Offshore business for crypto trading

Nefarious

New Member
Hello,

I'm a Spanish citizen living in Spain right now and I'd like to set up an offshore company with the sole purpose of trading crypto.
1. What country do you advise? I was thinking Belize myself...
2. Is getting a mistertango/bank account feasible these days? If now, do you recommend any other method to handle cash?

And now here comes the tricky part...
1. Can I donate my crypto to the company without breaking any law? to be more specific, I just gift my cryptocurrency to the company
2. Does this company get taxed in Spain due to CFC laws (or whatever its called, those in which a foreign entity gets taxed like the local ones in EU)
2.a If this is true, is there any ways around this, like not having the majority of shares, or having them (or a portion of them) in a trust/another company? Setting a cover company with some other samll business is an option
3. Can i use the money of the company for personal expenses without getting fined? I know some countries like Belize ask for no accounting so no one could know where my money goes anyways. This is important as I don't really wanna pay dividend/income tax


Some questions may sound stupid but I'm new to this so please forgive my ignorance. :) Also I know crypto isn't taxed in Portugal but I'd rather do this staying in Spain.

Thx in advance
 

Gediminas

Offshore Tax Advisory
Business Angel
Mentor Group
Commercial Service
Hi,

I can not advise a jurisdiction for you that simple, I would have to look more in-depth about your situation to give you the best answer.

The answers to the second part of your questions -

1. Yes, you can donate to Trust and trust might make a contribution in kind to the company.
2. The company itself won't necessarily be taxed in Spain, but you might.
2.a. The shares could be held by Trust or Foundation, but the question is if it will help you in any way.
3. For this purpose better is to have a Trust instead of a company. You could use the Trust for your living expenses.

I hope this helps ;)
 

countryfree

Trusted Member
Business Angel
What trading volume do you expect?
I've been trading cryptos for years as an individual. No need for a company.
 

Nefarious

New Member
Hi,

I can not advise a jurisdiction for you that simple, I would have to look more in-depth about your situation to give you the best answer.

The answers to the second part of your questions -

1. Yes, you can donate to Trust and trust might make a contribution in kind to the company.
2. The company itself won't necessarily be taxed in Spain, but you might.
2.a. The shares could be held by Trust or Foundation, but the question is if it will help you in any way.
3. For this purpose better is to have a Trust instead of a company. You could use the Trust for your living expenses.

I hope this helps ;)
Hello, what type of Trust do you mean? After looking around I haven't seen any Investment Trust in my country where I could manage my crypto holdings myself. Is there anywhere I can set a Trust and manage it myself?

Anyways, my idea is to get my company not to apply by CFC rules (owning less than 50%) so it doesn't get taxed here.

What trading volume do you expect?
I've been trading cryptos for years as an individual. No need for a company.
last year I made little over 30k.
However I expect a big bullrun like the one we had in 2017 for 2021, and if that comes true then I'd cash out over a million. I'd rather have a company set up for that moment.
 

Nefarious

New Member
But won't it get taxed like a Spanish company due to CFC rules?
I'm gonna check the threads now thx.
Also consider I want to stay in Spain.
 

Gediminas

Offshore Tax Advisory
Business Angel
Mentor Group
Commercial Service
Hello, what type of Trust do you mean? After looking around I haven't seen any Investment Trust in my country where I could manage my crypto holdings myself. Is there anywhere I can set a Trust and manage it myself?
What is your tax residency, please?
 

dekamyx

New Member
Greetings everyone, I have rather similar question as this thread author, what the best way to handle/legalize income from crypto trading using trust/offshore company? This thread seams most recent and appropriate one to discuss this matter.
 

Gediminas

Offshore Tax Advisory
Business Angel
Mentor Group
Commercial Service
Greetings everyone, I have rather similar question as this thread author, what the best way to handle/legalize income from crypto trading using trust/offshore company? This thread seams most recent and appropriate one to discuss this matter.
Hi,

Would you be able to provide the source of funds?
 

dekamyx

New Member
Hi,

Would you be able to provide the source of funds?
Well, here is little backstory. I had 2 contracts for programming job (with actual company) where payment was settled in BTC, after that I used this funds for couple quite successful trades. I think exchange I used provide the way to export trading history. Not sure if this can be used for providing source of funds but still worth of mentioning.
 

Gediminas

Offshore Tax Advisory
Business Angel
Mentor Group
Commercial Service
Well, here is little backstory. I had 2 contracts for programming job (with actual company) where payment was settled in BTC, after that I used this funds for couple quite successful trades. I think exchange I used provide the way to export trading history. Not sure if this can be used for providing source of funds but still worth of mentioning.
Based on your given information I can tell I would be able to help with crypto-fiat but not sure what you mean "legalize". You can send me an email if you wish and we will discuss it further.
 

dekamyx

New Member
P.s. by legalize I mean usage of this trading profits without fear that goverment came and just steal it because of legal uncertainties and lack of laws related to the crypto in my country. Nothing illegal ;)
 

Gediminas

Offshore Tax Advisory
Business Angel
Mentor Group
Commercial Service
Yes, it's easy. You need to get a proper setup and (or) a financial institution that is willing to listen. You can either do it by yourself or get some help from professionals like myself or some other forum members. ;) Don't be in a run, do research.
 
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dekamyx

New Member
Yes, it's easy. You need to get a proper setup and a financial institution, who is willing to listen. You can eather do it by yourself or get some help from professionals like myself or some other forum members. ;) Don't be in a run, do a research.
Good point, I'm not in rush and doing my little research at the moment (this is how I found this forum :)).
P.s. I just sent you an email.
 
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Admin

Forum Moderator
Staff member
what the best way to handle/legalize income from crypto trading using trust/offshore company? This thread seams most recent and appropriate one to discuss this matter.
When the bank asked me for trading history and source of funds I send them a screenshot from kraken with the trading history and told them the original money (small amount 5K EURO) came from something I sold. They never came back with additional questions, that's almost a year ago.
 
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