Best Structure for Crypto Trading

[blancmon229]

1. What are the best low-tax structures to trade crypto using personal funds? (EU citizen, I can move my place of residence.)

2. Is it preferable to trade on personal name or for a little more privacy and so that I can take dividends, just set up a company?

3. My options are the following (please correct or elaborate):

A. Trading in UAE on personal name. (Might be difficult with banking)
B. Cyprus LTD 12.5% + non-dom for the dividends. (maybe crypto to crypto transactions is ok under non-dom?)
C. Bulgarian Company CT 10% - 2.5% deduction = 7.5% effective tax. Dividends can be tax free if under Cyprus non dom or just pay 5% Bulgarian.
D. US LLC (disregarded entity??) + some territorial taxation country: Malaysia, Thailand

Please lmk.

 

[wellington]

Thailand - Overseas Company [Owner] - trades occur under company, dividends paid to you overseas, redeem in following tax year into Thailand (tax free).

 

[Mercury]

2. Is it preferable to trade on personal name or for a little more privacy and so that I can take dividends, just set up a company?

To me, as a sole trader residing in Thailand and as long as you are able to find banks (outside of TH) that accept fiat transfers from crypto exchanges/platforms, the tiny added benefits of a company don't compensate the costs and most importantly the administrative maintenance burden.

Privacy? Unless you plan to transact only with cryptos, crypto cashed out money will eventually flow into a bank account in your name.

 

[blancmon229]

Thailand - Overseas Company [Owner] - trades occur under company, dividends paid to you overseas, redeem in following tax year into Thailand (tax free).

A. Any specific jursidiction for the overseas company (US LLC?) ?

B. How hard is it to get a residence permit now that the Thai Elite is changing?

C. If you were to send the money to a Thai bank account from your overseas bank acount,are the banks in Thailand safe enough hold large balances in? What is the max you would hold in a Thai bank? What banks are ok?


If anyone has any other structure that isn't Thailand, please share.

 

[AtMo]

I'm considering setting up a UAE company+ UK LLP, UK LLP fully owned by the UAE FZ, and I, use the UK LLP to get EMI to trade crypto and pay 9% CIT in UAE.

Also considered the Thai Elite option before, but Thai Elite is only a visit visa and I think after all there is a chance your citizenship country may claim tax on it.

 

[CyprusLawyer101]

It currently appears possible to trade crypto through a Cyprus company at 0% corporate tax and 0% dividend wht tax, but you will still have to work around the anti - avoidance rules of your country of residence.

 

[AtMo]

It currently appears possible to trade crypto through a Cyprus company at 0% corporate tax and 0% dividend wht tax, but you will still have to work around the anti - avoidance rules of your country of residence.

This seems promising, if I form the Cyprus company 100% owned by UAE FZ, should I just pay the 9% UAE tax, and get the benefit of banking with Cyprus company?

 

[blancmon229]

It currently appears possible to trade crypto through a Cyprus company at 0% corporate tax and 0% dividend wht tax, but you will still have to work around the anti - avoidance rules of your country of residence.

Interesting. Can you give an example of where the Cyprus company would avoid the 0% CT and 0% dividend tax?
What is the most common place of residence to set up to for the anti-avoidance and to insure 0% CT and dividend tax?

 

[CyprusLawyer101]

This seems promising, if I form the Cyprus company 100% owned by UAE FZ, should I just pay the 9% UAE tax, and get the benefit of banking with Cyprus company?

You shoukd be able to find a bank for the CY company. In what you are suggesting , the UAE co would recieve dividends from the CY co and dividend income should not fall under the 9% corp tax in UAE, but should be exempted - a local professional should be able to confirm this. Also why are you insisting on a UAE hold co and not own the CY co directly?

 

[wellington]

A. Any specific jursidiction for the overseas company (US LLC?) ?

B. How hard is it to get a residence permit now that the Thai Elite is changing?

C. If you were to send the money to a Thai bank account from your overseas bank acount,are the banks in Thailand safe enough hold large balances in? What is the max you would hold in a Thai bank? What banks are ok?


If anyone has any other structure that isn't Thailand, please share.

Resident Permit? - you mean Visa? Simple there's many avenues for visa's, as for Elite i understand (based on their coms to me) its rising by 30% approx.

Residence is kinda unofficial, you get a Residence Certificate from Immigration any time, obviously after 183 days (standard) that makes you tax liable for income earned that year - redeemed into Thailand (bank transfer, crypto to fiat etc).

Thai banks had a few issues in the UK Steel industry, they've recovered most of those losses if not all, by pushing up ATM withdrawals to 30 THB, or Deposits (same bank different region - fee) or Overseas card withdrawal 220 THB.

Otherwise banks are protected up to 1mTHB.

With Elite the Thai Gov/Elite with organise Kasikorn to open a THB, EUR, USD, HKD, SGD account for you if you want one.

As for Overseas company, Thailand is territorial based - so basically it taxes income in Thailand not outside of it, so a structure outside of it takes it outside of the teriritorial tax collection, they are not likely to change that due to the sheer amount of money flowing in from retired people, in addition it keeps currencies flowing in from the West (central bank collects $EPounds etc ewhich they use to strengthen / weaken the baht).

 

[blancmon229]

Amazing info.

What about off-ramping crypto in Thailand? From what I heard, it seems easier to do in Cambodia.
How would it be done in Thailand, through exchange or OTC?, and what are the KYC requirements & limits?

I have no problem providing them SoF or KYC , just for safety in Thailand better avoided if possible.

 

[Mercury]

What about off-ramping crypto in Thailand? From what I heard, it seems easier to do in Cambodia.
How would it be done in Thailand, through exchange or OTC?, and what are the KYC requirements & limits?

There are exchanges in Thailand such as Bitkub or Binance (P2P) to on/off-ramp crypto.
However by doing so you will have to declare capital gains and be liable to personal income tax (up to 35% when taxable income > 5M THB).
Even if tax law enforcement is low, it's safer to off-ramp abroad and remit money in TH the following year(s).

 

[zzzzzz]

I'm considering setting up a UAE company+ UK LLP, UK LLP fully owned by the UAE FZ, and I, use the UK LLP to get EMI to trade crypto and pay 9% CIT in UAE.

Also considered the Thai Elite option before, but Thai Elite is only a visit visa and I think after all there is a chance your citizenship country may claim tax on it.

Type of permit doesn't matter (work, retirement, study, privilege entry, residence permit, illegal migrant...). For tax (non)residency all it matters are your residential ties & time spent.

 

[blancmon229]

There are exchanges in Thailand such as Bitkub or Binance (P2P) to on/off-ramp crypto.
However by doing so you will have to declare capital gains and be liable to personal income tax (up to 35% when taxable income > 5M THB).
Even if tax law enforcement is low, it's safer to off-ramp abroad and remit money in TH the following year(s).

Thank you. In that case I agree it is probably better to off-ramp somewhere else.

 

[Meta]

Amazing info.

What about off-ramping crypto in Thailand? From what I heard, it seems easier to do in Cambodia.
How would it be done in Thailand, through exchange or OTC?, and what are the KYC requirements & limits?

I have no problem providing them SoF or KYC , just for safety in Thailand better avoided if possible.

Can't comment regarding taxes, but exchanges themselves are fine. Weird security features, but work fine. Transfers to local bank accounts. Cheap, fast, good limits, no SoF nonsense questions at all. The same for banks. You would not be able to transfer money internationally though, capital controls in Thailand prevent this. So only suitable for funds to be used in Thailand + expenses by bank card.

 

[blancmon229]

Can't comment regarding taxes, but exchanges themselves are fine. Weird security features, but work fine. Transfers to local bank accounts. Cheap, fast, good limits, no SoF nonsense questions at all. The same for banks. You would not be able to transfer money internationally though, capital controls in Thailand prevent this. So only suitable for funds to be used in Thailand + expenses by bank card.

Thanks. I forgot about the capital controls. There are probably ways around it but that's annoying to deal with.

 

[skizzard22]

Just FYI, from my understanding of it(not an accountant), Thailand is changing the tax law as of Jan 1, that any money remitted into Thailand will be taxable regardless of when it was earned if you are a tax resident.

 

[wellington]

Just FYI, from my understanding of it(not an accountant), Thailand is changing the tax law as of Jan 1, that any money remitted into Thailand will be taxable regardless of when it was earned if you are a tax resident.

Except for those of us grandfathered in yes

We can continue to bring savings in tax free