Hey guys,
I am currently resident in Spain. I use automated trading algorithms (crypto) as a means to generate an income. Lots of small trades, lots of small profits - and lots of taxable events. Can be around 200 trades a day. As you can imagine it makes accounting a nightmare.
Moving to a jurisdiction with zero tax is hugely attractive due to the lack of accounting requirements. The Dubai + freezone looks like the best option, and I am currently getting advice on how to best manage my tax liabilities while moving away from Spain.
However, for various reasons I may not be able to move away from Spain as soon as I would like / need to get the tax advantages for 2022. The primary purpose for this set up is to making accounting easier (as far as I am aware there is no tax advantage to this structure while still resident in Spain). Is there an advantage to run my crypto trading through a freezone company in Dubai, and pay tax in Spain?
Do I just pay myself a salary, and declare that? From what I understand the company will be taxed as if it is a Spanish company - how do they determine the profits? It feels as if I could get very creative with my accounting depending on how much I declare as profit vs re-invest. Or are profits determined from dividends paid out? Or do they want to see all of the companies financial records?
Pros I see:
- Gets the freezone set up and ready for when I eventually do make the move
- Gets my assets out of the country
Cons:
- Complicated. Still gotta pay the tax anyway, so is this complication even worth it?
Or are there better alternatives?
I am currently resident in Spain. I use automated trading algorithms (crypto) as a means to generate an income. Lots of small trades, lots of small profits - and lots of taxable events. Can be around 200 trades a day. As you can imagine it makes accounting a nightmare.
Moving to a jurisdiction with zero tax is hugely attractive due to the lack of accounting requirements. The Dubai + freezone looks like the best option, and I am currently getting advice on how to best manage my tax liabilities while moving away from Spain.
However, for various reasons I may not be able to move away from Spain as soon as I would like / need to get the tax advantages for 2022. The primary purpose for this set up is to making accounting easier (as far as I am aware there is no tax advantage to this structure while still resident in Spain). Is there an advantage to run my crypto trading through a freezone company in Dubai, and pay tax in Spain?
Do I just pay myself a salary, and declare that? From what I understand the company will be taxed as if it is a Spanish company - how do they determine the profits? It feels as if I could get very creative with my accounting depending on how much I declare as profit vs re-invest. Or are profits determined from dividends paid out? Or do they want to see all of the companies financial records?
Pros I see:
- Gets the freezone set up and ready for when I eventually do make the move
- Gets my assets out of the country
Cons:
- Complicated. Still gotta pay the tax anyway, so is this complication even worth it?
Or are there better alternatives?
