How to stop my wealth being wiped out in Taiwan if China goes to war?

[slink]

I'm a European citizen, and also a resident of Taiwan with a ltd company here.

The threat of war with China is becoming increasingly likely, and if it happens, Taiwanese currency could become worthless, there could be a run on the banks - many things that would obliterate all my company funds.

I've been looking at my offshore options for banks, but safe corporate banks abroad seem difficult to get.

Seems like big Singapore banks are too difficult to open, even if I was to incorporate there.

Hong Kong incorporation is an option, but not a very safe one, considering it's China, and any ties to Taiwan may lead to freezes on bank accounts if war breaks out.

I've spent many hours over the last week trying to figure out what some decent options for banks are, but so far I'm none the wiser.

I'd absolutely love some help or suggestions from this community!

What are some good options? I'm looking for safe, reliable banks, no fintechs/EMIs. And options that don't end up significantly increasing my tax burden.

 

[CyprusLawyer101]

What is your business? And where are sales conducted?

 

[JackAlabama]

I'm a European citizen, and also a resident of Taiwan with a ltd company here.

The threat of war with China is becoming increasingly likely, and if it happens, Taiwanese currency could become worthless, there could be a run on the banks - many things that would obliterate all my company funds.

I've been looking at my offshore options for banks, but safe corporate banks abroad seem difficult to get.

Seems like big Singapore banks are too difficult to open, even if I was to incorporate there.

Hong Kong incorporation is an option, but not a very safe one, considering it's China, and any ties to Taiwan may lead to freezes on bank accounts if war breaks out.

I've spent many hours over the last week trying to figure out what some decent options for banks are, but so far I'm none the wiser.

I'd absolutely love some help or suggestions from this community!

What are some good options? I'm looking for safe, reliable banks, no fintechs/EMIs. And options that don't end up significantly increasing my tax burden.

Dubai or USA since you are a western passport holder, or Switzerland if you can get in there.
Euro may not be much better, so EU might not be that good of a choice (unless you are really worried about the taiwan currency)

 

[slink]

What is your business? And where are sales conducted?

It's an ecom affiliate marketing business. Most of my revenue comes from Hong Kong

 

[CyprusLawyer101]

It's an ecom affiliate marketing business. Most of my revenue comes from Hong Kong

Ok , that is good actually. You may consider transferring the business operation offshore. With a Taiwan company and current environment it is unlikely you will find a bank to accomodate you and without future hassles. If you go this route, transferring the operation abroad, you should first set up the new operation start working with it ( so keep both in paralel) and in the future if it makes sense transfer the complete operation. Your residency could be an issue for banks abroad but I believe surmountable. You should also be able to achieve a beneficial tax result too.

 

[backpacker]

What are some good options? I'm looking for safe, reliable banks, no fintechs/EMIs. And options that don't end up significantly increasing my tax burden.

Perhaps you want to consider the Philippines.
The much overlooked Special Investors Resident Visa (SIRV) offers plenty of opportunities. Since you have a "real" business which you want to relocate, banking in PH will be easy. Local universal banks (so-called "Unibanks") are not too bad compared to the rest of Asia. Big advantage (for private individuals): No need to transact through the local currency like in SG. In PH you will get debit cards directly linked to your USD account.
Tax situation has been discussed at length in this forum for both corp and private. Depending on how and where (think: Special Economic Zone SEZ) you set up your business taxes will be a fraction of the standard rate in Taiwan.

 

[slink]

Perhaps you want to consider the Philippines.
The much overlooked Special Investors Resident Visa (SIRV) offers plenty of opportunities. Since you have a "real" business which you want to relocate, banking in PH will be easy. Local universal banks (so-called "Unibanks") are not too bad compared to the rest of Asia. Big advantage (for private individuals): No need to transact through the local currency like in SG. In PH you will get debit cards directly linked to your USD account.
Tax situation has been discussed at length in this forum for both corp and private. Depending on how and where (think: Special Economic Zone SEZ) you set up your business taxes will be a fraction of the standard rate in Taiwan.

Hey thanks very much.

Is it requirement to live in the Philippines to get these advantages?

I want to continue living in Taiwan unless the situations worsens.

 

[backpacker]

Hey thanks very much.

Is it requirement to live in the Philippines to get these advantages?

I want to continue living in Taiwan unless the situations worsens.

You are not required to live in the Philippines. The SIRV grants you the right of permanent residency but there is no need to use this right.
You can continue living in Taiwan while, at the same time, having a SIRV which you might never want to use.
While applying for the SIRV you will have to provide a local PH address and phone number. This can be the legal office address (adress of regiatraion) of your company or of the lawyer who arranges for your SIRV and company setup

 

[slink]

You are not required to live in the Philippines. The SIRV grants you the right of permanent residency but there is no need to use this right.
You can continue living in Taiwan while, at the same time, having a SIRV which you might never want to use.
While applying for the SIRV you will have to provide a local PH address and phone number. This can be the legal office address (adress of regiatraion) of your company or of the lawyer who arranges for your SIRV and company setup

Thanks, I'm definitely going to look into this. Is it easy to get a corporate bank account with the likes of Citibank and BDO there for a Ph company, even if you don't live there?
Also, the $75k I need to invest for SIRV - can I invest this into my own Ph company I setup? Or I need to invest it in other companies?

 

[Forester]

Hong Kong incorporation is an option, but not a very safe one, considering it's China, and any ties to Taiwan may lead to freezes on bank accounts if war breaks out.

You are right, unfortunately.

A.
Just a warning re: Philippines. This country is considered as a “high-risk“ by some, even many banks and the transfers to and from may be complicated, even impossible.

B.

What are some good options? I'm looking for safe, reliable banks, no fintechs/EMIs.

Be advised that in many cases you can face the same problems (account freezing, complications with payments, etc.) as well in banks as in EMIs. There is no difference.
The differences are
1) The spectrum of services – you cannot expect a letter of credit, cashing cheques, a loan, a safe box etc. from an EMI.
2) The amount of money that you can work with – 7+ (even 6, quite often) figures transactions are mostly not well doable with an EMI (yes, exceptions exist but just as exceptions).

 

[backpacker]

Thanks, I'm definitely going to look into this. Is it easy to get a corporate bank account with the likes of Citibank and BDO there for a Ph company, even if you don't live there?
Also, the $75k I need to invest for SIRV - can I invest this into my own Ph company I setup? Or I need to invest it in other companies?

You will have a selection of banks at your disposal: BDO, BPI, Unionbank, Bank of Commerce just to name a few.
Citibank is a no-go. They are anyway exiting the country and just sold their operations to Unionbank.
If you prefer foreign banks you can have a look at Maybank. Even though you are better served with the local ones due to their flexibility.

The required amount of USD 75k is what you should invest into "a qualified local business" which -of course- can be your own company. The money must be remitted from overseas. Once funds are in PH you can (and should) put them into your company.

Just a warning re: Philippines. This country is considered as a “high-risk“ by some, even many banks and the transfers to and from may be complicated, even impossible.

This is because of the casino industry and the PH government not willing to budge to idiotic demands of Western governments.
There is no problem transferring even large amounts of money in/out as long as there is a reason for it.

 

[slink]

Just a warning re: Philippines. This country is considered as a “high-risk“ by some, even many banks and the transfers to and from may be complicated, even impossible.

Hi, is it just established banks in other countries that consider Philippines high risk? In terms of transfers from banks in Taiwan, I don't think it would be a problem, they're pretty easy going on the whole.

 

[backpacker]

Hi, is it just established banks in other countries that consider Philippines high risk? In terms of transfers from banks in Taiwan, I don't think it would be a problem, they're pretty easy going on the whole.

It is a FATF thing.
Intra-Asia it is irrelevant anyway. Nobody cares about it.
When it comes to banks in the European Union it can be an issue if a resident of the Philippines wants to maintain a bank account with this EU-bank.

 

[Sols]

So you live in Taiwan but want to be prepared to transition your business to a foreign entity, and you want to do this without increasing your current tax burden?

It's unclear why Singapore wouldn't work. But if you're confident about that, then maybe Labuan or mainland Malaysia if you want to stay in Asia. Local banking is usually not as difficult in Labuan or Malaysia.

Brunei has a tax system similar to Singapore but you'd want to bank somewhere else.

If your concern is with a Chinese takeover of Taiwan, consider the greater geopolitical ramifications. What will happen to Chinese influence elsewhere? Weaker? Stronger? No change? Would you want to keep the business in Asia?

If all you need is zero-tax entity and bank account, then you could go with BVI, Mauritius, Samoa, Cook Islands, Isle of Man, Gibraltar, UAE (with paper residence), Cayman Islands, TCI, Anguilla, and so on.

 

[Forester]

This is because of the casino industry and the PH government not willing to budge to idiotic demands of Western governments.

I share your opinion that the demands of Western governments are idiotic in this case. But it is the reality we are facing.

There is no problem transferring even large amounts of money in/out as long as there is a reason for it.

Per your personal experience, I presume?

Hi, is it just established banks in other countries that consider Philippines high risk?

Sometimes it concerns all banks in the region, for example for the UK see here The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2022 – it is legally binding for all financial institutions under the UK jurisdiction. (This example I am giving just by coincidence, I was checking it yesterday for another reason.)

In terms of transfers from banks in Taiwan, I don't think it would be a problem, they're pretty easy going on the whole.

Sorry, I possess no information re: transfers from/to Taiwan...

It is a FATF thing.

Exactly.

When it comes to banks in the European Union it can be an issue if a resident of the Philippines wants to maintain a bank account with this EU-bank.

Not only in such a case; sometimes, unfortunately, even transfers between Europe and Philippines are complicated. For an UK example see above.

 

[backpacker]

Per your personal experience, I presume?

Yes.

Sometimes a bill is required on the Philippine end for outgoing transfers to a third party.
With regards to incoming transfers, everything above PHP 500'000.- will require a reason for the PH bank to credit it to your account. This reason can be -for instance- a bill. In case you transfer between your own acounts, a simple screenshot of the transfer/account statement will do. It's a routine procedure and was already in place before the PH was considered a "high risk destination".

As long as you do not try to open/maintain a European bank account while being a resident of the Philippines there will not be a problem.
Interestingly, even the US takes it easy. Many foreign residents in the PH are US citizens who maintain their US banking relationship without any problems. Just the European banks cause problems. But than, who wants to bank in Europe these days

Sometimes it concerns all banks in the region, for example for the UK see here The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2022 – it is legally binding for all financial institutions under the UK jurisdiction

True.

But than again: That is the U.K. (-> Europe).
Staying away from Europe means staying away from problems!
Note: Even from Europe you can transfer as long as there is a reason for such a transfer.

All this FATF stuff is way overblown from the average person's perspective. So, do not maintain a European bank account while you are a resident of the Philippines and all is good. The same would be applicable for many other jurisdictions in Asia who are not even listed on the official FATF list.

 

[Forester]

Staying away from Europe means staying away from problems!

As the banking is concerned, very nicely phrased

All this FATF stuff is way overblown from the average person's perspective.

Definitely...

 

[For Free]

I'm a European citizen, and also a resident of Taiwan with a ltd company here.

The threat of war with China is becoming increasingly likely, and if it happens, Taiwanese currency could become worthless, there could be a run on the banks - many things that would obliterate all my company funds.

I've been looking at my offshore options for banks, but safe corporate banks abroad seem difficult to get.

Seems like big Singapore banks are too difficult to open, even if I was to incorporate there.

Hong Kong incorporation is an option, but not a very safe one, considering it's China, and any ties to Taiwan may lead to freezes on bank accounts if war breaks out.

I've spent many hours over the last week trying to figure out what some decent options for banks are, but so far I'm none the wiser.

I'd absolutely love some help or suggestions from this community!

What are some good options? I'm looking for safe, reliable banks, no fintechs/EMIs. And options that don't end up significantly increasing my tax burden.

You still have chance to get bank account in Singapore even with your Taiwanese company. OCBC still on-board with you if you are doing business at least 2 years. Certainly your chance to get account depends on your business model, your passport and connections to Singapore.

 

[mythoffshore]

I have a lot of experience in dealing with banks in Taiwan. First of all, the tax rate for Taiwanese companies is not low. You might consider talking to a bank in Singapore. Even if there is a war in the Taiwan Strait, you will have plenty of time to get to Singapore. But really, I still want world peace.

 

[slink]

I have a lot of experience in dealing with banks in Taiwan. First of all, the tax rate for Taiwanese companies is not low. You might consider talking to a bank in Singapore. Even if there is a war in the Taiwan Strait, you will have plenty of time to get to Singapore. But really, I still want world peace.

Taiwan's corporate tax rate is only 3% higher than Singapores, and there are a lot of loopholes. I legally only pay around 2.5% tax in Taiwan.