Crypto Capital gains in Cyprus

[Tango]

i have been told that only crypto to Fiat goes into the computation of CG in Cyprus as compared to Crypto to Crypto. If true that would be great as i can defer until I cash out to my euro/usd bank account - is that true ? In the UK any transaction is computed but in cyprus appears to be different - can someone confirm ?

 

[LondonOTC]

Thats true, its only consider CG when you cash it. Some of my customers do it that way

 

[JackAlabama]

Thats true, its only consider CG when you cash it. Some of my customers do it that way

So park stuff in stablecoins and then cash it when you want and pay tax that way.

 

[xipoid]

I was under the impression that Crypto gains are taxed at 0% anyway in Cyprus?

 

[erni]

I was under the impression that Crypto gains are taxed at 0% anyway in Cyprus?

me to, I don't think you get taxed on crypto, royalties or dividends in Cyprus!

 

[LondonOTC]

In cyprus all income is taxable with a list of specific exemptions to this rule such as dividends and share proceeds. CG are taxed so that includes Crypto

My customer told me ha has a way to legaly pay only 3%

 

[boomy]

My customer told me ha has a way to legaly pay only 3%

avoid paying taxes as an foreigner owning a Cyprus company isn't difficult. No one will hurt you or even recognize you do it. Alternative, register the company non-dom and you can forget about it.

 

[gmbh]

avoid paying taxes as an foreigner owning a Cyprus company isn't difficult. No one will hurt you or even recognize you do it. Alternative, register the company non-dom and you can forget about it.

How can you avoid to pay the 12,5% tax as a foreigner?

And if you fill your profits into your tax return, of course the tax office will recognize it.

 

[heliotrope]

So park stuff in stablecoins and then cash it when you want and pay tax that way.

What are the most reliable stablecoins for this purpose?

 

[JackAlabama]

What are the most reliable stablecoins for this purpose?

None. Maybe some of these get sued this year as well.
So I would split into 10 different ones in equal parts according to your risk tolerance.

 

[boomy]

How can you avoid to pay the 12,5% tax as a foreigner?

And if you fill your profits into your tax return, of course the tax office will recognize it.

S non dom Cyprus company has not to pay any tax, personal tax may apply, that's a different story.

 

[gmbh]

S non dom Cyprus company has not to pay any tax, personal tax may apply, that's a different story.

I think this is wrong. If you have a Cyprus Limited as Non-Dom the company still has to pay 12.5% tax. Just the dividends you pay to yourself are tax free.

 

[boomy]

I think this is wrong. If you have a Cyprus Limited as Non-Dom the company still has to pay 12.5% tax. Just the dividends you pay to yourself are tax free.

I don't think this is wrong unless the tax reform has changed in Cyprus. Have you spoken to a tax advisor there?

 

[gmbh]

I don't think this is wrong unless the tax reform has changed in Cyprus. Have you spoken to a tax advisor there?

Yes, I spoke to two accountants. One said it is tax free, the other one said if trading stocks is the main business of the company and you trade actively/often it will be taxed with 12,5%.

I can't find clear information about this. Do you have a link to a government website where they clearly state the law regarding this?

Very annoying situation because I am not sure how it is...

https://www.offshorecorptalk.com/threads/cyprus-limited-necessary-for-professional-trading.31708/

 

[Plavivoz]

I don't think this is wrong unless the tax reform has changed in Cyprus. Have you spoken to a tax advisor there?

He is right. A non dom individual pays on dividends just the GHS fee of 2,65%.
You are right too. A non dom legal entitiy is tax free.

How can a non dom individual earn crypto capital gains tax free in Cyprus?
Create an offshore company and payout dividends. You pay only the GHS fee.

 

[gmbh]

He is right. A non dom individual pays on dividends just the GHS fee of 2,65%.
You are right too. A non dom legal entitiy is tax free.

How can a non dom individual earn crypto capital gains tax free in Cyprus?
Create an offshore company and payout dividends. You pay only the GHS fee.

Dividends are free, yes. The difference is the "active trading" part. So if you frequently buy/sell stocks the gains from this are not tax exempt anymore.

 

[gmbh]

How can a non dom individual earn crypto capital gains tax free in Cyprus?
Create an offshore company and payout dividends. You pay only the GHS fee.

Don't you think the tax authorities will say that the offshore company is managed from Cyprus?

 

[heliotrope]

Don't you think the tax authorities will say that the offshore company is managed from Cyprus?

This topic has come up quite frequently and the consensus seems to be that the tax office mostly turn a blind eye, but of course that could change at any time.

 

[Plavivoz]

Dividends are free, yes. The difference is the "active trading" part. So if you frequently buy/sell stocks the gains from this are not tax exempt anymore.

Receiving dividends from your offshore company is not active trading.

Don't you think the tax authorities will say that the offshore company is managed from Cyprus?

You are non-dom. A nominee director is enough for cypriot tax authorities.

 

[gmbh]

This topic has come up quite frequently and the consensus seems to be that the tax office mostly turn a blind eye, but of course that could change at any time.

My tax accountant told me the same but I am still quite sceptical. Do you have practical experience that this works?