Zero-Tax Strategy for Perpetual Traveler: Crypto Income, Offshore Banking, and Land Investments ?

[WormCasting]

You are a Latvian passport holder who sells digital services online and receives payments in cryptocurrency.
You travel perpetually, though sometimes you stay for longer than 183 days in Latin American countries.

You have never paid taxes in Latvia, never registered as a taxpayer there,
and have lived abroad ever since becoming location-independent.
You have no criminal record and maintain a clean legal status.

Your goal is to establish a legal setup that minimizes or eliminates personal and corporate tax obligations while maintaining full legal compliance.

You want to:

• Have a personal bank account for everyday private expenses.
• Have a corporate bank account for larger business-related transactions, such as land purchases between Mexico and Chile.
• Fund your personal account by loaning money from the corporate account and occasionally paying interest back to the company, with the aim of remaining personally tax-free.
• Accept crypto payments through a documented crypto payment processor, and sell that crypto via exchanges or P2P platforms through the company. Proceeds would be transferred into the corporate bank account when large purchases are needed.

---

Questions & Relevant Considerations

1. Tax Residency

• Where should you establish tax residency to benefit from territorial or zero-tax systems? (e.g., Paraguay, Panama, Dominican Republic?)
• What are the implications if you stay more than 183 days in a Latin American country?

2. Company Incorporation

• Where should the company be incorporated for favorable tax treatment and crypto acceptance? (e.g., USA LLC, BVI, Panama, Estonia, UAE?)
• Should the company be structured as a disregarded entity, offshore IBC, or something else?

3. Banking

• Where can you open a reliable corporate bank account for crypto-related business income?
• Where can you open a personal bank account that allows international access and is crypto-friendly?

4. Crypto Compliance

• What documentation should be kept for crypto-to-fiat transactions to remain compliant?
• How do payment processor records affect corporate accounting or audits?

5. Loan Strategy

• Is loaning money from your company to yourself (with interest) a viable way to access funds while avoiding personal tax liability?
• What are the legal or tax implications of this setup in your chosen jurisdiction?

6. Residency & Substance

• Do you need economic substance (e.g., office, staff) in the country where the company is registered?
• What are the risks of being considered a tax resident elsewhere due to your travel patterns?

7. Long-Term Considerations

• How do CRS (Common Reporting Standard) and FATCA affect your banking or reporting?
• Is second citizenship or residency worth pursuing for long-term freedom?

 

[daniels27]

1. Tax Residency

• Where should you establish tax residency to benefit from territorial or zero-tax systems? (e.g., Paraguay, Panama, Dominican Republic?)
• What are the implications if you stay more than 183 days in a Latin American country?

This does not really sound like "you" are a perpetual traveller. I think the main question is which country you want to stay longer than the days required to become tax resident or form a permanent establishment.

Apart from that most countries in South America don't actually care about your income from sources outside the country.

2. Company Incorporation

• Where should the company be incorporated for favorable tax treatment and crypto acceptance? (e.g., USA LLC, BVI, Panama, Estonia, UAE?)
• Should the company be structured as a disregarded entity, offshore IBC, or something else?

You can just use a US LLC / Hong Kong Limited / Singapore Pte Ltd. and use your Peruvian etc. address on there. I mean have you asked around in those countries on the street and with notaries? Everybody will tell you that.

3. Banking

• Where can you open a reliable corporate bank account for crypto-related business income?

Why not keep the bitcoins? If the company is tax-free, you just need a personal bank account for off-ramping.

• Where can you open a personal bank account that allows international access and is crypto-friendly?

Just use some EMI. Swissquote, etc.

4. Crypto Compliance

• What documentation should be kept for crypto-to-fiat transactions to remain compliant?
• How do payment processor records affect corporate accounting or audits?

If you use a US LLC and keep your money in coins, nobody will ever ask.

5. Loan Strategy

• Is loaning money from your company to yourself (with interest) a viable way to access funds while avoiding personal tax liability?
• What are the legal or tax implications of this setup in your chosen jurisdiction?

My personal advice: Just abstain from it. You use a company that is tax free and take the money out to your personal account. Shareholder loans most often lead to troubles. If you really want to do it, you need to check the rules of the jurisdiction that wants to tax you. Some countries completely forbid it, while other countries have strict rules on minimum interest. Most of the time the rules just counter act any tax benefit you can gain.

6. Residency & Substance

• Do you need economic substance (e.g., office, staff) in the country where the company is registered?
• What are the risks of being considered a tax resident elsewhere due to your travel patterns?

If you are a permanent traveller, you avoid any substance and taxes. If you are not a traveller, you can read more here.

7. Long-Term Considerations

• How do CRS (Common Reporting Standard) and FATCA affect your banking or reporting?
• Is second citizenship or residency worth pursuing for long-term freedom?

Get some South American residency and have them report there where they won't care. Better get a residency where you spend 0 days for that one.

 

[WormCasting]

Thanks for the advice!

Would the following setup be the most useful?

Step 1: Residency

• Obtain Temporary or Permanent Residency in Paraguay
  (Possibly through the “Sauce” investment program for permanent residency)
• Apply for Paraguayan tax residency certificate.

Step 2: Incorporate Business

• Register a U.S. LLC (e.g., in Wyoming, Delaware, or New Mexico)
• Use only your Paraguayan residency ID, not your EU passport.

Step 3: Receive & Use Crypto

• Receive payments in cryptocurrency for digital services.
• Hold crypto until you need to cash out for larger purchases (e.g., buying land).

Step 4: Bank Account

• When ready to cash out:
  • Sell crypto through a corporate exchange account.
  • Transfer fiat proceeds to a corporate bank account or EMI.
  • Use your Paraguayan ID for KYC (avoiding CRS links to Latvia).

1.This setup should, in theory, prevent any CRS reporting to Latvia , assuming you avoid using your Latvian or EU identity in any part of the financial structure?

2. Is a Permanent or Temporary Paraguayan residency sufficient to open all these accounts, or is a passport still required?

3. Avoid any Paraguayan banks if you plan to use them outside the country , too many issues ?

 

[daniels27]

Step 1: Residency

• Obtain Temporary or Permanent Residency in Paraguay
  (Possibly through the “Sauce” investment program for permanent residency)
• Apply for Paraguayan tax residency certificate.

Why is that? Why would you need a certificate? And why Paraguay? Did ChatGPT come up with this?

No, I would not recommend either. If I was a government and somebody would come with a certificate or mentions Paraguay, I would launch a full investigation against him as it is almost certain that he is into some sort of bulls**t. Maybe sales in the dark net, illegal fakes, etc.

Step 2: Incorporate Business

• Register a U.S. LLC (e.g., in Wyoming, Delaware, or New Mexico)
• Use only your Paraguayan residency ID, not your EU passport.

Why are you so obsessed with your Latvian passport if you never lived there?

If you really never lived in Latvia, I would probably find somebody there and then use their address on all banks and documents, while never ever going back there. Otherwise, use something from South America, maybe Paraguay, but I would probably first scoop the whole internet to see what hipsters are selling and then abstain from that as it is too suspicious.

Step 3: Receive & Use Crypto

• Receive payments in cryptocurrency for digital services.
• Hold crypto until you need to cash out for larger purchases (e.g., buying land).

Yes, keep all in bitcoin. Why buy land? You want to live there? I would not do this unless I wanted to settle. And even then I may consider investing in REITs and rent.

Step 4: Bank Account

• When ready to cash out:
  • Sell crypto through a corporate exchange account.
  • Transfer fiat proceeds to a corporate bank account or EMI.
  • Use your Paraguayan ID for KYC (avoiding CRS links to Latvia).

Why avoid links to Latvia if you are not there? Why not use a personal account to cash out?

1.This setup should, in theory, prevent any CRS reporting to Latvia , assuming you avoid using your Latvian or EU identity in any part of the financial structure?

2. Is a Permanent or Temporary Paraguayan residency sufficient to open all these accounts, or is a passport still required?

3. Avoid any Paraguayan banks if you plan to use them outside the country , too many issues ?

You will still need a passport. But Maybe explain first why you are concerned about Latvia if you are not there?

 

[WormCasting]

Why is that? Why would you need a certificate? And why Paraguay? Did ChatGPT come up with this?

No, I would not recommend either. If I was a government and somebody would come with a certificate or mentions Paraguay, I would launch a full investigation against him as it is almost certain that he is into some sort of bulls**t. Maybe sales in the dark net, illegal fakes, etc.


Why are you so obsessed with your Latvian passport if you never lived there?

If you really never lived in Latvia, I would probably find somebody there and then use their address on all banks and documents, while never ever going back there. Otherwise, use something from South America, maybe Paraguay, but I would probably first scoop the whole internet to see what hipsters are selling and then abstain from that as it is too suspicious.


Yes, keep all in bitcoin. Why buy land? You want to live there? I would not do this unless I wanted to settle. And even then I may consider investing in REITs and rent.


Why avoid links to Latvia if you are not there? Why not use a personal account to cash out?


You will still need a passport. But Maybe explain first why you are concerned about Latvia if you are not there?

I used to live in Latvia and occasionally visit, but I’ve never been registered as a taxpayer there. Since finishing school, I’ve remained off the radar , not registered, not paying tax, and living abroad.

My plan was to obtain Permanent Residency in Paraguay in order to:

• Register a U.S. LLC
• Open a private EMI or business bank account for cashing out crypto earnings.
• Keep most of my earnings in Bitcoin, and only cash out into fiat when necessary (e.g., to buy property or large purchases).
• Avoid CRS (Common Reporting Standard) reporting back to Latvia, since I wouldn’t use my Latvian passport for any part of this structure, and the U.S. does not participate in CRS.

Still, I want to have an extra layer of protection, as I don’t fully trust that CRS or international data sharing won't evolve or leak over time.

My understanding is that:

• CRS data exchange happens mostly between financial institutions (banks and EMIs).
• If I receive a bank transfer into an account in a CRS-participating country, that information could be shared with Latvia , even if I don’t spend 183+ days there.
• Latvia might still argue for tax residency based on "center of life" rules, family ties, or other grey areas , even if I only stay there for 2 months a year.

Additionally, I want to understand:

• How to buy land or property in South America (e.g., Paraguay, Uruguay, Mexico, Colombia) as privately and tax-efficiently as possible.
• Most real estate sellers won’t accept BTC, so I’ll need clean fiat in a corporate or personal bank account to make those purchases.

 

[daniels27]

I think we need to split up the problem into smaller pieces.

While there is no CRS in the US, there is FATCA.

You should get a residency somewhere in South America and then you can use that address and tax id in the US (with your Latvian passport). Please urgently understand that I personally would recommend you to use your Latvian tax id. This is because you are not in Latvia and they won't care about any reports they get. It is much better the report to land with Latvia where you won't be rather than any other country where you actually live. If you don't want to use Latvia, then register in any country down there and use that tax id, and then just don't be there.

You need to check with the countries in question. I have been to a few, many are quite open to USDT and many also price real estate in USD rather their declining currency. In any case, off-ramping should be fairly easy with USDT there. Just ask around.

Buying land in those countries most often is complete nonsense unless you really live there or have somebody who protects your land. I hope you know what you are doing.

 

[Xshore]

Latvia might still argue for tax residency based on "center of life" rules, family ties, or other grey areas , even if I only stay there for 2 months a year.

I would check how likely it is that you are a tax resident in Latvia, and what you could do to not be one. Having that settled you could use your Latvian address and bank accounts which would simplify things.

 

[Houdini]

As long as you're living in Latvia, I don't really see how you can avoid this tax issue, just like in any other EU country where you have residency.

 

[WormCasting]

I think we need to split up the problem into smaller pieces.

While there is no CRS in the US, there is FATCA.

You should get a residency somewhere in South America and then you can use that address and tax id in the US (with your Latvian passport). Please urgently understand that I personally would recommend you to use your Latvian tax id. This is because you are not in Latvia and they won't care about any reports they get. It is much better the report to land with Latvia where you won't be rather than any other country where you actually live. If you don't want to use Latvia, then register in any country down there and use that tax id, and then just don't be there.

You need to check with the countries in question. I have been to a few, many are quite open to USDT and many also price real estate in USD rather their declining currency. In any case, off-ramping should be fairly easy with USDT there. Just ask around.

Buying land in those countries most often is complete nonsense unless you really live there or have somebody who protects your land. I hope you know what you are doing.

Unchangeable Facts

- I hold a Latvian passport (EU citizenship).
- I operate a digital business and receive BTC payments via a payment processor, with proper bookkeeping.



Current Status

I do not spend more than 183 days per year in Latvia, and I have no stronger residential ties such as:

- No rental or owned apartment
- No active use of government services
- No registered employment or business

I may still be registered at an old address from 10 years ago, but I haven’t paid taxes or used public services in Latvia since then , so I’m effectively “off the radar.”



My Goal

I want to legally and efficiently manage taxes on my crypto income. The plan includes:

- Acquiring Paraguayan tax residency and a Paraguayan tax number
- Using my temporary Paraguayan residency ID to:
- Register a U.S. LLC (e.g., in Wyoming, Delaware, or New Mexico)
- Run my crypto business through that LLC
- Open a corporate bank account or EMI when needed
- I do not plan to live in Paraguay , it’s for tax structuring purposes only
- I want to avoid any CRS reporting to Latvia, even as a precaution



Second Passport Option?

If temporary Paraguayan residency isn’t enough to open all necessary accounts or register a U.S. LLC without triggering EU checks:

- Would getting a second passport from a non-CRS country help?
- The goal would be:
- A citizenship with no reporting ties to Latvia
- More flexibility when opening accounts or registering companies



What I'm Looking For

Does this structure make sense, or is there a more effective setup to:

- Legally reduce or eliminate taxes on crypto income?
- Operate a digital business while receiving BTC payments as a perpetual traveler?
- Avoid using my Latvian (EU) passport in any company or banking structure?

 

[Nigital Domad]

My understanding is that when you get a second passport for the correct tax-advantaged nation it frees you to do all these things you want. There is no central database of all nation's passport names/holders out there in the world. Perhaps one day AI will aggregate all citizenry data worldwide. But skynet is not here--yet. So if you are ever asked if you hold Passport A, its up to you what you tell your new banks/emi/incorporation helpers. Obviously if you are a criminal then the three-letter agencies may eventually catch up with you. But if you just want to create a secondary avatar to exist out in the world so you can legally enjoy tax-advantages of a certain jurisdictions then second passport seems to be a standard approach for many.

 

[daniels27]

Yes, a residency anywhere would do the job. Please beware that banks will still ask for your passport when you open accounts. And they could also ask for you Latvian tax id for reporting, although this is rare in the US.

A second passport would be good. A CBI one comes with risks, that I peraonally would avoid.

 

[Xshore]

I may still be registered at an old address from 10 years ago, but I haven’t paid taxes or used public services in Latvia since then

I want to legally and efficiently manage taxes on my crypto income

On one side you want to legally avoid taxes, while on the other side you want to hide your income from Latvia to evade taxes there. Make up your mind.

Again, I think you should put some effort on the Latvian side, search what is required to be considered non tax resident there. Get a residency somewhere if that's required. Then everything about CRS etc doesn't matter.

 

[WormCasting]

Yes, a residency anywhere would do the job. Please beware that banks will still ask for your passport when you open accounts. And they could also ask for you Latvian tax id for reporting, although this is rare in the US.

A second passport would be good. A CBI one comes with risks, that I peraonally would avoid.

What about the Turkish Citizenship by Investment (CBI) program, which allows you to change your name?

It seems to be one of the fastest options for obtaining a second passport , although the required real estate investment of $400,000 may involve some effort to find a solid property deal without getting scammed.

After reading the last 3 posts and doing more research, I’m leaning strongly toward acquiring a second passport. My plan would be to:

- Run all business operations through the second passport (e.g., for company formation, banking, and crypto cash-outs),
- And use my original Latvian passport solely for travel.

This would create a separation between my financial/digital business identity and my personal identity tied to the EU and CRS.

 

[alley]

very obvious that you let chatgpt do all the posts you're making. the topic is good but I'm convienced that's not real questions.