Setting Up an Anonymous, Low-Cost Tax-Free Company Globally in 2024 with Minimal Compliance Requirements?

[Marzio]

does this mean a panama bank account opened by a foreigner will be reported to his home country, but a panama bank account opened as a panama resident will not?

If you are Panama resident CRS will report to Panama but even if it's reported to passport country who cares since you should not be tax resident there anymore.

 

[Revoltec]

The short answer is, yes it will be reported to the passport country. It will also be reported to the residency country.

Wrong. CRS reports to resident country and not passport country.

 

[flagfree]

If you are Panama resident CRS will report to Panama but even if it's reported to passport country who cares since you should not be tax resident there anymore.

Indeed. But you know, you might want to go back to that country one day. If possible I would prefer to stay anonymous, since I have no obligation to declare it unless it surpasses a certain threshold of balance.

However, suppose you have a paper residency in Panama, you might end up being tax resident there. What usually ppl having a paper residency in Panama do?

 

[daniels27]

How do you know? As far as I know, it reports to both.

It is on the bank's discretion where they want to report. They must report to your residence and must ask you for it. They are free to report anywhere else on the globe. And that is also the reason why I am not afraid of giving banks a long list of residencies where I haven't set foor for a decade.

 

[daniels27]

Do you give me a real one too? If so, what's the point in giving the others where you aren't a resident anymore? There's no difference for a bank between sending a report to a single country or multiple ones.

What I meant is that for example for those living in countries which do not tax interest income nor have wealth tax, people do not need to get nervous if the banks also report to countries where they are not resident as they will simply discard the reports.

If you live in Germany and you give the banks all other countries, except Germany, it will be tax evasion unless you declare it in Germany yourself (which you must do regardless of the CSR reports).

 

[flagfree]

How do you know? As far as I know, it reports to both.

I read that in Panama they give some residency card which is initially bound to your passport, but they are always used as a couple. It is later replaced by a Cedula card, which does not need a Passport anymore (hence why people prefer that). But that's it.

Also here states something similar (regarding avoiding CRS): https://abcoffshore.com/panama-offshore-residency/

I agree that this might depend from the bank, but... it would not make sense all these lawyer services out there offer such residency service if they could not guarantee that banks will not report to your passport country.

 

[GPT]

Well this is what's confusing: if you open an account as a resident (and you have an id), Panama is your home country. And that becomes the CRS reporting country. This is different from a person opening an account declaring residency in another country. Hence why I was asking @Marzio if my assumption is correct

No its not at all confusing. Even as a resident you will be asked to provide a passport. If this is from a different country, reporting will take place.

 

[GPT]

Wrong. CRS reports to resident country and not passport country.

Tell that to all of the people that are in the aftermath of dealing with tax filings with their passport country.

 

[Revoltec]

How do you know? As far as I know, it reports to both.

It is on the bank's discretion where they want to report. They must report to your residence and must ask you for it. They are free to report anywhere else on the globe. And that is also the reason why I am not afraid of giving banks a long list of residencies where I haven't set foor for a decade.

This would be against the OECD guidelines

 

[Revoltec]

Tell that to all of the people that are in the aftermath of dealing with tax filings with their passport country.

Where have you found out about that?

 

[GPT]

This would be against the OECD guidelines

guidelines is the key word. it is still boiling down to the discretion of the individual countries. if you currently see how religiously they are hunting for taxes... you have the answer to "guidelines" and how they are interpreted.

 

[GPT]

Where have you found out about that?

I've personally assisted in various countries citizens and or residents with their tax quests. Documentation, because cases went to court, from various tax departments have shown and confirmed that.

 

[Revoltec]

I've personally assisted in various countries citizens and or residents with their tax quests. Documentation, because cases went to court, from various tax departments have shown and confirmed that.

There can be many reasons for this and probably not CRS. In many countries the bank needs to flag suspicious activity by law. In that case everything is checked and the travel rule can reveal a lot about the transactions. There can also be spontaneous exchange of information.

But I do agree banking secrecy is dead and I do not recommend doing anything fishy and hoping that you won't get reported by CRS

 

[tacokai]

How can I set up a tax-free company in 2024 in any location worldwide, ensuring anonymity for its owners, with minimal accounting and auditing requirements, and requiring only a small amount of paid-in share capital?

You only achieve tax-free status if you move to a country where you don’t have to pay taxes. Or a combination for example, you can live in England for five years (for now) without paying taxes, as long as you have a company abroad. It doesn’t matter where you have it, so you can find a place where corporate tax doesn’t exist.

You’re experienced, so you probably already know where to find this.

Otherwise, you can move out to the desert, like in Dubai, where there is no personal income tax at all. Whether that will change in the future is unknown, but there are no plans for it at the moment.

 

[JustAnotherNomad]

You only achieve tax-free status if you move to a country where you don’t have to pay taxes. Or a combination for example, you can live in England for five years (for now) without paying taxes, as long as you have a company abroad. It doesn’t matter where you have it, so you can find a place where corporate tax doesn’t exist.

Nonsense.

Otherwise, you can move out to the desert, like in Dubai, where there is no personal income tax at all. Whether that will change in the future is unknown, but there are no plans for it at the moment.

Nonsense as well, Dubai has 9% CIT in almost all cases.