Stuck in stupid situation - need bank account

[TravelJack]

Am new to the forum and thanks for letting me in. Sorry for my English which isn't my mother tounge. Feel free to ask if what I write sounds like nonsense to you.

I have a question about getting a bank account where I can recieve and send money (basically do online banking) and have a Mastercard. I have searched the internet for solutions to my situation but haven't found any, so I hope for a solution/advice thru this forum.

My situation:

I am a citizen of a EU country but have no address there.

Currently living in East Africa where I am not allowed to work and can't open a bank account until I get a National ID (that will take about 6-12 months).

I do Online Marketing and have customers world wide but I can't invoice them until I have a bank account.

I can't use my bank account in my home country as I then have to pay tax which I don't want to as I am not living there.

My PayPal account is hooked up on my bank account in my home country and therefor can't be used.

Any advice would be appreciated.

 

[JohnLocke]

Setup a Seychelles or Belize company and open an EMI account for this company to receive payments for invoices.

Pretty simple and fast to do.

 

[TravelJack]

Thanks for the reply.
At this stage I was looking more for personal account but I see I wasn't clear about this.

 

[NickNack]

you can setup a company in the US for very cheap, about 150 bucks and open a corporate account which will be MUCH easier, cheaper, and better than a personal account anywhere else. It will be difficult for you to get a personal account remotely without travel.

 

[mrau]

Hi. Is it that simple to open a corporate acc in an EMI for a brand new Belize or Seychelles company?
I've heard that you need a fully functional address and cell phone number in the same place of incorporation so the acc is verified (they send a real letter with code and also SMS with PIN too). Don't they also ask the website of the company?
Please let us know your comments. Thanks

 

[NickNack]

I do believe the EMI is not difficult. I`m not sure you need a fully functional address, I think you can get a virtual one, and a cell phone number is easy to get, I bet you there is someone on this forum who can provide suggestions.

 

[mrau]

Hi @NickNack . Yes, I agree with you that surely with the right contacts, tools and $$ it's possible but the whole setup probably takes about 2 months (incorporation, registration, verification, etc).
Preliminary, it doesn't look like the easy and fast solution raised by Admin. Perhaps I'm missing something.

 

[mrau]

you can setup a company in the US for very cheap, about 150 bucks and open a corporate account which will be MUCH easier, cheaper, and better than a personal account anywhere else. It will be difficult for you to get a personal account remotely without travel.

Hi again. Is it that simple to setup a US Corp and business acc in a us bank? And remotely?

 

[TravelJack]

you can setup a company in the US for very cheap, about 150 bucks and open a corporate account which will be MUCH easier, cheaper, and better than a personal account anywhere else. It will be difficult for you to get a personal account remotely without travel.

Thanks NickNack.
Then I will have to pay tax in the US or? If not, that might be a solution.
I am in a situation where I don't have to pay tax in my home country because I don't live there and don't have a business registered there. Where I am living (in East Africa) I cannot work "officially" and don't have to pay tax. Lucky me - but without an account in another country than my home country I am pretty lost, so to speak.
Today I applied for a Leupay account but as I can't provide a utility bill or anything else to document my residence here it will probably be rejected.

 

[NickNack]

Hello. Yes, it is that easy. Also, from what I understand about taxes (I`m not an accountant but can always refer to one), if the service is not rendered in the US, and you are a non resident, there are no tax implications, however it would be best to consult with an accountant.

 

[mrau]

Hello @NickNack . Thanks. The remote solution in the US that you propose is using an introducer?

 

[NickNack]

Always, unless you travel or go through a law/accounting firm.

 

[mrau]

Do you know how much a solution like that could cost and how long would it take?

 

[NickNack]

1 week to open a company
1 week to get an EIN number
1 week to open the account
1 week just to add on in case there are inconveniences

Fees are between 2.5-5k USD for account + company depending on who you use and the due diligence required. Anyone opening for less than that money will likely be putting themselves as account holders on the account with you, and that is never good.

 

[mrau]

Thanks @NickNack . I'll think about it and perhaps I'll ask you if you can refer me to some introducer. How about the banks where the account would be opened? Are these easygoing? I'm planning to receive less than 15k a month (about 2 payments of 7.5K). Will they ask contracts, agreements, etc?

 

[NickNack]

They will never ask you for contracts. The accounts I have referred my clients to are Bank of America, BBVA/Compass, and some smaller banks depending on the needs of the client.

 

[mrau]

Thank you @NickNack . In case I decide not to go with US Corp & acc option (perhaps that setup is too much just to receive up to 15K / month).
Do you also offer introduction for remote personal acc in other countries? (Min initial deposit though I'm willing to leave almost 100% untouched the payments I receive for long time)

 

[mnschwarz]

Just to clear up your tax issue as there sounds like a bit of confusion; generally (depending on your country), simply having a bank account, even in your home country will not require you to pay taxes on your offshore income. Most countries tax based on residency and source. If you are a non-resident in your home country and now reside in East Africa, you would pay tax based on the laws in that East African jurisdiction. This means you can legally receive income to a bank account in your home country, providing the income is not sourced from there, and not pay tax (unless your new residency also taxes worldwide income).

This does of course require that you are indeed meeting the requirements of being a non-resident in your home country. That differs based on jurisdiction and is hard to give general advice on. But usually it requires proving residency in your new jurisdiction. If you can't even provide a utility bill etc you may actually still be a resident for tax in your home country.

The main reason I mention all this is because you should legally pay tax based on your residency and figuring that out is your first step. Simply because it is getting extremely difficult to hide any income these days and simply having an offshore bank account (even under a corporate structure) is generally not enough to avoid taxes. Once you figure all this out, it will be much easier to offer advice.

 

[TravelJack]

Just to clear up your tax issue as there sounds like a bit of confusion; generally (depending on your country), simply having a bank account, even in your home country will not require you to pay taxes on your offshore income. Most countries tax based on residency and source. If you are a non-resident in your home country and now reside in East Africa, you would pay tax based on the laws in that East African jurisdiction. This means you can legally receive income to a bank account in your home country, providing the income is not sourced from there, and not pay tax (unless your new residency also taxes worldwide income).

This does of course require that you are indeed meeting the requirements of being a non-resident in your home country. That differs based on jurisdiction and is hard to give general advice on. But usually it requires proving residency in your new jurisdiction. If you can't even provide a utility bill etc you may actually still be a resident for tax in your home country.

The main reason I mention all this is because you should legally pay tax based on your residency and figuring that out is your first step. Simply because it is getting extremely difficult to hide any income these days and simply having an offshore bank account (even under a corporate structure) is generally not enough to avoid taxes. Once you figure all this out, it will be much easier to offer advice.

Thank you. I already know this and as I wrote, I am a non-resident in my home country and as you state am not paying tax there even from income sourced there, unless the income is recieved to my bank there. Again, as I am not allowed to work and cannot set up a company where I live now I cannot recieve money to a bank account here. If I do that when I am able to open a bank account later I will of course be taxed here but as I am not applying for a work visa (because I can't get one) I need to recieve the income to a bank account in another country. This country, where I live now, does not look into where you're money comes from as long as you can provide for yourself (not quite right but there are workarounds). I hope this clarifies any confusion I made with my first post.

As for the utility bill I can probably get one but as I pay cash without any contract including electricity, water etc. it would be a hassle I would like to avoid. However if there are no way to workaround this I will probably have to discuss this with my landlord who will have to make some kind of bill.

 

[Brutus]

@mnschwarz I've sent you a message.