So getting a cyprus residency and trading through my cyprus company does not alleviate me from taxes.Just to clarify, at least for Cyprus:
(a) Capital Gains are only imposed on the sale of real estate or shares connected to real estate.
(b) Cryptocurrency trading falls under the normal income tax rules, so at the moment your income is taxed.
(c) The discussion for the badges of trade above related to whether or not as an individual you would be deemed to be a professional and therefore having to pay social insurance contributions.
(d) If you are doing the trading under a company then you only have 12.5% corp tax and no social insurance.
Generally for the badges of trade, it is based on common law and there are a number of considerations to be taken into account, namely:
Therefore each case has to be considered in its own merits.
- profit seeking motive
- the number of transactions
- the nature of the asset
- existence of similar trading transactions or interests
- changes to the asset
- the way the sale was carried out
- the source of finance
- interval of time between purchase and sale
- method of acquisition.
It seems it gets me deeper and more and more into taxation problems- seems i might be better off trading from a Dubai company staying in Dubai/Phillipines/Paraguay/Georgia(although for Georgia i am not so sure of their laws as per another thread). As an opportunist in the market i have to take advantage of whatever opportunities a market presents me. Although the majority portfolio will be handled by Victor Sperandeo and not me.