Setting up a payment agent in EU

[nurredon]

We’re setting up a payment agent entity as payment processor for a third party, which is very offshore and won't be easy to transact with. While it’s not gambling or adult or anything scammy, it is considered high risk. I’ve heard that many people use Cyprus for this purpose, but I noticed that Shopify Payments isn’t available there, and PayPal fees are significantly higher compared to other countries like Romania or the Czech Republic.

Assuming banking is not an issue, is there a specific advantage to using Cyprus over these other jurisdictions? I’d appreciate any insights on this.

 

[JustAnotherNomad]

It probably doesn't answer your question, but you might find some relevant information here:

Thread 'Best way to set up company to charge customers Tax Free?'

Sep 15, 2024

Is there any company (between the ones listed below) that allow the company to be used to charge clients for services/goods, and then transfer the funds tax free into a foreign company: (e.g: UAE company) without going into illegal tax evasion areas?

For example:
- Irish company used to set up Stripe charges clients
- Profits are distributed from the Irish company into a UAE company either through Dividends OR the UAE company charges the Irish company for services
- The Director would be a resident of the UAE or similar low tax jurisdiction ( such as: Hungary, UAE, Hong Kong, etc...)


Is...

• HeinzKetchup69
• Replies: 26
• Forum: Offshore Company

• 

 

[JustAnotherNomad]

This one as well:

B

Thread 'EU Country that doesn't Tax Company profits?'

Jul 1, 2024

is there any EU country that doesn't Tax, or minimally Taxes, profits that are distributed to the Director and employees of the company that are based in a 0% Income Tax country (UAE) ?

For example:

Citizen of Austria
Living in the UAE
Collecting funds through a company based in the EU and distribute these profits to my self and to my UAE company

The reason why a EU company is required is to comply more effectively with VAT and payment gateways purposes.

Business revenue: $1m a year (profit approx $400K and Director salary of $80K).

I'm not wealthy enough for ultra-complicated set ups...

• BerlusconiSchmidt
• Replies: 7
• Forum: Tax, Accounting, Licensing & Legal

 

[Sols]

Cyprus is popular because it's popular. It's proven to work. The setup is well understood by the tax authority, lawyers, and service providers. You might occasionally see Malta, Lithuania, or Estonia but they are far behind Cyprus in popularity.