Estonian Company - Bitcoin as part of the initial capital?

[mikestachurski]

Hi All, I got 3 questions:

(1) Can I put my crypto (Bitcoin) as initial capital when I will be forming company in Estonia?
(2) If I want to withdraw these Bitcoin at the later stage from the company - what taxes I should expect to pay?
(3) What if the value of these Bitcoin will increase while they are on the 'books' of the Estonian company - will I have to pay taxes on this capital appreciation? If yes when?

Thank you all for the answers in advance.

M.

 

[Don]

Yes its possible, but not a totally painless procedure
If you check my message history I have answered that question somewhere here.
You pay tax when you withdraw profits from your Estonian company. It's possible to withdraw tax-free dividends in the amount of paid-in share capital, but it has to be properly declared.

 

[mikestachurski]

I am an Estonia E-Resident, and I would recommend you make the EUR process directly. It is not worth the hassle to try to account BTC or assets for the company formation if you have the option to do so. I am delighted with the company we have there as we could even make payments to Russia that other EMIs does not support us to do.

Thanks but the whole thing is that I don't want (1) pay wealth tax on my BTC that is why I want to put it into the company (2) don't want to be in FIAT - only small % and for that reason I don't want to sell my BTC but rather put the BTC into company as initial capital

 

[mikestachurski]

Thankns

Yes its possible, but not a totally painless procedure
If you check my message history I have answered that question somewhere here.
You pay tax when you withdraw profits from your Estonian company. It's possible to withdraw tax-free dividends in the amount of paid-in share capital, but it has to be properly declared.

I will search for your posts using the search function - any indication what I should search for?

 

[mikestachurski]

If I recall right it is only 2500 EUR of called capital so it would not be a massive issue in terms of FIAT Exposure

Yes that is correct and putting fiat €2.5k or more into Estonian company is not an issue. I am asking this question about BTC mainly as I want avoid paying wealth tax - if BTC is on my name I will have to pay wealth tax

 

[Don]

Thankns

I will search for your posts using the search function - any indication what I should search for?

check this thread as well:

Incorporate cryptos to a company

Under which jurisdiction could I incorporate my crypto assets to a company without being taxed for it or being asked about the source of funds?

www.offshorecorptalk.com