Is Cyprus the best option for me?

[manager]

Hello I am new to the forum.


I live in Romania (member of the EU, tax is 16% here) and I am earning money from online marketing. I have websites where I promote other sites and get paid by them. I don't sell any products and I don't have clients. I just advertise and get the money via Moneybookers or bank wire. I am thinking about opening an offshore company because of the financial advantages.


I have a few questions:


1. I talked to somebody who has experience with offshore companies and he told me that I won't be able to spend the money that I earn with my offshore company on bigger investments like: apartment, car because the money earned remains the company's money and I could spend it only on smaller things. Is this true?


2. Which is better for me? Cyprus or Belize? Belize would be cheaper, but there is some Double Tax Treaty between Romania-Cyprus.


3. If I bring the money into my country will I have to pay the 16% tax?


4. Can I transfer the money from my offshore bank account to my personal account?


5. Do I need an offshore bank account in the country my company is registered in? (if I'm in Belize, can I have a Swiss account?)


I am very new to this so if you have time, please explain it very clearly.

 

[clemens]

1. I talked to somebody who has experience with offshore companies and he told me that I won't be able to spend the money that I earn with my offshore company on bigger investments like: apartment, car because the money earned remains the company's money and I could spend it only on smaller things. Is this true?

To take out the money will be complicated without paying tax, but it is still possible! The key is to find a anonymous debit card which is connected to a bank account to where you can transfer money from you non taxed offshore company to that account!


Why not look into the Seychelles for incorporation of your offshore company, much better and cheaper than the mentioned jurisidictions...


Never transfer the money from your offshore bank account to your personal account if you don't want such two connected to each other in the eyes of the authorities!! Most fail already at this step.

 

[manager]

To take out the money will be complicated without paying tax, but it is still possible! The key is to find a anonymous debit card which is connected to a bank account to where you can transfer money from you non taxed offshore company to that account!
Why not look into the Seychelles for incorporation of your offshore company, much better and cheaper than the mentioned jurisidictions...


Never transfer the money from your offshore bank account to your personal account if you don't want such two connected to each other in the eyes of the authorities!! Most fail already at this step.

Thanks for your reply however I don't want to hide any income. I just want to know which is the cheapest legal way? I want to be able to use the money in my country and legally pay less taxes for it.

 

[manager]

can anybody help me with this?

 

[JohnLocke]

1. This depends very much on which jurisdiction your offshore company is located, for instant Seychelles or Cyrus will not limit you in this way, there you can make such investments executed by the offshore company.


2. To make use of the double tax treaty Cyprus would be the best for you.


3. Yes you will have to pay personal tax income, otherwise you will need to take the money out with some sort of debit card, sorry we can't help with this in further details.


4. You can do that at any time, however, bear in mind that your tax authorities will then know the offshore company and the account from where the money comes.


5. No, you can open an bank account in any country you like for your offshore company.


I would like to know what sort of investment's you are looking into, because it will be crucial information in order to guide you to the right jurisdiction.

 

[nastathin]

3. If I bring the money into my country will I have to pay the 16% tax?

By doing so the money you bring into your country will be considered personal income so it will be taxed with the applicable tax rate.

 

[nastathin]

You need an anoymous debit card or travel alot to withdraw the money in the ATM's around. Never use your card to pay Hotel, tickets etc. if the purpose of all this is to hide from the tax auth.

 

[JohnLocke]

..... or travel alot to withdraw the money in the ATM's around. Never use your card to pay Hotel, tickets etc. if the purpose of all this is to hide from the tax auth.

Agree to this, you can withdraw cash and carrying the money with you (up to EUR 10.000 in the EU or you need to declare it) - that may be what most are doing.

 

[manager]

Agree to this, you can withdraw cash and carrying the money with you (up to EUR 10.000 in the EU or you need to declare it) - that may be what most are doing.

This is what you mean right?:


Travel to Cyprus (if your bank is there) > Get 9999 EUR from the bank in Cyprus (or more if you bring a friend) > and get it cash into your country.

 

[wosniak]

Travel to Cyprus (if your bank is there) > Get 9999 EUR from the bank in Cyprus (or more if you bring a friend) > and get it cash into your country.

That will work.


I'm almost in the same boat as you are.

 

[manager]

hasarnata I would like to talk to you personally but I cannot send pirvate messages. How can I contact you?

 

[JohnLocke]

This is what you mean right?:
Travel to Cyprus (if your bank is there) > Get 9999 EUR from the bank in Cyprus (or more if you bring a friend) > and get it cash into your country.

Yes that should work.