Question Newbie question about incorporating in Central America

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Lee74

New member
Hi all,

I am new to the offshore thing and need a little advice.

I am an Australian citizen currently travelling in central america still as a foreign tax resident, and plan to relocate permanently to Nicaragua or Costa Rica wich I am of the understanding does not tax offshore earnings, only local. I am planning to set up an offshore corporation and bank accounts to run a small business plus crypto/share trading from. Following this I will sever all ties and employment with Australia no longer being liable there for tax on offshore earnings and instead invoicing for services from my offshore company.

My questions are:

- Any flaws or things I should consider in my plan?
- I am looking at Panama for the offshore corporation and banking, but I have been quoted $5000 USD to do this plus $1600 per annum in maintaining the company, is this a bit rich or about right?
- Whats your thoughts on Panama for my situation and if not Panama, any advice on best location to incorporate? (and I am not a millionaire)

Any assistance, much appreciated.
 

Mr Magoo

Active Member
Costa Rica sounds to more reliable and stable then Nicaragua for setting up bank accounts. Anyway, dont expect in CR any deposit guarantee. The price you were quoted sounds a bit rich, yes. If you speak fluent spanish it would cut the price in half or more. Panama banking for and offshore company is after the Panama Papers not really into fashion or accepted by international clients. Although it has most of its shine, setting up a offshore comp in Belize is cheap and fast. Getting a bank account will be bigger challenge though.
 

Lee74

New member
Costa Rica sounds to more reliable and stable then Nicaragua for setting up bank accounts. Anyway, dont expect in CR any deposit guarantee. The price you were quoted sounds a bit rich, yes. If you speak fluent spanish it would cut the price in half or more. Panama banking for and offshore company is after the Panama Papers not really into fashion or accepted by international clients. Although it has most of its shine, setting up a offshore comp in Belize is cheap and fast. Getting a bank account will be bigger challenge though.
Thanks for you reply, Nicaragua is just where I plan to live and any accounts there I open will be for day to day spending. The company I am dealing with is Think Safe consulting (via the wandering investor) and they speak english... they seem alright so far but pricey. I will have a further look at belize... thank you
 

Mr Magoo

Active Member
ok, i meant that Belize has lost its shine since a few years as offshore destination. Be careful. For day to day an account in Nicaragua will be fine Just dont put a lot of money on it since bank employees will sell you out and you will find yourself robbed or worse if holding big amounts.
 

James Spader

Forum Moderator
Staff member
Elite Member
- I am looking at Panama for the offshore corporation and banking, but I have been quoted $5000 USD to do this plus $1600 per annum in maintaining the company, is this a bit rich or about right?
It depends on what service you get for the money. It's not wise to take the cheapest when it comes to setting up a company which you want to use long term and serious business.
 

Lee74

New member
Yes, good advice

It depends on what service you get for the money. It's not wise to take the cheapest when it comes to setting up a company which you want to use long term and serious business.
Thank you for your reply. They were recommended and its the whole package with the first years costs included and I think it would be similar with other firms once the hidden costs come to the surface.
 

MiddleEuroAsia

opportunist
Mentor Group Gold
Entrepreneur
Thanks, I will look into it
Yeah, but keep in mind that it depends on the type of Clientle that you serve.

Are they US citizens? then run an LLC with mercury/brex/novel acc.

Are they EU citizens? then an Estonian OU with Wise/LHV - OR - UK LLP with wise/moneycorp/currenxie ..etc.

Are they Asians? then Hong Kong with neat/statrys/currenxie/wallex - OR - Singapore with wallex / aspire /Wise (and then move to real banking with DBS)

Are they South americans? then US LLC with US business account with US banks in miami (you need to travel for that and have a solid business plan) and don't try with US EMIs if you don't have US customers or supplies, they won't accept you.

Or you can incorporate in Panama if you insist. payoneer will probably open an acc for you + bancso or BAC. (although i'm not in favor for bancso nor panama at all for obvious reasons)
 

Martini

New member
I was under the impression it doesn't really matter where your clients are when running a US LLC as it's a pass through entity. As long as you're not ETBUS


Yeah, but keep in mind that it depends on the type of Clientle that you serve.

Are they US citizens? then run an LLC with mercury/brex/novel acc.

Are they EU citizens? then an Estonian OU with Wise/LHV - OR - UK LLP with wise/moneycorp/currenxie ..etc.

Are they Asians? then Hong Kong with neat/statrys/currenxie/wallex - OR - Singapore with wallex / aspire /Wise (and then move to real banking with DBS)

Are they South americans? then US LLC with US business account with US banks in miami (you need to travel for that and have a solid business plan) and don't try with US EMIs if you don't have US customers or supplies, they won't accept you.

Or you can incorporate in Panama if you insist. payoneer will probably open an acc for you + bancso or BAC. (although i'm not in favor for bancso nor panama at all for obvious reasons)
 

MiddleEuroAsia

opportunist
Mentor Group Gold
Entrepreneur
I was under the impression it doesn't really matter where your clients are when running a US LLC as it's a pass through entity. As long as you're not ETBUS
You are right, that's still the case, but I'm talking from the Neo banks POV.

neo banks, mercury, novel, brex...etc want to see ties and transactins to/from the US. be it suppliiers, Clients, services..etc.

Some banks in the US will open a buisiness bank account for you even if you are not dealing with americans, but you should have a solid business plan in hand. You will find such banks in big cities like Miami for example (wells fargo, BOA, Citi ...etc)

Other neo banks might open an account for you, like payoneer, wise..etc but your choise is limted if you want FDIC- insured banking. (brex offer up to 1.75 m in insurance if you choose to store your money with their partner bank, you won't have this option nor this protection at all with payoneer for example)
 

Martini

New member
Thanks, that's helpful
You are right, that's still the case, but I'm talking from the Neo banks POV.

neo banks, mercury, novel, brex...etc want to see ties and transactins to/from the US. be it suppliiers, Clients, services..etc.

Some banks in the US will open a buisiness bank account for you even if you are not dealing with americans, but you should have a solid business plan in hand. You will find such banks in big cities like Miami for example (wells fargo, BOA, Citi ...etc)

Other neo banks might open an account for you, like payoneer, wise..etc but your choise is limted if you want FDIC- insured banking. (brex offer up to 1.75 m in insurance if you choose to store your money with their partner bank, you won't have this option nor this protection at all with payoneer for example)
 

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