Our valued sponsor

Offshore company for Crypto holdings (trading and staking).

travelES

New member
Nov 8, 2020
39
12
8
43
Visit site
I'm a tax resident of Malta which is a territorial taxation country. I own a crypto portfolio and want to set up an offshore company and move my cryptos into this company. Any income or gains thereafter that are not remitted will be tax free and protected.

I did some research (before finding this site) and decided upon a Nevis company. However, it appears there may be better options for my needs. Im looking primarily for tax optimization and asset protection, but I want to do everything legally. I also want to set it up quickly.

My company will be involved in "staking" cryptos with the earned cryptos being sold on reputable exchanges for fiat and transferred into the company bank account. Ive been informed the major exchanges: Binance, Kraken etc. accept Nevis companies. I can get a bank account for my Nevis company. While my company wont have a physical office in Nevis, Nevis bank account, or remit any income to Nevis, Im unsure if I my company will have to pay CGT or tax on the disposal of the cryptos for two reasons:
1. My company earning income through staking cryptos may not be opertaining in Nevis, but its not operating in any country specifically such is the nature of the enterprise. Therefore Im not sure if by law its required to designate a country.
2. According to Deloitte, Capital gains are not subject to tax unless the asset is sold within one year of purchase. My company will sell cryptos held for less than a year so Im not sure if CGT would apply.

I think both these scenarios are very unlikely, but I thought I should also consider other options with guaranteed zero corporate tax to negate them entirely. Alternatively, I also like the look of Belize: cheap, popular and rapid set up time.

Additionally, I am in the EU and I think their laws changed last year regarding offshore companies and Im not sure how this affects me. I got this response from my accountant in regards to assisting me in transferring my assets to the offshore company: " If I advise on offshore jurisdictions, as these are black listed non-cooperative jurisdictions, I would need to report any advice to an EU database and this will be shared among all EU Member States". I havent asked him to elaborate on why this but it also sounds alarming. Perhaps someone can provide guidance on how personally held assets by EU residents are sold into offshore companies, or does that depend on the location and company?
 
I'm a tax resident of Malta which is a territorial taxation country.
Malta is not a territorial taxation jurisdiction. It is, under certain circumstances and subject to certain conditions, remittance based.

I own a crypto portfolio and want to set up an offshore company and move my cryptos into this company. Any income or gains thereafter that are not remitted will be tax free and protected.

I did some research (before finding this site) and decided upon a Nevis company. However, it appears there may be better options for my needs. Im looking primarily for tax optimization and asset protection, but I want to do everything legally. I also want to set it up quickly.
Why not do everything under a Maltese company with a foreign holding company? 5% tax and you can structure the holding in a way to protect your assets from creditors or whatever it is you need your assets protected from.

Your Nevis plan falls apart by the company being tax resident in Malta. What you're describing isn't compatible with the Maltese law and you're essentially becoming a tax cheat in a tax haven, which is just nonsensical. While enforcement is lax, the passive income from the Nevis company probably doesn't qualify as being on a remittance-basis from a foreign company, if you are the company's director/shareholder/UBO since in so doing the company becomes tax resident in malta.

Pay the 5% and sleep well at night.

Go speak with CBS, WH Partners, C&C, or any of the other major law/tax advisory firms and see what they propose.

Additionally, I am in the EU and I think their laws changed last year regarding offshore companies and Im not sure how this affects me. I got this response from my accountant in regards to assisting me in transferring my assets to the offshore company: " If I advise on offshore jurisdictions, as these are black listed non-cooperative jurisdictions, I would need to report any advice to an EU database and this will be shared among all EU Member States". I havent asked him to elaborate on why this but it also sounds alarming. Perhaps someone can provide guidance on how personally held assets by EU residents are sold into offshore companies, or does that depend on the location and company?
It's called DAC6. DAC6: The EU Directive on cross-border tax arrangements
 
I agree with @Sols since your already in Malta suffer the 5%.

You will need to set up a holding company in another jurisdiction like UK and basically claim the rebate on paper.

Profit is taxed is 35% but that is all moved to the UK holding.
You then on paper bring it back and then claim the 30% rebate.

Your accountant demonstrates this on paper for the authorities.
 
Your Nevis plan falls apart by the company being tax resident in Malta. What you're describing isn't compatible with the Maltese law and you're essentially becoming a tax cheat in a tax haven, which is just nonsensical. While enforcement is lax, the passive income from the Nevis company probably doesn't qualify as being on a remittance-basis from a foreign company, if you are the company's director/shareholder/UBO since in so doing the company becomes tax resident in malta.

I personally bought the assets then transferred them into a offshore company/trust for supreme asset protection. Both transactions legal and documented. I would then report all the earnings under EU law to the relevant authorities if obliged. Why would that constitute tax cheating? It sounds no different to me than any other person moving assets to an offshore jurisdiction for tax and protection purposes.
 
I personally bought the assets then transferred them into a offshore company/trust for supreme asset protection. Both transactions legal and documented. I would then report all the earnings under EU law to the relevant authorities if obliged. Why would that constitute tax cheating? It sounds no different to me than any other person moving assets to an offshore jurisdiction for tax and protection purposes.
The key concept here is tax residence, which is determined by where the company is managed/controlled. The company is tax resident in Malta, in this case, and is subject to Maltese tax law.

What you are trying to achieve is taxation on a remittance basis, which under Maltese law only applies to passive income from companies/investments that you do not control.

If you control the company, it's tax resident in Malta.

If it's tax resident in Malta, it must pay Maltese income tax.

If it's controlled from Malta, it will likely not qualify as being a foreign company and you are therefore not able to enjoy remittance-based taxation.
 
The key concept here is tax residence, which is determined by where the company is managed/controlled. The company is tax resident in Malta, in this case, and is subject to Maltese tax law.

What you are trying to achieve is taxation on a remittance basis, which under Maltese law only applies to passive income from companies/investments that you do not control.

If you control the company, it's tax resident in Malta.

If it's tax resident in Malta, it must pay Maltese income tax.

If it's controlled from Malta, it will likely not qualify as being a foreign company and you are therefore not able to enjoy remittance-based taxation.

Thats not true. It depends where the company is domiciled.
 
Talk to these guys they will give you a clear and difinitive solution to the Malta tax situation.


Thanks. I just contacted them.

Perhaps you recommend some other companies that may be able to assist me? There appears to be such a dramatic variance in price, services and advice/recommendations (much of which is completely baseless). Id like to gather as much info as possible before deciding. Essentially Im looking to transfer some assets into an offshore company and Id like advice on where to establish this company, how exactly to transfer my assets into it, and any potential legal/tax ramifications of the transfer.
 
Thanks. I just contacted them.

Perhaps you recommend some other companies that may be able to assist me? There appears to be such a dramatic variance in price, services and advice/recommendations (much of which is completely baseless). Id like to gather as much info as possible before deciding. Essentially Im looking to transfer some assets into an offshore company and Id like advice on where to establish this company, how exactly to transfer my assets into it, and any potential legal/tax ramifications of the transfer.


I would suggest a UAE company with a crypto license, its just been introduced and has all the tax free, stability and ease of business. Moving assets across will simply be that you have changed your HQ.
 
I would suggest a UAE company with a crypto license, its just been introduced and has all the tax free, stability and ease of business. Moving assets across will simply be that you have changed your HQ.

Thanks again. Ill look into the UAE. Wasnt even on my rader.

Interestingly, BBCIncorp (not sure if reputable?) did an extensive write up on Crypto offshore last week and determined Saint Vincent was the best location:

"Saint Vincent is our recommended option. This Anglo-Caribbean country has one of the fastest company registries in the world and is an ideal destination for setting up an offshore company in crypto and forex business"
 
  • Like
Reactions: CaptK
Thanks again. Ill look into the UAE. Wasnt even on my rader.

Interestingly, BBCIncorp (not sure if reputable?) did an extensive write up on Crypto offshore last week and determined Saint Vincent was the best location:

"Saint Vincent is our recommended option. This Anglo-Caribbean country has one of the fastest company registries in the world and is an ideal destination for setting up an offshore company in crypto and forex business"
Now you learned about Saint Vincent, then you want to think about where you want to bank with this company.
 
  • Haha
Reactions: CaptK

Latest Threads