The.. OffShore of 2020!

macthaiver

Well-Known Member
Hi to all,

I am a new member and for hours reading the forum.. Exceptional!

After reading this article by admin ( https://www.offshorecorptalk.com/threads/offshore-companies-or-ibcs.17599/ ) I have a question, the same that I'm sure that most of you have... :

Which is the best offshore country/company for 2020 ? I read that BVI is dead (in the previous article) and I agree.

So.. which is the best 0%, easy, clever, flexible and private option?

Thank you guys and looking forward your opinion!
 

TacitusKilgore

Active Member
I think the answer is Seychelles (with a nominee director/shareholder) for a few reasons. Privacy is important and info about Seychelles companies' directors and shareholders is not available to the public. There is no requirement to lodge accounts (audited or unaudited) with the government, and if you're registered as an IBC there is no corporate tax.

Also it's reasonably cheap to both set up and maintain
 

macthaiver

Well-Known Member
Hi @TacitusKilgore and thanks for answering. And the question here comes to: Why Seychelles and Not Marshall Islands? and second question, I read that Seychelles will introduce additional tax soon & already has VAT.
So why Seychelles and not Marshall ?

Many thanks!
 

macthaiver

Well-Known Member
To add; After researching now I see that Seychelles mention 33% corp tax and VAT!!!! So in this case, why not the Marshall or Mauritius??

Thank you once again
 

TacitusKilgore

Active Member
To add; After researching now I see that Seychelles mention 33% corp tax and VAT!!!! So in this case, why not the Marshall or Mauritius??

Thank you once again
I did not know about the VAT thing so thank you for bringing that to my attention! International business companies (IBCs) are exempt from taxation in Seychelles so the 33% corporate tax applies only to companies operating inside the country.
 

neweraoffshore

IT Nerd Offshore Guy
Entrepreneur
Mentor Group
You will run into problems with a Seychelles company if you don't spend a lot of money on an infrastructure to get payments to your seychelle company. Seychelles is on the OECD watchlist and therefore the EU taxman is allowed to decline the invoice from the Seychelles company and you may have to pay full tax on the amount. You will also run into big problems when being audited when doing business with countries like Seychelles, Belize,etc. They are not stupid, they know what's going on.
Maybe you want to read about the offshore problems here: [FOR EU CITIZENS] Problems when going Offshore - List

However, if you are not an EU passport holder a Seychelles company may be a good option. So it would be nice to tell us the country where you are taxed in.
Seychelles at "end haven" is good even for EU passport holders, however as told before you need to spend some money on an infrastructure to get money to your end haven without running into problems with your tax authority.

In my opinion, the US is the best offshore jurisdiction in the moment. A lot of forum member also like Georgia. However I am a little bit cautios with Georgia as they are quite new in the offshore market and I fear that something like in cyprus will happen there, but this time without EU bailout.
 

BTCNG

Building Trust
Entrepreneur
To add; After researching now I see that Seychelles mention 33% corp tax and VAT!!!! So in this case, why not the Marshall or Mauritius??

Thank you once again
Where did you get this information from???

See here (this is what I could find) "

I cant say I rely on them (its not a legal opinion) but they speak abut the VAT and 33% Corporate tax and it seems both are exempted for IBC's.
 

macthaiver

Well-Known Member
many thanks for responding @BTCNG I get this information from every site...

And again the question is why Seychelles and not Marshall islands ? or something else...
 

mange38

Building Trust
Entrepreneur
If your country has no CFC rules and if you are mostly doing B2C, you could open a Seychelles company (IBC) and try to find a good payment gateway.

If you're also doing some B2B, you can always open a Cyprus LTD as a subsidiary of the Seychelles IBC (CY-SC have a double tax treaty, this is a common setup).

If your invoices are issued by the company in Cyprus, your clients will be able to claim those as a business expense and won't have problems during audit.
 

macthaiver

Well-Known Member
You're my man @mange38
That's SIMILAR to what i want to do... That's the company i need to open; which country? Cy company already exists and sells to EU customers. They are fine with that; perfect. The problem is how i get the money with less tax ? I was thinking to make a XX ofshore (where?) and this will provide the services to CY company. What is the CFC rules?
Also does this new offshore company needs to have double treat agreement with CY or no? is that important as this will be a 0% tax country? and why this is important? Marrshall don't have double treat with CY, Seychelles & Mauritius have and I think are the only 2 that have 0% (if seycheles still have 0%).
I don't think it can be subsidiary as you say; is that totally required? they can have agreements!
 

mange38

Building Trust
Entrepreneur
Seychelles + Cyprus is a good combo, that's all I know. I think you can do some transfers between those but I don't really know anything more about that.

I think it would be way harder to find a payment gateway for a Marshall Islands company than for a Seychelles IBC (same thing for EMI).

In regards to CFC, please read this: The Global Entrepreneurs Guide to CFC Rules | Tax Secrets
 

macthaiver

Well-Known Member
The bank will be the same for both IBC (marshall or seychelles) which will be a low level bank for offshores...

I am reading that Marshall is the near future, instead of the Seychelles.. Better, better protection, protected by USA, and new, rather than the 30yrs old seychelles thing... The question comes to: Do i REALLY need to have TREAT avoidance signed between CY and the country of the offshore? (I mean do I have to choose between a country that has already signed double treat tax avoidance with CY that is my company or it doesn;t matter?)
And why?

Many thanks guys!!
 

Mark Rucken

Trusted Member
Business Angel
Pretty much every tax-haven island country is dead. My recommendation is Hong Kong (tax-free for income generated outside of HK). So if you do not operate business in HK, your tax is zero. There is accounting though.
 

mange38

Building Trust
Entrepreneur
Pretty much every tax-haven island country is dead. My recommendation is Hong Kong (tax-free for income generated outside of HK). So if you do not operate business in HK, your tax is zero. There is accounting though.
Yes, and it's basically impossible to find a payment gw for an IBC.
 

macthaiver

Well-Known Member
the company that i found over internet promises they will open the bank account when i formate the company.
 

xzars

Trusted Member
Business Angel
The risk has shifted heavily on the banks. To protect against license revocation, loss of correspondent banking relationships, fines, they have become very selective with corporate clients.

Best jurisdictions are those where you get a very low effective tax burden while being perceived as on-shore, high tax, bloated regulation by the bank and your clients.

New York LLC is the best right now.
 

macthaiver

Well-Known Member
Yes but you are talking about high costs, right? Even KH has 3000$ USD more for auditing/file per year.... The tax that I will save is around 10K max, so is there a reason to do all this thing and pay 5-6K per year ? That's why i am thinking of Marshal, Seychelles etc.. cheap solution..
 

xzars

Trusted Member
Business Angel
Yes but you are talking about high costs, right? Even KH has 3000$ USD more for auditing/file per year.... The tax that I will save is around 10K max, so is there a reason to do all this thing and pay 5-6K per year ? That's why i am thinking of Marshal, Seychelles etc.. cheap solution..
Huh, I know offshore can be an interesting topic, but to save that 10K in tax there's no reason to be too deep in these matters. At this point, it only occupies your mind with complex stuff for a very little gain.

NY LLC is best for active business where the beneficial member works and hires employees overseas. Cost of living in the NY city does not matter in this case. It's true the business administrative costs will be higher compared to commoditized Wyoming or Delaware LLCs, but consider the reputational difference. Ask a random person, or even a banker: "what is the first thing that comes to your mind about Wyoming and Delaware?" - That's right, tax evasion and lawsuit protection. NY is perhaps not the best option from day one, but if we're talking tiny 6-figure SMEs, the bang is already worth the buck.

In your situation, do a simple residency change - live and work in a country where the PIT rate suits you. For example, if you live in Costa Rica (or any other "territorial tax" nation), you don't even have to register a company, keep books, or declare your income or foreign assets. (It's a simplified blanket statement - in some cases, basic declaration requirements are in place). Just do business in your name and enjoy that 0% tax - as long as all your clients are from outside the country. Finally, that 10K tax bill back home is not too cut throat - in your shoes, I'd pay it, and think about moving once projected tax savings on income earned are a little higher.
 

macthaiver

Well-Known Member
Thank you so much @xzars .. My work business (IT) needs me to be in specific countries etc depends on where I will be working. Can't do this from Costa Rica.. I'll be jobless there so no need to save tax :))) I need to be in x countries in EU (italy, france) which are crazy taxing the people (once is my citizenship also).. I can work there with other EU payment (company in malta) but i need to be there a lot - if not permanently... I found a job in Holland now and things changed; they don't accept malta invoice they want to pay the crazy tax in Holland even if the project is 3 months.. same in Germany...
 

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