Depending on how much you have racked up maybe relocating is an option?
That's actually good news and make it even more attractive to relocate if you hold a few millions in crypto coins in your wallet.
To begin with crypto is regulated for AML purposes under some circumstances. With respect to tax, as there is no formal ruling at this time the position is that the conversion to FIAT is the tax trigger and you then pay income tax (according to the bands) or corporate tax (12.5%).Hold on a second, but what about personal income tax?
Say you're in Cyprus where - as far as I know - there is no tax on crypto, because crypto hasn't been regulated yet. And say you go there, you buy crypto, and then you sell it and withdraw fiat to the bank.
But then you'll still have to pay a 20% tax on anything above 19,500 euros. And then I believe if it's more than 30,000 euros then it's 30%, and more than 50,000 euros is 40%, or something like that.
You're not paying a tax on your crypto situation, but you still made a profit and so it's like income, or wealth, and so you pay an income or wealth tax or whatever.
Not really. It’s a matter of the tax authorities. As there is not specific reference for cryptocurrencies for tax purposes then it is not possible to interpret it any other way. Additionally the tax authorities are preparing guidance at the moment which, at the moment, it appears that it will be confirming the above.In Germany it is the law.
In Cyprus it seems to be an interpretation of the law and in the worst case a court has to decide?
To begin with crypto is regulated for AML purposes under some circumstances. With respect to tax, as there is no formal ruling at this time the position is that the conversion to FIAT is the tax trigger and you then pay income tax (according to the bands) or corporate tax (12.5%).
Crypto to crypto transactions are reported for accounting and audit purposes but are not a taxable event. This is our position and from our information this will be confirmed by the tax authorities.
Happy to PM you for any more information you need.
Will send you a PM for thisI lived in Cyprus for over a decade, and I have a parent there still. Personally I live in one of the Balkans counties now, which is where I'm originally from (and the only passport I have).
With crypto being down now, I'm thinking of getting some $5.000 of crypto and waiting for the next bull run. I should be able to cash out anywhere from $10,000 to $50,000 or more, depending on how lucky I get with the cryptos I buy.
That said, I wanna do it legit...
In my country the tax on crypto is 15% on your profits. So if you bought $5,000 and cashed out $55,000, you'd pay 15% on the $50,000, which is $7,500
I got a little excited when I found out there's no tax on crypto in Cyprus, as I could do through my parent and make out with no tax. However, after realizing that when it's all said and done we'd still have to pay the income tax, it would cost even more, depending on how much my parent already earns from their job and how much I cash out in the end.