Cashing Out Crypto Gains in Dubai

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Jimbo5

New member
Hi,
I am hoping someone could tell me if it is worth cashing out My Crypto Gains in Dubai and bypass Tax on Capital Gains in the UK.
I am working on the hypothesis that my Crypto Gains could be in excess of 5 Million UK pounds by the end of this year.
I currently have a holiday home in Dubai and love going there for holidays and could get a resident's visa if I wanted to through owning property in Dubai. I have heard that I can become a tax resident of Dubai if I live there for over 180 days of the year. I could probably do this for a year or two but wouldn't like to do this for 5 years and would like to come back to the UK after cashing out.
I know there is a HMRC law that states that any gains that I make outside of foreign employment would be subject to UK tax when coming back to the UK if within 5 years, does that mean I would be subject to cap gains tax if the money hits my UK bank account when I return within 5 years ?
If I set up a freezone company or an Ofshore company in Dubai could I take the realised capital gains as a form of employment income similar to bitcoin trading gains and therefore not have to pay the capital gains tax when returning to the UK?
My end goal is to puchase property with my cashed out funds in the UK so I need to eventually bring the funds back so leaving the money abroad in an offshore account is not an option for me.

Thanks in advance for any advice.
Jim
 

CaptK

Nominee Company Bank Account Real Estate Passport
BANNED MEMBER
The problems you will face are

1. If you bought from Coinbase and other popular CEX your info will be passed on to HMRC at some point.

2.You are liable for your gains regardless if they were accumulated in the UK

3.To get it right your structure would have to be very solid and expensive.

There are a multitude of ways to mitigate the tax burden by diluting or using the gains as in other instruments such as a loan.
 

Jimbo5

New member
The problems you will face are

1. If you bought from Coinbase and other popular CEX your info will be passed on to HMRC at some point.

2.You are liable for your gains regardless if they were accumulated in the UK

3.To get it right your structure would have to be very solid and expensive.

There are a multitude of ways to mitigate the tax burden by diluting or using the gains as in other instruments such as a loan.
Thanks for your response.
1. Bought most of my crypto from Coinbase. So I guess, I would have to pay the Capital Gains Tax, when I cash out ?

I guess if I was a tax resident in UAE when I bought crypto I wouldn't have to pay any capital gains tax, but that isn't the case for me.

3. You say there is a company structure that I could set up but would have to be solid and expensive. So are you saying that it wouldn't be worth doing this ?

I have thought of just getting a loan off my crypto and not cashing out but not sure if this is worth pursuing, I guess it depends on how I could service the loan.
 

CaptK

Nominee Company Bank Account Real Estate Passport
BANNED MEMBER
or send the crypto to the wallet of non tax resident and they can cash it out for u the easiest
How does he explain where the crypto went to and don't forget they can follow it on the blockchain!!!!

Thanks for your response.
1. Bought most of my crypto from Coinbase. So I guess, I would have to pay the Capital Gains Tax, when I cash out ?
Then a structure is required.
I guess if I was a tax resident in UAE when I bought crypto I wouldn't have to pay any capital gains tax, but that isn't the case for me.
correct or if you were between countries you can play one off against the other.
3. You say there is a company structure that I could set up but would have to be solid and expensive. So are you saying that it wouldn't be worth doing this ?
Depends on the amount and also how long before you intend to cash out.
I have thought of just getting a loan off my crypto and not cashing out but not sure if this is worth pursuing, I guess it depends on how I could service the loan.
Yes this can be structured to work in your favour.
 

mebuq

New member
he can say that its a payment made to someone as an investment or payment. and then this someone can pay him in whatever liquid asset he wants. or wire him the money to his Nevis account or the caymans
 

CaptK

Nominee Company Bank Account Real Estate Passport
BANNED MEMBER
he can say that its a payment made to someone as an investment or payment. and then this someone can pay him in whatever liquid asset he wants. or wire him the money to his Nevis account or the caymans
When he gets a letter from HMRC regarding his Coinbase account what will he say?
 

Jimbo5

New member
he will tell them he paid for a service from a consultant or whatever accountant online and paid in bitcoin
Thanks for your comments Mebuq, I have thought of sending the money to the non tax resident. I don't think it is a problem for me if I keep the money offshore. The issue arises if I bring the money back to the UK. I am looking at around 5 Million UK pounds. I'm sure I will be asked questions as money laundering alarm bells will ring, on where the money came from if I get the money transferred to my UK bank.

How does he explain where the crypto went to and don't forget they can follow it on the blockchain!!!!


Then a structure is required.

correct or if you were between countries you can play one off against the other.

Depends on the amount and also how long before you intend to cash out.

Yes this can be structured to work in your favour.
Can you give me an example of roughly how much it would cost to set up a structure like you described ?
 

James Spader

Forum Moderator
Staff member
he will tell them he paid for a service from a consultant or whatever accountant online and paid in bitcoin
Let's hope it is that easy, won't they ask for supporting documents?
 

CaptK

Nominee Company Bank Account Real Estate Passport
BANNED MEMBER
Thanks for your comments Mebuq, I have thought of sending the money to the non tax resident. I don't think it is a problem for me if I keep the money offshore. The issue arises if I bring the money back to the UK. I am looking at around 5 Million UK pounds. I'm sure I will be asked questions as money laundering alarm bells will ring, on where the money came from if I get the money transferred to my UK bank.


Can you give me an example of roughly how much it would cost to set up a structure like you described ?
Total set up would cost about 25K, to include Company structure, actual real business contracts that can be verified. A percentage of the amount that is negotiable but budget 2-5%.
 

mebuq

New member
Total set up would cost about 25K, to include Company structure, actual real business contracts that can be verified. A percentage of the amount that is negotiable but budget 2-5%.
jumbo sell and move to Dubai. you will have a longer time trading tax free than anywhere in the world, so double the time double the profits. and a Dubai residency.
 

mebuq

New member
if you want I can help you to transfer to my wallet. and give them liquid. then you can buy them gold bars in Switzerland and this way you can go back to the uk with no money and no crypto and your liquid assets are out of the banking systems in special vaults. I can put you through my lawyer in Zurich if u want
 

CaptK

Nominee Company Bank Account Real Estate Passport
BANNED MEMBER
jumbo sell and move to Dubai. you will have a longer time trading tax free than anywhere in the world, so double the time double the profits. and a Dubai residency.
If it was that easy we wouldn't be talking about it.

Have you done this for real?

Don't put people in **** for a few bucks.
 

user9823671

Entrepreneur
if you want I can help you to transfer to my wallet. and give them liquid. then you can buy them gold bars in Switzerland and this way you can go back to the uk with no money and no crypto and your liquid assets are out of the banking systems in special vaults. I can put you through my lawyer in Zurich if u want

lol. IF OP is stupid enough to go for this, he deserves to lose all his BTC AND to get a massive HMRC bill at the end of it. But in case he is, you can send the BTC to me as well
 

Cetme308win

Entrepreneur
Hi,
I am hoping someone could tell me if it is worth cashing out My Crypto Gains in Dubai and bypass Tax on Capital Gains in the UK.
I am working on the hypothesis that my Crypto Gains could be in excess of 5 Million UK pounds by the end of this year.
I currently have a holiday home in Dubai and love going there for holidays and could get a resident's visa if I wanted to through owning property in Dubai. I have heard that I can become a tax resident of Dubai if I live there for over 180 days of the year. I could probably do this for a year or two but wouldn't like to do this for 5 years and would like to come back to the UK after cashing out.
I know there is a HMRC law that states that any gains that I make outside of foreign employment would be subject to UK tax when coming back to the UK if within 5 years, does that mean I would be subject to cap gains tax if the money hits my UK bank account when I return within 5 years ?
If I set up a freezone company or an Ofshore company in Dubai could I take the realised capital gains as a form of employment income similar to bitcoin trading gains and therefore not have to pay the capital gains tax when returning to the UK?
My end goal is to puchase property with my cashed out funds in the UK so I need to eventually bring the funds back so leaving the money abroad in an offshore account is not an option for me.

Thanks in advance for any advice.
Jim
You need to became tax resident in Dubai or elsewhere if you want a setup like that to work for you
 

Fred

Dubai Expat
Mentor Group Gold
Elite Member
Commercial Service
Entrepreneur
Hello Guys,

I have read some misleading information here - if someone isn't sure just ask us to take care of you.

If the whole structure is setup right it won't cost you more then the 8.000-10.000 USD and the Crypto Cash Out max. 1%
 
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