Looking for efficient tax setup for Cryptocurrency trading utilizing offshore shell and EU residency

[Hinoki]

I have just found you all and what I great forum this is! Thank you for any help, ideas, thoughts and opinions on my post. As a cryptocurrency investor and trader I am seeking to find an efficient tax situation in the EU. I would like to move from the high tax country I currently am in and position myself in a friendlier tax environment for my investing/trading activites. I started trading and reporting on personal income but the trading size and gains call for a change in how I structure these activities....which led me to researching about incorporating a business offshore. My thoughts so far is establishing a residence in Portugal and through their Non habitual tax residency regime I could than setup a offshore investing company and pay dividends to myself. The offshore company would need to be within a country that has a Double taxation agreement with Portugal and the income would need to be sourced their. WIth crypto I am not sure how the sourced part works. I have been looking into a non resident offshore company in cyprus or ireland. From what I gather there would be a 12.5% corporate tax and the dividend in theory could be realized in portugal tax free on that end......This is all very new to me and I am trying my best to research and would appreciate any advise or thoughts on an efficient situation to set up. I am not stuck to the portugal idea but open to learn more. Thank you so much

 

[cyprusbanker]

From what I gather there would be a 12.5% corporate tax and the dividend in theory could be realized in portugal tax free on that end

That's exactly what already have been posted here on the forum, google search the forum to get much more information.

site:offshorecorptalk.com bulgaria cyprus taxtreaty

 

[Hinoki]

That's exactly what already have been posted here on the forum, google search the forum to get much more information.

site:offshorecorptalk.com bulgaria cyprus taxtreaty

Thank you

 

[Hinoki]

I spent the day reading through the forums regarding this subject. It seems the Portugal option is a bit of a grey area and from what I gather from others thoughts on the NHR regime it is more complicated than I thought for my situation. I just want to be able to invest and occasionally swing trade large positions in the cryptocurrency market for the next few years than move on to where I want to retire. I dont know how Portugal would view the situation if I incorporate offshores in malta, cyprus, ireland etc... and than proceed to pay the dividend to myself. Investing and swing trading doesnt really fall in the category of passive investment and I would be physically managing my trading accounts in Portugal. It is unclear to me what the best tax rate I could get in Portugal concerning the above. It still must be better than Germany where I currently reside....I have entertained the idea of staying in Germany and what the best tax rate could be....seems 33% at absolute best ouch. I could be wrong? This has led me to also research becoming a resident in ireland and how their 12.5% corporate tax would work . I than have the issue of dividends to myself and that tax rate....need to dig further and learn much more. I am enjoying the process and learning the new vocabulary. I am all ears and any adivse, thoughts or recommendations I appreciate.

 

[drumtraks]

From research online, you can look into Maderia (Portugal) that has 5% corporate tax and 0% on dividends. Not sure how it works tho.

 

[Hinoki]

From research online, you can look into Maderia (Portugal) that has 5% corporate tax and 0% on dividends. Not sure how it works tho.

Thank you for the information. I will look into this!