Offshore company from an EU country

[user9823671]

Cyprus will probably cost you couple times more than same thing in Romania. Getting a bank account may take months (and you might get declined). You can expect annual company costs + accounting/auditing of around 5k. If you're required to have a substance at Cyprus you'll need to rent an office and maybe even employ someone there (that will increase the costs even more).

substance is not just an office and an employee though. It has to be seen to be run from there, without your involvement. No country will accept substance of an office with no services and a part time employee scratching their balls all day. They know what you are trying to do. You have to prove it is a real office running the business, thus have all the proof of a real office. Phone , internet, cleaner, utilities, staff contracts, managers, etc etc

Add a company tax of 13.75% on your profits (in Romania it's 16% so it's a very little difference).

Now once you make some profit and pay the tax in Cyprus, you'll have some money left in your account. What do you then? How do you get it? Pay yourself dividends and you'll have to declare and pay dividend tax on that amount in Romania. At that point Romania knows you own some shares in a foreign company and they can cause you problems.

So, the 2.25% difference (or 3.5% difference if you pay your taxes in advance on Cyprus) is not significant and not worth the hustle or risking of having problems with tax authorities. Plus I can bet that in the end will cost you more because everything will be more expensive than in Romania.

OP clarified tax isnt the reason for looking offshore, but to protect anonymity. Plus, you don't have to risk problems with Romania if you declare everything and do it properly. Only trying to hide it will.

So, my advice is to simply open a company in Romania, you'll probably get a bank account within a day or so, spend some time on finding really good accountant. You simply focus on your thing and let the accountant do everything else for you. In the end you'll pay the same (or even less), will have no issues in your country - and you can enjoy 5% dividends tax (that's really low, EU average is 23%), and you'll have the money you paid taxes on in your account and you can enjoy your life in Romania. Just find good people that can help you and outsource these things to them and focus only at your business.

OP doesn't want Romania due to lack of privacy from a family member, so although for tax purposes Romania is a good choice, for anonymity from the public it is not (to my knowledge, unless nominees or something similar are possible - I have no idea)

 

[bogdy23]

Set up a US LLC (anonymous) and open a branch office in your country.

What do you need?
Business bank?
Access to online payment services? (paypal / stripe)

Seychelles the problem becomes banking with access to online services, but transfer wise might work
US privacy states may work but banking is a problem, maybe an EMI?

Probably best to call a specialist and speak to them. turnerlittle are active on the forum and get recommended. I would imagine any advertiser of services on the forum are worth a call, as I doubt admin accepts advertising from 2bit fly by night dodgy operations

You are not going to hide from your countries authorities. Not without big money or going the illegal route. The bank will report to them. And any requests from them will most likely be met favourably


Do you have a million a year revenue? If so, you have more options, go speak to professionals and pay a good price for good advice


Your company will be tax resident based on where you are resident. There is no way around this. Go read about CFC laws and you will understand. Doesn't matter where you incorporate the company, it will be tax resident where you are, Romania.

Either you setup substance in the offshore jurisdiction, this will cost you, but if you are making a million a year, paying 50k a year setup, is better than paying 300k in taxes (figures pulled out my arse but you get the idea). Or you go the illegal route. Those are your options.

Offshore will, in most cases just protect your anonymity from the PUBLIC, not the authorities. IF you are just trying to hide from the public lookups, this may be good for you. But it will cost and cause headaches.

Ok, my family represents the authorities. They have a lot of favors done to a lot of people in high places. They do anything possible to shut me down. And I`m 100% legitimate. Like I said before I have talked to a professional over the phone they said to make an offshore and you will pay taxes there. This however contradicts what I`ve lean in Business School and what I`ve learned here. The thing is that in order for me to make money I just need an accountant I`m self-sufficient I just trade certain patterns which I`ve discovered, some of which I`ve bought a lot of them where scams.

The problem is that people want this information by force. It`s not worth selling at any price.

What If I set up there an office ok I hire a couple of people from finance no problem Harvard educated no-problem how many should I need? 10-20 people who will jerk off and read financial news and give me the summary like I said I`m self-sufficient I don`t need help and I can`t give out my employees the newsletters I read like let`s say Agora 99% don`t know about this stuff and they will end up just leaving me.

SO the only legal route is to create some offices overseas?
I`m curious how does ALPHABET (Google) do it from what I`ve read their company is now offshore and they have this billion-dollar building in New York.

 

[user9823671]

I`m curious how does ALPHABET (Google) do it from what I`ve read their company is now offshore and they have this billion-dollar building in New York.

They pay professionals a lot of money to sort it all out. If it costs them $50 million to save $500million in tax it is worth it

 

[bogdy23]

Ok, my family represents the authorities. They have a lot of favors done to a lot of people in high places. They do anything possible to shut me down. And I`m 100% legitimate. Like I said before I have talked to a professional over the phone they said to make an offshore and you will pay taxes there. This however contradicts what I`ve lean in Business School and what I`ve learned here. The thing is that in order for me to make money I just need an accountant I`m self-sufficient I just trade certain patterns which I`ve discovered, some of which I`ve bought a lot of them where scams.

The problem is that people want this information by force. It`s not worth selling at any price.

What If I set up there an office ok I hire a couple of people from finance no problem Harvard educated no-problem how many should I need? 10-20 people who will jerk off and read financial news and give me the summary like I said I`m self-sufficient I don`t need help and I can`t give out my employees the newsletters I read like let`s say Agora 99% don`t know about this stuff and they will end up just leaving me.

SO the only legal route is to create some offices overseas?
I`m curious how does ALPHABET (Google) do it from what I`ve read their company is now offshore and they have this billion-dollar building in New York.

What If I set up there an office ok I hire a couple of people from finance no problem Harvard educated no-problem how many should I need? 10-20 people who will jerk off and read financial news and give me the summary like I said I`m self-sufficient I don`t need help and I can`t give out my employees the newsletters I read like let`s say Agora 99% don`t know about this stuff and they will end up just leaving me.

Can you give me a little more detail for this route?

 

[user9823671]

What If I set up there an office ok I hire a couple of people from finance no problem Harvard educated no-problem how many should I need? 10-20 people who will jerk off and read financial news and give me the summary like I said I`m self-sufficient I don`t need help and I can`t give out my employees the newsletters I read like let`s say Agora 99% don`t know about this stuff and they will end up just leaving me.

Can you give me a little more detail for this route?

This gets beyond my knowledge. From what I understand, it needs to be enough to show your tax authorities the business is run from there and not from you. They know the tricks people go through to avoid tax, it is there job to know all the tricks you know and them know the ones you don't.

I imagine it depends on the business. Some businesses can be shown to have substance with (a) some will need (b). This is where you need an offshore specialist, not some random guy on the internet. Especially if the family aspect has governmental sway, that makes it much harder, if they are actively hunting you down. But tbh, it sounds a bit paranoid, that unless the family member is high up, they will not have the pull to get things done.

 

[Nomad]

bogdy23, If you make decent profit, Setup a business in Cyprus and become a non-dom resident there. Split your time between Cyprus, Romania, Hungary and Bulgaria. I guess if you have a decent income it is not so hard to rent an Airbnb for 2-3 months in Hungary and Bulgaria. You can ask your friends or family to visit you there. If you are so adamant about living full time in Romania, it is going to be very difficult.

 

[bogdy23]

This gets beyond my knowledge. From what I understand, it needs to be enough to show your tax authorities the business is run from there and not from you. They know the tricks people go through to avoid tax, it is there job to know all the tricks you know and them know the ones you don't.

I imagine it depends on the business. Some businesses can be shown to have substance with (a) some will need (b). This is where you need an offshore specialist, not some random guy on the internet. Especially if the family aspect has governmental sway, that makes it much harder, if they are actively hunting you down. But tbh, it sounds a bit paranoid, that unless the family member is high up, they will not have the pull to get things done.

It does but we are in conflict for many years. They don`t want to be known as they really are they must keep certain appearances. The thing is the business needs an accountant to do the taxes and that`s it I will handle the rest. There is no point in me hiring people as they will just steal the knowledge and go away with it. People that want money fast and are ambitious rarely have integrity and they can manage without me this why the secrecy. Let`s say I put in Cyprus a Market analysis office people to monitor news about labor, National banks raising or lowering interests, unemployment rates, agricultural rapport, various industry indicators regarding productions but now, to be honest, I`m just dumbing it down to a microeconomic point of view which I find stupid as yo don`t see the bigger picture.

 

[bogdy23]

This gets beyond my knowledge. From what I understand, it needs to be enough to show your tax authorities the business is run from there and not from you. They know the tricks people go through to avoid tax, it is there job to know all the tricks you know and them know the ones you don't.

I imagine it depends on the business. Some businesses can be shown to have substance with (a) some will need (b). This is where you need an offshore specialist, not some random guy on the internet. Especially if the family aspect has governmental sway, that makes it much harder, if they are actively hunting you down. But tbh, it sounds a bit paranoid, that unless the family member is high up, they will not have the pull to get things done.

If I live in London for example how much will I have to pay taxes? I heard that after a certain threshold they don`t tax rich individuals?
Do you get taxed based on which country you spend most of the time in? If I spend most of my time in Romania for 6 months and 3 months Cyprus 2 in Bahamas 1 in London will I have to pay taxes in Romania?

 

[Mark Ross]

@bogdy23 if you are based in Bucharest or Ploiesti, let's have a coffee next week and we may come up with some solutions... Contact me on Telegram @Redsquaredmark

 

[JustAnotherNomad]

If I live in London for example how much will I have to pay taxes? I heard that after a certain threshold they don`t tax rich individuals?
Do you get taxed based on which country you spend most of the time in? If I spend most of my time in Romania for 6 months and 3 months Cyprus 2 in Bahamas 1 in London will I have to pay taxes in Romania?

Every country makes its own rules.
Then if multiple countries say want tax you and there is a tax treaty in place, the tax treaty regulates what you have to pay and to which country. If there is no tax treaty, you have to pay tax to both countries, but there might be some relief for taxes already paid.

 

[user9823671]

If I live in London for example how much will I have to pay taxes? I heard that after a certain threshold they don`t tax rich individuals?
Do you get taxed based on which country you spend most of the time in? If I spend most of my time in Romania for 6 months and 3 months Cyprus 2 in Bahamas 1 in London will I have to pay taxes in Romania?

Very rich people don't pay tax because they pay a lot of money to expensive accountants and lawyers to setup a solid structure for them. This is not an option to everyday people. If you have this kind of money, then go and speak to a professional. As above, if you are paying $1million a year to an accountant to save you 10million, the world of finance professionals opens up to you.

Obviously I don't know your situation, but if the family thing is that bad, I'd move away. But you say this is not an option for you, but imply you are in the 7 figures earnings, so why you trying to get information for free on the internet. Got speak to professional who charges $100 for 10 minutes of their time and get the best advice you can

 

[bogdy23]

Very rich people don't pay tax because they pay a lot of money to expensive accountants and lawyers to setup a solid structure for them. This is not an option to everyday people. If you have this kind of money, then go and speak to a professional. As above, if you are paying $1million a year to an accountant to save you 10million, the world of finance professionals opens up to you.

Obviously I don't know your situation, but if the family thing is that bad, I'd move away. But you say this is not an option for you, but imply you are in the 7 figures earnings, so why you trying to get information for free on the internet. Got speak to professional who charges $100 for 10 minutes of their time and get the best advice you can

I`m not trying to be cheap here. The problem is I don`t know who to trust. The rule is simple those who stand to profit are the bad guys. The problem I don`t know who to trust. I have talked to a couple of accountants they all said they don`t know offshore rules and companies because they have never worked with them. Also, they told me to talk to some companies I did they told sure yeah you cand whatever you want and you pay taxes there live anywhere. And here I have THE FORUM the leading internet authority on this kind of thing saying to me otherwise. I`m torn up

 

[bogdy23]

Very rich people don't pay tax because they pay a lot of money to expensive accountants and lawyers to setup a solid structure for them. This is not an option to everyday people. If you have this kind of money, then go and speak to a professional. As above, if you are paying $1million a year to an accountant to save you 10million, the world of finance professionals opens up to you.

Obviously I don't know your situation, but if the family thing is that bad, I'd move away. But you say this is not an option for you, but imply you are in the 7 figures earnings, so why you trying to get information for free on the internet. Got speak to professional who charges $100 for 10 minutes of their time and get the best advice you can

I can`t leave the country. For reasons that will uncover me they are very pertinent reasons that people will understand just that I can`t make public. I need to be able to do it from my hometown

 

[user9823671]

Maybe join the mentor forum and get advice there. That is how the forum makes money so maybe you can find some members more inclined to help (no guarantee though)

 

[CaptK]

So basically you want to stay at home, make money and hide it from your relatives. As you said tax is not a problem and if your Algo is working well then it doesn't matter how much tax you pay.

So if you want a solid structure to achieve all this PM me.

You will have to trust someone eventually.