Belize IBC for crypto trading and online-shops?

[Sombrero]

Hello Friends!

first of all, I am new to this forum and glad that I found a community like this

Actually I am confused about all the possibilities and advantages as well as disadvantages to register an offshore company, so it would be great if someone can pass me into the right direction.

I got really frustrated with the tax system and the regualtions in Germany. Furthermore I am kind of an pepetual traveller and I think about to cancel my permanent residency in Germany and to travel the world. I want to create a setup which allowes me to handle my business without a lot of paperwork, with low costs and low taxes. I work online as a web developer and a cryptocurrency trader and need an offshore company structure which supports my activity and allowes me to be flexible.

I am thinking about to register an Belize IBC for an online shop I am currently working on. I also would like to use this offshore company to trade cryptocurrencies. However I did not studied economies or tax consulting, therefore I would like to ask what I need to consider when I register an Belize IBC?

As far as I know this Belize IBC offshore company just makes sense when I quit my recidency in my home country, otherwise I get fully taxed. Sooner or later I need to register my permanent registry in another country, but how can I figure out which country works well with an Belize IBC company?

Best,
Sombrero

 

[Sols]

Forget about Belize. It's a garbage tier jurisdiction. Most banks won't touch it, very few EMIs will even tolerate it.

Forget perpetual traveller. That concept died years ago. These days, you need to have a tax residence somewhere, or else banks won't be comfortable taking you on. Cyprus is an easy choice for EU nationals, with low taxes and easy tax residence. In your case, could work well in combination with for example an Isle of Man company with local nominee director.

Look into German exit tax, speak with a tax adviser. And make sure you actually cut ties with Germany. You can't just "cancel" tax residence in Germany. You'll need to prove that you have moved somewhere else.

Two recent threads you might want to read:

Question - EU resident seeking optimal tax setup for corp/freelance work?

I am a SWE that is currently running my own company in the Nordics. But as most of you know the taxes here are extremely high (and the country is going to s**t, but that's another topic). I've been looking to move abroad and also optimizing my taxes along the way. In a optimal world I'd like...

www.offshorecorptalk.com

Question - Germans to Cyprus

@CyprusLaw , @CyprusLawyer101 My wife is working for a big german company. I want to emigrate from Germany, she will continue to live and work in Germany. If I move to Cyprus, deregister completely in Germany, and work there as a freelancer, what impact will this have on the German tax office...

www.offshorecorptalk.com

 

[Sombrero]

@Sols: Thanks for your answer and the links!

Actually I read about that before.. However as far as I know it is easy to register a bank account in Georgia, so I thought to use this bank account for my Belize IBC company. Maybe I am wrong and I can just use this bank account for personal banking. Anyways I am open for any other company structure, just trying to get more knowlege about the possibilities.

I dont need to pay german exit tax, because I dont have a german company at the moment (I have already deregistered my German company), so I start from scratch. When I wrote "cancel" tax residence in Germany I mean that I will deregistration my apartment in Germany and my independent tax number, which means the tax office is no longer responsible for me, no matter if I have another recidency or not, so I could do pepetual travelling. Anyways I like to have a permanent recidency just to prevent trouble and a lot of questions..

Can you please let me know why an Isle of Man company could be interting in my case? I am curious because I never read about that before.

The other option I think which could be interesting is to register a company in Marshall Island. I read that there is nearly no burocracy and it is an anonymous company structure, so they dont share informations with the country I got my permanent recidency. Is that a leagal structure or what else I need to consider for a company in Marshall Islands?

 

[Sols]

Actually I read about that before.. However as far as I know it is easy to register a bank account in Georgia, so I thought to use this bank account for my Belize IBC company. Maybe I am wrong and I can just use this bank account for personal banking. Anyways I am open for any other company structure, just trying to get more knowlege about the possibilities.

No bank in Georgia is going to open a bank account for a Belize IBC anymore, without a fantastic business case, preferably with ties to Georgia. Banks in Georgia have become a lot less lenient in the last couple of years.

Anyways I like to have a permanent recidency just to prevent trouble and a lot of questions..

Good. Having a place to call home will make things easier.

Can you please let me know why an Isle of Man company could be interting in my case? I am curious because I never read about that before.

Isle of Man is a fairly reputable jurisdiction. Manx companies are normally run by local nominee directors, who act on instructions from the UBO. This helps create a semblance of tax residence in Isle of Man for the company. Combined with you being tax resident in for example Cyprus but spending most of your time outside of Cyprus, you might be able to get away with 0% tax and little to no risk of Cyprus going after you.

A slightly safer and more sustainable method would be to form a Cypriot company, take the 12.50% tax, and sleep easy at night.

If Cyprus is interesting for being easy as an EU citizen to set up tax residence in, speak with a Cypriot tax adviser (some were mentioned in the earlier threads, including @CyprusLaw and @CyprusLawyer101).

The other option I think which could be interesting is to register a company in Marshall Island. I read that there is nearly no burocracy and it is an anonymous company structure, so they dont share informations with the country I got my permanent recidency. Is that a leagal structure or what else I need to consider for a company in Marshall Islands?

Marshall Islands is also garbage. Stop googling "anonymous offshore company no reporting". Those days are gone. The results you're getting are not aligned with the current state of the world.

It's extremely difficult to actually run a meaningful business through those types of old-fashioned offshore entities. Banks, EMIs, and PSPs don't want you. Some businesses don't want to work with you. It's much easier to go for a reputable setup.

Even if you were to find a bank or EMI for Marshall Islands company (which isn't impossible, you just might not enjoy your choices), they are still going to report you under AEOI/CRS. Corporate secrecy might still be alive and well in some part of the world, but banking secrecy is gone.

 

[CyprusLaw]

@Sols: Thanks for your answer and the links!

Actually I read about that before.. However as far as I know it is easy to register a bank account in Georgia, so I thought to use this bank account for my Belize IBC company. Maybe I am wrong and I can just use this bank account for personal banking. Anyways I am open for any other company structure, just trying to get more knowlege about the possibilities.

I dont need to pay german exit tax, because I dont have a german company at the moment (I have already deregistered my German company), so I start from scratch. When I wrote "cancel" tax residence in Germany I mean that I will deregistration my apartment in Germany and my independent tax number, which means the tax office is no longer responsible for me, no matter if I have another recidency or not, so I could do pepetual travelling. Anyways I like to have a permanent recidency just to prevent trouble and a lot of questions..

Can you please let me know why an Isle of Man company could be interting in my case? I am curious because I never read about that before.

The other option I think which could be interesting is to register a company in Marshall Island. I read that there is nearly no burocracy and it is an anonymous company structure, so they dont share informations with the country I got my permanent recidency. Is that a leagal structure or what else I need to consider for a company in Marshall Islands?

Thank you @Sols

Cyprus is indeed a safer option and one preferred by many Germans. I am happy to PM you to discuss this further

 

[Fred]

Hi @Sombrero ,

seems like you are on the very beginning of your Offshore Company Journey.

If you go deeper about this topic you will figure out that you find with a Dubai Company that grants you the local Dubai Residence Visa and therefore access to the local UAE retail banks exactly what you are looking for.

0% tax, no audit, no accounting requirements but access to decent reliable retail banks in the UAE - same like with a Belize IBC. Forget about a Belize IBC - the local Belize Banks are bullsh** or to say ot in words of an Mexican Client from us "Men Fred I'm Mexican and living next to Belize and not even I consider such a Sh*thole like Belize".

Feel free to contact me - even in German - to explore your options in Dubai.

 

[aage]

If you go deeper about this topic you will figure out that you find with a Dubai Company that grants you the local Dubai Residence Visa and therefore access to the local UAE retail banks exactly what you are looking for.

Would be possible for someone relocating to the Dubai to run a legitimated crypto business after the "crack down on cryptos" ?

 

[Fred]

Would be possible for someone relocating to the Dubai to run a legitimated crypto business after the "crack down on cryptos" ?

Can't see any "crack down on cryptos" in practice.

 

[aage]

We should be all fine proceeding with the setup in Dubai if that is what we want to do ?