connected to Cyprus. On top of the tax benefits, it's also the perfect jurisdiction for fundraising through Security Token Offerings, which you can do up to EUR 5M unregulated. With the IP box regime, you could possibly reduce the corporate tax to 2.5%.

 

[cryptocreat0r]

And how is it going in San-Marino? 4 years tax-free for IT companies and 5% dividends tax seems to be good for a service company.

Are there any CFC rules for San-Marino residents? I mean product company, I am going to incorporate in on Caymans.