How to become Tax Free Nomad

[kralleo]

Greetings,
I have just become a profitable forex trader. Now I want to evade tax legally. I have thought I could open an offshore trading company. Now that I started looking into it I have a couple of questions?

1- There are lots of websites claiming to form IBC's and bank account? Should I trust any one of them or should I be precautious? Do you have any suggestions?
2-Lets say I opened an IBC in Seychelles, where should I open my bank account? If I open a bank account in a different country would taxes be applicable?
3-How should I transfer funds from my corporate account to my personal account to be legally tax free?

 

[Clank]

For not paying taxes you should have residency in a country without taxes, that’s it

 

[kralleo]

In my current country of residency, I do not have to pay taxes on incomes earned abroad.

 

[CaptK]

For not paying taxes you should have residency in a country without taxes, that’s it

Exactly, for a nomad look at the UAE, Panama, most of the Carribbean Islands, Vanuatu and any country that only has territorial tax.

 

[Sols]

1- There are lots of websites claiming to form IBC's and bank account? Should I trust any one of them or should I be precautious? Do you have any suggestions?

Some are reliable, some are not. A generally good recommendation is to only work with licensed service providers. In pretty much all jurisdictions, you can find a register of licensed service provider on the financial service authority's website.

2-Lets say I opened an IBC in Seychelles, where should I open my bank account? If I open a bank account in a different country would taxes be applicable?

The Seychelles company is tax resident wherever you live, so as long as you comply with local tax laws, it's fine.

It's hard to open bank accounts for IBCs nowadays, unless we're looking at significant wealth (one or a few million minimum). You might find yourself limited to some of the less selective EMIs in Lithuania.

Speak with a local tax adviser to make sure your affairs are in order. Don't do this on your own.

3-How should I transfer funds from my corporate account to my personal account to be legally tax free?

If you live in a country that doesn't tax foreign income, the easiest is usually as dividends. Just ask your company accountants to draw up a board resolution every month or quarter when they do management accounts, and pay yourself from the company's reserves.

 

[kralleo]

The Seychelles company is tax resident wherever you live, so as long as you comply with local tax laws, it's fine.

It's hard to open bank accounts for IBCs nowadays, unless we're looking at significant wealth (one or a few million minimum). You might find yourself limited to some of the less selective EMIs in Lithuania.

Thank you for your reply.

I did not understand what you mean by the 1st sentence.
About the second sentence, what I had planned is I will deposit 30k+ USD now and funds would accumulate over years. So it wouldn't be a BIG account initially.

I was optimistic about this. It looks like I wont be able to

 

[Konstanz]

In my current country of residency, I do not have to pay taxes on incomes earned abroad.

What is that country?
Some territorial tax countries have strict PE rulings. So, if you work through Seychelles company it can be considered tax resident in your country because you control and manage it.

 

[Sols]

I did not understand what you mean by the 1st sentence.

The Seychelles company is most likely liable for tax wherever you live, because you control/manage it from there. You might want to read up on corporate tax residence first.

About the second sentence, what I had planned is I will deposit 30k+ USD now and funds would accumulate over years. So it wouldn't be a BIG account initially.

Then your choices will be limited.

I was optimistic about this. It looks like I wont be able to

Speak with a tax adviser, and I mean an actual tax adviser. A lot of the information you find on the web from unscrupulous or lazy service providers is outdated and/or misleading. The world has changed a lot in the last few years.

 

[coq]

A lot of the information you find on the web from unscrupulous or lazy service providers is outdated and/or misleading. The world has changed a lot in the last few years.

That's the challenge isn't it? How can a neophyte discern who is an unscrupulous poser and who is the real deal?

 

[msantoso]

Greetings,
I have just become a profitable forex trader. Now I want to evade tax legally. I have thought I could open an offshore trading company. Now that I started looking into it I have a couple of questions?

1- There are lots of websites claiming to form IBC's and bank account? Should I trust any one of them or should I be precautious? Do you have any suggestions?
2-Lets say I opened an IBC in Seychelles, where should I open my bank account? If I open a bank account in a different country would taxes be applicable?
3-How should I transfer funds from my corporate account to my personal account to be legally tax free?

Same problem here.I have a personal account in IB and has a plan to use offshore structure to tax saving. Is there any agent recommendation?