Post: #1

Hello,
I'm a digital nomad who is travelling all the time. I don't have « home ».
I have created my own company, I am doing some e-commerce stuff (mainly selling things on Amazon EU), I don't win bunch of money but enough to live and travel well.

My fiscal residency is France, who is clearly one of the worst country of the world about taxes and due to that I want to open an offshore bank account / company.
Can you do that without earning 10K/months ? I was thinking to Singapour, do you recommend another country ? Can I do everything online or is better to open it personnally ? Could you recommend a specific Bank ?

I only found streber.st to have good informations about that, if you know another website/Board.

I would be happy if you share your experiences about offshore account (I guess almost everyone who is doing E-commerce stuff have one)

Thanks !

Post: #2

I think the best way to go about this would be to hire a french business consultant who knows about this stuff, because it may be easy to open a company and a bank account, but the real problems come from the french and the european tax system, you know, double taxation, 183 days of residency and all of that.
doing it alone is just too complicated.
basically you need a consultant, check out services like nomad capitalist
and flag theory
blogs like tropical mba
but preferably find a french consultant.
as far as bank account i hear HSBC is good for travellers, don't know anything else.

Post: #3

Check put Estonian E-residency program. You can register your company and get bank account online easily with that.

Post: #4

Easiest way to do this would be to register an American LLC in either Nevada or Delaware, get an IRS business number, and then open a checking account with a bank (Charles Schwab is good).

There will be a yearly associated cost with maintaining the LLC (~150$), but you get the added benefit of hiding your wealth in America from prying European taxmen.

It would be safer to base your wealth in USD as opposed to the Euro.

Depending on how much you make

Post: #5

(07-30-2016 11:48 AM)Il Sorpasso Wrote:  I think the best way to go about this would be to hire a french business consultant who knows about this stuff, because it may be easy to open a company and a bank account, but the real problems come from the french and the european tax system, you know, double taxation, 183 days of residency and all of that.
doing it alone is just too complicated.
basically you need a consultant, check out services like nomad capitalist
and flag theory
blogs like tropical mba
but preferably find a french consultant.
as far as bank account i hear HSBC is good for travellers, don't know anything else.

Thanks man ! This is exactly the kind of links that I wanted.

(07-30-2016 12:28 PM)evilhei Wrote:  Check put Estonian E-residency program. You can register your company and get bank account online easily with that.

I already knew about the Estonian E-residency program, it's amazing. The main problem is that Estonie and France share bank informations, so France will know about my bank account.

(07-31-2016 10:56 AM)The Beast1 Wrote:  Easiest way to do this would be to register an American LLC in either Nevada or Delaware, get an IRS business number, and then open a checking account with a bank (Charles Schwab is good).

There will be a yearly associated cost with maintaining the LLC (~150$), but you get the added benefit of hiding your wealth in America from prying European taxmen.

It would be safer to base your wealth in USD as opposed to the Euro.

Depending on how much you make

I have heard that Delaware is a good option. There is no risk that USA share my informations with Europe (with the FATCA and the AEOI program).
Also, as you said, it's required to win a lot of money, isn't it ?

Post: #6

(07-31-2016 01:08 PM)Mat_hieu Wrote:  

(07-31-2016 10:56 AM)The Beast1 Wrote:  Easiest way to do this would be to register an American LLC in either Nevada or Delaware, get an IRS business number, and then open a checking account with a bank (Charles Schwab is good).

There will be a yearly associated cost with maintaining the LLC (~150$), but you get the added benefit of hiding your wealth in America from prying European taxmen.

It would be safer to base your wealth in USD as opposed to the Euro.

Depending on how much you make

I have heard that Delaware is a good option. There is no risk that USA share my informations with Europe (with the FATCA and the AEOI program).
Also, as you said, it's required to win a lot of money, isn't it ?

Just think of it as having to spend 250$ dollars a year for the privilege of having a US bank account. That's not really that hard of an expense.

If you're truly paranoid, I know for a fact Nevada LLCs don't require a registrant name on the LLC which means you can be 100% anonymous.

Post: #7

Nevada is a preferred location for a growing number of Silicon Valley and Hollywood firms especially since Apple funnels most of its income from the itunes and istores via Nevada Braeburn and Baldwin Apple entities...

The two top Offshoring Blogs/newsletters are the Nomad Capitalist and the Sovereign Society:

http://sovereignsociety.com/sovereign-society/
Sovereign Society offers quite a few premium newsletters and tends to like to pimp for Uruguay and Panama and the Swiss under certain circumstances.
http://sovereignsociety.com/category/pre...criptions/

http://nomadcapitalist.com/products/
also many blog articles like;

The 5 safest countries to bank offshore
by Andrew Henderson Friday August 21st 2015
If you’re new to the world of offshore banking, you may be concerned about bank safety. After all, years of propaganda have led many to believe that their money will simply vanish if they move it overseas. (Funny how the rest of the world still has access to their money.)
You may not know that almost every developed country has some form of deposit insurance for banking clients, for instance. Or, you may be surprised to learn that the United States banking system was ranked fortieth most stable at the peak of the financial crisis.
While we do talk about emerging offshore banking jurisdictions that offer higher interest rates and will play a larger role in the future, those seeking conservative banking options will appreciate these safest offshore banking countries.
Each year, Global Finance magazine publishes a report called the “50 Safest Banks”. We’ve analyzed the report and listed the offshore banking countries with the greatest number of world’s safest banks. Other countries, like Norway, offer very safe banking, but don’t have as many banks topping the global list.
Of course, you should always do your own due diligence before opening an offshore bank account, but these countries have continually scored high markets from those in the know.
The 5 Safest offshore banking countries

While Canada may not be “offshore” for some, it does have several of the world’s safest offshore banks
5. Canada
For Americans, Canada might not be the first thing that comes to mind when you think “offshore banking”, but it does have some of the world’s safest banks. Unfortunately, those banks are often off-limits to Americans, especially the ones that pay more aggressive interest rates. While banks like TD Bank have made aggressive pushes into the US market and have been forced to spend an estimated $100 million complying with FATCA, smaller Canadian banks have shut their doors to toxic American clients.
It’s a shame, because as much as I’m sure Canada would roll over for the US government on a whim, they do have some of the safest banks, including aforementioned TD Bank (#11). Other contenders include Royal Bank of Canada, or RBC (#16), Bank of Nova Scotia (#21), the Bank of Montreal, CIBC, and others.

Australia has some of the strongest banks in the world, and is a growing offshore banking destinations for Asians
4. Australia
Some have gone so far as to call Australia the “Switzerland of the South Pacific”. I’m not sure I’d go that far, but I will say that many Asians – especially wealthy Chinese – are moving their money to Australia as well as Singapore. The fact that some of that much is “hot” is a potential concern, but Australia’s banks do stack up well when it comes to offshore bank safety.
In fact, Australia controls four positions in a row on the “50 Safest Banks” survey, including National Australia Bank (#16), Commonwealth Bank of Australia (#17), Westpac (#18), and ANZ (#19). ANZ has made an aggressive push into many Asian countries, opening branches everywhere from Vietnam to Cambodia and beyond. Opening a bank account in Australia is possible, but banks there do think a bit like US banks, in many cases assuming only a resident would open account there. If you call one of them, don’t be surprised if they ask when you’re moving to Australia.

The Netherlands is not an offshore banking hub, but they do have several of the world’s safest banks
3. Netherlands
The good news for the Netherlands is that it is one of the safest countries in which to bank. For us, its membership in the European Union is a bit troubling, particularly after what happened toCyprus. However, on paper, Netherlands bank accounts are protected by bank deposit insurance for up to 100,000 euros, the EU minimum.
The country is home to three of the top offshore banks, including second ranked Bank Nederlandse Gemeenten, sixth ranked Nederlandse Waterschapsbank, and tenth ranked Rabobank.

Singapore banks are some of the safest banks in the world; their skyline screams banking unlike any other
2. Singapore
Undeniably our favorite place to bank here at Nomad Capitalist, Singapore is home to some of the world’s best offshore banks. The tiny Asian financial center is home to three of the world’s safest banks, according to Global Finance: DBS (#12), OCBC (#13), and UOB (#14). By a separate account, OCBC is the “world’s strongest bank”. Singapore has built the best offshore banking center in the world by acknowledging one simple truth: capital goes where it’s treated best.
The fact that Singapore is the richest country in the world by virtue of this understanding is what makes it, in our opinion, a great place to bank. It is getting harder to open an offshore account in Singapore, but it’s still possible. The fact that so many wealthy Asians are ignoring Switzerland in favor of Singapore is an excellent sign that it’s the place to bank.

Americans may be surprised to learn they can open offshore accounts in Germany (albeit at low interest rates), which has the world’s safest bank according to Global Finance magazine
1. Germany
Germany is home to KfW, the number one safest bank in the world according to Global Finance. In all, Germany is home to six of the world’s fifty safest banks, including Landwirtschaftliche Rentenbank (#4), L-Bank (#5), NRW Bank (#8), and more. As one of Europe’s stronger economies, Germans take their banking system seriously. And while bank secrecy in Germany isn’t what it is in other German-speaking countries like Austria or even Switzerland, Germans are concerned about things like capital controls.
It was the Germans that convinced the European Union to issue a high-value 500 euro bank note so they could more easily keep hard currency at home. Now that much of Europe is bankrupt, it seems German banks are more attractive. A few German banks accept foreigners, including Americans, but the accounts offered are typically general retail accounts with little option for currency diversification and low, low interest rates.
Amazingly, US banks showed an improvement in the most recent “Best Banks” survey, with two retail banks making the list at #31 and #41. That’s up from the previous survey in which not a single US retail bank made the list. Don’t get too excited, though; the two Chinese banks that made the list both beat out all US contenders.
With laws like FATCA ready to be fully implemented, Americans in particular should take caution to move some of their assets into safe offshore banks before it’s too late.
If you’d like to see my list of 56 banks in 18 countries that are not only safe banks, but easy to open a bank account with, then you’ll want to check out our article on the world’s best offshore banks.

Nomad Capitalist editor Andrew Henderson has put together a no-holds-barred Strategy Session with the most important things you need to know about international diversification. If you want to get "the Millionaire's Toolkit" of offshore strategies, CLICK HERE to get the free Strategy Session

Post: #8

(07-30-2016 10:57 AM)Mat_hieu Wrote:  My fiscal residency is France ...

You are not trying to hide anything, so stop that line of thinking. What you are trying to do is structure your affairs so that you minimize if not eliminate your taxes. Hiding money is tax evasion and you want to avoid that. Structuring your affairs, so you pay zero tax is just good business.

Rather than opening an off-shore bank account what you need to do first is see an accountant who could advise you of your options and provide recommendations. The 'Nomad Capitalist' may be reasonable, but I would suggest having a French accountant familiar with international operations review your affairs first.

Business operations can be complex which is why I recommend an accountant. If it is just personal then that is not so complex and a careful review of your country's tax system may be sufficient to suggest a reasonable course of action.

Post: #9

You need professional tax advice, so take the following with a grain of salt. Tax structuring is not something you should DIY.

You're in France, so I'm assuming you're a Schengen resident. The tax laws around the EU vary, but in general if you spend less than 183 days in France, you shouldn't be paying tax there. We can take advantage of this in the following way:

In Malta you have to pay tax on Malta-sourced income or income brought in to Malta. This means that you can live in Malta and pay taxes only on the business you do with Malta and on the money you bring in to Malta.

So how does that help you? If you bring all your money to Malta and live your life there, you would still pay (a fairly high) tax rate, right?

Correct! But you don't have to bring ALL your money to Malta. As was mentioned previously, several EU banks will allow you to have a bank account there even if you're not registered as a resident. My suggestion would simply be to keep your French account open. As long as you're registered as a resident in Malta and you're not in France for more than 183 days per year, you shouldn't have to pay tax in France.

Of course, any money that you bring into your Maltese bank account (or cash that you bring on you) has to be taxed in Malta. I would suggest you keep this to a minimum however.

What this means is that you're now based in Malta, but you can still travel for as many days in a year as you want to, provided that you don't stay in any one EU country for more than 183 days (keep proof of this. You are guilty until you prove yourself innocent.)

Again, and I can not stress this enough: I am NOT a tax lawyer or advisor. The above scenario is an interpretation of my reading of the Maltese and EU tax codes. I have no knowledge of any laws specific to France.

Post: #10

It´s not only the 183 days the only criteria for fiscal residence. France actually takes this matter pretty seriously. The first criteria is the 183 days. The second is where your center of economical interests are located (Centre des intérêts économiques).

You shouldn´t take tax evasion as something light. The tax departments are like a maze once you enter the system it´s hard to get out. Penalties will follow. And if we´re talking crime. If your a first offender and it´s not a lot of cash. You will probably not have to serve time. Just a fine.

Normally also international tax evasion is more severely punished than national.

First talk with a french tax accountant. There are probably some loopholes you can use. Maybe exaggerate some expenses, etc, etc. A light tax evasion, instead of a heavy one. I´m not advising you to do this. Preferably talk with three. To see different views. Once I interviewed around 15. Most of them were useless.

Something some people do is use other people names to open a bank account. Mother, father, sister, girlfriend, etc, etc. I´m in no way advising you to do this.

If it´s litle money you won´t have problems. But if you´re earning more than the average french national. You will be noticed. And investigated.

Heard Portugal has some tax advantages. But it´s mostly for retirees. Bulgaria I believe has the lowest tax rates of EU. I think Austria didn´t sign the treaty for bank account exchange info. Anyway do you own research.

Also one last thing about offshores. Mossack Fonseca used names and info of people to open companies and bank accounts without them knowing.

There was a advice a guy once told. If you don´t want something to be known. Don´t do it.

Post: #11

The Malta tax system does look interesting. Although it seems you do actually have to reside there at least 183 days per year to be considered a tax resident.

In regards to some people using family members names to open bank accounts.. wouldn't that just end up with them being liable for the tax instead of yourself?

Post: #12

(08-01-2016 01:00 PM)Savage Wrote:  The Malta tax system does look interesting. Although it seems you do actually have to reside there at least 183 days per year to be considered a tax resident.

In regards to some people using family members names to open bank accounts.. wouldn't that just end up with them being liable for the tax instead of yourself?

Of course they are. But why would they be investigated? For the tax department to go after your relatives it would have to be a serious offence and there would have to be a connection between the business and the relative. This is probably the oldest trick in the book. Using proxys.
I´m no way advising this. Since it´s illegal. And depending on the jurisdiction a crime.

If he lives in France he pays taxes in France. Period. Any other alternative is probably illegal. The degree of illegality can vary. But it´s illegal. If the OP has any doubt he should contact the tax department and ask them. There´s no midle ground with taxes. Tax departments are bulldozers. They don´t care for details.

If he creates another company anywhere else the main reason must not be taxes. It need to have a substantial reason to do it. If it´s taxes it´s abusive and illegal.

There´s a parent companies Directive. Which can be used to mitigate tax. But the operational cost would need to compensate it´s application.

Google also probably though they could do business in France and have headquarters in Ireland. And got raided. And were talking about Google and their army of tax lawyers and lobbyist:

https://www.theguardian.com/technology/2...uthorities

Spain:

http://www.telegraph.co.uk/technology/20...stigation/

The criteria from OCDE is even expanding from the place where you do business to where your majority of clients are.

The tax department will only go after big fish or small fish who flashes.

I´m not a tax expert

Post: #13

Most banks have an offshore subsidiary. RBS/NatWest and HSBC have branches in Jersey. That may suit you as it is close to France.

Do you currently spend more than 180 days outside of France per year?

Post: #14

(07-31-2016 10:56 AM)The Beast1 Wrote:  Easiest way to do this would be to register an American LLC in either Nevada or Delaware, get an IRS business number, and then open a checking account with a bank (Charles Schwab is good).

There will be a yearly associated cost with maintaining the LLC (~150$), but you get the added benefit of hiding your wealth in America from prying European taxmen.

It would be safer to base your wealth in USD as opposed to the Euro.

Depending on how much you make

I'm a digital nomad currently living overseas and want to start a foreign corporation.

I originally was going to start a Nevada corp. The problem with this is is that all you really do is avoid State income taxes since Nevada (and Texas, Florida, Washington, Delaware) do not have State income taxes.

You still have to pay the FICA taxes (SS, Medicare taxes) which are about 15%.

A foreign corporation, one you own, would allow you to legally bypass the requirement of paying the FICA taxes.

The whole start a Nevada company is not that effective for a US citizen digital nomad as the FICA taxes are high and can be easily and legally avoided. Just imagine having an additional $15,000 in your bank account on $100,000 profit.

Post: #15

(12-01-2016 02:31 AM)Bill Brasky Wrote:  

(07-31-2016 10:56 AM)The Beast1 Wrote:  Easiest way to do this would be to register an American LLC in either Nevada or Delaware, get an IRS business number, and then open a checking account with a bank (Charles Schwab is good).

There will be a yearly associated cost with maintaining the LLC (~150$), but you get the added benefit of hiding your wealth in America from prying European taxmen.

It would be safer to base your wealth in USD as opposed to the Euro.

Depending on how much you make

I'm a digital nomad currently living overseas and want to start a foreign corporation.

I originally was going to start a Nevada corp. The problem with this is is that all you really do is avoid State income taxes since Nevada (and Texas, Florida, Washington, Delaware) do not have State income taxes.

You still have to pay the FICA taxes (SS, Medicare taxes) which are about 15%.

A foreign corporation, one you own, would allow you to legally bypass the requirement of paying the FICA taxes.

The whole start a Nevada company is not that effective for a US citizen digital nomad as the FICA taxes are high and can be easily and legally avoided. Just imagine having an additional $15,000 in your bank account on $100,000 profit.

What did you ultimately set up? I'm curious how you've structured your life for this.

Post: #16

There were two brothers in London who set a tax structure and are now being charged of tax evasion:

https://www.theguardian.com/business/201...high-court

The alleged scheme would be two brothers. On paper one of them would take care of a construction company doing constructions in London, but fully based from Monaco and an offshore island. The other would stay in London just dealing with interior designs.

This is being argued. Stating the interior design was just a façade. And he was also involved in the construction company. The way he would be allegedly paid from his work would be through gifts to his brother based in London.

Post: #17

Is Jersey still a great place for banking? I know the industry of the island is majority from banking.

Post: #18

Aren't Delaware and Las Vegas Corporations subject to Federal Corporate Income Taxes with top out at 34%? That does't really sound like it's worth the hassle.

Post: #19

I don't recommend a Nevada corporation anymore. I have one and the fees are now close to $1,000 a year.

Edit: And yes they are subject to federal income tax.

Post: #20

Why pay any tax? Just incorporate in a tax haven such as Panama, BVI or Belize and set up a bank account in the same country or a country with 0% offshore corporate tax such as Singapore if you want to diversify the "flags".

Post: #21

Relocate to Thailand and open a bank account in Singapore. I think Standard Chartered accepts retail customers. Don't go to other big banks who are licensed only for private banking (like Credit Suisse) as they have a minimum deposit requirement of 2 million $

Post: #22

It's not at all easy to get a bank account in Hong Kong or Singapore now. You can get a company easy in HK, will cost you no more than 1K USD but that won't get you a bank account.

The real solution for EU residents is to actually move your residency to Malta, just rent a cheap room and a mailbox. Malta has very low tax, with proper planning as low as 5% income tax on foreign income. This is a realistic proper way to do it.

As a resident of Malta, you are also granted access to EU movement and benefits. Can stay in France for up to 3 months at a time if anyone even checks where you are.

Post: #23

I am resident in Spain, and I ended up forming my company in Estonia, with banking there.

It's not the easiest to open, although fairly easy. But the reason I didn't do it elsewhere (BVI, etc) - is that the EU has a "blacklist" of tax havens, and the Spanish government has added a few to that list. Estonia being in the EU doesn't currently fall on that list. Estonia also has 0% corporate tax on retained earnings. Since my salary is an expense of the company, it's also not taxed there.

My tax mitigation strategy is an old one: Pay myself the minimum salary I need to maintain myself while billing a much higher rate through my company. The salary I'm paying myself is still high for local standards, but it's in the sweet spot for income tax. The excess builds up in the company as retained earnings. If I need more money I can draw it, but it'll affect the tax bill. If I need to buy hardware or software, I can buy it directly with the company card.

I'm wanting to pay local taxes as I'm actually planning on living here medium-long term, and intend to buy a house and land in 2017. That will probably involve me drawing a nice big dividend out of the Estonian company for the down payment and then paying dividend rates on it in 2018 (20ish %).

Paying local taxes has the advantage that after having been above board for a year or so I should be able to get a local mortgage, which I'll need.

Setting up all this is fairly painless - there's a yearly fee for a virtual office in Estonia, a monthly fee to an Estonian accountant to file the paperwork with the Estonian government.

I also had the advice of a local Spanish accountant to get everything above board here.

I think it would be fairly easy for me to avoid paying taxes entirely with my current employment situation, but not at the same time as I live in one place in Europe and buy property. Trying to do that would get you screwed hard.

Post: #24

They are making it harder and harder for you to open bank accounts in HK and singapore. You need a decent of capital / first deposit before they even consider you....

Post: #25

(12-04-2016 07:22 AM)Malone Wrote:  I am resident in Spain, and I ended up forming my company in Estonia, with banking there.

It's not the easiest to open, although fairly easy. But the reason I didn't do it elsewhere (BVI, etc) - is that the EU has a "blacklist" of tax havens, and the Spanish government has added a few to that list. Estonia being in the EU doesn't currently fall on that list. Estonia also has 0% corporate tax on retained earnings. Since my salary is an expense of the company, it's also not taxed there.

My tax mitigation strategy is an old one: Pay myself the minimum salary I need to maintain myself while billing a much higher rate through my company. The salary I'm paying myself is still high for local standards, but it's in the sweet spot for income tax. The excess builds up in the company as retained earnings. If I need more money I can draw it, but it'll affect the tax bill. If I need to buy hardware or software, I can buy it directly with the company card.

I'm wanting to pay local taxes as I'm actually planning on living here medium-long term, and intend to buy a house and land in 2017. That will probably involve me drawing a nice big dividend out of the Estonian company for the down payment and then paying dividend rates on it in 2018 (20ish %).

Paying local taxes has the advantage that after having been above board for a year or so I should be able to get a local mortgage, which I'll need.

Setting up all this is fairly painless - there's a yearly fee for a virtual office in Estonia, a monthly fee to an Estonian accountant to file the paperwork with the Estonian government.

I also had the advice of a local Spanish accountant to get everything above board here.

I think it would be fairly easy for me to avoid paying taxes entirely with my current employment situation, but not at the same time as I live in one place in Europe and buy property. Trying to do that would get you screwed hard.

You are still eligble for income tax in Spain if you live there, right?