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Is it really necessary to set up an offshore company or is an offshore bank account 'nuff?

Discussion in 'Business & Tax Advice' started by Frankie4Fingers, Dec 25, 2011.

  1. Frankie4Fingers

    Frankie4Fingers Power Member

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    I beg your pardon for the slang in the title but I run out of characters :)

    Back on topic: say I live in Europe (i.e. Greece), I open a bank account in Switzerland and I send there money made through US affiliations (i.e. Clickbank), do I really need to set up an offshore company to be safe? Do US based affiliation companies disclose informations to other nations tax agents?

    I guess you need an offshore company when you run a "proper" business (i.e. an e-commerce site) and you have to directly deal with customers, but is it really necessary in the case aforementioned?

    Thanks in advance to anyone that can contribute or share useful resources on the subject.
     
  2. Frankie4Fingers

    Frankie4Fingers Power Member

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    Anyone? :)
     
  3. savvypro

    savvypro Regular Member

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    Your Swiss bank is the one more likely to disclose your bank details. If it's a personal account, then it will be covered by the EU Swiss information sharing agreements. But if it's a company account it's doesn't apply (at least it didn't the last time I checked).
     
  4. KeijoKala

    KeijoKala Jr. VIP Jr. VIP Premium Member

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    How do you open bank account to Switzerland? can you do it online? Do you get CC for your bank account?
     
  5. ClThis

    ClThis Regular Member

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    Banking regulations change often and banks are becoming more secure with how they operate. It may not be necessary but in most cases it takes a citizen or someone with a state issued identity to open a bank account and keep it "safe". Although, the safety of your account is at the discretion of the bank.

    1. Don't violate anything if you don't have too
    2. Ask your affiliate company, or another one that you don't belong too to be safe, if they report to the bank accounts country or the country of the register. In any case it would more likely be your country, since you are registering and the payment details are just where to send the money. Not who is paying taxes

    If it is to avoid taxes, open a Inc in another company, have that be the operator of the affiliate account and have the money go to the bank account in that designated country. Wire the money back home and you'll be fine.
     
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  6. moonlighsunligh

    moonlighsunligh Jr. VIP Jr. VIP Premium Member

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    Not that simple.

    You should never wire money to your home country.
     
  7. Soreback

    Soreback Newbie

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    Cheers, as I thought but thanks for putting it in perspective.
    Just when and how to set up an offshore company.
    HongKong is 15% corporate tax?
    Any trustworthy firms can take care of this?
     
  8. THUNDERELVI

    THUNDERELVI Elite Member

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    If you are in EU, check out Bulgaria. It has a tax flat rate of only 10% and you can easily open a LLC there. You won't avoid tax completely, but 10% is as low as you can get legally without hiring a tax expert to manage things for you.
     
  9. FoxMulder2014

    FoxMulder2014 Newbie

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    You have link to an reliable bank?
     
  10. FoxMulder2014

    FoxMulder2014 Newbie

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    Avoid UBS or any Swiss that has offices in your country. If they have an office in your country, they are no longer covered by Swiss law, but by local law.
     
  11. mantic0re

    mantic0re Junior Member

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    It depends on your local laws what does and does not work, as well as the tax exchange treaties between the offshore country and your own country. You should really get proper consult on this instead of asking it here. There is a reason good consultants charge 500$ per hour for matters such as these.
     
  12. EarthIsYours

    EarthIsYours Newbie

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    From next year, the AEOI will enter into force. All financial institutions participated in OECD will have to comply. AEOI is Automatic Exchange Of tax Information. This means your authority will be notified of the existens of your account and balance. So if you are trying tax evasion it's a bad idea with Switzerland.

    Generally with banking though, you can open an account anywhere you want. But like someone said above, the banks location is the laws that applies. In this case, Switzerland doesn't recognize Tax evasion as a crime. Like the Swiss banker said;



    But in your example, you said Greece. That means, if you are a resident of Greece, means your "Location of operation" is in Greece thus levid to Greece taxes. The greece taxman will be upset.
     
    Last edited: Feb 24, 2016
  13. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    Forget about hiding behind an offshore corp or even a Swiss bank account, everything will be reported by the banks and that by automation because of new International laws that take place this and next year. You can only do this in an larger enviroment but if you are not doing large amount of money it isn't worth it, then you rather pay your tax in your country and be happy that you have hospitals and streets intact.

    If you have large sums, you better consult a expert like a law firm or international tax advisor.
     
  14. EarthIsYours

    EarthIsYours Newbie

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    RuthSam

    Can I come visit your branche for offshore company registration?
    It was practically impossible for me to find the location stated on your website. The BVI street registry didn't recognize the location as existing.

    Having my ways to BVI in 2 weeks, and intereted to have a talk about my setup.
     
  15. pseudonym

    pseudonym Regular Member

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    his signature is for rent. that is not a service he provides