Would this set-up work?

Hoping this thread will help a few newer guys including myself.

What are people's thoughts on this set-up:

1) Get a set of decent Darks
2) Use the darks to create a company overseas in a low/no tax area
3) Register on crypto exchange with Darks (same or different name - whatever)
4) Use either a bank account or EMI for income via online retail, services invoiced for, and crypto trading (or combo of all)
5) Exchange crypto to FIAT when needed (storing the bulk of any spare in either crypto if confident or stable coins if in a bear), withdrawl to the offshore's bank or EMI
6) ATM withdrawal when needed

PROBLEMS/QUESTIONS.

- What country would be best for low or no tax and minimal annual filing / accounting needed?
- Getting an offshore comp. using Darks is one thing... but a bank account? Much harder - IS IT POSSIBLE TO USE A NOMINEE STILL (maybe with darks?!), and get the cards/docs forwarded?
- If not able to get a bank account for an offshore company using darks or a nominee with darks, trouble with EMIs is the crypto-to-fiat rates! Advcash seems to be about 10% in real terms, I'm told?!

What do others think to the above, especially to the problems highlighted (or any other issues you can think of - Feel free to criticise, I can take it guys! Tell me an idea is s**t if it is!). Obvs would need decent Opsec throughout.

Fred said:

If you use such a scheme for significant amount of money it can go wrong fast.

For small amount of money <100k$ / year your best bet is AdvCash as they provide what you are looking for but rip you off with there fees.

You get cash on hand with the service they provide but your mentioned points are for sure not the right way to cashout 6 or even 7 figures you want to use to build serious wealth.

Interesting. Have been searching loads of threads here looking for the options for better solutions, but can't seem to find any really - any hints or pointers in the right direction to look? Happy to research etc, don't expect spoon feeding but if I'm honest, struggling to find the info.

Fred said:

It all depends on the amount you want to cashout.

More then 100K$ you face with AdvCash 10K$ in fees you for this money you can setup already an Offshore Company with reputation and stable retail banking.

Why are you reffering to darks - are the funds not legit or because you are looking for privacy?

Privacy. Panama papers etc etc, risks of things coming back in the future and the base country deciding the control of the corp was in their country not in the offshore country... Mainly.

So, something like the above could work for, say, $80k to $90k per year for a year or 2 perhaps? No guarantees, of course, but there's a decent chance, if done well? More than that, or longer term.., offshore set-up needed?

Also is advcash really 10%? Someone replied in another thread it cost them about 3.59% or so?

Seriously though, thanks for all the info and discussion, I've much to learn... but am trying!

Last edited: Mar 6, 2021

CaptK said:

Darks is a dangerous road to go down.
If the bank want to do facial verification by video call. They will want to see the original passport.

Nominee would be the safer way to go

If you wanted total privacy even if a nominee became a leak, what about showing darks to the nominee? Does that ever work?

Fred said:

AdvCash can be 10% depending on the Channels you use from them.

However what you mention is not only high risk to loose your money but to get legal issues as well.

For 100k+ per year it's worth to setup something reliable as you avoid the risk that your money get stuck from the one day to another.

KYC will tighten from year to year so you are left with something like AdvCash. As they know whats going on they ask for the high fees.

See below :)

CaptK said:

Darks is a dangerous road to go down.
If the bank want to do facial verification by video call. They will want to see the original passport.

Nominee would be the safer way to go

Hey @Fred and @CaptK - you both seem quite knowledgable with this, so if I can be presumptuous, can I ask you both your thoughts on the below?

A POTENTIAL SET-UP:. What do you think to...

1) Dubai or UAE company registered remotely (not sure if through an agent or just via the virtual city company reg, unsure of the virt. one that launching in 2019, only just found out about it!)

2) Register a UK Ltd, with the Dubai company being the company owner. UK Ltd pays fees to Dubai company for licensing and, say, backoffice services (use of software etc).

3) Buy or rent small house in Portugal and draw out dividends from the DUBAI/UAE company (not the UK), as for 10 years under non-habitual agreement, no tax on dividends.

POTENTIAL ISSUES?:
--------------------------------

Issue 1)
Dubai / UAE blacklisted for Portugal's non-habitual res? OR IS IT... (with ref to a short article here - it's only short - Dividends received from the UAE bi individual qualified in Portugal Under the non habitual resident regime - One Advice)

If UAE/Dubai is blacklisted (so dividends drawn into Portugal due 35% tax - ouch!), do you know of any better ideas? As-in, other countries that would accept a company being established remotely, that is either no corp tax or low corp tax and no tax on dividends for foreign nationals?

Issue 2)
What if you spent time in other EU countries, say a split between Portugal, UK and one other - let's say Spain as it's so close to Portugal... and sunny! If one owned property in Spain (say, a house) and some land in the UK (say, couple of acres or so of agricultural land in England) - Would Spain (as you own a house there) and the UK (as you own land there) try to get a 'piece of the pie' from your dividends?

Phew! A lot of Qs!

UPDATE - NHR regime | Dividends from Dubai

CaptK said:

Yes NHR can work with a UAE set up. There is a DTT signed between them so currently by law it is legal eventhough they have blacklisted the UAE.

You don't need the UK entity but if you wanted one use an LLP. That would be the bullet proof method incase things change.
Everything can be done remotely from the UAE. If you require a bank account then use something like Bankera for the UAE company.
For UK side of things it's easy set up and bank account with various different banks and EMI's.

Thanks! One thing I'm not 100% sure of - LLP vs Ltd in the UK?

Fred said:

LLP. It's a tax neutral vehicle if setup right.

Send you PM.

I can't see a PM? No worries if you didn't send, just checking!

CaptK said:

LLP is taxed differently as the profit is taxed in the country you are domiciled in.
Limited company is UK taxed applicable by virtue of its status.

Under PE the limited is taxed where you are but it can get complicated if you have UK clients and turnover is in excess of £85K as VAT would be applicable.

Thanks both - much appreciated. Also, if I couldn't travel easily do Dubai, would there be an issue then with 'substance' tests? I mean, living in . registered for tax in Portugal, a UK LLP, and a Dubai parent company. I guess the UK couldn't complain (as wouldn't be living there! But do hold UK passport, but would move to Portgular as I have joint UK & an dEU passport, luckily!)... But would Portugal view that the Dubai company would effectively be being managed from Portugal, and so fail the 'substance' tests etc?

Thanks again!