Cash out profits from an offshore company in a zero income tax country?

[Siggi]

Hi,

I live with non dom-status in Cyprus and think about keeping my Belize company (which I use for crypto trading) until I live in a zero income tax country someday.

When I live in a zero income tax country, I would transfer the Bitcoin from the company into my private property.

Do you see a problem in this?

I could also cash out the profit of the company tax free in Cyprus, but then I would have to declare the dividends in my personal tax return and the Cyprus tax authorities would maybe check if they can tax the company here. Because of this I want to avoid it. According to my tax accountant I don't have to declare anything as long as I keep the profits in the company.

Hi,

I am also in Cyprus and I don't understand the issue with having an offshore company to payout dividends. The only thing you need to take care of is to not be the director of the company. So you just find someone else to have this position or you hire a nominee director. From there all dividends are tax free and you only pay that 2.65% for the health care system which is limited to a maximum of 180k(~5k fee). At least that's what most Non-Doms are doing in Cyprus.
Why do you think you could be taxed for those Dividends?

Btw. I am actually planning the opposite right now. I do have all my coins in private wallets but I actually came to Cyprus to payout all of this stuff legally with documentation and tax return documents. So the plan is the form a Belize company and does regular payouts of Dividends. Those Dividends are reported to tax authorities and I will finally have all that money in a tax return file that I can show anyone that wants to know where this money is coming from and where it has been taxed.

 

[tttttttt]

Wouldn't you need to declare yourself the UBO to receive dividends?

I'm thinking the offshore company can lend to the Cyprus company crpyto at low interest, which invests it in stock, and earns some capital gains, which it can distribute as dividend tax free, while repaying the crypto loan to the offshore. Would something like this work?

 

[gmbh]

Hi,

I am also in Cyprus and I don't understand the issue with having an offshore company to payout dividends. The only thing you need to take care of is to not be the director of the company. So you just find someone else to have this position or you hire a nominee director. From there all dividends are tax free and you only pay that 2.65% for the health care system which is limited to a maximum of 180k(~5k fee). At least that's what most Non-Doms are doing in Cyprus.
Why do you think you could be taxed for those Dividends?

Because if they really want a proof that the company is controlled from Belize I guess that a nominee director is not enough.

Besides this it seems that Belize is not good anymore to incorporate an offshore company there anyway.

https://internationalwealth.info/en...bstance-requirements-and-taxation-principles/

 

[dlttrading]

1. Dividends can be payd in Crypto. You don¨t need a shitty bank account for a shitty belize company....
By paying dividends in crypto you can go around all the stupid banking regulations...

2. Later when you receive the crypto to your private wallet from the "offshore company wallet" you can exchange to fiat using private bank or EMI account

 

[gmbh]

1. Dividends can be payd in Crypto. You don¨t need a shitty bank account for a shitty belize company....
By paying dividends in crypto you can go around all the stupid banking regulations...

This seems to be correct. My tax accountant in Cyprus confirmed this, too.

 

[tttttttt]

This seems to be correct. My tax accountant in Cyprus confirmed this, too.

Would you please send me PM about your Cyprus tax accountant. I'm in the process of relocating a crypto based business there and would appreciate assistance. I can't find the PM button.

 

[gmbh]

Would you please send me PM about your Cyprus tax accountant. I'm in the process of relocating a crypto based business there and would appreciate assistance. I can't find the PM button.

I don't really recommend them for crypto business.

 

[Fred]

As already mentioned before don't go with a Belize company especially if you plan to stay in BTC - there is simply no need for it. In case you want to cash out from time to time avoid Belize anyway because no reputable bank is available for a Belize company and all this together in combination with Crypto is a show stopper anyway.

What you can go for is a zero tax residence like in the UAE and cashout trough a personal bank account here. Several banks are fine with deposits/withdraws in EUR from Kraken. Beside of that if you plan to cash out bigger amounts you have the possibility with some 3rd party providers that are not known to be Crypto related to let the cashout looks like business earnings. In a reputable offshore jurisdictions like UAE cashouts of 1-2M$ per months modified to businss earnings are still good working in pratice.

 

[Jade33]

At least until now it is even possible to trade completely without any verification, even without any withdrawal limits at Bybit for example.

So let's hope the EU falls apart before they forced all exchanges to do this. Furthermore, decentralized exchanges are becoming more popular.


Probably yes...

they got the digital paper printing machine so probably not, unless some countries protest regulations but lets bee honest most are debted out and on their knees for a IMF handout

 

[tttttttt]

Is there a difference between Seychelles and Belize in terms of crypto trading and defi investing company?

 

[manwithtoupe]

1. Dividends can be payd in Crypto. You don¨t need a shitty bank account for a shitty belize company....
By paying dividends in crypto you can go around all the stupid banking regulations...

2. Later when you receive the crypto to your private wallet from the "offshore company wallet" you can exchange to fiat using private bank or EMI account

Have you done this in practice?

Were your bank/EMI ok with this? Which documents did they ask for? Minutes only?