newbie questions offshore + bank account (affiliate)

[Toootoly]

Hey all,

I have been reading and looking around here for quite some time, but i am still not sure what is the best option for me, and really hope someone could help point me in the right direction.

I am an affiliate (Gambling) living in spain, (Not from spain myself, but hold a EU passport) who is doing smaller amounts for now, between 2-10k month.
The issue is that i am also an employee in a company, who i do not want to know that i have a side/hobby business, so would like to hide the owenership for now. The long term plan is to setup a EU company once i am confident that the hobby business is sustainable. I have kid and wife, so the time is over where i can take chances, thinking about my self only.

So questions, would it be possible (and a good idea) for me to go full offshore (company + bank account) and just save up the money in that company? Once i setup the EU company, could i then keep the offshore as holding? or would ther be another setup that is more benificially for me? Income will be from both EU and non-EU.
As i recenly moved to spain then i have little or nothing knowledge about rules or does and don't here, my knowledge about rules in rest of EU is also limited tbh.

I have handled it with skrill and few transfer to my private account in the past, but as the commission grew and ewallet is not sustainable, i need a solution quite fast.

Anoyone who have an idea what would be the best option for me?

 

[Toootoly]

No one? is it the wrong place i posted ?

 

[LucyOffshore]

You could setup the following structure.
1) Offshore corp -> UK corp (owned by offshore corp) -> Pay yourself dividends if you have low tax on that OR Give yourself a loan(s)
This is if you want to make your income legal and pay a little tax.

The 2nd option is if you just don't care to pay taxes. I know this is not your case as you have a family but someone on this forum might benefit. This option is much easier too.
2) Open an Euro Pacific Bank account. They don't have AOEI. Use their debit card whenever you need more money. OR You can also go to countries like Serbia (in Serbia you also have 50k guarantee from the state in case bank goes bankrupt) and Montenegro where banks don't have AOEI. Same process then, just withdraw from your card when needed.

 

[KJK]

If you ONLY want to hide ownership, it's not that big of a problem. Just ask a friend or get a nominee guy and put him into a company - can be even Spanish company if you want to (though UK company may be better, there's also some easy to setup companies in countries like Estonia).

Your income and family situation doesn't really justify some complex offshore setups. You cannot claim to the Spanish authorities that you live on some Caribbean island from where you manage your company and at the same time you have a wife and kids in España. That's a big no no no.

Sure, some setup is possible but in your situation I'd focus on growing that business and only then consider something "offshore".

Is your real goal to hide your business from your employer? Is that the only reason? Or is it some cover reason?
Unless your employer is an affiliate or gambling company itself, there's no reason to think they would care.

 

[Toootoly]

thanks for the replies both of you, and sorry for my late.

Some clarification, i want/need to hide the ownership of my activities as i am employee in a Gambling firm, there is no conflict really as its in different markets. My current emplyoment, wont accept employies having side businesses. So for now i need to hide the ownership, while i build the business to a level where i am confident with leaving my current position.

Taxes/Non Taxes: For now i dont care, but the plan is once the business grow to a decent income that i open a Spanish/EU company or what is most benificial, and run it legally in my own name.

The solution i had an idea could help is the one LucyOffshore mentioned

1) Offshore corp -> UK corp (owned by offshore corp)

With a nominee, next question would be, anyone who can recommend anyone helping setting this up?

The 2nd option is if you just don't care to pay taxes. I know this is not your case as you have a family but someone on this forum might benefit. This option is much easier too.
2) Open an Euro Pacific Bank account. They don't have AOEI. Use their debit card whenever you need more money.

As said then i am interested in being able to keep running my business, and for now tax is not something i am concerned about as i still have my normal income. With this bank, i could open a offshore + bank account in Euro Pacific bank account and WD when needed? What is the downside here, anything to be aware off?

It does sounds like the best option until my business have reached a size, i am confident running from a EU company.

there's also some easy to setup companies in countries like Estonia).

This is interesting and i will try to read up on that.

Your income and family situation doesn't really justify some complex offshore setups. You cannot claim to the Spanish authorities that you live on some Caribbean island from where you manage your company and at the same time you have a wife and kids in España. That's a big no no no.

Sure, some setup is possible but in your situation I'd focus on growing that business and only then consider something "offshore".

The issue here is that growing my business is not possible with my current setup, as i cant receive earnings in my bank account any longer and soon gaming affiliates will be required to do KYC, which again is a no go for me as a private person.

Is your real goal to hide your business from your employer? Is that the only reason? Or is it some cover reason?
Unless your employer is an affiliate or gambling company itself, there's no reason to think they would care.

Answerred above, but yes i am a employee in a gambling firm, that however works in different markets than i do affiliation.

Sorry for all the questions, but i am very new to this, really appreciate your help!

 

[KJK]

Answerred above, but yes i am a employee in a gambling firm, that however works in different markets than i do affiliation.

Now it starts to make sense. So you are an employee in gambling firm and an affiliate yourself.

If you want an EU company, I'd choose some Baltic one (Estonia, Lithuania, Latvia), definitely not Spanish and definitely not something like Germany. UK company also makes sense but you must have a nominee because the records are public and indexed by Google. If you'd accept something outside EU, there's even more possibilities. Setup by LucyOffshore is also possible but in your situation the offshore part may not even be necessary.

And remember that creating a company outside Spain does NOT solve and/or improve your tax situation, it actually makes it a bit more complex given you live with your family in Spain.

 

[Toootoly]

Thank KJK, I know or have heard the tax situation in spain is complex (Currently my private tax is handled by others) and this setup is solely for the purpose of being able to grow my side business. I am happy to pay tax as long as I can do anonymously, which i dont think is possible? So therefor i thought the only option would be to go full offshore and hide the ownership, and in worst case even let the money sit, in a company somewhere until earnings are high enough for me to feel comfortable leaving my current job. Thereafter everything would be in my name and no need to hide anything.

I will try look in to the countries you mention and take it from there, thanks a lot for the help or pointing in the right direction KLK and Lucyoffshore, really appreciate it.

 

[KraftyAndy]

Why in eu countries? i am a spaniard and for me it's better to set up a company outside in respetable jurisdictions like delawere or wyoming

Running an offshore business from Spain is the same as running a Spanish business from Spain in terms of taxation:

The Taxation Office considers an organisation based in a tax-free country or territory as resident in Spain when its main assets, directly or indirectly, consist of assets located or rights that are fulfilled or exercised in Spain, or when its main activity is carried out therein, unless it accredits that its direction and effective management take place in that country or territory, and that its incorporation and operations have a valid economic motivation and substantive business reasons other than the simple management of securities or other assets.

 

[Toootoly]

Maybe i was not clear enough in my answers.
I want a setup where i am able to continue my work, and where i am able to do so anonymously. The tax question is not important for me as i already have a legit income from anothe job, that is more than enough to cover spendings and savings.

What i am looking for, is the correct setup for me to be able to grow the business i have running. I need a company to be able to get verified and paid commission, and i need a place to send these money for "storage" until i am confident setting up a fully legal company in either spain or EU.

Hope it is more clear now.

 

[KraftyAndy]

I want a setup where i am able to continue my work, and where i am able to do so anonymously.

It's not so straightforward to do this these days with all the reporting and sharing data that goes on.

The tax question is not important for me as i already have a legit income from anothe job, that is more than enough to cover spendings and savings.

Just so you are 100% clear, you will be evading tax in Spain by running an offshore business.

 

[Toootoly]

It's not so straightforward to do this these days with all the reporting and sharing data that goes on.

I am aware of that, and that is why i try to reach out here for any ideas.

you will be evading tax in Spain by running an offshore business.

I am well aware about the tax evading, i can sleep at night though, as the tax will be paid later on anyway. If i keep the money "hidden" for some time and then invoice them to the EU campany some time in the future, the tax will be paid by then, for now the issue is simply that i can not legally do the work i do, on my name. So i need to find another solution.

Is that legal, for sure not, but as said it is not something that will keep me awake at night as i will pay the same tax more or less, later on.

 

[Toootoly]

What about Wyoming

I have not thought about that at all, will look in to that, thanks. Do you have any links you can provide to read up on it? What do you do with Bank account?

 

[KraftyAndy]

They won't report you to the spanish tax authorities

And the IRS? When you file for your EIN or your annual return? Or the banks?

 

[Toootoly]

Do you know anything about this? and if so, why do you not want to share your knowledge? It seems like your last posts have more been about critizising what others have said instead of helping out. If you know what the other person is saying is wrong, then please just post information about it, so we all save some time.
To be honest, I am a little bit confused about what you want to achive here?

 

[KraftyAndy]

I am sharing my knowledge, it's just it looks like I am giving answers you don't want to hear.

All foreign owners of disregarded LLCs are now legally required to complete form 5472 and an abbreviated annual return. This will identify you, your address, how much has gone in/come out of the LLC during the tax year etc. Failure to complete this return results in an automatic $10,000 fine.

In order to open a bank account, you are going to need to provide your identification data as well as lots of details about your business (including operating agreements).

I think people are naive if they genuinely believe that the IRS/banks will not share your data with the Spanish tax authorities.

So yes, setting up an LLC in Wyoming provides a degree of anonymity for its members. However, as soon as the LLC does business, you are providing data which will be shared between tax authorities.

To further compound issues with the US route, very few banks will touch you if they hear anything about gambling.

 

[Toootoly]

I am sharing my knowledge, it's just it looks like I am giving answers you don't want to hear.

Ok then you are wrong i dont know anything and want to hear facts so i know what i am doing, thanks for the more detailed information. As said then i was just a bit confused

Sounds like i have to read up on a lot of things (before doing anything) which also was the plan, but it is always good to be guided to the right things.

 

[Toootoly]

And just to be clear, then i am not really after avoiding tax. IF i could run the company anonymously and pay the taxes due, then i would be happy to do so, my problem is that i can't put my name on the company as it would conflict with a contract i am bound by.