Short tax residency options

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Cyprustr

New member
I don't think the difference between 2,65% in Cyprus vs 1% in Bulgary is too big. Personally I prefer Cyprus because I don't have to create a company and I can do it as an Individual.
 

wi0

New member
Okay amazing thread! I just moved to CY and trying to figure this all out: unemployed investor, self employed investor or inc company.

Is there anyway to contact the tax authority and ask for clarification on the individual investor level? Or can someone just summarize what the mostly like outcome of just filing crypto gain taxes as an individual?
 

Cyprustr

New member
Okay amazing thread! I just moved to CY and trying to figure this all out: unemployed investor, self employed investor or inc company.

Is there anyway to contact the tax authority and ask for clarification on the individual investor level? Or can someone just summarize what the mostly like outcome of just filing crypto gain taxes as an individual?
I'm doing it. My tax accountant sent a binding consultation to know if I have to pay Social Insurance. Anyway before the binding consultation, I went to Social Insurance in Paphos and the director said that wanted to talk with my tax accountant, so he can explain my activity.

My tax accountant talked with the director and it was correct, I don't have to pay social insurance. But I also asked him to get a formal letter from Social Insurance to be protected in the future.

800 euros I payed for the letter haha But it will worth it.

Anyway I talked also with another accountant that they had already official confirmation saying that is not required to pay social Insurance.
 

wi0

New member
I'm doing it. My tax accountant sent a binding consultation to know if I have to pay Social Insurance. Anyway before the binding consultation, I went to Social Insurance in Paphos and the director said that wanted to talk with my tax accountant, so he can explain my activity.

My tax accountant talked with the director and it was correct, I don't have to pay social insurance. But I also asked him to get a formal letter from Social Insurance to be protected in the future.

800 euros I payed for the letter haha But it will worth it.

Anyway I talked also with another accountant that they had already official confirmation saying that is not required to pay social Insurance.
Music to my ears! I'm also in paphos right now, any chance you can share the accountant? Or explain the process I need to go through to get this confirmation letter? Thanks so much!!
 

Cyprustr

New member
Music to my ears! I'm also in paphos right now, any chance you can share the accountant? Or explain the process I need to go through to get this confirmation letter? Thanks so much!!
I'm also in Paphos. The problem is that the accountant is in Larnaca the one that is doing all my taxes. I've talked with a lot of accountants but the most professional I've seen is the Larnaca's one. The one who has the confirmation letter is in Limassol.

I tried to buy the one from the ones who had the confirmation letter but they said that unfortunately they can't because it has the name of the client.

And that the confirmation letter will take 1 to 3 months.

If you want you can give me your email and I can give you the accountant. I don't wanna make spam here xd. I can't send private message here yet.

And if you need help for example to get residence permit or something I can help you because I'm here in Paphos also. I've just got yellow slip.
 

wi0

New member
I'm also in Paphos. The problem is that the accountant is in Larnaca the one that is doing all my taxes. I've talked with a lot of accountants but the most professional I've seen is the Larnaca's one. The one who has the confirmation letter is in Limassol.

I tried to buy the one from the ones who had the confirmation letter but they said that unfortunately they can't because it has the name of the client.

And that the confirmation letter will take 1 to 3 months.

If you want you can give me your email and I can give you the accountant. I don't wanna make spam here xd. I can't send private message here yet.

And if you need help for example to get residence permit or something I can help you because I'm here in Paphos also. I've just got yellow slip.
Amazing thanks so much [email protected]
 

Piano

Entrepreneur
I'm also in Paphos. The problem is that the accountant is in Larnaca the one that is doing all my taxes. I've talked with a lot of accountants but the most professional I've seen is the Larnaca's one. The one who has the confirmation letter is in Limassol.

I tried to buy the one from the ones who had the confirmation letter but they said that unfortunately they can't because it has the name of the client.

And that the confirmation letter will take 1 to 3 months.

If you want you can give me your email and I can give you the accountant. I don't wanna make spam here xd. I can't send private message here yet.

And if you need help for example to get residence permit or something I can help you because I'm here in Paphos also. I've just got yellow slip.
Hi ,

planning to move to Cyprus , would appreciate some guidance along the way ...
[email protected]
 

Cyprustr

New member
Today I've found something very interesting.

Now that I got access to taxisnet (website to fill tax return) I found that there's a category on Social Insurance box that says "Δ/Ε Εισόδημα που δεν εμπίπτει στον περί Κοινωνικών Ασφαλίσεων Νόμο."

The translation is "D / E Income that does not fall under the Law on Social Insurance ".

Since there's definition in the Income tax law about investing income ("Investment income" means any income which is notacquired or resulting from any business, from hired services,pensions or other annual income paid due to or with respect to paid services provided;"), it could fall under that category and at least it has all the sense for me.



This is so important because I'm sure most of you have gone to the Security Social website to check the categories and saw that this code didin't appear.

oro11111.png



oro.png

"
 
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backpacker

Entrepreneur
Since there's definition in the Income tax law about investing income ("Investment income" means any income which is notacquired or resulting from any business, from hired services,pensions or other annual income paid due to or with respect to paid services provided;"), it could fall under that category and at least it has all the sense for me.
Do not mix the tax code with the "Law on Social Insurance". Definitions between these two are not interchangeable.
 

Stahrk

New member
I am following this thread with great interest, as I am looking for my coming residency - preferably in the EU part of the Mediterranean area.

Cyprustr: Any news on social insurance on gains from shares sales - any confirmation letter yet ?

 

complex

New member
Cyprus not worth anymore because of that 2.65%.
You will not only have to pay 2.65%, but declare it , consult with tax advisors. It's just additional expenses.
You can have UAE residency travel/live in Europe different places and pay 0 and no headache

Many brokers don't accept clients from UAE due to UAE being listed as a "dark" area when it comes to money laundering by western governments.
 

azb1

Mentor Group Gold
Many brokers don't accept clients from UAE due to UAE being listed as a "dark" area when it comes to money laundering by western governments.
Which "Many brokers"???
Can you name few??

Most of the International broker accepting UAE resident.
I thought UAE is best for Trader.

Thanks.
 

CyprusLaw

Mentor Group Gold
I am following this thread with great interest, as I am looking for my coming residency - preferably in the EU part of the Mediterranean area.

Cyprustr: Any news on social insurance on gains from shares sales - any confirmation letter yet ?

Hi,

So stock trading is not taxable in Cyprus. The only issue arising is whether or not it falls under the social security obligation if you trade as an individual. In order to clear this the badges of trade criteria must be considered on a case by case basis in order to reach to a conclusion as to whether or not the individual in question is carrying out the stock trading as a business. Some of the criteria that must be considered is the income, volume of transactions, how often you cash out, whether or not this is your main income etc.

For example, a person who runs another business, and makes from this business 200K per year, and on the side he does a bit of stock trading, cashing out around 30-40K every couple of years so essentially the stock trading is an additional passive income, and not the income he relies on to live, this will not be considered as a business and therefore there will be no social security obligation.

On the other hand, someone who is doing stock trading as his main activity and therefore is cashing out every month and living out of the income earned by stock trading he would be deemed as running a business, the income would still be tax exempt, but would have an obligation to pay Social Security, in this case this individual would be better of incorporating a company and trade through the company.
 

Cyprustr

New member
Hi,

So stock trading is not taxable in Cyprus. The only issue arising is whether or not it falls under the social security obligation if you trade as an individual. In order to clear this the badges of trade criteria must be considered on a case by case basis in order to reach to a conclusion as to whether or not the individual in question is carrying out the stock trading as a business. Some of the criteria that must be considered is the income, volume of transactions, how often you cash out, whether or not this is your main income etc.

For example, a person who runs another business, and makes from this business 200K per year, and on the side he does a bit of stock trading, cashing out around 30-40K every couple of years so essentially the stock trading is an additional passive income, and not the income he relies on to live, this will not be considered as a business and therefore there will be no social security obligation.

On the other hand, someone who is doing stock trading as his main activity and therefore is cashing out every month and living out of the income earned by stock trading he would be deemed as running a business, the income would still be tax exempt, but would have an obligation to pay Social Security, in this case this individual would be better of incorporating a company and trade through the company.
This is your own opinion. I have facts:

- I have talked in person with the Social Insurance Director of my region and also my tax accountant talked with the Director. Besides I have talked with some Big four as some other users from this forum have talked too.

- I know already about one letter confirming that it's not subject to Social Insurance. But the tax accountant can't give me that letter because it has the name of their client.


- The Badges of trade normally are to separate Capital Gains from Income. Not the case in Cyprus because you don't pay Income tax either capital gains from selling securities in Cyprus.

For example the case of USA:

The case of USA, trading is considered a business because of the definition they have in the law (Trading in Cyprus could also fall in the definition of business). But if you keep reading the website attached from IRS, you will see that even though it falls in the definition of business, trading it's not subject to Social security tax.

They use Badges of trade to separate business income from Capital gains, not for Social Security.

And USA it's not an exemption, there are more countries that work like this, in the case of the confirmation in Cyprus it would almost be the same case. But I don't confirm anything yet until I get my letter.


 

CyprusLaw

Mentor Group Gold
This is your own opinion. I have facts:

- I have talked in person with the Social Insurance Director of my region and also my tax accountant talked with the Director. Besides I have talked with some Big four as some other users from this forum have talked too.

- I know already about one letter confirming that it's not subject to Social Insurance. But the tax accountant can't give me that letter because it has the name of their client.


- The Badges of trade normally are to separate Capital Gains from Income. Not the case in Cyprus because you don't pay Income tax either capital gains from selling securities in Cyprus.

For example the case of USA:

The case of USA, trading is considered a business because of the definition they have in the law (Trading in Cyprus could also fall in the definition of business). But if you keep reading the website attached from IRS, you will see that even though it falls in the definition of business, trading it's not subject to Social security tax.

They use Badges of trade to separate business income from Capital gains, not for Social Security.

And USA it's not an exemption, there are more countries that work like this, in the case of the confirmation in Cyprus it would almost be the same case. But I don't confirm anything yet until I get my letter.


We actually have an official confirmation from the Social Security Department about this, so it is not ‘my opinion’. If you are trading for business purposes you are running a business and you should be paying social security.
 

Cyprustr

New member
We actually have an official confirmation from the Social Security Department about this, so it is not ‘my opinion’. If you are trading for business purposes you are running a business and you should be paying social security.
So it seems here everybody has a different confirmation letter.

Personally I don't trust you, first because you see your business in danger. And second because If you have had that confirmation letter before you would have said that in the previous messages to shut us up.

My recommendation for everybody is that you get your own confirmation letter and that don't trust anybody.
 
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CyprusLaw

Mentor Group Gold
You do realise that ‘I don’t open companies’ but I am a lawyer, hence no I am not losing money by saying this.

Also I would appreciate it if you could speak in a less tense tone.
 

Stahrk

New member
I sense there is a chance you have to pay social insurance on stock trading gains. If I look up on Deloitte, is seems like for self employed the SI rate is 15.6 % up till the cap at approx 57.408 €. If I multiply thos umbers, I get a max SI contribution of 8,956 €.
Lets say your capital gains for this year turns out at 200.000 €.
Then the SI contribution will still be capped at those 8,956 €, right ?
And the only other cost to the Cyprus government would be the GHS at 2,65 %, approx 5,300 €, correct ?
In total that would be 14,256 €, corresponding to approx 7,1 % of your gains.

That is not perfect - like eg. Malaysia or Dubai (MM2H) - but the best for an EU country I think - any opinions ?
 
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CyprusLaw

Mentor Group Gold
I sense there is a chance you have to pay social insurance on stock trading gains. If I look up on Deloitte, is seems like for self employed the SI rate is 15.6 % up till the cap at approx 57.408 €. If I multiply thos umbers, I get a max SI contribution of 8,956 €.
Lets say your capital gains for this year turns out at 200.000 €.
Then the SI contribution will still be capped at those 8,956 €, right ?
And the only other cost to the Cyprus government would be the GHS at 2,65 %, approx 5,300 €, correct ?
In total that would be 14,256 €, corresponding to approx 7,1 % of your gains.

That is not perfect - like eg. Malaysia or Dubai (MM2H) - but the best for an EU country I think - any opinions ?
Correct. Unless of course you are considered not to be trading as a business and therefore not have to pay the SI contribution. Each case should be considered on its merits.
 

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