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Konstanz

Active Member
Just moving to another country for 183 days, withdraw a profits which would be taxable in a Spain in case of not doing it, and comming back next year is considered by spanish tax authorities as abuse of law.
And you will be liable for income tax as well as all penalties and criminal prosecution in Spain.

Do not believe to people who are trying to sell you just a dream about moving to UAS for some time, cash out your cryptos and move back to Spain afterwords. This is not how it works. One day, when you will be crying in a jail for a tax fraud, they will just declare, everything is your responsibility.

To cash out a crypto, you need more sophisticated structure. It is not cheap nor easy, But is it still possible. Do not believe those who promise you easy and cheap solutions. Expecialy if you are resident of high tax western country, what Spain is. They are just trying to sell you their services and they do not care about you in real.

Just moving to Dubai for 6 months, botain tax residence certificate, cash out crypto and come back to Spain, will be conssidered by spanish tax authority as abuse of law and they will deny to accept your UAS tax residence certificate as result of abuse of law and you will be taxed from all income + penalties + late tax payment interest + criminal prosecution..
It's true. I had tax investigation myself. I am tax expat. I can confirm that if amounts are larger barely having tax certificate would not be enough. They will ask for lots of proof you really moved outside the country: airlines tickets, rental agreements, utility bills, residency certificate and all other proofs like (membership at clubs, newspaper memberships, doctor visits confirmations). I still had my apartment in my home country, so they asked neighbors if I was really not in the country etc. They do everything they can to prove I am still resident in my home country. Even though I have spent only 2 weeks a year on Holiday in my home country...
You really must have lots of substance in UAE to be a real tax resident there and not be tax resident in home country.
 

DavidS

Mentor Group Gold
Do not believe to people who are trying to sell you just a dream about moving to UAS for some time, cash out your cryptos and move back to Spain afterwords. This is not how it works. One day, when you will be crying in a jail for a tax fraud, they will just declare, everything is your responsibility.
Can't he avoid penalties in Spain if he keeps all assets under the company and not under his individual name and account?

So yes, he will move back, yes, he will have cashed out under UAE company, BUT the assets will be held UNDER COMPANIES NAME.

Wouldn't that make it less likely to get into sh**?
 

Konstanz

Active Member
Can't he avoid penalties in Spain if he keeps all assets under the company and not under his individual name and account?

So yes, he will move back, yes, he will have cashed out under UAE company, BUT the assets will be held UNDER COMPANIES NAME.

Wouldn't that make it less likely to get into sh**?
It's difficult to say. I have left my small apartment to my relatives. So, tax authorities tried to prove I still own that apartment. If it's under YOUR company name or some relative or related person, they can say you still owe it. But the most important part is that you do not stay physically in your country, so then even if you have some assets in your countries they cannot prove that your HOME is there. You have to have HOME in other country.

What I am trying to say, that these promotions of Emirati ID and tax certificate sounds nice, but in reality, it will not be enough to claim tax non-resident in serious European countries like Spain, France, Italy.
 
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FreeBit

New member
It's difficult to say. I have left my small apartment to my relatives. So, tax authorities tried to prove I still own that apartment. If it's under YOUR company name or some relative or related person, they can say you still owe it. But the most important part is that you do not stay physically in your country, so then even if you have some assets in your countries they cannot prove that your HOME is there. You have to have HOME in other country.

What I am trying to say, that these promotions of Emirati ID and tax certificate sounds nice, but in reality, it will not be enough to claim tax non-resident in serious European countries like Spain, France, Italy.
Then what country/setup would you suggest?I am really considering getting the non dom residency in Cyprus, what do you think? Thank you in advance!
 

nomad999

Entrepreneur
make sure to not keep any tie to your home country, no apartment, no bank account and nothing of value.
after that it's much harder for them to abuse their laws if you have proper documentation about residence certificate and such.
 

FreeBit

New member
make sure to not keep any tie to your home country, no apartment, no bank account and nothing of value.
after that it's much harder for them to abuse their laws if you have proper documentation about residence certificate and such.
that's what i was thinking to do. With the exception of bank account. Do you think that is the final step? Any personal experience supporting this final step?
 

FreeBit

New member
Just moving to another country for 183 days, withdraw a profits which would be taxable in a Spain in case of not doing it, and comming back next year is considered by spanish tax authorities as abuse of law.
And you will be liable for income tax as well as all penalties and criminal prosecution in Spain.

Do not believe to people who are trying to sell you just a dream about moving to UAS for some time, cash out your cryptos and move back to Spain afterwords. This is not how it works. One day, when you will be crying in a jail for a tax fraud, they will just declare, everything is your responsibility.

To cash out a crypto, you need more sophisticated structure. It is not cheap nor easy, But is it still possible. Do not believe those who promise you easy and cheap solutions. Expecialy if you are resident of high tax western country, what Spain is. They are just trying to sell you their services and they do not care about you in real.

Just moving to Dubai for 6 months, botain tax residence certificate, cash out crypto and come back to Spain, will be conssidered by spanish tax authority as abuse of law and they will deny to accept your UAS tax residence certificate as result of abuse of law and you will be taxed from all income + penalties + late tax payment interest + criminal prosecution..
What would be an adviseble setup and exit strategy?
Staying in cyprus for 5 years only visiting Spain for 15 days per year? (and staying in cyprus for at least 200 days per year?)
 

nomad999

Entrepreneur
that's what i was thinking to do. With the exception of bank account. Do you think that is the final step? Any personal experience supporting this final step?
yes extremely important I believe if you are from EUSSR, otherwise they could argue this bank account is your center of of vital interests or something like that.

for example, most developped countries are doing this now :
If an individual qualifies for tax residency in two states at the same time, to determine his tax residence under the DTT, the following criteria should be consistently applied:
1) location of the permanent place of abode
2) location of the centre of vital interests
3) place of habitual residence
4) citizenship.
If these criteria are not sufficient, the competent authorities of the countries will settle the issue by agreement.

The practice of applying these provisions is currently limited; internationally, the focus is being made on analysing all circumstances in aggregate.
The greatest disputes arise around the centre of vital interests, since in most countries this concept is subjective and has no clearly established criteria.
The centre of vital interest test includes establishing the family location, social ties, positions held, participation in political and cultural events, places of business and management of family assets. Together with other circumstances, retaining any of the above in a particular country may evidence that the centre of vital interests has not been moved abroad.
If the concept is formalised in the Russian Tax Code without clear criteria, it may take years for the relevant regulatory practice to develop.
 
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