Estonian company for crypto trading in the EU?

[flyingadventures662]

I am looking for an jurisdiction for crypto trading. The islands with 0% fees have their disadvantages so I started to consider Estonia. I am wondering what would happen tax-wise if I open a company in Estonia and I:

1) live in Bulgaria
2) travel in different EU countries (or other countries with DTA with Estonia) for less than 181 days?

I think for 1) I will pay the tax in Bulgaria, not in Estonia. But I am wondering about 2). Provided the trading is done from home, and I have no office etc..., what determines which is the country with "place of economic activity"? I don't want to lie or anything like that but I am curious. If I was a physical person and I stay less than 6 months in any country, I would say: I am a tourist, I am tax resident/citizen of Bulgaria so I pay my taxes there. And it makes sense. But if I do the same on behalf of the Estonian company, it is already the company and not me who is trading on the territory of the other country, so doesn't that make the company tax liable there?

I would accept to pay my taxes either on the Estonian or the Bulgarian rates permanently, but want to be able to travel without thinking about other local taxes unless I settle somewhere else.

Anyone with similar experience - crypto company setup in Estonia?
Any advice are highly appreciated, thanks.

 

[NicolasMaduro]

Yes then your Estonian OU company would have their place of management in Bulgaria. Since as you say you live in Bulgaria.

I would probably just leave Bulgaria and get residency and banking in Estonia(takes 5 days tops). Not sure how long it takes to get banking for Crypto License Company though. I know for most companies you get banking in 1 day. I assume a Crypto License company takes time and effort.

 

[CyprusBusiness]

I am looking for an jurisdiction for crypto trading. The islands with 0% fees have their disadvantages so I started to consider Estonia. I am wondering what would happen tax-wise if I open a company in Estonia and I:

1) live in Bulgaria
2) travel in different EU countries (or other countries with DTA with Estonia) for less than 181 days?

I think for 1) I will pay the tax in Bulgaria, not in Estonia. But I am wondering about 2). Provided the trading is done from home, and I have no office etc..., what determines which is the country with "place of economic activity"? I don't want to lie or anything like that but I am curious. If I was a physical person and I stay less than 6 months in any country, I would say: I am a tourist, I am tax resident/citizen of Bulgaria so I pay my taxes there. And it makes sense. But if I do the same on behalf of the Estonian company, it is already the company and not me who is trading on the territory of the other country, so doesn't that make the company tax liable there?

I would accept to pay my taxes either on the Estonian or the Bulgarian rates permanently, but want to be able to travel without thinking about other local taxes unless I settle somewhere else.

Anyone with similar experience - crypto company setup in Estonia?
Any advice are highly appreciated, thanks.

Have you considered Cyprus as an option? You may consider using the 60-days rule to obtain a tax residency in Cyprus and setup a Company as well.

I can send you a PM for more details if this is option for you.

 

[Don]

I am looking for an jurisdiction for crypto trading. The islands with 0% fees have their disadvantages so I started to consider Estonia. I am wondering what would happen tax-wise if I open a company in Estonia and I:

1) live in Bulgaria
2) travel in different EU countries (or other countries with DTA with Estonia) for less than 181 days?

I think for 1) I will pay the tax in Bulgaria, not in Estonia. But I am wondering about 2). Provided the trading is done from home, and I have no office etc..., what determines which is the country with "place of economic activity"? I don't want to lie or anything like that but I am curious. If I was a physical person and I stay less than 6 months in any country, I would say: I am a tourist, I am tax resident/citizen of Bulgaria so I pay my taxes there. And it makes sense. But if I do the same on behalf of the Estonian company, it is already the company and not me who is trading on the territory of the other country, so doesn't that make the company tax liable there?

I would accept to pay my taxes either on the Estonian or the Bulgarian rates permanently, but want to be able to travel without thinking about other local taxes unless I settle somewhere else.

Anyone with similar experience - crypto company setup in Estonia?
Any advice are highly appreciated, thanks.

I have set up crypto structures in both countries.
Have you spoken to a Bulgarian tax attorney?
Why don't you just use a Bulgarian company for this purpose?

 

[hlepic211]

You have to have banking options before you set up a company in Estonia. There's 0 chances you'll open a local bank account especially for crypto trading (or open Paysera/WIse which are worthless), or any kind of other trading tbh with a non-Estonian passport.

 

[Don]

You have to have banking options before you set up a company in Estonia. There's 0 chances you'll open a local bank account especially for crypto trading (or open Paysera/WIse which are worthless), or any kind of other trading tbh with a non-Estonian passport.

It is true that 99% of such crypto businesses are relying on EMI-s (or something like Migom/Kingdom Bank), or they are somehow hiding the link to crypto.
EMI-s usually want that you incorporate the company first + you should establish some substance. If you are trading P2P you are essentially an exchange, meaning you need to establish strong internal procedures, etc.

 

[burden]

It's a big project and requires some capital in order to get a business setup that comply to all laws and regulations in the country of your choice.

 

[flyingadventures662]

I have set up crypto structures in both countries.
Have you spoken to a Bulgarian tax attorney?
Why don't you just use a Bulgarian company for this purpose?

I am sorry I just saw your post now.

Can you please DM me (I can't DM you) to give me more info about your setups?

That would be highly appreciated!

You have to have banking options before you set up a company in Estonia. There's 0 chances you'll open a local bank account especially for crypto trading (or open Paysera/WIse which are worthless), or any kind of other trading tbh with a non-Estonian passport.

How about LHV Pank?

They are crypto friendly and they are even the bank of the BitPanda exchange.

I emailed them and asked for a non-resident account and they sent me clear rules for how to do it:

https://www.lhv.ee/en/non-residents#business-client

 

[legaltalk]

I am looking for an jurisdiction for crypto trading. The islands with 0% fees have their disadvantages so I started to consider Estonia. I am wondering what would happen tax-wise if I open a company in Estonia and I:

1) live in Bulgaria
2) travel in different EU countries (or other countries with DTA with Estonia) for less than 181 days?

I think for 1) I will pay the tax in Bulgaria, not in Estonia. But I am wondering about 2). Provided the trading is done from home, and I have no office etc..., what determines which is the country with "place of economic activity"? I don't want to lie or anything like that but I am curious. If I was a physical person and I stay less than 6 months in any country, I would say: I am a tourist, I am tax resident/citizen of Bulgaria so I pay my taxes there. And it makes sense. But if I do the same on behalf of the Estonian company, it is already the company and not me who is trading on the territory of the other country, so doesn't that make the company tax liable there?

I would accept to pay my taxes either on the Estonian or the Bulgarian rates permanently, but want to be able to travel without thinking about other local taxes unless I settle somewhere else.

Anyone with similar experience - crypto company setup in Estonia?
Any advice are highly appreciated, thanks.

You can have crypto authorization license in Bulgaria and company in Bulgaria.

 

[khinkali]

@pastet89 what kind of crypto trading business?

I think the answer should be different in some respects based on whether it's a proprietary trading business just trading your own capital, or a fund/advisory/exchange/custodian/etc. where your regulatory and AML issues could be challenging.