Question What jurisdiction for "crypto payout" social network?

[teletabi555]

My first message and question here, hope I can articulate myself well enough.

I am in a process of developing, let's call it, social network which would pay users for their activity in cryptocurrency from affiliate revenue.

So affiliate income would come from Amazon, Aliexpress or whatever in, as USD, that would be converted to BTC and then distributed to users.

I am currently EU based and my problem is the second part as my country has unclear crypto tax laws (nobody knows for sure if crypto payouts could be
deducted as expenses) and tax rate is somewhat high.

Fortunately enough, CFC rules are pretty lax here, so as long as I don't take any money from the company, I can avoid paying local taxes.

So my dream jurisdiction would be one that enables me to:

1. avoid too much paperwork
2. use EMI for receiving affiliate payouts
3. save on fees like accounting, PO boxes, etc.

Overall I would like to keep operating costs at or less than 2500 EUR after the first year of incorporation.

The first setup that comes to my mind from all posts here is Seychelles with TW account, but I am wondering if Amazon or Aliexpress or Ebay or any other
established site would have a problem with paying out affiliate commission to such entity.

Being able to use crypto exchanges for fiat to crypto conversions would be a bonus, but I am thinking I can always use TW debit card, withdraw money and
just buy cryptocurrency on my own.

US is not the option as I don't want anything to do with the IRS in any shape or form.

What do you guys think?

 

[CaptK]

UK LTD would work as you are a start up and can expenses everything that you need to.
It will make a loss first year but there is no issue in paying out in crypto and expensing it.

It also fits in to your budget but this is only really viable for the first year. You would close that down and then open a new if you could not afford a more tax friendly jurisdictions.

 

[teletabi555]

UK LTD would work as you are a start up and can expenses everything that you need to.
It will make a loss first year but there is no issue in paying out in crypto and expensing it.

It also fits in to your budget but this is only really viable for the first year. You would close that down and then open a new if you could not afford a more tax friendly jurisdictions.

CaptK, thanks for the answer: much appreciated.

Disregarding running cost, do you have a suggestion what would be the optimal offshore jurisdiction, tax rate wise for this kind of business and ballpark figure how much does it cost?

 

[nomad999]

I don't believe Transferwise will open account for offshore Seychelles company that easily, not sure why everyone keep mentioning that ... you'll need some economic substance or a bank account to be accepted imho. Might depend on nature of business but still ...

 

[CaptK]

CaptK, thanks for the answer: much appreciated.

Disregarding running cost, do you have a suggestion what would be the optimal offshore jurisdiction, tax rate wise for this kind of business and ballpark figure how much does it cost?

You could look at a Malta company set up and running costs are about 10K per year and you would only pay 5% tax on profits after rebate.

Cyprus would cost you about 6/7K plus 12% tax on profits.

UAE would cost you 8K to set up, 4K running after year 1, no tax.

 

[teletabi555]

You could look at a Malta company set up and running costs are about 10K per year and you would only pay 5% tax on profits after rebate.

Cyprus would cost you about 6/7K plus 12% tax on profits.

UAE would cost you 8K to set up, 4K running after year 1, no tax.

Thanks once again, you helped a lot.