Spanish resident creating a company in UK with Wise account. CFC/CRS?

[5K1PP3R]

I will be using a nominee Ukrainian passport holder Spanish resident to create a UK company (100% ownership and director) to receive money from Stripe and send ~80% to Dubai or Cyprus company based on software license agreement. The UK company will not pay any dividends and will make little or no profit, will spend the rest 20% on expenses - hosting, salaries etc.
What are the implications for the Spanish resident? Does he need to declare something in Spain? Can if be ignored if UK company's yearly profits are minor, say within 20-50k GBP? Just for the sake of paying at least some taxes in UK

 

[5K1PP3R]

anybody?

 

[TheCryptoAnt]

Im assuming your UAE set up is non CRS and as you are using a nominee you are ok not declaring anything unless you get paid by the FZCO.

Hacienda is usually unorganized and easy to circumvent if you plan things in advance.

 

[5K1PP3R]

My concern is regarding Spanish resident who will be opening a UK company. Is it safe to assume Spain doesn't care if he opens a company that is not making any profit in UK? Or is he supposed to declare it with tax authorities?

 

[Marzio]

Is it safe to assume Spain doesn't care

No, it is safe to assume the contrary. Spain is one of the most aggressive tax administrations in the world so either you play by their rule or you'll end up like Shakira.

 

[5K1PP3R]

No, it is safe to assume the contrary. Spain is one of the most aggressive tax administrations in the world so either you play by their rule or you'll end up like Shakira.

Thanks.
Damn it. So it is better not to use Spanish residents as nominees?
Or he can register UK company in Spain? I guess it is not worth it.... Easier to find a UK resident nominee

 

[TheCryptoAnt]

No, it is safe to assume the contrary. Spain is one of the most aggressive tax administrations in the world so either you play by their rule or you'll end up like Shakira.

Yeah they are very aggressive but also turbo trash at their job.

Hide yourself properly and you will be fine.

My concern is regarding Spanish resident who will be opening a UK company. Is it safe to assume Spain doesn't care if he opens a company that is not making any profit in UK? Or is he supposed to declare it with tax authorities?

Spain cares obvs, just dont open the UK company as a Spanish resident.
Think outside of the box.

 

[jakubko666]

If (s)he has ukrainian passport, (s)he is untouchable in SSEU.

 

[5K1PP3R]

Spain cares obvs, just don't open the UK company as a Spanish resident.
Think outside of the box.

what are my options?
- use Ukrainian UK resident?
- use Ukrainian Ukraine resident?
Anything else? Thanks

 

[Marzio]

I don't know what are you trying to do but if you are a UAE resident (as i assume from what you wrote) you could use a UK LTD as a payment agent also known as a billing company that pays minimal taxes in UK. Apprently this structure is well known and accepted in UK. Do a search in the forums and you'll find this structure popping up in older threads.

 

[TheCryptoAnt]

what are my options?
- use Ukrainian UK resident?
- use Ukrainian Ukraine resident?
Anything else? Thanks

Ukraine passport + UK resident is a bad idea imo.
Better Ukraine passport and Ukraine resident.

Literally any other country but the one the passport holder lives in.

 

[Jerry1911]

Does the "nominee Ukrainian passport holder-Spanish resident" have a trusted family member who is perhaps still resident in Ukraine?

 

[5K1PP3R]

Does the "nominee Ukrainian passport holder-Spanish resident" have a trusted family member who is perhaps still resident in Ukraine?

yes.
Do you think using a Ukrainian resident is better? How about Wise? Will they open business accounts for a UK company owned by a Ukrainian citizen and resident?

 

[Jerry1911]

Do you think using a Ukrainian resident is better?

Yes

How about Wise? Will they open business accounts for a UK company owned by a Ukrainian citizen and resident?

Not sure but it's worth a try.

 

[5K1PP3R]

I don't know what are you trying to do but if you are a UAE resident (as i assume from what you wrote) you could use a UK LTD as a payment agent also known as a billing company that pays minimal taxes in UK. Apprently this structure is well known and accepted in UK. Do a search in the forums and you'll find this structure popping up in older threads.

I think if I open a UK company myself and send 90% of the income to my Dubai company, auditors won't like it. Transfer pricing and profit erosion are terms I hear in this case often.

 

[Marzio]

Of course tax man won't like it without a proper agreement drafted by a lawyer.