Freelancer working from home United States with Offshore in Cyprus

[terminus1]

Hello,

Case:

Freelancer (programmer) working from home (United States) and issuing bills from my offshore company in Cyprus, and getting paid in my Cyrpus bank account, then I go to United States at closest ATM and I cashout money from attached debitcard to Cyrpus bank account.

Is this legal?

Is this evasion?

Do I need another company in United States too ?

Thanks.

 

[laurie]

It'a legal if you declare your revenue to the IRS. Else it's illegal and a bad way to do it this way I think.
Just, be aware than when you charge a Company with an Offshore Jurisdiction you may attract the eye of the IRS.

When you withdraw with an "anonymous" debit card you may attract the eye of the IRS.

Sound like a bad Idea to me but there must be expert of Cyprus Jurisdiction arround.

 

[JohnLocke]

It'a legal if you declare your revenue to the IRS. Else it's illegal and a bad way to do it this way I think.

second that!

You want to consult a tax lawyer in your country to help you with an offshore setup that is legal.

 

[goldies]

You have to pay taxes in the United States on your Worldwide Income. By the way as a BANK account holder in Cyprus, the bank will submit your account info to the IRS in the United States. (FATCA) You have almost 0 benefits going offshore if you live in the USA. However you have the right to maintain profits in the company and re invest it under the name of the corporation. Some tax advantages will apply if you have a good accountant in Cyprus and United States. (Good accountants dont come cheap) If you use a cyprus company with nominee dont be fooled, you will still need to submit all the info the IRS. Beneficial Ownership, Income, etc...

 

[Juoffshore]

Agree with Laurie, It's legal if you declare your revenue to the IRS or if you move to cyprus.