HK/Latvia/Malta + Latvia Bank for Digital Goods Company?

[zyzl]

I wouldn't give you the advice to avoid Latvian banks. But major scandinavian banks like Swedbank, Luminor or SEB are very decent banks

Do you mean opening up a bank account in Sweden or a scandinavian bank with a local branch in Latvia (locally available in Latvia/online process?)? Why do the latvian banks have such a bad reputation?

 

[Sols]

ABLV was shut down due to money laundering activities.

PNB (formerly Norvik) was recently shut down due to liquidity problems.

Rietumu has had problems related to money laundering and tax evasion for years.

And that's just in recent years. If we go further bank, we have more examples of failed or shut down banks: Multibanka, Parex, and VEF.

The Scandinavian banks have performed far better, both financially and in terms of regulatory compliance. Not perfect, but they're under no significant risk of being shut down.

 

[Marc Jacob]

Yes, this is absolutely correct info ! Latvian private banks have a bad reputation as they were for ages a laudromat for some uknown russian money. In another hand, Scandinavian banks in Latvia (which are about 90% of the local banking sector) are well regulated and have good liquidities.

 

[zyzl]

In another hand, Scandinavian banks in Latvia (which are about 90% of the local banking sector) are well regulated and have good liquidities.

Ah, okay. Perfect. I thought I then have to open up a bank account locally in Sweden or somewhere else. Thanks for the helpful information Marc, also Sols.

 

[Marzio]

Okay, then only option is EU company + EU bank account.

Instead of all those nonsense options why don't you relocate do Poland?

Corporate Income Tax is 9% with revenues of up to EUR 1.2 million.

9% is one the lowest tax you will find in EU, Stripe and PayPal are fully available.

Life is cheap, girls are amazing and German borders are close so you can come back whenever you want.

 

[user9823671]

How will they know anything related to me if it's managed by a nominee director?

Perfect scenario would be UAE formation with Dubai banking. Then applying for a visa and live there.


I don't know if I should go 100% anonymity or not.

At your budget you can NOT get 100% anonymity. You could go the highly illegal route of false documents, but I am assuming you want to do this legally.
Opening a business is not the difficult thing which you may be able to hide from your home country (or in the case of Germany, they have a lot of clout worldwide). But it is the banking that will get you every time. CRS (common reporting standard) is the big one

 

[user9823671]

Okay, then only option is EU company + EU bank account. Double taxation treaties should also work for non-residents. If not, rent a flat and declare a new domicile.

You have to prove beyond a doubt of the German tax office that what you are doing is not a sham to avoid tax. You can rent all the flats you want, you can declare anything, but it better hold up against a thorough German audit and if it is one thing the Germans have a reputation for is being thorough. The system is not geared for people like us, these tax loopholes are not there to help you avoid 10/20k tax bill, they are for the big boys. Anything that you can think of, I imagine has been thought of by people far move skilled in the areas of tax / banking and protected against.

But you could always "try" and get away with it, hide under the radar and hope you don't get audited. But it is tax avoidance and highly illegal and I would advise you to look into the penalties / fines if caught.

 

[DAAN]

Hey, it's my first post here and I made a account here just to clarify few things.

1) If you are resident of Germany or any other country in the EU/world and make a company in Latvia, you will pay ONLY those taxes which are set in Latvia. Those comments that you will have to pay taxes as they are in Germany is simply totally wrong! That's totally opposite of EU laws and regulations.

2) About Latvia, remember, if company is receiving money, you will need to pay salary to yourself or employee, as from law perspective - company can't earn money by doing nothing. And if something is beeing done, some one must received salary for that.

So for salary you will be around 45% in various taxes.


3) About banks - Swedbank and SEB is the most known and stable, but their risk managment is very suspicious, and you might deal with account blocking and constant document submission.

4) Local tax authority is pain in the a*s in Latvia..

PS. I'm a accountant from Latvia, if some one wants to discuss..

 

[lavel]

What about this?

Sadly not all authorities will accept that rule