Question The best set up for OnlyFans business?

[jb98]

I have an EU passport but residing in the UK, I’m making $12,000 per month currently but I expect this to keep growing.

My partner has a British passport

We have been looking at opening a company in Dubai and become tax residents to reduce the amount of tax paid in the UK while also allowing us to travel the world without losing the Dubai residency.

Are there any other alternatives that you would recommend?

 

[Martin Everson]

What exactly are you doing on OnlyFans to make $12k a month?

Does it involve you blowing your partners back out or something? I doubt you are doing cooking lessons on there to earn $12k my friend .

Anyway moving abroad is simplest solution as long as you don't maintain ties in the UK that may cause you to be still considered UK tax resident. You can go to Dubai as a freelancer for example. Check you can maintain your banking, for OnlyFans income, wherever you currently bank or at least check you have new options for any move abroad.

 

[Vor]

Not sure if the middle east is the best place to be a resident while making money from onlyfans unless your not selling sexual content lolol

 

[Sols]

I'd think twice before going to UAE to produce adult content. They let a lot slide when foreigners do it but there is a limit, and enforcement is unpredictable. If you need non-EU solution, keep in mind that many Caribbean nations are also very conservative and might not prove tolerant of the business activities (which in some cases will be downright illegal).

If you are married to your partner, moving within the EU on your EU passport is easy. Malta, Cyprus, Ireland, and Portugal could all work to achieve a lowered tax burden. You can't be refused a work permit on grounds that what you do is immoral or obscene under local standards, because of freedom of movement.

Banking will be difficult. The volumes aren't high enough for most traditional banks to make an exception to their policies against adult content. Expect to have to use EMIs with a high risk appetite.

 

[Marzio]

Are there any other alternatives that you would recommend?

Gibraltar, you can freely move there with your UK passport. Setup a Gibraltar LTD and pay total 10% tax.

 

[troubled soul]

Biggest hurdle for this is finding a bank account for your "Online business".
That will be the biggest hurdle in your setup.

For 12k a month, Dubai company registration is not Good Idea.

Better to
Take GoFreelance
take any Activities that suits you.

Open any EMI that accept money from said website. You can use paxum bank or bankera.

Before taking any decision make arrangement for "Bank account" first .
Banking in Dubai : You can search on google for Dubai bank review.



Otherwise

Dubai will be heaven for you If you keep low profile.
Do not mention anything or give any sign that content produce in Dubai.
Do not do anything extreme.

You can multiple your income in Dubai for sure.
Your professional potential can reach at its Pick in Dubai.
You can find more sources of income in Dubai.



Just do not pose in the Balcony.

 

[tsu458]

Cyprus. 12.5% tax corporate level, 0% tax on dividends (guaranteed for 17 years). So the effective tax rate is still 12.5% but you pay some social contributions and so on.

I think the whole setup setup would be around 7k euro, including the residence stuff. Yearly cost about 3k. Cyprus is ok with adult business, just not the local banks (same as in UAE). You need check EMIs (i.e. Bankera) and maintain multiple accounts.

Minimum stay is 60 days a year to maintain the tax residence, so it's perfect for traveling. But you need to stay below 183 days in each other country, sometimes less. The basics...

In my opinion the cyprus way has planability for the future, also if the business income would stop at a later stage. Easy to wind down & move back if needed.

 

[noname]

Maybe you should read more about digital nomads program in Croatia. You can get residency Visa and have 0% income tax and you need proof you earn minimum 2.2k EUR monthly abroad and you can't provide any services to Croatian businesses. Its a beautiful country, not very expensive and within EU. Some Americans and other people are coming aready.
Check out for more info here: Temporary stay of digital nomads

 

[Marzio]

Maybe you should read more about digital nomads program in Croatia.

Yes but you can stay 12 months max, then exit for 6 months and then re-apply again for the digital nomad visa.

 

[MiddleEuroAsia]

Maybe you should read more about digital nomads program in Croatia. You can get residency Visa and have 0% income tax and you need proof you earn minimum 2.2k EUR monthly abroad and you can't provide any services to Croatian businesses.

Are you sure about this? doesn't working in Croatia for this long time makes you a tax resident and trigger Permanent Establishment rules? or are you telling me that you can effectively be a tax resident in Croatia and pay 0% taxes on your income whether you manage your business in Croatia or not? if the latter is correct, then this is a fantastic program.

Because you can create an Estonian company, have access to European banks/EMIs, and pay your self a salary tax free both in Estonia and Croatia, this is really a game changer if true, I have been searching for a European base for a while, I have bases around the world, in Asia, Africa, Middle east...etc. I have discussed the Estonia route way back in another thread with @JustAnotherNomad and it seems like this could be a simple solution for 0% taxes in Europe. I will need to look more into this program.

 

[noname]

Are you sure about this? doesn't working in Croatia for this long time makes you a tax resident and trigger Permanent Establishment rules? or are you telling me that you can effectively be a tax resident in Croatia and pay 0% taxes on your income whether you manage it in Croatia or not? if the latter is correct, then this is a fantastic program.

Hey mate I am not from Croatia I live in Bosnia and I dont know every detail but I heard about this program on our TV news and some people talking about it. Find more info on the link above on official government page.
Here is one more link:
https://www.euronews.com/travel/2021/06/02/is-croatia-europe-s-new-digital-nomad-destination

 

[CyprusLaw]

I have an EU passport but residing in the UK, I’m making $12,000 per month currently but I expect this to keep growing.

My partner has a British passport

We have been looking at opening a company in Dubai and become tax residents to reduce the amount of tax paid in the UK while also allowing us to travel the world without losing the Dubai residency.

Are there any other alternatives that you would recommend?

Cyprus would be a good option. We already have other adult businesses in Cyprus, even though you will need an EMI account, as Cyprus banks are not very friendly to this kind of business. But the whole set up will save you a lot of money.

 

[Marzio]

I will need to look more into this program

This is the problem “Temporary stay is granted for up to a year (possibly even less) and it cannot be extended. A new application for regulating a stay of digital nomads can be submitted 6 months after the expiry of the previously granted temporary stay of digital nomads.” The question is: if the visa is for 12 months and you have to wait 6 months before re-applying, where will you be considered tax resident in those 6 months?

 

[MiddleEuroAsia]

if the visa is for 12 months and you have to wait 6 months before re-applying, where will you be considered tax resident in those 6 months?

Some time in the middle east, some in asia, Some in africa, some in Latin America...etc.

i really dislike living in one place for a prolonged period of time unless there is a reason too (I.e. investments, business opportunities..etc). And I needed a base in/near the EU for 4-6 months to be closer to my EU clients and business partners and without paying astronomical amounts of taxes or trigger any PE rules.

and tbh, This really wouldn't affect me much, as my companies have real substance in their respective jurisdictions and I don't micro manage my companies anymore, so no PE rules, no CFC BS, nothing.

However I don't like dealing with the EU tax agencies (too much bureaucracy) and I prefer simple tax regimes (that's why I like Estonia). OFC there are a lot of reasons too other than taxes (like weather, quality of life...etc). plus Europe was the only part that's missing in my portfolio of residencies and surprisingly, it seems that Croatia ticks a lot of the boxes for me.

It's a great fit for people who have multiple houses/bases around the world and don't spend too much time in one country, So, that's exactly what I need, but I would need to look more into it, the devil always lies in the detail.

 

[jb98]

Thanks everyone, really appreciate your replies.

We’ve been looking into the channel island of Sark, looks interesting!

 

[cyprus123]

Cyprus is the best choice. Especially with the non dom status.

 

[jakonda]

Cyprus is the best choice. Especially with the non dom status.

What do you mean by non dom. status? That you are not domiciled in Cyprus (no-citizen, no-address, no-business activities) and you just set up a simple Ltd. with nominated director and a bank account there?

 

[CyprusLaw]

What do you mean by non dom. status? That you are not domiciled in Cyprus (no-citizen, no-address, no-business activities) and you just set up a simple Ltd. with nominated director and a bank account there?

According to the provisions of the Cyprus tax laws, an individual who is a tax resident of Cyprus under the provisions of the IncomeTax Law (either under the 183 days rule or the 60 days rule) but is “non-domiciled” in the Republic of Cyprus, will be exempt from Special Defence Contribution (SDC). Please note that even if you relocate to Cyprus permanently you maintain the non dom status for 17 years and therefore dividends are tax/sdc exempt.

 

[CyprusLaw]

What do you mean by non dom. status? That you are not domiciled in Cyprus (no-citizen, no-address, no-business activities) and you just set up a simple Ltd. with nominated director and a bank account there?

If you need any further information on this please feel free to ask anything you need

 

[theviewer1985]

Some time in the middle east, some in asia, Some in africa, some in Latin America...etc.

i really dislike living in one place for a prolonged period of time unless there is a reason too (I.e. investments, business opportunities..etc). And I needed a base in/near the EU for 4-6 months to be closer to my EU clients and business partners and without paying astronomical amounts of taxes or trigger any PE rules.

and tbh, This really wouldn't affect me much, as my companies have real substance in their respective jurisdictions and I don't micro manage my companies anymore, so no PE rules, no CFC BS, nothing.

However I don't like dealing with the EU tax agencies (too much bureaucracy) and I prefer simple tax regimes (that's why I like Estonia). OFC there are a lot of reasons too other than taxes (like weather, quality of life...etc). plus Europe was the only part that's missing in my portfolio of residencies and surprisingly, it seems that Croatia ticks a lot of the boxes for me.

It's a great fit for people who have multiple houses/bases around the world and don't spend too much time in one country, So, that's exactly what I need, but I would need to look more into it, the devil always lies in the detail.

@MiddleEuroAsia You seem like a guy I'd love to talk more too about this type of thing. Your way of life, seems like what we are trying to achieve.

You may be able to help us plan out or life to achieve this 'global resident' status. Mostly, our goal is to leave these English / European complicated tax regimes.

Of course if we have a chat, im happy to pay you a consultation fee or something Not sure on the etiquette on these boards, but chatting on zoom or something would be great