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rm777

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Apr 28, 2021
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#1
Hello,

I am a Canadian resident with a net worth in cryptocurrency in the low eight figures. Due to the recent increase in capital gains taxation, I am considering leaving Canada. Currently, I do not owe any exit tax, as I have already paid taxes on my crypto holdings. I have a reliable offramp through Kraken, with whom I am in good standing, and they have accepted proof of source of funds from my Ethereum presale wallet. Additionally, I've successfully cashed out millions into my Canadian bank accounts without issue.

My plan is to relocate to Dubai to establish tax residency and eventually apply for U.S. citizenship, planning a move there in the coming years. I anticipate Ethereum could rise to $10K, potentially increasing my holdings by $10-$20 million. Staying in Canada could mean owing $3-$6 million in taxes in the future.

From what I've read on this forum, Dubai might no longer be a favorable location due to banking challenges, especially for those in the crypto space. However, I believe that the issues many face stem from the dubious nature of their activities.

What is the likelihood of encountering banking issues in Dubai if I can provide tax receipts and proof that my crypto assets are legitimate? Could there be potential problems with banks like ENBD, especially concerning large withdrawals or later transferring funds to the U.S.?

Could anyone provide insights or recommend a company that specializes in handling such cases?

These issues are significant to me because, in order to cease being a tax resident, I will need to close my Canadian bank accounts. It would be problematic to lose my current offramp without securing a reliable one in my new location.

So my options are:
A) move to Dubai, save $3-7mm in tax, potentially have banking issues that will prevent me from moving money into US eventually
B) stay in Canada, pay $3-7mm in tax, save established offramp

Thank you for your help.
 
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#2
If you are merely holding the crypto and not being an active trader, there are quite a few options out there to effect 0% tax on capital gains from converting your crypto. You should most likely seek to set up a holding structure for your crypto including an appropriate route for conversion and solid banking, before you relocate, which would also facilitate for the necessary tax savings. I have a few options that worked before and can facilitate. Let me know if you would like to have a preliminary discussion and I can send a dm.
 
#3
CyprusLawyer101 said:
If you are merely holding the crypto and not being an active trader, there are quite a few options out there to effect 0% tax on capital gains from converting your crypto. You should most likely seek to set up a holding structure for your crypto including an appropriate route for conversion and solid banking, before you relocate, which would also facilitate for the necessary tax savings. I have a few options that worked before and can facilitate. Let me know if you would like to have a preliminary discussion and I can send a dm.
Click to expand...
I am not just merely holding crypto. I plan on having some plays on various narratives (shitcoins, AI, monolithic vs modular, etc.).
 
#4
CyprusLawyer101 said:
If you are merely holding the crypto and not being an active trader, there are quite a few options out there to effect 0% tax on capital gains from converting your crypto. You should most likely seek to set up a holding structure for your crypto including an appropriate route for conversion and solid banking, before you relocate, which would also facilitate for the necessary tax savings. I have a few options that worked before and can facilitate. Let me know if you would like to have a preliminary discussion and I can send a dm.
Click to expand...
What would this "holding structure for crypto" entail?
 
#5
rm777 said:
Hello,

I am a Canadian resident with a net worth in cryptocurrency in the low eight figures. Due to the recent increase in capital gains taxation, I am considering leaving Canada. Currently, I do not owe any exit tax, as I have already paid taxes on my crypto holdings. I have a reliable offramp through Kraken, with whom I am in good standing, and they have accepted proof of source of funds from my Ethereum presale wallet. Additionally, I've successfully cashed out millions into my Canadian bank accounts without issue.

My plan is to relocate to Dubai to establish tax residency and eventually apply for U.S. citizenship, planning a move there in the coming years. I anticipate Ethereum could rise to $10K, potentially increasing my holdings by $10-$20 million. Staying in Canada could mean owing $3-$6 million in taxes in the future.

From what I've read on this forum, Dubai might no longer be a favorable location due to banking challenges, especially for those in the crypto space. However, I believe that the issues many face stem from the dubious nature of their activities.

What is the likelihood of encountering banking issues in Dubai if I can provide tax receipts and proof that my crypto assets are legitimate? Could there be potential problems with banks like ENBD, especially concerning large withdrawals or later transferring funds to the U.S.?

Could anyone provide insights or recommend a company that specializes in handling such cases?

These issues are significant to me because, in order to cease being a tax resident, I will need to close my Canadian bank accounts. It would be problematic to lose my current offramp without securing a reliable one in my new location.

So my options are:
A) move to Dubai, save $3-7mm in tax, potentially have banking issues that will prevent me from moving money into US eventually
B) stay in Canada, pay $3-7mm in tax, save established offramp

Thank you for your help.
Click to expand...
Any reasons for Dubai and not some tax free Caribbean islands?
From the outside it does look like Canada is going bonkers. Exiting while it's still possible would be a good idea.
 
#6
rm777 said:
I am not just merely holding crypto. I plan on having some plays on various narratives (shitcoins, AI, monolithic vs modular, etc.).
Click to expand...
Assess then the possibility for holding the invested and trading assets in different structures.

JosephLL said:
What would this "holding structure for crypto" entail?
Click to expand...
A structure that would allow a tax free transferring of your crypto assets under a company and which provide for a tax friendly environment for future crypto disposals.
 
#8
#10
I see one way to solve this:
1- move to dubai and get either company or cheaper and easier freelancer visa to establish tax residency of uae
2- apply with private crypto banks; sygnum, amina bank, swissquote (all of them have local branches in uae)
Deposit there with crypto and they give you access to crypto, etfs, stocks, multicurrency debit card

Forget about Uae banks, they are not crypto friendly and will never be, because their target is retail banking.
 
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#11
rm777 said:
Hello,

I am a Canadian resident with a net worth in cryptocurrency in the low eight figures. Due to the recent increase in capital gains taxation, I am considering leaving Canada. Currently, I do not owe any exit tax, as I have already paid taxes on my crypto holdings. I have a reliable offramp through Kraken, with whom I am in good standing, and they have accepted proof of source of funds from my Ethereum presale wallet. Additionally, I've successfully cashed out millions into my Canadian bank accounts without issue.

My plan is to relocate to Dubai to establish tax residency and eventually apply for U.S. citizenship, planning a move there in the coming years. I anticipate Ethereum could rise to $10K, potentially increasing my holdings by $10-$20 million. Staying in Canada could mean owing $3-$6 million in taxes in the future.

From what I've read on this forum, Dubai might no longer be a favorable location due to banking challenges, especially for those in the crypto space. However, I believe that the issues many face stem from the dubious nature of their activities.

What is the likelihood of encountering banking issues in Dubai if I can provide tax receipts and proof that my crypto assets are legitimate? Could there be potential problems with banks like ENBD, especially concerning large withdrawals or later transferring funds to the U.S.?

Could anyone provide insights or recommend a company that specializes in handling such cases?

These issues are significant to me because, in order to cease being a tax resident, I will need to close my Canadian bank accounts. It would be problematic to lose my current offramp without securing a reliable one in my new location.

So my options are:
A) move to Dubai, save $3-7mm in tax, potentially have banking issues that will prevent me from moving money into US eventually
B) stay in Canada, pay $3-7mm in tax, save established offramp

Thank you for your help.
Click to expand...
Hey

I m living in Dubai since 4 years.

Must thing you need to know about here, if you got a western passeport ( eu / Canada / us etc), all biggest wealth guys use Swiss bank with UAE residency, because they are the best bank in the world for crypto.

Let me explain I did a nft collection and I earn 7million, no bank in uae accepted because most of them are cheap advisor and don’t understand everything.

What we did, it’s setup a bank account in Swiss with UAE residency, and we was able to cash out in personnal account 7m, you can also do it with a company account if you want, and we paid 0%.

For cashout they have swift account and then you can receive from all exchange ( we received from Binance when it was possible to do swift transfer)

Then if you would like to move to US it’s easy you can transfer around the world, due to Swiss reputation.


I can also introduce you to the bank I opened an account, you can dm me.

Hope that can help.
 
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#12
raphae93 said:
What we did, it’s setup a bank account in Swiss with UAE residency, and we was able to cash out in personnal account 7m, you can also do it with a company account if you want, and we paid 0%.
Click to expand...
Mind you share the name of the Swiss bank?
No fees to cash-out? How much money you need to maintain in this bank in order to keep the personal bank account open?
 
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#15
JohnLocke said:
Mind to elaborate with a bit more details?
Click to expand...
Monaco has no personal income tax and OP has already the money to request a residency permit in the Principality of Monaco (provided his criminal record is clean).

From what OP writes it seems he'll be trading his crypto, and now it's very likely a business activity in the UAE and has to pay tax on it; furthermore accountancy will be annoying if it's required to calculate profits on each swap.
 
#19
raphae93 said:
Hey

I m living in Dubai since 4 years.

Must thing you need to know about here, if you got a western passeport ( eu / Canada / us etc), all biggest wealth guys use Swiss bank with UAE residency, because they are the best bank in the world for crypto.

Let me explain I did a nft collection and I earn 7million, no bank in uae accepted because most of them are cheap advisor and don’t understand everything.

What we did, it’s setup a bank account in Swiss with UAE residency, and we was able to cash out in personnal account 7m, you can also do it with a company account if you want, and we paid 0%.

For cashout they have swift account and then you can receive from all exchange ( we received from Binance when it was possible to do swift transfer)

Then if you would like to move to US it’s easy you can transfer around the world, due to Swiss reputation.


I can also introduce you to the bank I opened an account, you can dm me.

Hope that can help.
Click to expand...
Thanks for suggesting. May I ask the benefits of the bank(s) you've in mind compared to Swissquote (which has a local branch in UAE and is less/not constraining in terms of entry and minimum balance)? (Swissquote or any similar option)
 
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