Exeat Holdings
1.4K posts
Exeat Holdings
@exeatholdings
In a world filled with low agency – worldviews, scenarios and participants – seek the path of high agency. ⁄⁄ No Financial Advice.
Dominion, Colonial & Overseas Katılım Nisan 2024
7.5K Takip Edilen348 Takipçiler
An air of defeatism with regards to all three possibilities proposed – (1) Reduction or removal of capital gains tax; (2) Imposition of an exit tax for departing tax residents; (3) Status quo – and it feels like there is this air of inevitably about the push towards an "exit tax".
Exeat Holdings@exeatholdings
A new jurisdiction for HNWIs in ascendance.
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The unnecessary discourse (and the lack of certainty) over the potential “exit tax” before the Autumn Budget 2025 also caused a significant number of departures as well.
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@exec_sum Should’ve officially titled it as a private members’ club for VPs and above. Avoids a situation where an intern or an Analyst thinks they can go in.
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BREAKING: JPMorgan’s 55 seat private pub inside its $3B HQ is booked out weeks in advance, leaving many bankers unable to get in
Employees say empty “reserved” tables often sit unused while crowds pack the bar, fueling frustration that Morgan’s is more over reserved than accessible
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In YC’s 20 year history Canadian startups that reincorporated in the US have 2x the avg valuation of those that didn’t. And the ones at Unicorn or near it all reincorporated in Delaware
I love Canada (born in Winnipeg). But don't let that get in the way of making a huge startup.
The Logic@the_logic
Silicon Valley’s most famous accelerator now requires Canadian firms to incorporate in the U.S., Cayman Islands or Singapore in order for it to invest. thelogic.co/news/exclusive…
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It’s just that there is low usage – would you consider using a Djibouti holding company?
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@exeatholdings @garrytan Why not Estonia? Any problems with it?
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Estonia does not have a major appeal for the international founder use case – usually base case is Delaware as the TopCo (but also for the operating company, if the founder(s) are based in the United States of America), potentially Cayman Islands in certain instances and potentially Singapore in certain instances as well.
There is a reason why YC has all three jurisdictions as their preferred jurisdiction.
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@garrytan How about incoporating in Estonia? Any thoughts on that?
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@tjparker @HarryStebbings Correct, but it’s about the tone, the thinking and the level of maturity displayed.
Toxic, small-minded thinking pollutes lucidity.
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@HarryStebbings Counterargument: when I was young and inexperienced I had great reverence for big companies as possible competitors. Post actual big company experience, I am quite dismissive.
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Fastest way founders can show immaturity:
How they talk about their competitors.
The worst: dismissive and arrogant.
The best: students of history. Learn from what they did well. Attack what they did poorly.
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Correct, but you asked about the trajectory of things, and how things would evolve long-term.
Monaco got listed on the EU blacklist even though it is on the European continent – used to be unthinkable.
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@exeatholdings @SimonDixonTwitt But still only 10%
Even Dubai added 9% corporate tax and VAT
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Incentives.
Dubai has a sovereign wealth fund that allows it to act in its own self-interest.
Changing what already works well would not be in its self-interest.
They have a formula that works, for now.
When that formula changes, it is usually due to a sabotage strategy driven by external control or political capture.
That is why they do not have a liberal democracy.
Democracies tend to end in full control by the financial-industrial complex, as seen in the West.
That is what is happening in Europe.
WZRD-LM@WZRDLM
@SimonDixonTwitt @freedomnova44 What’s stopping all those being introduced once all the billionaires and millionaires have settled in nicely in Dubai?
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Andorra used to have no taxes until it was "persuaded" by the European Union (threat of blacklisting) to add income tax.
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@SimonDixonTwitt What do you think about European Micro states like Andorra, Monaco, San Marino and Liechtenstein? Will they be safe re. not asset striping their residents?
How sovereign are they?
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If you're based in Luxembourg, then you can be the director of the legal entity and that's fine.
If you are not in Luxembourg, then look into tax reclassification, controlled foreign company rules and permanent establishment.
Just because the jurisdiction doesn't strictly have a local director requirement (e.g. Singapore, ...) doesn't mean that in practice you should go without substance.
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Friend of mine told me about that time he invested in a German company for the first time and found out he was required to physically fly to Germany and subject himself to that ordeal
Asked if there was any way around it, learnt that nope, none
So he said nvm then, I won't invest
But he'd already wired and the founders refused to return the money
So he literally just forfeited his equity and decided never to invest in German companies ever again
True story
Nathan Benaich@nathanbenaich
another German investment, another 6 hours of a notary reading every single word of all the documents out loud to each party to the transaction after we’ve all agreed on the docs
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@aantoni644292 @stanfordNYC @Altimor SOPARFI Sàrl in Luxembourg has a minimum capitalisation requirement €12,500 (as compared to a Delaware C-Corp or an English Company Limited by Shares), economic substance/directorship requirements, ... – it doesn't work for technology startups or for small operating companies.
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@exeatholdings @stanfordNYC @Altimor You mean hiring people in LUX? Because simple holding company SOPARFI is very cheap.
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@stanfordNYC @Altimor Luxembourg is too expensive on both the incorporation and the maintenance side of technology startups.
Fine for alternative investment funds and family office structures, less so for small operating companies.
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Commodities in the fore.
Exeat Holdings@exeatholdings
The United States Secretary of the Treasury reprises his role as a global macro. hedge fund manager.
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US-based New York-headquartered permanent capital vehicle, with a hyper-minimalist website.
Exeat Holdings@exeatholdings
US-based San Francisco-headquartered venture capital firm with hyper minimalist website.
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It's too nuanced and low-level of a point to be comprehended by the policymakers currently.
There is also – consigned to a footnote-like paragraph – the fact that this policy proposal is by a select few from the political party that is currently out of power, in which case not even a mainstream discussion point.
Departures will continue unabated.
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@exeatholdings @business @BloombergUK @wealth Very few will stay or come back if IHT cannot be mitigated via trusts. It's that simple.
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Unidirectional departures – an "investor visa" still entails (tax) residency (en route to naturalisation), and the declining policy-making environment for tax and tax-related issues (revocation of UK res. non-dom., upwards trajectory for capital gains tax and "carried interest"/performance fee for private equity fund Sponsors, potential "exit tax" for departing tax residents, ...) mean that there is minimal interest for such a regime.
No easy fix on the basis that the easy fix was status quo to begin with.
Exeat Holdings@exeatholdings
Leading or lagging indicator?
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The challenge is that people who have made plans to move – and more importantly, have emotionally come to terms with it – will most likely depart anyways.
That is the price to pay for erratic policy-making.
Exeat Holdings@exeatholdings
Any signs of life?
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