Paysera, Revolut, TransferWise and tax

[traumjaeger]

Hello,

I am EU citizen and I'm starting some affiliate marketing job in order to generate some side income. I have my regular job so I don't want to receive payouts from my side job on my regular bank account because of the taxes. I own Paysera, Revolut and TransferWise accounts and my question would be which one of these is the most safe and can/would they report anything to the tax authorities in my country and how much money can I receive on each from these accounts in order to stay under the radar?

We are not talking about some six figure income from my side job, I'm not sure how much money I can earn with it, but let's say under 2 or 3k euros in month. I just don't want to get in some trouble with the tax office and if someone knows some other solutions, every advice is welcome.

Thanks in advance and sorry for my bad English

 

[JohnLocke]

Welcome to the forum

There are lots of similar thread here already, just do a Google search if you can't find it, here is a simple search :
https://www.google.com/search?sourc...hUKEwjt7oDzuNDnAhXR8qQKHf_YA7wQ4dUDCAY&uact=5
That said, I would recommend you to consult a local tax lawyer, it's obvious that you don't know how things are in real live. Now a days, 2020, it is not enough to just open an account in some sort of tax heaven. The banks will report you.

You could play a game of luck using EMI's like Transferwise or similar services that claim not to report anyone yet. But long term it won't work. The risk will be that even they don't report now they will have to do that in 1 year or earlier and they will be forced to go back in time!

 

[KJK]

They are similar, Paysera has Lithuanian EMI licence, Revolut British EMI licence (plus Lithuanian bank licence), Transferwise I believe worked with a German bank and since 2020 they are payment institution in Belgium.

Electronic money account is somewhat different compared to a bank, read here:
https://www.gov.uk/hmrc-internal-manuals/international-exchange-of-information/ieim400750
So some online wallets may not be reporting - which however is not the most important thing. It doesn't really matter if you have account in your home country or in Switzerland. What really matters is where you live and citizen of what country you are.

 

[traumjaeger]

Welcome to the forum

There are lots of similar thread here already, just do a Google search if you can't find it, here is a simple search :
https://www.google.com/search?sourc...hUKEwjt7oDzuNDnAhXR8qQKHf_YA7wQ4dUDCAY&uact=5
That said, I would recommend you to consult a local tax lawyer, it's obvious that you don't know how things are in real live. Now a days, 2020, it is not enough to just open an account in some sort of tax heaven. The banks will report you.

You could play a game of luck using EMI's like Transferwise or similar services that claim not to report anyone yet. But long term it won't work. The risk will be that even they don't report now they will have to do that in 1 year or earlier and they will be forced to go back in time!

Thank you!

They are similar, Paysera has Lithuanian EMI licence, Revolut British EMI licence (plus Lithuanian bank licence), Transferwise I believe worked with a German bank and since 2020 they are payment institution in Belgium.

Electronic money account is somewhat different compared to a bank, read here:
https://www.gov.uk/hmrc-internal-manuals/international-exchange-of-information/ieim400750
So some online wallets may not be reporting - which however is not the most important thing. It doesn't really matter if you have account in your home country or in Switzerland. What really matters is where you live and citizen of what country you are.

Thanks! I live in Austria. But I am Austrian and Serbian citizen, I have kind of dual citizenship. Maybe I should just take my Serbian documents (which are expired, have to renew them) and open with them some account. Or open an account in Serbia.

 

[CaLViN]

Will you take risk and have sleepless nights or just try another method ?

 

[traumjaeger]

Will you take risk and have sleepless nights or just try another method ?

No, I am not going to take risk. Maybe only in the first months until I realize what is the best solution. Do you have some advice for me?

In the end, if there is no other solution, I'll have to register a company in my country in order to be able to receive these payments and that was exactly the thing I wanted to avoid...

 

[CaLViN]

I dont think you will be traced by taxman for 2-3k per month.
That is a very low amount which anyone can side-earn by any other methods .

 

[traumjaeger]

I dont think you will be traced by taxman for 2-3k per month.
That is a very low amount which anyone can side-earn by any other methods .

I thought that too, but wanted to play safe, that's why I opened this thread. I thought if I stay under 5 or 6k in month, everything should be fine and in case I earn more than that, I would definitely quit my job, register company and be self-employed. Now I have mixed feelings about that after reading Admins message.

P.S. I replayed to the first two messages, but my message is awaiting moderator approval.

 

[CaLViN]

But dont forget that .
What if they do chase you ? This is the risk you should consider.

 

[traumjaeger]

But dont forget that .
What if they do chase you ? This is the risk you should consider.

Yeah, there is the risk of course.. I really don't know what to think and what to do.

 

[Rael]

Yeah, there is the risk of course.. I really don't know what to think and what to do.

It depends on the country. If you split the sum into different EMI, you minimize the risks (maybe not all accounts will be found), and if they chase you, usually you can settle the thing with only a minor penalty, which considering the limited amount of money that you'd have in a single EMI would be a reasonable sum.
To summarize, it's not that they throw you in jailright away. You'd receive a request to clarify your position (they won't have access to the transactions of foreign EMI accounts, just the balance and in some cases the total yearly movement, so they won't tell you "you received X money from X source and didn't declare them", but rather "please declare where these money came from").


Relatively low chance of getting caught due to small sums, plus reasonable penalty in case they get you is an acceptable calculated risk in my opinion

 

[Spinat]

Split your monthly turnover into several EMI's so you won't risk all your money if one go down, there is a huge list available here List of Banks, EMI's, Payment processors and BTC to FIAT institutions. that can help you to find several good EMI's. check the thread there are more in there!