Question offshore company for investing in crypto/stock market

[hmg78800]

I'm a Lithuania citizen with Estonian residence permit, living in Estonia, running a small marketing business and renting out an airbnb under Estonian OU company. Thinking about starting crypto trading and investing into stocks. Estonian company is absolutely ok in case of taxation, as you only pay when distributing dividends. But declaration process in case of trading is awful, every single operation should be declared and PL calculated into EUR(which is kind of tricky for crypto). So i'm looking into into incorporating some offshore company in jurisdiction with 0% profit/corporate tax and without requirement to declare/report crypto and stock trades and cheap formation+renewal.
The shareholder of the offshore company could be my Estonian company, so i can dive the profit from trades into real estate on behalf of the Estonian company.
The two questions i have are:
1) what jurisdiction would you recommend? I have cayman islands and seychelles on my mind currently, but may be there are better options.
2) after going through forums i understood that more likely i would not be able to open a bank account under that company, and the only option is some EMI, but my research showed that prices for offshore companies are really high, which makes it not to even start it, as i'm currently targeting into <50K yearly turnover


Maybe i'm missing something?

 

[Revoltec]

Any new ideas around this? Any solution on how to trade stocks/crypto through offshore companies?

 

[hannesur]

But declaration process in case of trading is awful, every single operation should be declared and PL calculated into EUR(which is kind of tricky for crypto).

This is not correct.
What you are quoting is the instruction for private persons. They need to declare and pay tax on every sale or swap if profitable. Losses are not deductible.

For companies you can just mark your positions (crypto or other traded and liquid papers) to market at the end of your accounting period and show the difference as profit or loss in income statement and balance sheet. No taxes are paid on that.
As you mentioned - profit of a company gets taxed only when taking it out (usually as dividends). No detailed reporting necessary.

H.

 

[hannesur]

Any new ideas around this? Any solution on how to trade stocks/crypto through offshore companies?

Why make it so complicated?
You have another thread where you discuss a combination of an estonian company + US LLC. What advantage does it give compared to just trading from the Esionian company?

 

[Revoltec]

Why make it so complicated?
You have another thread where you discuss a combination of an estonian company + US LLC. What advantage does it give compared to just trading from the Esionian company?

Im completely new to all of this and learning. Found out about tax advantages in Estonia after making this post.

However, I found some information that that a PE is not taxed on any foreign sourced income in Estonia while an Estonian company is only taxed on undistributed profits. Im not sure if US LLC is a way to trade completely tax free, regardless of whether the profits are distributed or not. This is what I'm trying to find out.

There might be some advantages in terms of geographical / counter party diversification as well.

Also, is it really possible to hold crypto through a US LLC? Been reading about Bermuda lately.

 

[Don]

Im completely new to all of this and learning. Found out about tax advantages in Estonia after making this post.

However, I found some information that that a PE is not taxed on any foreign sourced income in Estonia while an Estonian company is only taxed on undistributed profits. Im not sure if US LLC is a way to trade completely tax free, regardless of whether the profits are distributed or not. This is what I'm trying to find out.

It could be tax-free in some instances.
You need to consider your personal tax residence, the company's tax residency, the company's PEs (e.g., where the trading is happening), and potential tax exemptions (whether the income is exempt from tax on a personal/corporate level).

There might be some advantages in terms of geographical / counter party diversification as well.

Also, is it really possible to hold crypto through a US LLC? Been reading about Bermuda lately.

Why would it not be? Basically any natural person or legal entity can hold crypto.