Moving to a PayPal non supported country

[Vor]

Hello, I'll keep this as simple as possible. I currently live in a EU country and have an online business. I mainly use PayPal for payment processing and it's very crucial for my business. In roughly a year I will be moving to an Island in the Caribbean that has no access to PayPal for Business. I spend about half a year in this jurisdiction as is and simply use a VPN to sign into my PayPal from EU country. When I am living there full time my residency will change however to that country of course and I am assuming I will need to move my corporate structure.

Here is my following PayPal questions for those with experience in this:

If I need to do this due to tax reason I was thinking I could use a UK entity, they will not tax me if its just an entity that does no business in UK and I am not UK resident?

Is it possible to get a PayPal Business account in the UK for a corp entity when your personal residency is a non supported PayPal country? (Important to note my passport is supported and I already have an account in the passport country but am moving to territory of the said country where there is no paypal access)

Last question but I'll need to speak to a tax adviser about this, would it be possible to simply continue using my current EU country PayPal/Current Company but change my country of residence and not owe EU taxes(my current entity is just a flow through no corp taxes)

 

[Marzio]

Which caribbean island are you moving? Using a UK entity could work because it will give you access to UK PayPal.

 

[Vor]

Which caribbean island are you moving? Using a UK entity could work because it will give you access to UK PayPal.

Aruba specifically and I will have a Dutch passport. I have Dutch PayPal already, Dutch Sole Proprietorship, and Dutch Banking already. Ideally I am hoping I could just continue using my Dutch setup while in Aruba.. I'm unsure though how this works in terms of VAT reporting.. I sell digital products/services to US customers so I don't charge VAT anyway but of course have the quarterly filings on my Dutch Sole Proprietorship.

If I could still use the Dutch setup/Dutch PayPal but then just pay the taxes locally in Aruba is what I am aiming for. I know as long as I use VPN my Dutch PayPal would continue working. I already spend 5-6 months a year in Aruba as is but when I change my residency to Aruba I am unsure how this will interact with running the income through a Dutch Sole Proprietorship while being a resident in Aruba.

Perhaps I am overthinking this but I know a year will come fast and want to make sure I get this out of the way so I can move without worrying about this in the back of my head.

 

[Jerry1911]

Just keep your Dutch Paypal and don't update any details such as address. If you have parents or a friend in NL, drop off a raspberry pi to use as a VPN. A residential IP is much better than a generic datacenter one.

 

[Vor]

Just keep your Dutch Paypal and don't update any details such as address. If you have parents or a friend in NL, drop off a raspberry pi to use as a VPN. A residential IP is much better than a generic datacenter one.

Ya this is what I am planning though I guess my final wrinkle will be working out with Tax professionals how to structure everything. They have a 2% Free Zone company if your not selling locally, which none of my sales will be local so it's important that I have that structured right

 

[pesto]

Freezone in the Netherlands, did you get an solution for your setup there?

 

[Vor]

Freezone in the Netherlands, did you get an solution for your setup there?

I was referring to a Freezone company in Aruba, as referenced here: FAQs | Free Zone Aruba
I don't think the Netherlands has any kind of freezone companies.

 

[pesto]

I don't think the Netherlands has any kind of freezone companies.

that's why I was surprised, but I read you wrong. What I heard is that Netherlands is used as an tax heaven country for International corporations because of tax benefits, but never realized what the benefit is.

Would you want to relocate to Aruba ?

 

[Vor]

that's why I was surprised, but I read you wrong. What I heard is that Netherlands is used as an tax heaven country for International corporations because of tax benefits, but never realized what the benefit is.

Would you want to relocate to Aruba ?

Ya I'm planning to relocate there in about a year, just trying to figure out how my business will work since I need access to PayPal which I currently have/use in the Netherlands. Aruba has no PayPal support so need to make sure I can keep my foreign PayPal account open then.

 

[Marzio]

They have a 2% Free Zone company if your not selling locally, which none of my sales will be local so it's important that I have that structured right

It's very easy in your case. First step form your free zone company then use that company as a partner of a UK LLP so you can access UK PayPal. The only downside is that if you use dutch PayPal your main currency is EUR while when using a UK PayPal account the main currency is GBP and if you receive payments in EUR you will incur in a currency conversion when you'll try to withdraw those.

Another option would be to form your free zone company and make it a partner of a Dutch commanditaire vennootschap which i would be really interested to hear how the hell this is pronounced.

 

[Vor]

It's very easy in your case. First step form your free zone company then use that company as a partner of a UK LLP so you can access UK PayPal. The only downside is that if you use dutch PayPal your main currency is EUR while when using a UK PayPal account the main currency is GBP and if you receive payments in EUR you will incur in a currency conversion when you'll try to withdraw those.

Another option would be to form your free zone company and make it a partner of a Dutch commanditaire vennootschap which i would be really interested to hear how the hell this is pronounced.

Appreciate this reply! Figured it wouldn't be too complicated. Suppose I use the Dutch commanditaire vennootschap will I still need to do things like the VAT filings on the Dutch end and how does the Dutch Tax office know that in fact I'm not a tax resident in NL but in Aruba, etc? Appreciate the response!

 

[Marzio]

Suppose I use the Dutch commanditaire vennootschap will I still need to do things like the VAT filings on the Dutch end and how does the Dutch Tax office know that in fact I'm not a tax resident in NL but in Aruba, etc?

If you sell to EU people then yes, you woulld still need to to VAT filings but even without a Dutch CV if you sell to EU people you will be required to do VAT filings so nothing really change there.

I don't really understand the second question, do you want to be see as a NL tax resident while living in Aruba?

 

[Vor]

If you sell to EU people then yes, you woulld still need to to VAT filings but even without a Dutch CV if you sell to EU people you will be required to do VAT filings so nothing really change there.

I don't really understand the second question, do you want to be see as a NL tax resident while living in Aruba?

As far as the first point luckily I don't sell into the EU. Only into US and Canada. A tiny bit into Australia/Russia. I'll try to explain better my second question. If i have an Aruba FreeZone company + Live in Aruba but use the Dutch CV for access to PayPal and other payment services, is the Dutch CV going to end up with me owing Dutch Taxes(Income Tax) or will it not cuz it flows through to the Aruba Free Zone company? Hope that makes sense!

 

[Marzio]

I don't sell into the EU

So you don't need a Dutch PayPal account and a Dutch CV.

A Dutch CV will add useless complexity.

I thought you needed a Dutch PayPal account because you were selling to EU.

In such case the best solution for you would be a British Columbia LLP so you could access Stripe and Paypal in both CAD and USD.

If you operate from outside Canada and sell services you will not have to worry about VAT.

The online filing required by the BC LLP is an the annual return.

 

[Vor]

So you don't need a Dutch PayPal account and a Dutch CV.

A Dutch CV will add useless complexity.

I thought you needed a Dutch PayPal account because you were selling to EU.

In such case the best solution for you would be a British Columbia LLP so you could access Stripe and Paypal in both CAD and USD.

If you operate from outside Canada and sell services you will not have to worry about VAT.

The online filing required by the BC LLP is an the annual return.

Sweet news! The simpler the better. Ya no need in particular for a Dutch PayPal besides that is what I already currently have since I live in Netherlands. So then when I would sign-up the British Columbia LLP for PayPal I would just need to put the entity address down as my address etc since I'd be personally residing in Aruba.

 

[Marzio]

Just for the sake of this conversation, am i right when i say that your Dutch passport will allow you to freely move to Aruba?

Or do you need to form a business to get a residency permit?

 

[Vor]

Just for the sake of this conversation, am i right when i say that your Dutch passport will allow you to freely move to Aruba?

Or do you need to form a business to get a residency permit?

I can move freely there is no special restrictions to my moving, I also have an Aruban born partner its easy for me to move

 

[Forester]

What I heard is that Netherlands is used as an tax heaven country for International corporations because of tax benefits, but never realized what the benefit is.

It is a little bit OT, but: As far as I know, the benefit is that in Netherlands a big corp simply can negotiate its tax % with the tax office; and I heard that 8% is pretty possible (formally, it is taken as an incentive etc.)

 

[pesto]

What's if you're not a big company, what's your chances to get 8% tax rate

 

[Forester]

What's if you're not a big company, what's your chances to get 8% tax rate

I am afraid that you do not have any chance. I am not an expert in NL tax system but I guess that to qualify to negotiate you must prove some turnover, workplaces offered etc. etc. But, I am only guessing.