Crypto to fiat taxation for Non-dom

[dandiskahn]

Hi,
I want to move to Cyprus, incorporate a company and work remotely. All fine and dandy but I will also need to cash out a large amount of money by selling cryptocurrency. These wouldn't be trading proceedings, I just bought years ago and held long term. It would be a one-off sale. I don't do short term trades.

From my understanding, capital gains derived from cryptocurrency trading might be taxed in Cyprus, from 20% to 35%.
Would I get taxed even if it's a one-off sale of long term holdings and it's clearly not a professional trading activity? Would they bother me as a non-dom or is the tax office more relaxed towards foreigners?

I'd like to know if anyone here managed to sell long term crypto holdings successfully without triggering tax... Also bonus question: would I need to declare my cryptocurrency holdings each year to the tax office?

Thanks a lot

 

[CyprusLawyer101]

As described, Under the "batches of trade" this should most probably qualify under "of capital nature" and remain free of taxation. In any way I can assist you to structure securely for 0% tax result. Kindly let me know if interested and I can dm you.

 

[dandiskahn]

As described, Under the "batches of trade" this should most probably qualify under "of capital nature" and remain free of taxation. In any way I can assist you to structure securely for 0% tax result. Kindly let me know if interested and I can dm you.

I'm interested, I'd like more info. Please PM me.

 

[EliasIT]

Can you legally do this in Cyprus, reduce the tax from up to 35% to 0% ?

 

[CyprusLawyer101]

Can you legally do this in Cyprus, reduce the tax from up to 35% to 0% ?

Well yes, on certain basic conditions

 

[John Spectre]

Can you legally do this in Cyprus, reduce the tax from up to 35% to 0% ?

In practice - no.
0% is no more than marketing in the topic of Cyprus(if we speak about fully legal ways)

 

[CyprusLawyer101]

We are talking about a specific transaction. Conversion of crypto. And to clarify this does not apply necessarily to Cyprus.

 

[northwest]

We are talking about a specific transaction. Conversion of crypto. And to clarify this does not apply necessarily to Cyprus.

dm me please

 

[pepelepew]

We are talking about a specific transaction. Conversion of crypto. And to clarify this does not apply necessarily to Cyprus.

I have the same question, could you please also dm me?

 

[ProCrypto]

@CyprusLawyer101 This would be very interesting for me as well. I heard about offshore companies being a solution, but if there are easier solutions, I'm happy to consider those

 

[zaybxc]

would I need to declare my cryptocurrency holdings each year to the tax office?

no, just the realized gains (crypto to fiat).

Wouldn't Germany be a better choice as it's stated clearly in the legislation that if you sell your crypto after holding them for one year you don't have to pay tax?

 

[pepelepew]

no, just the realized gains (crypto to fiat).

Wouldn't Germany be a better choice as it's stated clearly in the legislation that if you sell your crypto after holding them for one year you don't have to pay tax?

People keep mentionning germany but is there a report of anyone who cashed out a 6+ figures amount of long term holding tax free, then left after a year ? From what I heard so far it's ok for small sums, but otherwise they might just qualify it as professional activity.

 

[zaybxc]

People keep mentionning germany but is there a report of anyone who cashed out a 6+ figures amount of long term holding tax free, then left after a year ?

I don't remember but It's already been mentioned in some other thread.

From what I heard so far it's ok for small sums, but otherwise they might just qualify it as professional activity.

It doesn't seem so Crypto Tax Guide Germany 2024 [Kryptowährung Steuer 2023] | Koinly

 

[pixbix]

In Cyprus, the tax treatment of cryptocurrency transactions is not clearly defined. The Cyprus tax authorities have not issued specific guidance on how cryptocurrency gains should be taxed. However, it is generally understood that capital gains derived from the sale of cryptocurrency may be subject to taxation.

 

[CyprusLawyer101]

However, it is generally understood that capital gains derived from the sale of cryptocurrency may be subject to taxation

Thats the only thing generally not understood.