Company for trading shares, ETFs and FX: low reporting need

[bcx12]

I'm looking for a way to restructure my securities trading (no bitcoin or other unregulated thing) into an offshore company, because I'd like to do automated trading following my custom-developed algorithms. I'm in the EU, and according my account, the reporting is waaay too complex, and I'd even need to pay taxes on unrealized gains too.

I'd own the offshore company through my holding company in the country I reside, there is no need for privacy and tax evasion (except for the capital gains on positions with unrealized gains). The profits would flow to the holding company and I'd pay the taxes due in my country (based on the aggregate and realized gains).

Has anybody done something like this? What location would you suggest?

 

[fshore]

If you run the company from your home country there is a chance that it will be considered local tax resident and have to follow all the same rules and regulations as a local company. You need to check the specific corporate tax residence laws in your country.

 

[Martin Everson]

As fshore mentioned his point is very important point. The centre of control and operation of the company matters in most EU countries as that is where they will tax you regardless of structure used.

p.s from previous experience on this forum when people later revealed their actual EU country it turned out to be some country like Bulgaria and they were not happy paying a low 10% corporate tax rate for example .

 

[GrumpyMess]

p.s from previous experience on this forum when people later revealed their actual EU country it turned out to be some country like Bulgaria and they were not happy paying a low 10% corporate tax rate for example .

Not only the tax rate matters, but safety also. In some countries you can have a criminal or corruption troubles declaring high income. In some cases you'd like to pay twice more but be sure that nobody steals your money.

 

[bcx12]

he centre of control and operation of the company matters in most EU countries as that is where they will tax you regardless of structure used.

Is it true for non-offshore companies (e.g. one EU company owning another EU company), or companies that have some kind of local presence?

 

[TurnedToRobot]

Is it true for non-offshore companies (e.g. one EU company owning another EU company), or companies that have some kind of local presence?

If you read the forum it is all filled up about this particular part you are questioning!

 

[Martin Everson]

Is it true for non-offshore companies (e.g. one EU company owning another EU company), or companies that have some kind of local presence?

Yes but why stress yourself with thinking about this. Move to Estonia and setup an Estonia company and make use of the fact you do not need to pay any corporate taxes on profits that are not distributed. Hence you can trade away tax free and pay tax only when you want to take out money from the company. Make use of EU free movement .

To be honest without knowing the EU country your in its a guessing game trying to give you a proper answer .

 

[bcx12]

Move to Estonia and setup an Estonia company

Life is more complex than that. I'd setup an Estonian company without moving there, if that would help me, but at this stage of my life, I'm not that flexible to move to countries for random tax reasons.

 

[bcx12]

If you read the forum it is all filled up about this particular part you are questioning!

If I were able to find it, I would not have asked for it. Do you have a link to a good discussion about the topic? I'd love to read it through...

 

[Martin Everson]

but at this stage of my life, I'm not that flexible to move to countries for random tax reasons.

Pay the taxes in whichever EU country your in then .

 

[IntlOffshore]

I'm in the EU, and according my account, the reporting is waaay too complex, and I'd even need to pay taxes on unrealized gains too.

May I suggest getting a better accountant before doing anything else? or at least meeting with a few? Wherever you are, there a going to be specific accountants which are involved with tax issues related to securities trading. Your accountant does not seem to be. It may be possible that your accountant is simply unaware the ways that the pros efficiently handle the issues that he's encountering. See what they say? If in fact it's as bad as your accountant has made it to be, to the extent that would require going offshore, then they will have experience in doing exactly that (and as it specifically relates to your home jurisdiction as well).