Hello,
A few members have reached out and asked for private advice on how to proceed in regards to my comments in this thread:
Residence for bank account and offshore company
I'm not on this forum for financial gain or service advertisement reasons. With that said, I will not engage in one-to-ones. My reason for giving free public advice is my motivation to undermine privacy-intruding communist systems, including but not limited to OECD CRS. There is no government worthy of knowing what individuals have in their bank accounts. If by chance one exists, it's likely to be replaced in 4 years, and all pro-transparency policies implemented by the "good gov." can be abused by governments with malicious intent who come after them.
Second, there is nothing fair about progressive taxation systems which are nothing but oppression of the productive in favor of those who fail to bring in-high-demand value to the marketplace. There are risks involved in starting a business - lots of unpaid upfront work with no guarantees on outcome. Demanding a huge share of the financial success story, but failing to recognize the struggle and personal sacrifice which led to success does not ring fair. Sure, being a taxi driver is barely enough to survive on a modest lifestyle and raise one kid in a low cost area, but the compensation for hard work is not delayed by 5-7 years, as is the case with most startup owners. A typical businessman or woman enjoying success today lived his/her twenties more miserable than a taxi driver.
There are three main ways to outplay CRS for individuals
- All of which are fair and ethical, but also illegal in most cases. Use at your own risk.
1. Non-disclosure: Bank in a non-CRS country
- The most useful link is here: Country-by-Country exchange relationships
- Select your country of tax residence in "To jurisdiction" drop-down menu
- Select the country in which you'd like to bank in "From jurisdiction" drop-down menu
If no information exchange relationship exists (yet), you're good (for the time-being).
2. Non-disclosure (Out of scope): Pooled accounts
- If the bank account is not in the name of account holder, it is not reportable under CRS, even if an active CRS exchange relationship exists.
- As an obvious downside, you will have to send and receive payments in the name of your bank, using a shared IBAN or account number.
Note: Exceptions apply. For example, large online Stock/Bond/CFD/ETF/FX platforms are under pressure to collect CRS information today, even if they only issue pooled deposit/withdrawal accounts to their clients. Some of them do it overtly, some do it covertly, without telling anything to their clients. An Online brokerage platform is not a safe place, especially if it's a popular platform.
3. Disclosure to wrong jurisdiction(s): Proxy residency/citizenship
As more jurisdictions join forces with the socialist big brother, option #1 is bad for a couple of reasons. It's only a short-term option, and it pushes everyone to bank in unstable countries.
The long-term solution which enables banking in developed countries is a little more complex, and it requires more time to set up. With that said, it's well worth it - I recommend you start with #1 or #2, or just pay tax as required, and start making progress towards this third option.
a. Obtain a second residency or citizenship from another country.
- The specific country does not matter that much it can be from a high tax country. Ideally, pick a country that issues ID's valid for 10 years.
- Just embarking on a short 3-month work contract gives you an obligation to register as a resident with local government in most EU states. This does not work in advantage of Bulgarian construction workers who want to evade tax in western EU, but it's very helpful for those who already have a bit of money and want to evade CRS. Any work you can find will do - i.e. pick strawberries for 3 months if you're out of ideas. Note, for those who seek convenience - this step, and some other steps below can be skipped with paid residency and/or citizenship programs. I do not give specific recommendations, but there are a hundred options world-wide, including a few in the EU.
b. After you are registered as a resident, apply for an ID document.
- Depending on the country you chose, you may have to make up a story that you intend to stay in country for good and renew your strawberry picking contract or find other work after the current contract ends.
- Make sad puppy eyes and tell that you need the ID to be allowed to register for gym or yoga classes.
- There should not be too much resistance - after all, you're seen as a new milking cow for tax purpose! Do not expect or apply for any social benefits, they are not relevant for us anyway.
c. After you get the ID, register as non-resident and leave.
- Try not to do it on the same day you get your ID.
- If they ask why, make even sadder puppy eyes and say you could not find more work.
d. Take a year break before you proceed to open bank accounts - Important!
e. A year has passed, go back to that country for Proof of Address and Phone Number.
- Do it without re-registering or letting anyone know what you're up to. If they ask questions at the airport, you're there for travel.
- An Utility bill is better than a short-term rental contract - some landlords allow for the bills to be in the name of tenant. For obvious reasons, an ideal solution is to buy real estate in your name - this will get you through CRS re-certifications with minimal hassle if the bank wishes to verify your residency again in the future. You will have utility bills in your name whenever somebody asks for them. I recommend to buy cheap real estate in your name, and then rent it out as an investment. Two flies down in one smack. (You obviously do not evade property taxes here, you're a non-resident real estate investor with good intentions))
- Whether you get a physical SIM, or lease a cloud number to receive SMS is up to you. The country-specific dial code is relevant. Some number prefixes of the most popular service providers can blacklisted by many high street banks; do not go to that one-stop-shop which is the first result in Google and available in almost every country.
f. You're all set to open a bank account!
You pay as much tax as you think is fair; the bank is not subject to any fines because it fully complies with CRS; the big brother does not know what you're up to. What more could you ask for?
I found crs here Exchange relationships - Organisation for Economic Co-operation and Development
And all countries, also the Caribbean are doing automatic exchange of data.... at the moment only Albania and few orher in EU don’t agreed yet, so your link i think is not correct please check @xzars
