Bulgaria vs Romania for a freelancer

[PinkCat]

Yes, I am done with my setup. Gibraltar company + Filipino director. I am barely starting but so far things seem fine.

I had created in the past another topic on why it is good to have a Filipino director: because if you don't have Filipino income (e.g. for crypto this means trading on Filipino exchanges), you have zero tax liability there, even if you have a Filipino director. No need to register or have any adiminstrative duties in the Philipines either.

But this is just as it is more affordable, I am sure BVI directors are amazing, the problem is most of them start at around 10K per year.

In terms of jurisdiction BVI would work just as fine as Gibraltar, probably even better. I went for Gibraltar just because I didn't like the communication of the Registered Agents on the lower price end in BVI. BVI also has less strict due diligence and administrative requirements.

Ok seems fine, 2 important things though.
1. Can the director screw you over in any way?
2. The most important and what made my offshore setup worthless, are you able to find banking for that setup?

 

[pastet89]

Ok seems fine, 2 important things though.
1. Can the director screw you over in any way?
2. The most important and what made my offshore setup worthless, are you able to find banking for that setup?

1. Theoretically you need to be careful and choose someone reliable, I am not sure about all the ways we could screw each other. But as far as my crypto is in my cold crypto wallets I see the biggest risk covered.

2. No and at this stage I don't need it. The withdraw route is dividend distribution in-kind (stables or other crypto) to personal wallet. Then from personal wallet sell on exchange to fiat and withdraw. But it's not that easier even with personal banking and crypto as we all know. So I don't see much bigger problem with the offshore setup anyway. Currently I don't need high amounts. In the future, AFAIK Turicum bank in Gibraltar should open a bank account for 200K deposit. Which is supposed to be still quite easier than BVI banking options which AFAIK are nearly non-existent. Bank Frick in Liechtenstein is supposed to open account for any offshore jurisdiction with crypto business, but I think it's very hard there if you don't have 7-8 figures.

Warning to you and anyone non-Bulgarian interested in this setup: I am confident it works if you are a tax resident ONLY of Bulgaria, or at least by default in Buglaria (and DTA agreements cover you as a rax resident in Bulgaria). But if you have a tax residency elsewhere and you do this setup in Bulgaria, even if it works for you, it has nothing to do with the fact you have other tax residency and it will not get you rid of it and the obligations related to it. Many people forget about this. Getting rid of your tax residency is much harder than finding a new one that fits you. I just seem to be (un)lucky (depends on how you view it) to be born in Bulgaria, lol.

 

[PinkCat]

1. Theoretically you need to be careful and choose someone reliable, I am not sure about all the ways we could screw each other. But as far as my crypto is in my cold crypto wallets I see the biggest risk covered.

2. No and at this stage I don't need it. The withdraw route is dividend distribution in-kind (stables or other crypto) to personal wallet. Then from personal wallet sell on exchange to fiat and withdraw. But it's not that easier even with personal banking and crypto as we all know. So I don't see much bigger problem with the offshore setup anyway. Currently I don't need high amounts. In the future, AFAIK Turicum bank in Gibraltar should open a bank account for 200K deposit. Which is supposed to be still quite easier than BVI banking options which AFAIK are nearly non-existent. Bank Frick in Liechtenstein is supposed to open account for any offshore jurisdiction with crypto business, but I think it's very hard there if you don't have 7-8 figures.

Warning to you and anyone non-Bulgarian interested in this setup: I am confident it works if you are a tax resident ONLY of Bulgaria, or at least by default in Buglaria (and DTA agreements cover you as a rax resident in Bulgaria). But if you have a tax residency elsewhere and you do this setup in Bulgaria, even if it works for you, it has nothing to do with the fact you have other tax residency and it will not get you rid of it and the obligations related to it. Many people forget about this. Getting rid of your tax residency is much harder than finding a new one that fits you. I just seem to be (un)lucky (depends on how you view it) to be born in Bulgaria, lol.

So, the key is that you distribute the dividend in crypto (or stable) and hence don't need banking for offshore structure. That is indeed smart. I wasn't aware if it was even possible (legally) can other people confirm you can distribute yourself dividend in stables?
Because finding crypto banking for a person in EU is 10x easier than finding banking for offshore company with nominee director.

If that indeed works (again legally) I might re-think my whole US based setup.

@pastet89 if you feel generous feel free to PM me the service provider that made your Gibraltar setup.

 

[pastet89]

So, the key is that you distribute the dividend in crypto (or stable) and hence don't need banking for offshore structure. That is indeed smart. I wasn't aware if it was even possible (legally) can other people confirm you can distribute yourself dividend in stables?
Because finding crypto banking for a person in EU is 10x easier than finding banking for offshore company with nominee director.

If that indeed works (again legally) I might re-think my whole US based setup.

@pastet89 if you feel generous feel free to PM me the service provider that made your Gibraltar setup.

Yes, at least for the jurisdictions I have researched and it my setup it works, the in-kind distribution.

I am not sure how easy it is with the banks in EU for crypto. In Bulgaria is virtually impossible even for natural persons. Only in Slovenia I have heard it's quite easy. But EMIs are way easier and cheaper (or even free) for a natural person to setup than for an offshore company.

You can PM me, I can't PM anyone first.

 

[Jade33]

Yes, at least for the jurisdictions I have researched and it my setup it works, the in-kind distribution.

I am not sure how easy it is with the banks in EU for crypto. In Bulgaria is virtually impossible even for natural persons. Only in Slovenia I have heard it's quite easy. But EMIs are way easier and cheaper (or even free) for a natural person to setup than for an offshore company.

You can PM me, I can't PM anyone first.

Hello since you are local do you have a simple BG company set up recommendation? There are many at different price points...

 

[pastet89]

Hello since you are local do you have a simple BG company set up recommendation? There are many at different price points...

Sorry what do you mean?

 

[aage]

Hello since you are local do you have a simple BG company set up recommendation? There are many at different price points...

???

 

[algotrader]

I am not sure how easy it is with the banks in EU for crypto. In Bulgaria is virtually impossible even for natural persons. Only in Slovenia I have heard it's quite easy. But EMIs are way easier and cheaper (or even free) for a natural person to setup than for an offshore company.

One solution is to trade crypto only with standard brokerage firms that offer ETNs or CFDs on Crypto with your company. You don't need to mention that you only trade cryptos, can just be "securities trading" or "investments". You can also trade a very limited number of crypto currencies on standard futures exchanges such as CME. But this will be very different from trading with crypto exchanges and pools.