Hi guys,

I'm quite good in fiscal policies advisoring and offshore fiscal legislations (consulting and stuff like that).
If you would like to create a company in a tax heaven and have any questions, feel free to ask in this thread.

I'm specialized in european fiscality, but I know a little about US legislation and tax :-p

Nice.
Im interested in Cyprus. Can you tell me more about taxes and VAT, when providing services to EU and non-EU clients?

I'm interested in Dubai. The same question above.

Im interested in Cyprus. Can you tell me more about taxes and VAT, when providing services to EU and non-EU clients?

Ricky Roma, why Cyprus? Do you have business projects in europe that could justify an offshore company in Cyprus?

Offshoring is not just VAT and tax avoidance, it's an art :-)
First of all I'll need to know if you already own a firm (as an associate? CEO?); if yes, where? (country)
And what are your goals? (for instance, create a subsidiary, avoid taxation in your home country while working as a web consultant, and so on). Where do you live?
> Antonha: The same questions above.:-p

That is an excellent thread. Thanks for making this one mate.

Where should I open a bank account if I live in Greece and have money deposited into it from the US? I don't want this money to be taxed. Should I setup a company structure as well or just a numbered private account will do?

I am looking to get in gambling affiliate business. In my country (Serbia), advertising foreign gambling companies is not allowed.
Most of sports betting companies are located in Gibraltar, Malta and UK. If I would open LLC in Gibraltar and do business with companies from there (GI), then I would lose offshore status and be liable to VAT. Alternative is to deal only with bookies from MT and UK.
What am I looking for:
promoting gambling is ok
no vat
low corporate tax
simple bookkeeping
preferably in Europe

EDIT: Good thing about Cyprus is that they have double taxation treaty with US and Serbia.

WOW, If you could answer my questions and dream comes true

OK, i live in France and i have a web hosting company registered in my country. And i was wondering how could i get rid of an amount of taxes.

What would be the smarter move ?

Feel free to send me a PM for more details
Any help will be heavily appreciated !

That is an excellent thread. Thanks for making this one mate.

Where should I open a bank account if I live in Greece and have money deposited into it from the US? I don't want this money to be taxed. Should I setup a company structure as well or just a numbered private account will do?

You're welcome :-)
The second solution is the bad one, and I'll explain you why:
If you set up a bank account in your name in Greece where you live, your tax office service could spot what you're doing and claim tax + fees + interests. The time for spotting you depend on various factors: how much you earn with your day job and How much you deposit on this 'special account'. For instance, if you've no salary in Greece, but receive $4k monthly from the US on this special account, you will be quickly and hardly fucked by your tax office. My motto is: don't fraud your state law. Moreover, if you open a numbered private bank account in switzerland and use it to receive your money from the US, what will you do with all this money in switzerland? You will be spotted if you try wire transfert/ physical withdraw, etc.. I don't advise anymore the use of numbered private account: it's too risky and it's not worth it.
At the contrary, I prefer what I call "the Google way": tax evasion. So let's set up a company, and profit without stress and fear of being deep-fucked by tax offices. How much do you think you'll gain yearly?

I am looking to get in gambling affiliate business. In my country (Serbia), advertising foreign gambling companies is not allowed.
Most of sports betting companies are located in Gibraltar, Malta and UK. If I would open LLC in Gibraltar and do business with companies from there (GI), then I would lose offshore status and be liable to VAT. Alternative is to deal only with bookies from MT and UK.
What am I looking for:
promoting gambling is ok
no vat
low corporate tax
simple bookkeeping
preferably in Europe

EDIT: Good thing about Cyprus is that they have double taxation treaty with US and Serbia.

NB: not only you'll be liable for VAT, but also for local corporate taxes and so on. Why Cyprus? You still have (low) taxes with this country. How much do you think that you'll gain with this gambling business?
If you're searching for a 100% legit and riskless stuff, use a tax sandwich. For instance, create a mother firm in serbia, a subsidiary in belgium (double tax agreements), and the Belgium cie will own a subsidiary in Hong Kong (0 taxes, no VAT, it's just the perfect place...). Honk Kong will do the business, it will transfer profit and fees to belgium, and due to double agreement, belgium will transfer to Serbia. You will avoid nearly all taxes (global taxation = around 4 or 5%...)

OK, i live in France and i have a web hosting company registered in my country. And i was wondering how could i get rid of an amount of taxes.
What would be the smarter move ?
Feel free to send me a PM for more details
Any help will be heavily appreciated !

I understand you, I know very well the heavy french system... I could help you optimize your business, but I prefer you answer me there (everybody will profit).
So how much do you earn yearly with your web hosting cie? (just give me your total revenue (chiffre d'affaire)). With this information, I'll see if the tax avoidance will be worth it.

I understand you, I know very well the heavy french system... I could help you optimize your business, but I prefer you answer me there (everybody will profit).
So how much do you earn yearly with your web hosting cie? (just give me your total revenue (chiffre d'affaire)). With this information, I'll see if the tax avoidance will be worth it.

Well, i'd rather not to disclose that kind of information.

Actually my real questions is, i have multiple sources of revenues, i don't pay tax on all of them. And i don't want to merge some sources to the main company, as i pay around 20% on each single penny i earn. (not benefits). Also, i have to conceed that i don't pay taxes on every penny i make with web hosting to stick with my company status tax templates which is expensive but the simpliest to manage.


What could you give as advice, how much would it cost grossly to put your advices in motion ?

Well, i'd rather not to disclose that kind of information.

Actually my real questions is, i have multiple sources of revenues, i don't pay tax on all of them. And i don't want to merge some sources to the main company, as i pay around 20% on each single penny i earn. (not benefits). Also, i have to conceed that i don't pay taxes on every penny i make with web hosting to stick with my company status tax templates which is expensive but the simpliest to manage.

What could you give as advice, how much would it cost grossly to put your advices in motion ?

ok, because it's fiscal optimization, we could discuss of this stuff in PM (I speak french). Feel free to send me a message with your questions and more details about you (structure of your company, total revenue, and so on).
Tax evasion is all about Return On Investment: if your business only earn $50k a year, it will not worth your time and money to set up a complex tax evasion scheme. But you could set up a smaller one, depending on various criterions.

hi nokran.

Lets say I want to run a consulting company in Dubai and want, how you said, avoid taxation in my home country while working as a web consultant and live in the EU.

for me it sounds like more you will sell some service here.

you have concret stuff as well .....

which countrys put internet income (not earned in there aerea) free?
in europe ?
world wide?

So u just here just to sell your services rather than offering something of value to members first. Pffff

For Winner2012 and Abrigado:
No, I give free advices to members of BHW - I just would like to remind you that a fiscalist hourly fees are from $400 to much more..
What I could do there: If you have a fiscal issue, I could give you clue to solve it.
But guy, be serious and don't expect me to work for you for free and spend days optimising your incomes :-)
You've seen various posts with members giving their insights on SEO, but they don't offer you free backlinks, free onsite SEO, free content and free niche research.

Sometimes, I'll need more information: how much do you earn, which country do you came from, what are you doing currently. As I said, offshoring is not a game for very small incomes. If you're a student earning $300 a week, it will cost you more to offshore.

Antonha> why Dubai?
Abrigado > about Internet incomes:
Luxembourg has a very nice fiscal template for intellectual property incomes.. But you'll still have 4 to 5% tax - a pity compared to France heavy fiscality (33%). Moreover, as Greece is in Europe, you'll profit from non taxation agreement. See also my comment below
Antonha > about doing consultancy in the EU and facturation from Dubai.
It is a risky game. The first rule of offshoring is: Nobody talk about avoiding taxation. The second rule is: JUSTIFY offshore activities. All that mean: is it coherent for your business to create a subsidiary in Dubai? How can you justify it? Will your customers and suppliers agree to send payment to an emirati firm? They won't find it weird?
Moreover, as you said you live in the EU, I need to know more about your activities: is it a home consultancy job? (for instance, web hosting, offsite SEo, etc) Or will you physically be hosted by your client? (project management, auditor, and stuff like that). How much will you earn yearly?
***
Don't trust loosy websites saying that offshoring could solve all your fiscal issues. There is two schools of offshoring: the risky one - fraud, non declaration, pure tax avoidance - and the fair one - justify the usefulness of your offshore activities. I'm more from the second school - you still pay a (very) small tax but you're quiet, peaceful and won't fear a fiscal control.

I'm certainly not looking for a comprehensive financial plan over the net but at the same time you do not start a thread with a marketing catchy title, play the guru and then get lost. It does not look good on you as an expert.

That said, I am making 5 figures a month over the net and I'm seriously looking into this. I do not want to do tax fraud, but I DO want to setup an offshore structure to legally avoid paying taxes. I don't mind paying out up to 10% of my income but certainly not more.

I'm not a magician, so I can't guess your revenue nor your situation (context). These information are important, because without your input I can only give you general information and general tips. As I said on my first post "I'm quite good in fiscal policies advisoring and offshore fiscal legislations (consulting and stuff like that). If you would like to create a company in a tax heaven and have any questions, feel free to ask in this thread."

If you have general questions, I could answer them directly in this thread.
If you have precise questions, if you don't want to disclose private information, post here and send me a PM. Depending on the inputs you provided me, I could help you with your fiscality. I'll next anonymize your case, generalize stuff, and post it on this thread for the information of the whole BHW community.

To be clear:
What I will do:
> coaching and general advising: "how things works and what you could do".
What I will not do:
> Spend too much time on the case or setting up your stuff.

I give you clues; after that, you could contact your local fiscalist, accounting expert or any financial advisory service. You're free to do whatever you want.

What is the value of this thread?
You will gain time, as I will redirect you to the best structure.
When you'll meet your local fiscalist in order to set up the offshore structure, you will have a clear idea of what you want and what to do.

That said, I am making 5 figures a month over the net and I'm seriously looking into this. I do not want to do tax fraud, but I DO want to setup an offshore structure to legally avoid paying taxes. I don't mind paying out up to 10% of my income but certainly not more.

5 figures monthly? It will worth it.

Thanks mate, sorry if I misunderstood you, you sound like a solid dude. Sending you pm

for eu residents it's very easy to avoid taxes: just move to a country with territorial tax regime and create an offshore company in a third country. leave the money there = no tax.

1. Starting from what amount of money per year is recommended to setup such a thing? Is the amount gross revenue, gross profit, net profit, etc?

2. How much does it cost to setup? How much does it cost yearly? I realize cost varies with each setup/country but I'm looking at a ballpark figure.

3. Do you still pay taxes to receive the money as a regular person? For example let's say there's a unique tax of T% on profit in my country. From what I know the company has to pay the T% at the end of each fiscal year. However, I also have to pay T% to get the money on my name as a regular person. So I end up paying 2*T% in the end. Does a setup in a tax heaven eliminate T% or all 2*T% ?

4. Is it possible to maintain anonymity? To what degree? In other words is it possible to operate the business without being able to be associated with it in any way? Do I loose control over certain things or risk certain things to do that? I'm thinking that from what I have read I can (and probably have to) use a lawyer in that tax heaven to open the business and bank account in my name. Doesn't that mean I give that lawyer control to a certain degree over my business? Is there a contract in place? How am I protected from the lawyer going and taking the money from the bank account or doing stuff on behalf of my business?

5. What is required to implement such a setup for me? I'm thinking about documents. Scanned photo ID picture... what else?

7. How does PayPal play a role in all the tax/fiscal thing? I mean if you have/received money in PayPal are you supposed to pay a tax on that money? Do they have access to the info about my PayPal details and transactions? Do I only have to pay taxes if I retrieve the money from PayPal to my bank account? etc... Please expand on how PayPal fits in the whole fiscal scheme.

8. Can the money be used to buy stuff in the country I am in? For example buy a car, laptop, pay rent, pay travel expenses, gas, etc. in my country and file them as company/work-related expenses (so I cover them from company money and not from my personal profit)? Those things will legally be owed by the company entity not myself as a regular person right (not on my name)?

9. Do I have to keep the accounting myself? Can I keep the accounting myself, or do I need an authorized accountant/lawyer/whatever? Is it complicated to keep the accounting myself? Can you recommend good materials to learn how to do it? Is the accounting done per the laws of my country, the country where I incorporate (tax heaven) or both?

Specific case study
This is a situation that should apply to a lot of people making money online. It is not necessarily 100% my situation but it can be used so everybody gets the big picture.

Income sources: Affiliate systems like AdSense, Amazon, YPN, CPA, e-products sold through ClickBank or directly using PayPal or a payment processor.

Situation 1: I want most of the profit to remain in the company's account and pay myself monthly a certain amount of money (salary?) - e.g. $4000/mo.

Situation 2: Same as above but I don't have a specific amount of money I want to pay myself every month. Instead, I want to get money only when I need them and in the quantity I need them. For example maybe I want to get $1000 this week, $10000 next week, then for 2 months I need no money, then I need $5000 more, etc.

What other option do I have here regarding how I can pay myself?

First thing about an online business is how you are payed. Some can pay to my PayPal account. Others don't. For example Amazon and AdSense only send checks. They do not do bank transfers in other countries than USA. How will this be handled?

Obviously we can assume there is no paperwork involved in the physical sense - no actual paper documents - everything is in electronic format (e.g. invoices). There may be physical paperwork involved if I buy something from my country on behalf of the company. For example if I buy a laptop/car/whatever the documents will be made for the company right?

That should be all for now. If you could explain and expand on these questions I am sure it would help a lot of people.

Thank you!

for eu residents it's very easy to avoid taxes: just move to a country with territorial tax regime and create an offshore company in a third country. leave the money there = no tax.

All EU countries oblige you to declare your foreign revenue. Moreover, if you leave the money in this third country, what's the point? :-)

Guys, I'm receiving too many PMs and I'm overloaded in my job; I've seen all your questions madoctopus, and I will answer them every one of them later... But let me time

I'm from Canada, but would like to set up a business in a 'tax haven'. I heard St. Kitts is good. How do I get the money to go there and how do I then get it here without committing a crime? Thanks

nokran: I just pm:ed you and are willing to pay for your consulting service. Check the pm for more info.

I'm from Canada, but would like to set up a business in a 'tax haven'. I heard St. Kitts is good. How do I get the money to go there and how do I then get it here without committing a crime? Thanks

Not all business can be done in tax heavens... What do you want to do? Who are your customers? How would you reach them?

1. Starting from what amount of money per year is recommended to setup such a thing? 2. How much does it cost to setup? How much does it cost yearly? I realize cost varies with each setup/country but I'm looking at a ballpark figure.

Hum, it really depends on the offshore structure you want, and what are your needs; offshoring don't worth it under $100k revenue yearly. About the cost of such structure, it's roughly from $7k to $xxk yearly, depending again on your needs (from a simple structure to a network).

Do you still pay taxes to receive the money as a regular person? For example let's say there's a unique tax of T% on profit in my country. From what I know the company has to pay the T% at the end of each fiscal year. However, I also have to pay T% to get the money on my name as a regular person. So I end up paying 2*T% in the end. Does a setup in a tax heaven eliminate T% or all 2*T% ?

Yeap, you still have to pay taxes on personal incomes.. Your company is a 'legal entity' and thus has to pay corporate taxes; and you, as a citizen, has to pay personal incomes taxes. Guys, we are discussing there on legal offshoring: we are not talking about fraud. With offshoring, you'll reduce the tax on corporate profits (from 50% to 90% tax reduction), but you'll still have to pay your personal taxes.

Is it possible to maintain anonymity? To what degree? In other words is it possible to operate the business without being able to be associated with it in any way? Do I loose control over certain things or risk certain things to do that? I'm thinking that from what I have read I can (and probably have to) use a lawyer in that tax heaven to open the business and bank account in my name. Doesn't that mean I give that lawyer control to a certain degree over my business? Is there a contract in place? How am I protected from the lawyer going and taking the money from the bank account or doing stuff on behalf of my business?

It's possible to maintain anonymity using business representatives, and shareholders representatives. Your risks: being scammed, being used for money laundering, etc.. All is based on trust, so be sure of the experience of the lawyer, the trustfullness of the reprensentatives and ask to set-up an additional contract with representatives.

5. What is required to implement such a setup for me? I'm thinking about documents. Scanned photo ID picture... what else?

In order to fight against money laundering, you'll be require to meet in person the fiscalist and lawyer, give detailed information on your business, proof of ID, etc. All these information will be keeped confidential, it's just a way to be sure you're not a criminal trying to launder money. If your lawyer don't ask you these informations, beware of a scammer.

I'll answer the remaining questions later.

Obviously I'm interested to learn how to do this legally. Also the following fragment is very interesting. It means most online services for registering a company in a tax heaven are bogus since they only require you to fax/email a copy of your photo ID and stuff. Always found that strange.

The $100k/year figure was unexpected. I was running the numbers with what most online services would charge ($3k/year) and obviously the figures were much lower.

I'm really glad you're helping us here. I've seen many open threads here and on other forums about this subject but it was always just speculations.

Another question I have is about the legal aspects of having a company in a different country. Does that mean the company must adhere only to the laws of that country? I'm assuming this is why most online casino companies are registered in Malta right? So not only you escape the high taxes but you can also use this to escape the FTC and various unpleasant laws in your country.

Thank you and rep+

In order to fight against money laundering, you'll be require to meet in person the fiscalist and lawyer, give detailed information on your business, proof of ID, etc. All these information will be keeped confidential, it's just a way to be sure you're not a criminal trying to launder money. If your lawyer don't ask you these informations, beware of a scammer.

What do you think about incorporating in the Seychelles? I was advised to do that a few years ago. Is it still a wise thing to do?

It means most online services for registering a company in a tax heaven are bogus since they only require you to fax/email a copy of your photo ID and stuff. Always found that strange.

You're right. Serious services will ask you to meet in person, and to give detailed explanations on your business before opening a bank account for you - it's a way to be sure that you'll not use your bank account as a money laundering account. Maybe some online services don't care about ethics... But if you (as a customer) share nominee with money laundering firms, you'll risk much more than a fiscal control.
However, some 'tax haven' are quite laxists with the rules: you could create a firm in Seychelles with just a copy of your passport and an utility bill.. But money laundering is still a fraud from the Seychelles (money laundering act is effective).
There is two school of though amongst professionals: those who have a business vision, and those that have a customer vision. The first don't care about customers and just provide quick & dirty services ; it's cheap, effective, but if you've got a problem you're alone. The second school provides consultancy services ; it's a partnership in the long run. Try to ask the maximum of questions to your incorporator / international fiscalist, and require an 'after-sale service'.

The $100k/year figure was unexpected. I was running the numbers with what most online services would charge ($3k/year) and obviously the figures were much lower.

In order to lower the risk, you could create a network of firms, and thus structure costs will depend on where you come from (EU / Asia / US).
But if you earn under $100k, it doesn't worth the price for many reasons: it's time consuming, it could be risky, and it has hidden costs.

Another question I have is about the legal aspects of having a company in a different country. Does that mean the company must adhere only to the laws of that country? I'm assuming this is why most online casino companies are registered in Malta right? So not only you escape the high taxes but you can also use this to escape the FTC and various unpleasant laws in your country.

Yes, a company must adhere only to the laws of that country.
But be careful about one important thing: the residency rule.
Let's say you're resident from France, i.e. living in France more than 220 days a year (depending on countries). If you manage your Malta casino from France, France fiscal administration could charge you for fraud (because you're working in France, living in France, but avoiding taxes in France). So you've to find a 'nominee' to act as manager, and say that you're just recovering dividends from this foreign firm. But there is still a risk... The must is to create a network of firm.

What do you think about incorporating in the Seychelles? I was advised to do that a few years ago. Is it still a wise thing to do?

There is no 'best tax haven'. A location depends on your customers (btb? btc?), and your current location. In 2011, there were problems with banks in Seychelles freezing money from companies.. The place is still good for a company; but I'm really moving to countries less connoted as tax heaven or to european countries (i.e. not small island). Again, think about your partners and customers: will they care if you charge them from a tax haven?

***

How does PayPal play a role in all the tax/fiscal thing? I mean if you have/received money in PayPal are you supposed to pay a tax on that money? Do they have access to the info about my PayPal details and transactions? Do I only have to pay taxes if I retrieve the money from PayPal to my bank account? etc... Please expand on how PayPal fits in the whole fiscal scheme.

Paypal = a bank account. Same tracability applies to paypal.

Can the money be used to buy stuff in the country I am in? For example buy a car, laptop, pay rent, pay travel expenses, gas, etc. in my country and file them as company/work-related expenses (so I cover them from company money and not from my personal profit)? Those things will legally be owed by the company entity not myself as a regular person right (not on my name)?

Wow wow, slow down: how would you justify the residency rule?
are you talking about buying a laptop for your personal use in Canada (random country) with the money from your Seychelles' firm?
If you face a fiscal control (again), they will ask you: guy, you're earning $1k a month in Canada, where have you find the money to buy your Gran Torino?
My advice: create a firm in Canada, that will recover as dividend the money from your offshore firm ; you'll be hired by your canadian firm. Your firm in Canada could buy legally laptops for employees, pay rents (if you justify the use) and pay travels (if it's for business and not for leasures). Or use an umbrella company as the meat between you and your offshore firm: the umbrella will hire you.

Do I have to keep the accounting myself? Is the accounting done per the laws of my country, the country where I incorporate (tax heaven) or both?

If you have a firm in Switzerland, accounting is done according to Switzerland laws. But more than accounting, there are also financial and fiscal reglementations.. Your international fiscalist could do that for you.

Can I keep the accounting myself, or do I need an authorized accountant/lawyer/whatever? Is it complicated to keep the accounting myself? Can you recommend good materials to learn how to do it?

Trust me, I'm not saying that because I'm an incorporator and because I 'defend my business', but you will lose a lot of time to learn foreign fiscality and accounting, trying to comply with the rules, and do the work. Honestly, it's complicated but possible if you've time. But do you prefer spend time on your business or on accounting?

What are the credentials?

Actually - Do you want to shoot me a PM?

Actually - Do you want to shoot me a PM?

Obviously, I can't disclose such information in public; feel free to send me a PM with your questions.

got some great tips, thanks

Hi,

This is a great thread..Thanks for all the information.

I have few questions and would appreciate your thoughts on those....

I am from UK and moved to India a year ago to set up a software company. We sell software online and most of our customers are from America.

Now the company is registered in India hence all the payments are transferred to our Indian account from our payment processor. There are many drawbacks of keeping the company registered in India as recently the payment vendor is getting a bit iffy about sending payments to India. Furthermore I am having to do any online payments for purchases via my UK accounts.

Another thing is that I plan to sell the company including the technology and userbase after peaking its revenues.

I have been thinking about setting up a company in Hong Kong or Dubai (purely because its on my way back to UK) and having the office in India as its subsidiary (development office).

Here are some of my questions:

-With a view to sell the company sometime in future, should I setup the HQ in Hong Kong or Dubai?
-I eventually want to move back to UK and run the office in India remotely, how could I receive money in UK without breaking any laws?
-Are investors/buyers interested in buying companies that are based in a known tax haven?

Thanks

KML

Hi Nokran,

I always wondered what were the formal qualifications required to enter your trade?

Not that I nescessarly want to go into it, I just want to know enough not to get fleeced/scammed/etc/etc

Thanks a lot mate. Your replies to the members here were a pretty good read. I'm not yet close to needing such services but I am glad I bumped into this thread because some stuff you wrote here I would have not thought or expected.