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Crypto Income, Offshore Companies, and Legal Risks – What's the Best Strategy?

D

Dovebtc

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May 23, 2020
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#1
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I run a business where I receive almost all my income in crypto and currently pay no taxes. The business is growing, and I’m stacking more and more BTC every month. I recently moved to a low-tax country and am declaring part of my income there, but I’m concerned about the legal security of my business and personal liability. Right now, I’m receiving payments as an individual due to the favorable tax regime in my new country.

One of my main concerns with stacking BTC in my physical wallet is that I don’t have reports proving when I "bought" these BTC. In the future, if I ever want to cash out, this could be a major issue. I strongly believe Bitcoin is the future and one of the best investments out there, but I also worry about not diversifying. I do hold some USDT too—can anyone recommend a good way to earn yield on it without KYC and without risks?

I’ve considered setting up an offshore company to reduce risks, but my concern is that if my current country of residence finds out, they could claim that I control the company from here and require me to pay taxes locally. Would it be better to create an offshore company structure, or should I just keep things simple and continue stacking BTC? I live a very frugal life, needing only 1-2k euros per month to be happy.
 
#2
Well, to be honest if you are doing tax fraud, you will sooner it later have issues. Unless of course if you keep all in bitcoins.

The least you should do is use 5 wallets and then declare the income from one of them, like 20% of the income. At least then, you have a proof that you earned the money and paid taxes on it. You would then be able to cash out with 5 different banks, showing each of the the tax paid.

However, it would be better to do all legal and move to even lower tax countries or a place where the risk is low. Like ruining a US LLC from a country that does not care about you ruining a company from there.
 
#3
daniels27 said:
Well, to be honest if you are doing tax fraud, you will sooner it later have issues. Unless of course if you keep all in bitcoins.

The least you should do is use 5 wallets and then declare the income from one of them, like 20% of the income. At least then, you have a proof that you earned the money and paid taxes on it. You would then be able to cash out with 5 different banks, showing each of the the tax paid.

However, it would be better to do all legal and move to even lower tax countries or a place where the risk is low. Like ruining a US LLC from a country that does not care about you ruining a company from there.
Click to expand...
I moved to this new country because it has a good agreement with my country of origin regarding double taxation and potential issues with tax residency. However, which country would you recommend for this? Maybe for next year.
 
#4
I would urgently get myself a company somewhere where there is no income tax for companies (Estonia and Latvia for ecample) and move all activity into the company. This way it all has a trace and is not taxed as far as you pay dividends.
You can pay a salary for somebody (yourself) not tax resident in that country in the abovementioned cases.
You can also own most of the things you want on the company.
 
#5
I understand your concerns about crypto income, tax efficiency, and legal security. At First Idea Consultant LLC, we specialize in helping crypto entrepreneurs like you set up offshore companies in Dubai, secure crypto-friendly bank accounts, and optimize taxes. We can also assist with tracking your BTC purchases for future tax purposes.


If you're looking for a secure and tax-efficient way to structure your business and protect your assets, we'd be happy to guide you through the process.


Visit www.firstideasetup.com to learn more, or feel free to contact us for a personalized consultation.


Best regards,
First Idea Consultant LLC
 
#7
How to Start Your Crypto-Friendly Business in Dubai:


  1. Set Up a Free Zone Company in Dubai:
    Dubai offers multiple free zones that are highly attractive for crypto and tech-related businesses. We help you set up a company in a crypto-friendly free zone, offering 100% ownership, no corporate taxes, and a streamlined setup process.
  2. Obtain a Residence Visa:
    As part of the company setup, we’ll assist you in securing your residence visa, which allows you to live and work in Dubai, plus access all the benefits of being based in the UAE.
  3. Open a Bank Account:
    With your company set up, we’ll guide you through the process of opening a crypto-friendly business bank account in Dubai. This allows you to receive crypto payments and convert them into fiat when needed.
  4. Build a Business Website:
    We help you design and launch a website that aligns with your business activities, ensuring it’s professional and optimized for your crypto operations.
  5. Install a Crypto Payment Gateway:
    Once your website is ready, we’ll integrate a crypto payment gateway that connects directly to your business bank account, enabling you to accept payments in BTC, USDT, or other cryptos seamlessly.
  6. Start Accepting Crypto Payments:
    With everything set up, you’re ready to accept crypto payments from clients globally, making it easy to operate and grow your business without worrying about traditional banking or tax complexities.


At First Idea Consultant LLC, we specialize in guiding you through this entire process, from company formation to payment gateway setup. If you're ready to take the next step or have any questions, feel free to reach out to us for a free consultation.


Visit us at www.firstideasetup.com for more information.
 
#9

mostly from Europe and US customers.​

1.​


  • Individuals or teams looking to set up crypto-related businesses (exchanges, wallets, DeFi projects, NFT platforms).
  • Entrepreneurs who want to structure their businesses in crypto-friendly jurisdictions (like Dubai) to maximize tax efficiency and legal protection.
  • Crypto traders who need secure banking solutions to handle their crypto income and make sure their transactions comply with local laws.

2.​


  • Professionals who want to establish a legal business entity while living in low-tax jurisdictions, particularly those involved in remote work, freelancing, or consulting.
  • Individuals looking for a residence visa in Dubai, allowing them to work and live in the UAE while operating an international business.

3.​


  • Companies in the tech sector who want to benefit from Dubai's favorable regulatory environment and low business setup costs.
  • Startups looking for help with business formation, tax optimization, and getting access to crypto-friendly banking services.

4.​


  • Crypto and traditional investors who are looking for asset protection solutions and wish to create offshore structures to safeguard their assets in a tax-efficient manner.
  • Family offices looking to diversify into crypto and digital assets, seeking legal structures that ensure privacy and long-term security.

5.​


  • E-commerce owners who wish to integrate crypto payments into their platforms to reach a wider audience and offer more payment flexibility.
  • Businesses wanting to operate in tax-efficient zones with access to global payment systems.

6.​


  • Individuals with significant wealth who are interested in tax planning, estate planning, and asset diversification. Many of these clients are keen on holding or managing crypto assets and want to ensure the security and optimization of their wealth.

7.​


  • People who prioritize privacy in both business operations and asset management. Many of our clients choose to set up in Dubai's free zones due to the high level of privacy protection and low regulatory interference.

We offer tailored services to meet the unique needs of each client, whether they’re looking to set up a new business, protect their crypto assets, or streamline operations in a crypto-friendly jurisdiction.
 
#10
Thank you. Do you have experience with clients like OP? I mean entrepreneurs that operate in a niche where customers prefer paying with crypto? Have you handled and such clients in the past and what were they doing? Maybe, if you have a good list of such activities, we could convince OP to invest in you?
 
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