Question Best banking options (Malta/E-Commerce)

[Fred]

Can't recommend Malta so far, this island even has been grey-listed by the European Union as of last month.

That's it.

Was relocating half decade ago after got burned on Malta by never getting any reliable banking and ended up with the ex-laundromat Satabank - lost significant amount of money over years and till today not all funds back.

It's interesting to see how EU banks and even mid risk EMI's are avoiding Malta and Cyprus not just since yesterday.

So basically with an EU company on Malta you have the same banking options like with a real 0% tax offshore jurisdiction like the UAE outside EU.

Verifo and Bilderlings are working with UAE so they will onboard based on jurisdiction your Malta company as well - however it's crazy to what high risk banking possibilities you have to stick due to your jurisdiction. Both Bilderlings and Verifo work with crypto but then limit you to SEPA only.

Usually you should get a Company Setup with reliable retail banking in the jurisdiction of incorporation and just outsource some specific high risk stuff like Crypto to high risk EMI but if you end up banking only on EMI that's not the way to go in 2021 if you already now have to start to bank with the bottom of the barrel from the very beginning.

You can take a look if you find a Malta based bank with a foreign licensed subsidiary. That's for example we do if required to build a bridge to EU with Switzerland based subsidiaries of MENA based banks - works pretty good and you get sometimes things done you can't get done with the mother bank in the MENA.

 

[BtcBiz]

@Fred @BlueMist thanks a ton for your replies and experiences so far. That's the quality s**t we've been looking for.

Was relocating half decade ago after got burned on Malta by never getting any reliable banking and ended up with the ex-laundromat Satabank - lost significant amount of money over years and till today not all funds back.

May I ask where did you end up afterwards and did you manage to get your money back?

Usually you should get a Company Setup with reliable retail banking in the jurisdiction of incorporation and just outsource some specific high risk stuff like Crypto to high risk EMI but if you end up banking only on EMI that's not the way to go in 2021 if you already now have to start to bank with the bottom of the barrel from the very beginning.

YES, absolutely. That's what we're used to, coming from a Central European country. Not gonna lie, things are hitting us like a truck right now. Don't think we would be off any better if we were relocating to Cyprus. These places just seem to slowly fade out.

You can take a look if you find a Malta based bank with a foreign licensed subsidiary. That's for example we do if required to build a bridge to EU with Switzerland based subsidiaries of MENA based banks - works pretty good and you get sometimes things done you can't get done with the mother bank in the MENA.

I'm not quite sure if I can catch up. Would HSBC fall under this category? (Don't even consider going with them, just want to make sure I got you right)

/// Off-topic.

We've just decided to remain in Malta for like 1 or 2 years to get 1 or 2 tax certificates ready and then relocate to a Central European country again. Currently looking for business-friendly countries on mainland. Any experiences or recommendations, even the slightest hints in regard are much appreciated!

 

[csp dubai]

estonia remani one of best places , only a bit cold

 

[casinoguy87]

I'm based in Malta. I'm in the gambling business. You will struggle a lot with local banks no matter what you do. I know that local SME's such as coffee shops, gyms, barbers are even struggling to get a bank account open for their business from the local banks.
The potential 5% effective tax rate seems attractive, but it's a real struggle with the banks.

 

[BtcBiz]

estonia remani one of best places , only a bit cold

I thought of the Baltics (Estonia/Lithuania especially) too, but the type of weather and lack of proper English worries me to be honest.

So far we were aiming for Switzerland, Austria or the Netherlands. Switzerland seems to be way too expensive in any way, Austria is a beautiful country too, but they are not quite attractive business-wise.

We will go for the Netherlands in 2022 as quality of life (besides the lack of sun) as well as business benefits seem to be top notch.

What we have learned from this journey is that we rather pay some additional taxes than being stuck in some tiny islands such as Malta or Cyprus where life sucks (if you're used to Central European standards) and it's all about corruption and greediness. I now experienced firsthand why these places slowly go down.

 

[uplana]

Switzerland seems to be way too expensive in any way

good tax planning may help you.

 

[BtcBiz]

• Verifo: Accepted our application
• NexPay: Rejected our application
• IBSettle: No good chances (as for all Baltic banks or EMIs) according to @Gediminas
• Bilderlings: No good chances (as for all Baltic banks or EMIs) according to @Gediminas
• Bankera: No good chances (as for all Baltic banks or EMIs) according to @Gediminas
• MeDirect: Rejected our application (to be more precise, couldn't fulfill their ridiculous paperwork)
• Finductive: Rejected our application (to be more precise, couldn't fulfill their ridiculous paperwork)
• Bank Frick: Rejected our application

Providing you with the final update as promised. For other experiences please see the previous page.

Final conclusion:

I cannot recommend Malta when starting fresh. Oh boy, how quickly tides can actually turn within the blink of an eye. Taking the loss of 25.000 Euros (Company structure setup as well as company structure liquidation) and moving on.

 

[BlueMist]

Did you try:
vallettapay.com
emoney.mt
sepaga.com
paysera.com

Also "couldn't fulfill their ridiculous paperwork", well don't expect things to be easy and light on paperwork side with blacklisted country. Finductive asks a lot of questions upfront, but it is a breeze later on.

 

[BtcBiz]

Did you try:
vallettapay.com
emoney.mt
sepaga.com
paysera.com

Also "couldn't fulfill their ridiculous paperwork", well don't expect things to be easy and light on paperwork side with blacklisted country. Finductive asks a lot of questions upfront, but it is a breeze later on.

I don't remember why we chose to not apply for Vallettapay, but they were no solution either. Same for Paysera.

Haven't heard of Emoney and Sepaga yet. Would've looked into it if we were not in process of liquidation already.

Yes, I don't expect things to be easy as we are considered high-risk. Our point of view may caused the failing from the very beginning. Choosing a place like Malta, Cyprus, Georgia, Latvia, Lithuania when trying to operate a high-risk money-laundering start-up may be the exact wrong way.

 

[Marios]

I don't remember why we chose to not apply for Vallettapay, but they were no solution either. Same for Paysera.

Haven't heard of Emoney and Sepaga yet. Would've looked into it if we were not in process of liquidation already.

Yes, I don't expect things to be easy as we are considered high-risk. Our point of view may caused the failing from the very beginning. Choosing a place like Malta, Cyprus, Georgia, Latvia, Lithuania when trying to operate a high-risk money-laundering start-up may be the exact wrong way.

If you need any help or advise over SEPAGA will be happy to provide as I work daily with them for many years now

 

[csp dubai]

i have tried open account in sepaga is ridocolus process

 

[Forester]

• Verifo: Accepted our application
• NexPay: Rejected our application
• IBSettle: No good chances (as for all Baltic banks or EMIs) according to @Gediminas
• Bilderlings: No good chances (as for all Baltic banks or EMIs) according to @Gediminas
• Bankera: No good chances (as for all Baltic banks or EMIs) according to @Gediminas
• MeDirect: Rejected our application (to be more precise, couldn't fulfill their ridiculous paperwork)
• Finductive: Rejected our application (to be more precise, couldn't fulfill their ridiculous paperwork)
• Bank Frick: Rejected our application

Providing you with the final update as promised. For other experiences please see the previous page.

Final conclusion:

I cannot recommend Malta when starting fresh. Oh boy, how quickly tides can actually turn within the blink of an eye. Taking the loss of 25.000 Euros (Company structure setup as well as company structure liquidation) and moving on.

@BtcBiz:
Well, it is a little bit late but better late than never:
IMO, you performed a really exhaustive research and posted a lot of valuable information in this thread. Just want to say thank you

 

[csp dubai]

malta the banks are the worst of the worst , and cyprus after fnbe is just a state fraud stay away

 

[BlueMist]

Agribank. They open accounts but it takes time. It was not a popular option because they did not have SEPA which they have just recently added. Hurry, first come first serve!

 

[Marios]

malta the banks are the worst of the worst , and cyprus after fnbe is just a state fraud stay away

that is not entirely true about Cypriot banks. The case with FBME has nothing to do with the current banking system in Cyprus. What has really affected it was the fall of the second biggest bank and the bail-in from the first one back in 2013. Don't ask what has led to the fall. The change after that is that they have become much more compliant, (went to the opposite direction), in a manner that they do not open bank accounts easily and have lots of transaction monitoring. Certainly not state of fraud despite the rumors you are hearing left and right as they are heavy regulated. On another note, the local EMIs are more flexible and business friendly.

 

[BlueMist]

that is not entirely true about Cypriot banks. The case with FBME has nothing to do with the current banking system in Cyprus. What has really affected it was the fall of the second biggest bank and the bail-in from the first one back in 2013. Don't ask what has led to the fall. The change after that is that they have become much more compliant, (went to the opposite direction), in a manner that they do not open bank accounts easily and have lots of transaction monitoring. Certainly not state of fraud despite the rumors you are hearing left and right as they are heavy regulated. On another note, the local EMIs are more flexible and business friendly.

I will just post the facts:
FAIL 1. FBME was considered "UBS" equivalent in Cyprus. It was highly regarded bank by HNWI and corporates, also famous from their "no name" cards.
FAIL 2. There is no well known international bank in Cyprus such as Citi, HSBC or any other. The last international bank Barclays has quit from this market some time ago. This says a lot about local banking regulations...
FAIL 3. Cyprus deposit haircuts. You see maybe in 100 years people will forget but I will for sure pass it to my next generations to absolutely not keep wealth in Cyprus. What has been done cannot be reversed unfortunately.

 

[Marios]

I will just post the facts:
FAIL 1. FBME was considered "UBS" equivalent in Cyprus. It was highly regarded bank by HNWI and corporates, also famous from their "no name" cards.
FAIL 2. There is no well known international bank in Cyprus such as Citi, HSBC or any other. The last international bank Barclays has quit from this market some time ago. This says a lot about local banking regulations...
FAIL 3. Cyprus deposit haircuts. You see maybe in 100 years people will forget but I will for sure pass it to my next generations to absolutely not keep wealth in Cyprus. What has been done cannot be reversed unfortunately.

Well argued. In any event, Cyprus has never been a banking destination to keep wealth, only for transactions.

 

[Forester]

I am in such saga, to find a real bank or one with all things that I need/want. Plus, personal account.
It’s just a nightmare.

First was the COVID, at least for two years in my case (fear), now seems less terrifying but I still need to get in an airplane for 10/12h to go to Europe in person to open a account. And I need to know which banks do this by walking in.

My history merge together with the COVID, before I used to travel constantly, now for personal problems, I don’t want to travel just for this, even having total free time and even being in need to be some days or weeks very far away.

Well, life is a mess.

Back to the topic, I had the intention of creating a company exactly in Cyprus, but with the same or worse problems with banks, it’s just a no go.
But in WHAT country or countries would be better to incorporate a business? Not being “cheap” and not being “I don’t care” related to taxes. It doesn’t need to be 0/5/10 but I would like not to be 40/50%.

My case is a bit more different or unusual. I used to trade (securities), and I opened a company to trade through it. I wanted to separate anything related to myself and “protect” the money that I earn under an entity.

Beside the question “where” to incorporate, doing so in X jurisdiction that would be suggested, and to have stronger chances, making the company with some substance, how long this would be necessary for example? 3, 6 months? 1 year?

Obviously everything is a supposition, so, if someone can suppose something with substance, it would be great to open the way of thinking this whole subject.

Just a recommendation:
Start a new thread (or find an appropriate older thread) at this section
Offshore Company (and then ask admin to delete it here).
Here it a) is a little bit off-topic; and b) can easily be overlooked... (IMO)