Advice Needed: Tax Residency and Banking for Large Crypto Conversion

[agentsmithhhhh]

Hello everyone,

I’m a Swiss citizen, who has been traveling full-time in Central America without a tax residency for the past 2 years. I’ve legitimately accumulated significant cryptocurrency holdings (low seven figures). I am planning to convert a large portion of these funds to fiat within the next year, to then use on IBKR. I plan to continue traveling for the next few years but realized I need a tax residency to access legitimate banking solutions for cashing out and then transferring these funds to IBKR. I currently only have an account with Revolut. I'm aware proof of funds will be a deciding factor.

My Plan:
• Establish tax residency in Panama or Paraguay to benefit from its territorial tax system and get better access to banking solutions.
• Use a reputable international bank outside Panama that is crypto-friendly and capable of handling large transactions.

Seeking Advice On:
• Experiences with establishing tax residency in Panama or Paraguay—any insights/challenges or alternative recommendations?
• Recommendations for banks that are suitable for my needs.
• Recommendations for software or agents capable of producing sufficient proof of funds. There are thousands of transactions over many wallets and years, so doing this manually would be rather tricky for me.
• Any potential issues or considerations with this approach?


I appreciate any insights or suggestions you can share.
Thank you!

 

[JohnnyDoe]

Hello everyone,

Hello

I’m a Swiss citizen, who has been traveling full-time in Central America without a tax residency for the past 2 years.

You can’t be without a tax residency. You are most likely a Swiss tax resident.

I’ve legitimately accumulated significant cryptocurrency holdings (low seven figures).

Good.

I am planning to convert a large portion of these funds to fiat within the next year,

Very bad idea.

to then use on IBKR.

For what purpose? To generate more useless fiat?

I plan to continue traveling for the next few years but realized I need a tax residency to access legitimate banking solutions for cashing out and then transferring these funds to IBKR.

You can claim to be a Swiss resident.

I currently only have an account with Revolut. I'm aware proof of funds will be a deciding factor.

My Plan:
• Establish tax residency in Panama or Paraguay to benefit from its territorial tax system and get better access to banking solutions.

Neither will be better than claiming Swiss residence.

• Use a reputable international bank outside Panama that is crypto-friendly and capable of handling large transactions.

As a Panamian resident it might be challenging.

Seeking Advice On:
• Experiences with establishing tax residency in Panama or Paraguay—any insights/challenges or alternative recommendations?

Panama is easy, I can recommend a local lawyer for assistance in private.

• Recommendations for banks that are suitable for my needs.

UBS or Cité Gestion. Or most US banks.

• Recommendations for software or agents capable of producing sufficient proof of funds. There are thousands of transactions over many wallets and years, so doing this manually would be rather tricky for me.

What’s so difficult with printing?

• Any potential issues or considerations with this approach?

The main issue is that you are planning to give away precious crypto for worthless fiat.

 

[agentsmithhhhh]

Hello

You can’t be without a tax residency. You are most likely a Swiss tax resident.

Good.

Very bad idea.

For what purpose? To generate more useless fiat?

You can claim to be a Swiss resident.

Neither will be better than claiming Swiss residence.

As a Panamian resident it might be challenging.

Panama is easy, I can recommend a local lawyer for assistance in private.

UBS or Cité Gestion. Or most US banks.

What’s so difficult with printing?

The main issue is that you are planning to give away precious crypto for worthless fiat.

I appreciate your concern about moving into fiat. After being almost 100% in crypto for many years, I'm looking for a slightly more conservative long-term approach, as 50%+ portfolio swings aren't the most stress free option. More of a reallocation than getting out for good..

I don't plan to return to Switzerland, am looking to eventually settle down in Central or South America. I also never fully disclosed the extent of my crypto in Switzerland in the past, which is why I lean towards establishing a tax residence in a different jurisdiction vs. running into issues with the tax authorities.

I was of the impression that simply printing hundreds of pages of transactions wouldn't work when approaching a new bank., which is why I’m looking for services to compile acceptable documentation.

 

[JohnnyDoe]

selling only part of your crypto portfolio for fiat is only a partially good approach.
You could instead use your crypto when and how you like without anyone annoying you and without risking to remain with worthless fiat or with a frozen account.

 

[agentsmithhhhh]

selling only part of your crypto portfolio for fiat is only a partially good approach.
You could instead use your crypto when and how you like without anyone annoying you and without risking to remain with worthless fiat or with a frozen account.

are you referring to OTC transactions? Curious to find out more, as using crypto directly without going through too many different providers is also an interesting option to me

 

[JohnnyDoe]

are you referring to OTC transactions? Curious to find out more, as using crypto directly without going through too many different providers is also an interesting option to me

Crypto credit card for your everyday transactions.
Directly crypto for everything else, from houses to cars to aircraft.
You don’t need fiat!

 

[WorldCitizen99]

Crypto credit card for your everyday transactions.
Directly crypto for everything else, from houses to cars to aircraft.
You don’t need fiat!

I have crypto credit cards
But how does one do big purchases like houses with crypto directly?
This can be done in all countries?

 

[jafo]

Grüezi,

I would suggest you reassess your objective and give deference to @JohnnyDoe and @wellington (and a few others here) when it comes to these things...
I did and quadrupled my crypto value in less than one year!

Now...in case you may be on your chosen path (for whatever reason...)

Establish tax residency in Panama or Paraguay

Why not both?
Maybe try the Bahamas, too?
Grow your portfolio a bit more, and do Monaco! (I'm here, but vanilla companies are in Zug)

Orrrrr....try this:

Source: https://www.vontobel.com/en-ch/insi...land-what-matters-for-cryptocurrencies-46863/

Speak to: https://www.linkedin.com/in/claude-frosio-65950794/


Freundliche grüsse,

Jafo

PS. Don't tell Calude where you found his info. Vontobel may NOT like it. They could deny you access because of this.

 

[agentsmithhhhh]

Grüezi,

I would suggest you reassess your objective and give deference to @JohnnyDoe and @wellington (and a few others here) when it comes to these things...
I did and quadrupled my crypto value in less than one year!

Now...in case you may be on your chosen path (for whatever reason...)

Why not both?
Maybe try the Bahamas, too?
Grow your portfolio a bit more, and do Monaco! (I'm here, but vanilla companies are in Zug)

Orrrrr....try this:
View attachment 8013

Source: https://www.vontobel.com/en-ch/insi...land-what-matters-for-cryptocurrencies-46863/

Speak to: https://www.linkedin.com/in/claude-frosio-65950794/


Freundliche grüsse,

Jafo

PS. Don't tell Calude where you found his info. Vontobel may NOT like it. They could deny you access because of this.

I appreciate the input @jafo! I'm aware of the intricacies of crypto taxation in Switzerland - unfortunately a significant portion of my funds would likely classify as taxable income in Switzerland due to its nature. If it were only a matter of capital gains, keeping a Swiss residency would definitely make sense!

 

[ActionMan]

Hello everyone,

Hello

I’m a Swiss citizen, who has been traveling full-time in Central America without a tax residency for the past 2 years. I’ve legitimately accumulated significant cryptocurrency holdings (low seven figures). I am planning to convert a large portion of these funds to fiat within the next year, to then use on IBKR. I plan to continue traveling for the next few years but realized I need a tax residency to access legitimate banking solutions for cashing out and then transferring these funds to IBKR. I currently only have an account with Revolut. I'm aware proof of funds will be a deciding factor.

My Plan:
• Establish tax residency in Panama or Paraguay to benefit from its territorial tax system and get better access to banking solutions.

Forget both. Go for Uruguay, boring, but the best developed of the bunch, tax breaks, money comes in & out without too much scrutiny, you being swiss is a plus, absolutely no questions asked! you are the perfect fit for the type of people that they want to bring in . or if it's absolutely necessary Go for Paraguay.

• Use a reputable international bank outside Panama that is crypto-friendly and capable of handling large transactions.

Chase, sygnum, B.Frick and Standard bank IOM are all available options for you. DBS in Singapore if you are willing to trade some of your Crypto assets with their DDex.

Seeking Advice On:
• Experiences with establishing tax residency in Panama or Paraguay—any insights/challenges or alternative recommendations?

neither. A holding in Dubai, Singapore or HK should be sufficient. Estonia if you are Creative, BVI is also a solid option.

• Recommendations for banks that are suitable for my needs.

answered. there is more, but it depends on what you are trying to achieve, about SOF. it can be done with External Audits from reputable companies, accompanied By AML Score.

• Recommendations for software or agents capable of producing sufficient proof of funds. There are thousands of transactions over many wallets and years, so doing this manually would be rather tricky for me.

Again, CSV files are all you need. leave the rest to the auditors, it's about 5-10 hours of work, give or take.

• Any potential issues or considerations with this approach?

If not done right, you will shoot yourself right in the foot. Think holistically, explore all your options first, Listen and learn and you will be alright.

I appreciate any insights or suggestions you can share.
Thank you!

You are welcome. Consider subscribing to the mentor Group gold, you will find good info and even greater networking opportunities.

Good luck!

 

[agentsmithhhhh]

Hello

Forget both. Go for Uruguay, boring, but the best developed of the bunch, tax breaks, money comes in & out without too much scrutiny, you being swiss is a plus, absolutely no questions asked! you are the perfect fit for the type of people that they want to bring in . or if it's absolutely necessary Go for Paraguay.

Chase, sygnum, B.Frick and Standard bank IOM are all available options for you. DBS in Singapore if you are willing to trade some of your Crypto assets with their DDex.

neither. A holding in Dubai, Singapore or HK should be sufficient. Estonia if you are Creative, BVI is also a solid option.

answered. there is more, but it depends on what you are trying to achieve, about SOF. it can be done with External Audits from reputable companies, accompanied By AML Score.

Again, CSV files are all you need. leave the rest to the auditors, it's about 5-10 hours of work, give or take.

If not done right, you will shoot yourself right in the foot. Think holistically, explore all your options first, Listen and learn and you will be alright.

You are welcome. Consider subscribing to the mentor Group gold, you will find good info and even greater networking opportunities.

Good luck!

Thank you @ActionMan, this is extremely helpful information! Will dig into the options you mentioned, am thankfully not in a rush and want to weigh all options before doing anything

 

[AlicaFunk]

Uruguay is a great place for establishing a company, it's not very expensive, easy to maintain and secure. Just the reputation does that I won't deal with it for business towards customers, but that's not your issue here.

How about banking in Uruguay are they part of CRS and all this?

Uruguay was the USA's answer to Switzerland they call it USA's Switzerland. That's back 20 years ago at least.

 

[JohnnyDoe]

But how does one do big purchases like houses with crypto directly?

You send crypto to the seller.

This can be done in all countries?

Yes. Like you can buy houses in all countries in exchange for shells, stones, or any other in kind payment, including “special favors”. It’s all up to the seller to decide what he likes to receive.

 

[WorldCitizen99]

You send crypto to the seller.

Yes. Like you can buy houses in all countries in exchange for shells, stones, or any other in kind payment, including “special favors”. It’s all up to the seller to decide what he likes to receive.

Out of 100 random sellers, how many do you think are plugged into crypto enough that they would accept payment in crypto for a house? You obviously know more about this, so I'd like to hear how common a practice it is.

I was thinking you knew of a mechanism to convert large sums of crypto into fiat and pay the seller in the currency I think most sellers still want to be paid in - fiat - (without a traditional bank) all in one seamless transation. We can all simulate direct payment using a hardware wallet, an exchange, an EMI plus or minus a bank.

 

[JohnnyDoe]

Out of 100 random sellers, how many do you think are plugged into crypto enough that they would accept payment in crypto for a house?

Probably not many yet, but enough to make good deals about everywhere.

I was thinking you knew of a mechanism to convert large sums of crypto into fiat

Many

and pay the seller in the currency I think most sellers still want to be paid in - fiat - (without a traditional bank) all in one seamless transation.

Cash

We can all simulate direct payment using a hardware wallet, an exchange, an EMI plus or minus a bank.

Simulate crypto payments?

 

[WorldCitizen99]

>Probably not many yet, but enough to make good deals about everywhere.
OK but you made it sound like a person, in 2024, in most places, could pay for any given house or car in crypto, when the double-coincidence of wants still makes it rare that there will be a match between the house you WANT and the seller taking crypto.


>Cash
Maybe for a $50K house in cheaper countries, but what about when the house costs 1-2M? How many sellers want to manage that much cash? If I was the seller, I would rather the transaction be done electronically. I'm not smart enough to do things not-by-the-book yet. I need another year on OCT talking to JohnnyDoe and MartinEverson.

>Simulate crypto payments?
Direct payments, like where you hit the button to send crypto, the digital sausage-making happens and the seller receives fiat without any intermediate steps

 

[JohnnyDoe]

You need to quote properly

 

[WorldCitizen99]

You need to quote properly

Apologies - I never learned how to do it.

 

[uranium]

I see that you are in good position with swiss private banks since you are swiss
A perfect combination is uae residency with 0% tax and swiss crypto friendly bank
Why would you need to sell crypto if you have debit card from swiss bank to pay for everything with crypto card.
I don't feel south America is serious for 7 figures.

 

[agentsmithhhhh]

I see that you are in good position with swiss private banks since you are swiss
A perfect combination is uae residency with 0% tax and swiss crypto friendly bank
Why would you need to sell crypto if you have debit card from swiss bank to pay for everything with crypto card.
I don't feel south America is serious for 7 figures.

That also sounds like a viable option - my only worry is that banking in Switzerland would cause the tax authorities in CH to get involved and potentially assert a claim. I know too little to determine if this is a legitimate worry though.

I am to reallocate some of my crypto into other investments via IBKR. When s**t eventually hits the fan again and crypto drops 70% +, it's more comfortable to be diversified. Even being in stablecoins didn't feel 100% safe in 2022/2023. I definitely believe in crypto, but there's no denying it's an extremely volatile space