UK Res/Dom Offshore company strategy - will this work? (forex/crypto)

[Kaladin]

Hi all,

I've taken a look on the forum and online but I haven't found a definite answer so here goes!

• I'm currently a UK citizen and domiciled here
• I'm looking to set up an overseas company to trade crypto and forex (just for myself rather than clients or anyone else)
• Would 'start from scratch' so they'd be no risk of pre incorporated profits. The company would be personally funded on incorporation and left to run from there
• Plan to leave any profits in the company year on year. When I do wish to withdraw, I would look to leave the UK for 183+ days in a tax year to become non tax domiciled to avoid having to pay UK tax and pay myself lump sum from there.

My questions are:

• Firstly, does this work?
• If so, where would you suggest I incorporate if it does? I'm currently looking at the Seychelles and BVI as possible solutions due to low incorporation and renewal costs.
• Any recommendations on agents?
• Would it be any different if there were 2 directors/shareholders? (also UK Dom and citizen)

Look forward to hearing your opinions!

 

[CyprusLaw]

Hi,

Firstly, I would urge you to consider Cyprus, it is becoming more and more crypto friendly, a lot of UK residents come to live and/or work in Cyprus. Foreigners who decide to move their personal tax residency in Cyprus, will automatically be considered as non-domiciled in Cyprus for 17 years.

Cyprus tax residency for individuals is determined by the number of days spent in the island during a calendar year. There is the standard 183 days rule as well as a more recently introduced 60 days rule.

Corporate tax in Cyprus is at 12.5%, one of the lowest in EU but it is not considered a tax haven therefore does not have the risks that such jurisdictions have.

Non-domiciled tax residents will have dividend and interest completely tax exempt in Cyprus. Therefore you will only be paying the corporate tax on profits (with proper tax optimization it could be lower) and a 2.65% on dividend for the national health system, through which you will be able to take advantage of the Cyprus health system.

Legal and accounting services are of very high quality at a lower price compared to other EU jurisdictions. Also, subject to certain conditions you could be able to get a permanent residence card in Cyprus.