Offshore company (in or out of EU) with EU residency only

[Delta]

Hi,

My source of income is from trading futures, stocks, options with my own capital including prop firms. Excluding cash fx, crypto.
Wanna create an offshore company to reduce or completelly erase income tax and tax from dividends.
Still didnt decide, if offshore outside or inside of EU.

I wanna create llc with one person basically, corporate account and personal account in that country to withdraw profit and will lease a property or address at least there.

- Wonder, if I ll not have the residency there and will legally withdraw clean money to my personal acc in offshore country but its in crs group, if there could be problems with tax office of country, where I ve residency?
I am not quite sure, if I ll ve there llc with address, if I could use that address to make personal acc or will have to use address of my residence.
- Based on previous question, should I perhaps look for offshore countries with tax benefits outside of crs group?
- Hypothetically, I ll have also a llc (single person) in EU with some income that I dont wanna reach certain threshold because income tax would increase. Could I perhaps provide a service from my offshore company to reduce income in EU llc and tax it basically in offshore company?

PLS provide me some tips, advices, if u see any lets say red flags that could appear...
Thanks

 

[linusAG]

And I think there's another key question:
What's your nationality?

 

[Delta]

And I think there's another key question:
What's your nationality?

Slovakia

 

[icecold]

Unless you relocate you will get taxed where you live in most countries. And if you do anyway, you will be hit by a bill later once the company has made sufficient profits and you transferred enough to your personal account.

search the forum for similar threads, the question has been up many times before.

Switzerland is one of the countries where it would be possible which I just read the last day.

 

[daniels27]

Swizerland is one of the countries where it would be possible which I just read the last day.

Yes you can do this in Switzerland. But you will pay taxes:

• All your dividends will be taxed in full like your income.
• Ah the companies assets will be subject to your wealth tax.

You will also be fully liable to pay social security contributions in either your income, the dividends or your companies assets.

Additionally, you could be self-employed with your company being an asset if your self-employment, in which case you will pay full social security contributions on the dividends received and the capital gains of the company value increase.

 

[JustAnotherNomad]

Not sure you would even need a company? As long as you only use an address and phone number from the other country, you have residency and a utility bill from there, you use a VPN etc., it should be fine.
But I guess a company might add an additional layer of protection.
Cyprus or Malta could probably be a good fit, but I'm not sure about how they treat crypto.
UAE might also work well if you mostly trade and don't have a lot of dividends.

 

[Mary P]

For your situation, Seychelles, BVI, or Saint Lucia could be great choices for an offshore company. These jurisdictions offer low or no income taxes, and they’re popular for traders looking to minimize tax on profits. They also have flexible corporate structures, and you can easily set up a single-person LLC with corporate and personal accounts.

Regarding your questions on CRS, if you're not a tax resident in the offshore jurisdiction, you generally won't face issues withdrawing to your personal account—though tax authorities in your home country might still take interest. It’s crucial to keep everything transparent and legally compliant. If you want to avoid CRS altogether, you’d need to look outside of CRS countries, but these options typically come with more complexity.

As for using the offshore company to reduce tax on your EU LLC income, that could work, but be careful about transfer pricing rules. It’s best to consult with a tax advisor to ensure everything is structured properly to avoid any red flags.

 

[diro]

You will get taxed where you're resident in most countries, take that into consideration if you setup a company abroad.

 

[Delta]

Thanks for your answers and tips. Hopefully I understood correctly.

So, income tax is taxed in country, wheres established offshore company as corporate body and any withdrawal like dividend should be taxed in country of my residency, right?
My option for avoiding withdrawal tax would be making a personal bank account with address of corporate body to avoid crs or make company in non-crs country but isnt there the double taxation agreement, which should help me pay withdrawal tax in a country this salary comes from?
Or get a residency in country wheres ffshore company later, which would end up in double residency and potentially, there would apply other rules like where I reside most of the time, etc.

Is there anything else I should consider, which could cause problems?

 

[daniels27]

So, income tax is taxed in country, wheres established offshore company as corporate body and any withdrawal like dividend should be taxed in country of my residency, right?

It the company has economic substance and US managed from there.

My option for avoiding withdrawal tax would be making a personal bank account with address of corporate body to avoid crs or make company in non-crs country but isnt there the double taxation agreement, which should help me pay withdrawal tax in a country this salary comes from?

Those countries typically have almost no treaties. Apart from that the treaty normally only limits your company's country from charging withholding tax.

Is there anything else I should consider, which could cause problems?

You ideally stay in a place without CFC rules applying to your business. And even better in a country that does not tax dividends received.

 

[icecold]

Additionally, you could be self-employed with your company being an asset if your self-employment, in which case you will pay full social security contributions on the dividends received and the capital gains of the company value increase.

wealth tax is 1 - 3% depends on Cantone and social security contribution is how much ?

 

[daniels27]

wealth tax is 1 - 3% depends on Cantone and social security contribution is how much ?

10%
https://www.ahv-iv.ch/p/2.02.d

 

[cuno]

Thanks for your answers and tips. Hopefully I understood correctly.

So, income tax is taxed in country, wheres established offshore company as corporate body and any withdrawal like dividend should be taxed in country of my residency, right?
My option for avoiding withdrawal tax would be making a personal bank account with address of corporate body to avoid crs or make company in non-crs country but isnt there the double taxation agreement, which should help me pay withdrawal tax in a country this salary comes from?
Or get a residency in country wheres ffshore company later, which would end up in double residency and potentially, there would apply other rules like where I reside most of the time, etc.

Is there anything else I should consider, which could cause problems?

only way to get out of the taxation hell is the risky way to appoint nominees and setup the company anonymous in one or the other way, but more to that is to be discussed inside mentor group gold.

Alternative you are relocating to the country of your choice with the tax rate that fit best your expectations.

 

[Delta]

only way to get out of the taxation hell is the risky way to appoint nominees and setup the company anonymous in one or the other way, but more to that is to be discussed inside mentor group gold.

Alternative you are relocating to the country of your choice with the tax rate that fit best your expectations.

Can actually my country find out automatically, that I ve offshore company registered to address there with private bank acc registered to company address, where I d withdraw money? Even crs would not apply, cause theres not address with my residency attached. Am I wrong? Risky but impossible to find out, if they ll not try.

So, if I understand correctly with nominee, I can have taxed company gains in that country but cant tax dividends for withdrawal in the country I ve residency, otherwise they d find out, that I ve nominee there to cut some taxes or would perhaps having there an employee too kind of add to credibility to the company?
Can I in this case actually make a private bank acc with address of company to withdraw money via dividends, when theres nominee or am I forced to pay dividned tax basically unless I make a bank acc in country, which isnt in crs group?

Wonder, how to make permanent establishment in the country, wheres the company without actually being there as a trader. Maybe trading remotely but order execution would go from there?

I guess the best option is to change residency as was mentioned, thats the plan but cant now.

Thanks again for any tips...

 

[daniels27]

You can try what you want. Most people like to sleep deep rather than having to worry all the time of getting caught.

What you want to do? Set up a company with nominee shareholder and directors. Ok. That could work. You persuade a guy to live there and with from there and do the business in you behalf. Sounds doable.

And while you could just sit back and be happy that in 10 years you can move there to and help him spend the money, you get greedy and want the money now?

Are you broke? Then just run part of the operations yourself and pay taxes on it. That's about the best deal you can get. You only pay taxes on what you need to live.

 

[Delta]

You can try what you want. Most people like to sleep deep rather than having to worry all the time of getting caught.

What you want to do? Set up a company with nominee shareholder and directors. Ok. That could work. You persuade a guy to live there and with from there and do the business in you behalf. Sounds doable.

And while you could just sit back and be happy that in 10 years you can move there to and help him spend the money, you get greedy and want the money now?

Are you broke? Then just run part of the operations yourself and pay taxes on it. That's about the best deal you can get. You only pay taxes on what you need to live.

Do I need to even persuade somebody, when I ll use a company to establish this offshore business, which will perhaps provide me a nominee? I ve a lawyer to check it first.

Its mainly about not paying corporate income tax every year. I dont mind paying tax for withdrawing money from company much via dividends, althought would be great not to pay. I guess paying at least for dividend with a nominee in a company woud already raise a potential red flag or am I wrong?
In this case I dont understand, that I pay taxes only on what I need to live considering, theres basically two taxes (corporate income tax and for withdrawing via dividend)

Lets say I ll go throught nominee, make a personal bank acc in that country with company address. With what should I be carefull? What If I ll decide to pay for energies in country, where I reside for a place with my permanent address with that private bank acc. Could that be a red flag, when its not a big fee? or if I decide to withdraw money via ATM from neighbouring country, lets say up to 10k per month?
Wonder, how to get pocket cash money safelly with this arrangement?

End goal is to earn enough, buy a property and live there to get a residency.

 

[JustAnotherNomad]

The UBO would usually have to be declared. You can expect this information to be shared. No one will risk being charged with being part of a tax evasion scheme for a few hundred euros per month.

 

[cuno]

Lets say I ll go throught nominee, make a personal bank acc in that country with company address.

You can't do that! Either you have a nominee handling the company and you stay out of the business entirely or you have a personal account and the entire setup does not make sense! For more gray area solutions visit the mentor group gold forums where you can find discussions going into details.

 

[daniels27]

End goal is to earn enough, buy a property and live there to get a residency.

Why not start renting a shithole there and then work yourself up?