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Sword and Shield

Company in UAE and capital paid in crypto

#2
Hi Mike,

if you have the necessary knowlege it can be done and if you stick to a service provider that is familiar with this matter like we are you can even call it easy process for you as a client without any experience in the UAE.

Send us a Mail or PM to schedule a call so that we can elaborate to you how things can be done.
 
#3
mikestachurski said:
Is it easy to set up a company in UAE and use crypto (Bitcoin) which belongs today to me (private person) to transfer over into newly set up UAE based company and use it as a starting capital?

The reason why I want to do this is to avoid wealth tax in NL.
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Yes it can be done very easily but do remember that you are still liable for the gain in NL for upto 5 years.
 
#4
mikestachurski said:
The reason why I want to do this is to avoid wealth tax in NL.
Click to expand...

Wealth tax is hardly anything in Netherlands. The cost and maintenance of a UAE setup probably more than Wealth tax owed unless your Jeff Bezos or something?ns2
 
#5
Martin Everson said:
Wealth tax is hardly anything in Netherlands. The cost and maintenance of a UAE setup probably more than Wealth tax owed unless your Jeff Bezos or something?ns2
Click to expand...
"Possessions like savings, shares, houses that are not the primary living etc. are taxed when a tax payer (filing single) has more than € 30,360 (this is the amount for 2019). For couples, this tax-free amount is double. Consumer goods like cars and furniture, that are not held as an investment, are excluded.

The tax rate comes in tiers, and the following numbers are for 2019 and will be updated in future years: it is a 0.58% tax for € 30,361 to € 102,010 of assets, 1.34% for € 102,010 to € 1,020,096 and 1.68% on any euros of assets above € 1,020,096."
https://en.wikipedia.org/wiki/Taxation_in_the_Netherlands
Are there any deductions or something because around 1M+ would result in about 15k in wealth tax? Switzerland is the one with the "tiny" wealth tax, however also there its a copule of k's for around 1M.
 
#6
JackAlabama said:
"Possessions like savings, shares, houses that are not the primary living etc. are taxed when a tax payer (filing single) has more than € 30,360 (this is the amount for 2019). For couples, this tax-free amount is double. Consumer goods like cars and furniture, that are not held as an investment, are excluded.

The tax rate comes in tiers, and the following numbers are for 2019 and will be updated in future years: it is a 0.58% tax for € 30,361 to € 102,010 of assets, 1.34% for € 102,010 to € 1,020,096 and 1.68% on any euros of assets above € 1,020,096."
https://en.wikipedia.org/wiki/Taxation_in_the_Netherlands
Are there any deductions or something because around 1M+ would result in about 15k in wealth tax? Switzerland is the one with the "tiny" wealth tax, however also there its a copule of k's for around 1M.
Click to expand...

Switzerland Wealth Tax depends on the 'state' you'd live in and can be BIG difference, ranging from 0.15 % up to 1% like in Geneva

Here is a good sumup for Wealth Taxes https://www.wealthandpolicy.com/wp/BP133_Countries_Switzerland.pdf
 
#7
OP needs to say how much crypto in fiat terms we are talking about. Are we talking euro 25k or euro 25m....lol?

Maybe someone can give an up to date rough quote on cost of a UAE setup and annual costs?

Again unless he is Jeff Bezos or has vast crypto wealth its pointless to try to avoid the low wealth tax.
 
#10
Martin Everson said:
Wealth tax is hardly anything in Netherlands. The cost and maintenance of a UAE setup probably more than Wealth tax owed unless your Jeff Bezos or something?ns2
Click to expand...
Yes it is about 1.75% roughly so on €1m you need to have 17k free cash flow to pay it (every year) on €2m 34k free cash flow to pay it (every year) you get my drift.... so I don't have such a free cash flow so I would have to sell my assets to actually be able to pay taxes every year which I am trying to avoid here....
 
#11
JackAlabama said:
"Possessions like savings, shares, houses that are not the primary living etc. are taxed when a tax payer (filing single) has more than € 30,360 (this is the amount for 2019). For couples, this tax-free amount is double. Consumer goods like cars and furniture, that are not held as an investment, are excluded.

The tax rate comes in tiers, and the following numbers are for 2019 and will be updated in future years: it is a 0.58% tax for € 30,361 to € 102,010 of assets, 1.34% for € 102,010 to € 1,020,096 and 1.68% on any euros of assets above € 1,020,096."
https://en.wikipedia.org/wiki/Taxation_in_the_Netherlands
Are there any deductions or something because around 1M+ would result in about 15k in wealth tax? Switzerland is the one with the "tiny" wealth tax, however also there its a copule of k's for around 1M.
Click to expand...
See my previous answer roughly it is effective tax rate of 1.75% so yes €1m = 17k in taxes (every year) and so on.....
 
#12
mikestachurski said:
Yes it is about 1.75% roughly so on €1m you need to have 17k free cash flow to pay it (every year) on €2m 34k free cash flow to pay it (every year) you get my drift.... so I don't have such a free cash flow so I would have to sell my assets to actually be able to pay taxes every year which I am trying to avoid here....
Click to expand...

So to be clear you have over 1m in crypto for this tax to be a concern?
 
#14
mikestachurski said:
Yes that is correct I got over €2m in crypto and I don't have cash flow to cover my tax obligations if I stay in NL in 2022 so to cover it I will have to sell the assets or relocate to a country where there is no wealth tax
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You can put some of this crypto into cashflow making positions and get the cashflow you want that way.
However, that does not help you and infact even increases your tax bill as you will have to pay income tax on top of wealth tax which in NL can go up to 30% for wealth derived income aka the cashflow you want.
 
#15
JackAlabama said:
You can put some of this crypto into cashflow making positions and get the cashflow you want that way.
However, that does not help you and infact even increases your tax bill as you will have to pay income tax on top of wealth tax which in NL can go up to 30% for wealth derived income aka the cashflow you want.
Click to expand...
Yes I could do 4-6% on lending out my crypto via BLockFi, Celsius etc. or sell some of it buy dividend paying stocks e.g. yielding 4% but than in the long term it doesn't help. As I don't want to sell for a long time it looks like that the best option for me is to move out to the other country that doesn't have wealth tax and stay there - this country ideally like UAE would have no capital tax gains - there is only few of them (with no wealth tax and capital tax) e.g. Singapore, Malaysia, UAE etc.
 
#16
mikestachurski said:
Yes I could do 4-6% on lending out my crypto via BLockFi, Celsius etc. or sell some of it buy dividend paying stocks e.g. yielding 4% but than in the long term it doesn't help. As I don't want to sell for a long time it looks like that the best option for me is to move out to the other country that doesn't have wealth tax and stay there - this country ideally like UAE would have no capital tax gains - there is only few of them (with no wealth tax and capital tax) e.g. Singapore, Malaysia, UAE etc.
Click to expand...
You can tip your toe into DeFi and up these single digits returns ;)

Yep sure, there are many more like many of the islands countries, Panama, Paraguay, Hong Kong, even Thai could work. But most places make your life difficult with restrictions these days.
 
#17
JackAlabama said:
You can tip your toe into DeFi and up these single digits returns ;)

Yep sure, there are many more like many of the islands countries, Panama, Paraguay, Hong Kong, even Thai could work. But most places make your life difficult with restrictions these days.
Click to expand...
Yeah I could ;) this would increase my risk but that is why they pay so much yield

Yes Covid have defiantly complicated things I was eyeing Kuala Lumpur and Singapore (love Asia) but they are under strict lockdown at the minute.... who knows things might change and open up in the next 6 months I got time till 31st Dec if I want to avoid the heavy tax bill next year (and year after that)
 
#19
Martin Everson said:
Have you declared your crypto to taxman?
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No I didn't have to for the last 3 years as I was covered by something called here 30% rulling. In the nutshell for 5 years (I got it when it was 8 years) only 70% of your salary is taxed and you don't have to report worldwide income/wealth etc. so I didn't have to report my BTC but I will have to from the next year
 
#20
mikestachurski said:
No I didn't have to for the last 3 years as I was covered by something called here 30% rulling.
Click to expand...

Ok so your an expat? Ok so let me tell you one thing the Belastingdienst don't play around I can tell you that :(.

mikestachurski said:
so I don't have such a free cash flow so I would have to sell my assets to actually be able to pay taxes every year which I am trying to avoid here....
Click to expand...

As you don't have free cash flow as you state you need to be thinking about cheap relocation. Not sure what visa your gonna try to obtain to move to Singapore unless your Swiss? Would be interested to know how you plan on getting residency there which is not easy. But perhaps remote working visa could work for some other countries below:

https://nomadgirl.co/the-countries-with-digital-nomad-visas-around-the-world/
 
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