Legit Setup or Overcomplicated? Feedback on OCI’s Foundation + IBC Structure

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Hey everyone,





I'm running a small but growing digital agency based in Germany. The core of my business is:





  • Connecting brands with influencers (commission-based, like a talent manager)
  • Some video editing and content consulting as additional services

I'm now looking into offshore structuring, mainly for privacy, long-term tax efficiency, and more flexible banking as my clients are global. I've been speaking with Offshore Companies International (OCI) and got a very comprehensive email from them laying out a proposed structure:





Seychelles Private Foundation to hold

a Panama / Seychelles / HK IBC, which would carry out the business

Myself acting as a "consultant" to the company (instead of owner/director)

Nominees to reduce CFC exposure





The guy I spoke to seems very experienced and gave a detailed explanation about Germany’s CFC laws and why a private Foundation + IBC combo is the "cleanest" way to go. The pitch is that the Foundation owns the company, so I’m not "controlling" a CFC directly, which might help with deferral or privacy.





My questions to the group:






Does this structure (Foundation + IBC with nominee director) actually hold up in practice, or is it just offshore theory that doesn’t fly under scrutiny?
Has anyone here used OCI and can vouch for them (or warn against them)?
They mentioned Hong Kong for banking/merchant accounts , is that still viable in 2025?


Not looking to hide income, just exploring compliant ways to structure things efficiently and privately, especially with future relocation in mind.





Appreciate any honest thoughts or provider recommendations. Open to DMs too if you have specific experiences you can’t post publicly.
 
Of relevance here is the usual content of CFC rules making reference to shareholders "directly or indirectly controlling the CFC" " Indirectly " is key here.

You can check the German CFC rules to see how they phrase this as well as see how such rules apply to foundations etc.

In general structuring out of such jurisdictions and thinking that because you received information on a way to work around a particular provision makes it a solid proposal should not be the way to go. There are various anti-avoidance rules, especially from a jurisdiction like Geermany, which can catch you from almost every angle.

The thing with this type of advice, is that you can implement it and feel secure and you may live your whole life without any problem arising especially for small companies. The real issue though is, what would be the result if your structure is scrutinized by the tax authorities. And in such cases it might be better to have no "smart" attempts in place as they do not appear good in front of the authorities and they may also be raising other questioning on offences against you. If you are truly interested to a solid structure, engage them for professional advice on how to successfully do it and then you are good to go.
 
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Germany does not recognize trusts or foundations established outside the EEA.

This setup won't work .

Just read §§ 7–14 AStG , you would still trigger CFC rules due to the low taxation threshold.

And also read the Steueroasenabwehrgesetz .

Even if you place 100 nominees and set up 100 trusts behind it, it won’t change anything.

Just move out of Germany and stop wasting time on setups that clearly won't work
 
Thanks a lot for the honest replies, I really appreciate the critical perspectives here.



I’ve been going back and forth on this structure, and here’s where I currently stand:



My goal is not to avoid taxes indefinitely or build some shady empire. I’m a small one-person agency still based in Germany (unfortunately), and the idea behind setting up offshore is primarily privacy, safety, and long-term relocation planning.



The current proposed setup (Seychelles Foundation + IBC with nominee director, using a crypto-friendly payment processor like APA) was presented to me as a way to separate business income from my personal tax residency, until I can relocate.



Here’s what I’m wondering now:

  • Would this structure be legally “tolerable” as a temporary bridge, as long as no money is brought into Germany, no local bank account is involved, and nothing is declared or deducted onshore? Or is just having such a structure already enough to trigger serious consequences, even if no funds are received locally?
  • Or are there safer “middle-ground” structures (or maybe even onshore options like Estonia, etc.) for people like me, who are in a kind of transition phase?

I’m aware that Germany has strong anti-avoidance and CFC laws. I'm not asking for loopholes, just trying to figure out how risky it really is to park income offshore until a legal relocation is complete (without moving money into the German system in the meantime).





Would really value thoughts from anyone who’s walked this path before, or who knows what setups have actually worked (or failed) under scrutiny.





Thanks again.
 
To be honest, I think the question here is wrong. You should ask how long you can fly under the radar in Germany until the catch you. Or how can you obscure the whole setup that in case of a check, they cannot figure out that is actually going on. But running a company from Germany without paying taxes sounds like building a round square.



Any setup is basically an adminssion for a crime. And if you ask me, if one ever flies, it will cost you more in legal fees and troubles to make it fly under scrunity.
 
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anceps said:






Thanks a lot for the honest replies, I really appreciate the critical perspectives here.



I’ve been going back and forth on this structure, and here’s where I currently stand:



My goal is not to avoid taxes indefinitely or build some shady empire. I’m a small one-person agency still based in Germany (unfortunately), and the idea behind setting up offshore is primarily privacy, safety, and long-term relocation planning.



The current proposed setup (Seychelles Foundation + IBC with nominee director, using a crypto-friendly payment processor like APA) was presented to me as a way to separate business income from my personal tax residency, until I can relocate.



Here’s what I’m wondering now:

  • Would this structure be legally “tolerable” as a temporary bridge, as long as no money is brought into Germany, no local bank account is involved, and nothing is declared or deducted onshore? Or is just having such a structure already enough to trigger serious consequences, even if no funds are received locally?
  • Or are there safer “middle-ground” structures (or maybe even onshore options like Estonia, etc.) for people like me, who are in a kind of transition phase?

I’m aware that Germany has strong anti-avoidance and CFC laws. I'm not asking for loopholes, just trying to figure out how risky it really is to park income offshore until a legal relocation is complete (without moving money into the German system in the meantime).





Would really value thoughts from anyone who’s walked this path before, or who knows what setups have actually worked (or failed) under scrutiny.





Thanks again.

Click to expand...

It won't work because any company you establish will be considered a tax resident in Germany.

As a one-person agency, the company will always be managed and controlled from Germany -> therefore tax resident in Germany (§ 1 KStG)

You also won't gain any privacy benefits, as you are required to report the company to the tax authorities.

Even 'onshore' setups, such as in Estonia, won't work just read one of the DTAs.

For it to work , you would need to establish real substance in Estonia .



It will not work ..
 
aniglo22 said:






Germany does not recognize trusts or foundations established outside the EEA.

This setup won't work .

Just read §§ 7–14 AStG , you would still trigger CFC rules due to the low taxation threshold.

And also read the Steueroasenabwehrgesetz .

Even if you place 100 nominees and set up 100 trusts behind it, it won’t change anything.

Just move out of Germany and stop wasting time on setups that clearly won't work

Click to expand...

What this guy said ^^



Don't play games with the German tax authority. Leave to a tax haven as soon as you can.



Another tip: Don't waste time and a lot of money on complicated setups. Many beginners think that if they over-complicate the setup it will help them avoid tax. WRONG.

At the end of the structure there is a bank and that bank will report the UBO - YOU - to the German tax authorities.

Your setup can be very simple, just move to a low tax country.
 
aniglo22 said:






It won't work because any company you establish will be considered a tax resident in Germany. As a one-person agency, the company will always be managed and controlled from Germany -> therefore tax resident in Germany (§ 1 KStG)

You also won't gain any privacy benefits, as you are required to report the company to the tax authorities.

Click to expand...

He can recruit his father or any friend and have them running a company in South America while he is "only doing customer service" for one or two years. If he never did file a tax report where he was running the company, he may get around for a couple of years. But it will be a DIY setup which he was to do alone and keep shut. No lawyer will ever put anything in fire for such bs.
 
daniels27 said:






He can recruit his father or any friend and have them running a company in South America while he is "only doing customer service" for one or two years. If he never did file a tax report where he was running the company, he may get around for a couple of years. But it will be a DIY setup which he was to do alone and keep shut. No lawyer will ever put anything in fire for such bs.

Click to expand...

I'm not sure if this will work, as he could come under suspicion of 'Scheinselbstständigkeit' if he's just working for the South American company, which could trigger an audit.

There are just too many factors that could trigger an audit.

This setup would fail immediately in an audit .

And I don't think German companies are so keen on receiving invoices from a South American company especially when communication is in German.
 
aniglo22 said:






I'm not sure if this will work, as he could come under suspicion of 'Scheinselbstständigkeit' if he's just working for the South American company, which could trigger an audit.

There are just too many factors that could trigger an audit.

This setup would fail immediately in an audit .

Click to expand...

Yes, he would have to run an US LLC on top of that and then fake the income to be coming from 10 companies. Then, he would pay some tax and get around.



But honestly, why don't you just move to Italy for 2 years? Food is much better there.
 
daniels27 said:






Yes, he would have to run an US LLC on top of that and then fake the income to be coming from 10 companies. Then, he would pay some tax and get around.



But honestly, why don't you just move to Italy for 2 years? Food is much better there.

Click to expand...

Yeah, faking invoices is a serious crime in many jurisdictions.

It could lead to fraud charges (invoice forgery ) and tax evasion + money laundering .

This seems to me more like a prison speedrun .
 
I mean not faking invoices. I mean the US LLC bills to 4 different dudes in South America. Just make it look like the income is from different entities.



But anyway, I think we all agree, any setup will only work as long as it flies under the radar. He would have to have somebody else running it and then declare some income somehow to keep the dogs quiet. But I would not recommend.
 
anceps said:






as long as no money is brought into Germany, no local bank account is involved, and nothing is declared or deducted onshore?

Click to expand...

https://en.wikipedia.org/wiki/Common_Reporting_Standard









anceps said:






without moving money into the German system in the meantime

Click to expand...

unfortunately this is not a thing, germany does not have a remittance based or territorial tax system, you owe tax on your worldwide income, you owe this tax and finding a way to hide that is tax evasion.



if you are okay with tax evading for a little while, get paid in crypto and dont use an exchange, anything else will give you heartburn.
 
It could be the case that you set up a company abroad and allocate certain parts of the operation therein while maintaining an appropriate income allocation. In the absence of appropriate operational planning the allocation of income to the entity abroad would generally be minimal (5-20%), however it could tie well with a future plan of relocating abroad.
 
anceps said:






Thanks a lot for the honest replies, I really appreciate the critical perspectives here.



I’ve been going back and forth on this structure, and here’s where I currently stand:



My goal is not to avoid taxes indefinitely or build some shady empire. I’m a small one-person agency still based in Germany (unfortunately), and the idea behind setting up offshore is primarily privacy, safety, and long-term relocation planning.



The current proposed setup (Seychelles Foundation + IBC with nominee director, using a crypto-friendly payment processor like APA) was presented to me as a way to separate business income from my personal tax residency, until I can relocate.



Here’s what I’m wondering now:

  • Would this structure be legally “tolerable” as a temporary bridge, as long as no money is brought into Germany, no local bank account is involved, and nothing is declared or deducted onshore? Or is just having such a structure already enough to trigger serious consequences, even if no funds are received locally?
  • Or are there safer “middle-ground” structures (or maybe even onshore options like Estonia, etc.) for people like me, who are in a kind of transition phase?

I’m aware that Germany has strong anti-avoidance and CFC laws. I'm not asking for loopholes, just trying to figure out how risky it really is to park income offshore until a legal relocation is complete (without moving money into the German system in the meantime).





Would really value thoughts from anyone who’s walked this path before, or who knows what setups have actually worked (or failed) under scrutiny.





Thanks again.

Click to expand...

No.



Nominee director automatically means everything being seen as transparant.
 
This setup is borderline useless, unless you want to commit tax fraud and money laundering. Also, on the bank side, it will not be all fun and games, unless you just want to have like 5 fintechs and no solid bank in the future.
 
GPT said:






Nominee director automatically means everything being seen as transparant.

Click to expand...

So you mean it won't work in this setup OP describe?
 
brianK said:






So you mean it won't work in this setup OP describe?

Click to expand...

It works until you are investigated and authorities find out the director/shareholder is a nominee, then the company is treated as transparent and the nominee is bypassed attributing the ownership and control of the company to you.
 
Thanks again to everyone for the insights so far, I’ve taken some time to reflect and read up more, especially on the German CFC rules and how they apply to foundations and nominee setups.

I now fully understand that any structure managed from Germany, even indirectly, can trigger CFC and other reporting obligations. That’s why I’ve adjusted my approach:



-I intend to pay taxes in Germany while I’m still here

- I’m gradually preparing for relocation (within 1–2 years)

- I’d like to build a clean and professional setup that I won’t need to dismantle once I leave



So here’s my updated question:

What kind of structure would you recommend for someone still residing in Germany, paying taxes properly, but aiming to “bridge” into long-term offshore independence with a view to relocating soon?



Do I really need something like a Foundation and Nominees now, or would a simple IBC (fully declared) be sufficient for this transition phase?



Also, correct me if I’m wrong, but only setting up a local Gewerbe (sole proprietorship), without a proper structure (IBC, etc) in Germany might limit future flexibility due to things like “exit tax,” local bank account ties, and the need to rebuild infrastructure abroad.



I’d greatly appreciate thoughts, especially from those who’ve gone through a similar transition.
 
Protect Your Wealth said:






It works until you are investigated and authorities find out the director/shareholder is a nominee, then the company is treated as transparent and the nominee is bypassed attributing the ownership and control of the company to you.

Click to expand...

Not even.



Seychelles is really big on sharing information with foreign governments even when there is no count order.



Seychelles isn’t an option for such uses as OP describes anymore. Any self respecting intermediary knows this.



Seychelles still has its place in structures when it comes to superyachts and private jets. Anything else .. avoid them like the plague.



Also its extremely difficult to open any bankaccount with a Seychelles entity.
 
anceps said:






Thanks again to everyone for the insights so far, I’ve taken some time to reflect and read up more, especially on the German CFC rules and how they apply to foundations and nominee setups.

I now fully understand that any structure managed from Germany, even indirectly, can trigger CFC and other reporting obligations. That’s why I’ve adjusted my approach:



-I intend to pay taxes in Germany while I’m still here

- I’m gradually preparing for relocation (within 1–2 years)

- I’d like to build a clean and professional setup that I won’t need to dismantle once I leave



So here’s my updated question:

What kind of structure would you recommend for someone still residing in Germany, paying taxes properly, but aiming to “bridge” into long-term offshore independence with a view to relocating soon?



Do I really need something like a Foundation and Nominees now, or would a simple IBC (fully declared) be sufficient for this transition phase?



Also, correct me if I’m wrong, but only setting up a local Gewerbe (sole proprietorship), without a proper structure (IBC, etc) in Germany might limit future flexibility due to things like “exit tax,” local bank account ties, and the need to rebuild infrastructure abroad.



I’d greatly appreciate thoughts, especially from those who’ve gone through a similar transition.

Click to expand...

You mentioned relocation to Cyprus, why not immediately the Cyprus Ltd? Now that you are aware of the tax situation, that cannot be an issue anymore.



By being in CY it also allows you to build up a local CY presence while you are still in DE.
 
anceps said:






What kind of structure would you recommend for someone still residing in Germany, paying taxes properly, but aiming to “bridge” into long-term offshore independence with a view to relocating soon?

Click to expand...

relocate where? the structure will depend on your new tax residence.
 
One of the best temporary relocation for OP could be Albania. You pay 0% taxes on the first 140k euros/year you make and then 15% on what is above that. Pair it with a US LLC and for the first years you are good to go (also saving money because it costs 1/3 compared to living in Germany).
 
Protect Your Wealth said:






One of the best temporary relocation for OP could be Albania

Click to expand...

what makes you say best? the tax rates themselves or do you recommend the albanian life?











Protect Your Wealth said:






You pay 0% taxes on the first 140k euros/year you make and then 15% on what is above that

Click to expand...

is that so? the PWC summary seems to indicate its 15% below and 23% above, but 0% while you are under the 14m ALL

it also seems that's not the same thing as CIT which is just fixed 15% as i understand, i don't know anything about Albania and am not sure what exactly "commercial individuals and the self-employed" means exactly, and if OP would fit the criteria

it looks to me like OP would be paying 15% CIT + 8% dividend tax + living in Albania, this doesn't sound good at all.
 
drysponge said:






what makes you say best? the tax rates themselves or do you recommend the albanian life?





is that so? the PWC summary seems to indicate its 15% below and 23% above, but 0% while you are under the 14m ALL

it also seems that's not the same thing as CIT which is just fixed 15% as i understand, i don't know anything about Albania and am not sure what exactly "commercial individuals and the self-employed" means exactly, and if OP would fit the criteria

it looks to me like OP would be paying 15% CIT + 8% dividend tax + living in Albania, this doesn't sound good at all.

Click to expand...

* Note that for commercial individuals and the self-employed (as well as entities) with an annual gross income up to ALL 14 million, the PIT rate will be 0%, applicable until 31 December 2029.
 
aniglo22 said:






* Note that for commercial individuals and the self-employed (as well as entities) with an annual gross income up to ALL 14 million, the PIT rate will be 0%, applicable until 31 December 2029.

Click to expand...

yeah thats what i said, you are exempt while under, but once you are over that would act regressively, you would be paying 15% on 0-14m, 23% on >14m
 
drysponge said:






yeah thats what i said, you are exempt while under, but once you are over that would act regressively, you would be paying 15% on 0-14m, 23% on >14m

Click to expand...

Yeah but he is nowhere close to 161557,76 USD
 
aniglo22 said:






Yeah but he is nowhere close to 161557,76 USD

Click to expand...

i have no way of knowing how much op currently makes or will make, what was said about those tax brackets wasn't accurate.
 
drysponge said:






i have no way of knowing how much op currently makes or will make, what was said about those tax brackets wasn't accurate.

Click to expand...

In the other thread, he said it was $30k.
 
drysponge said:






what makes you say best? the tax rates themselves or do you recommend the albanian life?





is that so? the PWC summary seems to indicate its 15% below and 23% above, but 0% while you are under the 14m ALL

it also seems that's not the same thing as CIT which is just fixed 15% as i understand, i don't know anything about Albania and am not sure what exactly "commercial individuals and the self-employed" means exactly, and if OP would fit the criteria

it looks to me like OP would be paying 15% CIT + 8% dividend tax + living in Albania, this doesn't sound good at all.

Click to expand...



Tax rates and cost of life mainly, also if you've been in zones like Valona, you experience a lifestyle quite mediterranean.



Of course we are not talking about employment income, that is taxed differently. I am referring to Law n29 of march 2023. 14M ALL are roughly 140K EUR as of today.
 
anceps said:






Hey everyone,





I'm running a small but growing digital agency based in Germany. The core of my business is:





  • Connecting brands with influencers (commission-based, like a talent manager)
  • Some video editing and content consulting as additional services

I'm now looking into offshore structuring, mainly for privacy, long-term tax efficiency, and more flexible banking as my clients are global. I've been speaking with Offshore Companies International (OCI) and got a very comprehensive email from them laying out a proposed structure:





Seychelles Private Foundation to hold

a Panama / Seychelles / HK IBC, which would carry out the business

Myself acting as a "consultant" to the company (instead of owner/director)

Nominees to reduce CFC exposure





The guy I spoke to seems very experienced and gave a detailed explanation about Germany’s CFC laws and why a private Foundation + IBC combo is the "cleanest" way to go. The pitch is that the Foundation owns the company, so I’m not "controlling" a CFC directly, which might help with deferral or privacy.





My questions to the group:






Does this structure (Foundation + IBC with nominee director) actually hold up in practice, or is it just offshore theory that doesn’t fly under scrutiny?
Has anyone here used OCI and can vouch for them (or warn against them)?
They mentioned Hong Kong for banking/merchant accounts , is that still viable in 2025?


Not looking to hide income, just exploring compliant ways to structure things efficiently and privately, especially with future relocation in mind.





Appreciate any honest thoughts or provider recommendations. Open to DMs too if you have specific experiences you can’t post publicly.

Click to expand...

You make it very complicated for your self for a small digital company in Germany!



Why don't you wait until you have a big company with millions in turnover and then structure things. You could preferable setup a Holding company abroad but which get taxed in Germany or so, but it would make a transition later easier.
 
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