Cyprus

[mediumrare]

I'm mostly an investor in stocks and derivates (stocks, options, currency and occasionally commodites). My understanding ist that all capital appreciation is tax free for (non-dom) Cyprus residents, is that true? I trade a lot of stock options, probably on average 4-6t imes per month with a notional value of 1.5mm/month and premiums of 4-5k/month. I do this on top of my more or less permanent holdings to generate income. Would this be considered as a business and taxed as such?

 

[CyprusLawyer101]

Hello ,
You will pay no tax.
The stocks and other similar instruments are exsmpted per se from taxation.
Let me know If you need to discuss this I can PM you.

 

[Rotor]

If you want to become Non Dom in Cyprus with just a portfolio of bonds held offshore paying interests and stocks, do you really have to set up a company? Do you have to pay any taxes at all in Cyprus if you have a private health insurance? Taxes on the interests? Do you have to report to the Cyprus Tax authority your bank accounts held abroad?

 

[CyprusLawyer101]

Not necessary to set up a company, however it would be wise to do ao if you intent to move out of the country, you have an already established vehicle for conducting your investments, which would be more difficult to be challenged by other authorities when moving elsewhere, as for example under CFC rules, since there can be no claim of artificially setting this up to avoid taxes. Also company may be necessary to be set up if you are opting within any of the migration programs.
You still need to pay NHI where applicable as for example on dividends recieved. You do not necessarily report bank accounts abroad to tax authorities.