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JoeBlow

New member
What am I missing here with the following potential crypto sale? (assume Cyprus residency)

Step 1 - Sell crypto on Kraken
Step 2 - Send EURs from Kraken to German Fidor Bank (individual account).
Step 3 - Forward at your leisure from Fidor Bank to established Cyprus Bank account - funds aren't coming directly from an exchange thus shouldn't get blocked for the customary "internal bank policy" reasons.

Is this not possible? Tax implications?

Cheers
 

Almouk

New member
At the moment the taxable event is the conversion to FIAT. So moving from individual to company does not act as a trigger, however, this could change once a framework is introduced.


Hi, @CyprusLaw!

If the only taxable event is conversion to fiat -no idea if this point is confirmed by Tax Authorities or simply a common practice that is not completely safe-, you can trade as natural person and make profits without paying a penny, staying 183 days there taking in account with stablecoins you don`t have any risk of losing value in your portfolio as is not a taxable event. Is not a bad deal. Even you can profit from trading stocks up to 20k, witohut paying a single buck.

In that scenario of paying 0 taxes, do you see any problem to obtain the tax certificate?

As you manage good info about Cyprus, actually Crypto staking and Crypto lending profits are tax free as natural person? And under a company?

Staying 183 days there is not necessary to mantain the rental house during all the year, right?

Thanks in advance.
 

CyprusLaw

Mentor Group Gold
Hi, @CyprusLaw!

If the only taxable event is conversion to fiat -no idea if this point is confirmed by Tax Authorities or simply a common practice that is not completely safe-, you can trade as natural person and make profits without paying a penny, staying 183 days there taking in account with stablecoins you don`t have any risk of losing value in your portfolio as is not a taxable event. Is not a bad deal. Even you can profit from trading stocks up to 20k, witohut paying a single buck.

In that scenario of paying 0 taxes, do you see any problem to obtain the tax certificate?

As you manage good info about Cyprus, actually Crypto staking and Crypto lending profits are tax free as natural person? And under a company?

Staying 183 days there is not necessary to mantain the rental house during all the year, right?

Thanks in advance.
As I have mentioned in a previous post, this is the current position due to the absence of an amendment in the law. So you can not tax something (crypto) that is not explicitly identified in the law. In this respect at this moment the taxable event is when we have a conversion to FIAT. This could change in the future but an amendment of the law would be needed and therefore we would know well in advance of any such change.

With respect to the tax residency, both with the 60-day rule and with the 183-day rule you will need to show that you own or rent property, and if you rent the agreement's duration has to be at least for one year.
 

CyprusLaw

Mentor Group Gold
Hi, @CyprusLaw!

If the only taxable event is conversion to fiat -no idea if this point is confirmed by Tax Authorities or simply a common practice that is not completely safe-, you can trade as natural person and make profits without paying a penny, staying 183 days there taking in account with stablecoins you don`t have any risk of losing value in your portfolio as is not a taxable event. Is not a bad deal. Even you can profit from trading stocks up to 20k, witohut paying a single buck.

In that scenario of paying 0 taxes, do you see any problem to obtain the tax certificate?

As you manage good info about Cyprus, actually Crypto staking and Crypto lending profits are tax free as natural person? And under a company?

Staying 183 days there is not necessary to mantain the rental house during all the year, right?

Thanks in advance.
If you need to discuss further by PM I would be happy to pm you
 

lacomaco

New member
Come on, why bother with this Al Jazeera Cyprus? Possible corporate structure with fat margins for the service provider and 12,5% corporate tax? Or ambiguity of whether crypto gains are taxable or not as personal income tax… The best I think would be to get residency in the UAE, wait 186 days, when you get the tax residency you transfer the funds to a newly opened Swiss account and keep the funds in a very safe environment… Do you really want to keep your money in dodgy technically bankrupt Cyprus banks?
 

CyprusLaw

Mentor Group Gold
Come on, why bother with this Al Jazeera Cyprus? Possible corporate structure with fat margins for the service provider and 12,5% corporate tax? Or ambiguity of whether crypto gains are taxable or not as personal income tax… The best I think would be to get residency in the UAE, wait 186 days, when you get the tax residency you transfer the funds to a newly opened Swiss account and keep the funds in a very safe environment… Do you really want to keep your money in dodgy technically bankrupt Cyprus banks?
1. 'Al Jazeera Cyprus' - so Dubai is better?
2. There is absolutely no ambiguity on tax at this time, there have been tax rulings both from the tax dept and big 4 on this.
3. 'Bankrupt Cyprus banks' ? if you are referring to the 2013 haircut, things are much different now, eight years later....
 

lacomaco

New member
Hi CyprusLaw, when I referred to Al Jazeera probably you fully new that I reminded everyone about the dodgy way of doing business in Cyprus, don’t you? If you say that crypto trading (not long-term investment) is tax free then why you offer a company with 12,5% corporate tax? You resemble Liechtenstein lawyers who for the last 30 years offered Liechtenstein and only Liechtenstein as the best solution - as if nothing else exist in the world…

Concerning the banking system would you recommend Hellenic Bank instead of Julius Baer? The banking system on a net capital adequacy level did not manage to build up enough capital in the following 9 years to survive the fourth round of Covid or any seroius economic problems… In fact the losses in the economy of the last 2 years due to Covid probably equals any profits earned between 2013-2019 so net-net it is very bad.

And I did not even mention all the crooks who get their forex trading licences in Cyprus as it was the easiest country to get…

And I can continue for ages…
 

CyprusLaw

Mentor Group Gold
Hi CyprusLaw, when I referred to Al Jazeera probably you fully new that I reminded everyone about the dodgy way of doing business in Cyprus, don’t you? If you say that crypto trading (not long-term investment) is tax free then why you offer a company with 12,5% corporate tax? You resemble Liechtenstein lawyers who for the last 30 years offered Liechtenstein and only Liechtenstein as the best solution - as if nothing else exist in the world…

Concerning the banking system would you recommend Hellenic Bank instead of Julius Baer? The banking system on a net capital adequacy level did not manage to build up enough capital in the following 9 years to survive the fourth round of Covid or any seroius economic problems… In fact the losses in the economy of the last 2 years due to Covid probably equals any profits earned between 2013-2019 so net-net it is very bad.

And I did not even mention all the crooks who get their forex trading licences in Cyprus as it was the easiest country to get…

And I can continue for ages…
I will not even bother commenting - except from one point, I never said crypto trading is tax free in Cyprus, to the contrary.
 
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