Can you migrate to Kuwait and trade crypto with zero tax as a natural person?

[khinkali]

A natural person is not taxed on selling foreign stocks⁤ (unless the company has assets of immovable property located in Georgia). The gains are considered⁣ to be outside the territory of Georgia. This is probably relevant to the motivation behind⁢ Public Decision 201 on crypto income.

Georgia doesn't have a differentiation between income and capital︀ gains in the tax code. So for now, the assumption by most folk is that︁ trading at any frequency is just generating tax exempt offshore income.

I agree with you︂ completely about retroactive risk. The attitude of foreign crypto traders tends to be "wow this︃ is great. if the law changes or the Revenue Service issue a new Public Decision︄ with a 'badges of trade' rule then i'll just get a ticket on the next︅ flight out".

 

[JackAlabama]

Yes and⁤ you can be seen as a pro trader if you do not have other job⁣ beside, use leverage and do frequent trades. So it can happen quick and the tax⁢ is not exactly low if it is not just a side hustle (and consequently involves︀ lower amounts).

 

[flyingadventures662]

Do you refer to moving to Dubai or to opening a Dubai⁣ company and trading remote from other place? Because if it's real moving to Dubai from⁢ what I heard I am quite certain it's 0%. And not sure about future uncertainty︀ but I doubt it as all biggest crypto traders/youtubers live there, there are even rumors︁ Binance's CEO will be moving there.

Not sure if I understood the Malta stuff.

From my research it seems in Switzerland the worst will be 11% on profit + 0.3-1%︂ on wealth which is far away from zero but does not seem bad for such︃ country.

- Also I read that in Slovakia you pay 7% dividend, so if offshores︄ work there it's definitely worth considering. And in Estonia 0 or 7% on foreign dividend,︅ but that's not confirmed.

- In Slovenia they are working on accepting a new law︆ to tax crypto (I read this is in a local website so it must be︇ quite relevant). If they accept the law as it was described, crypto to crypto trades︈ (and as far as I understood derivatives as well) are not taxed). Taxed is just︉ what you cash out in fiat at 10% and the first 10-15K are EUR tax-free.︊ And on one website there was mentioning that you have the right to calculate 50%︋ spending so it effectively becomes 5%. But on other websites this info lacks. If you︌ were early in crypto and bought on much lower prices that might be cool. Because︍ you pay only on what you cash out, regardless of the price on which you︎ bought. If this law is accepted it should come into force in 2023 but I️ will keep track on that. I have lived in Slovenia and it's actually a very‌ nice country, it has nothing to do with the Balkans and other Slavic countries. It's‍ so western and modern looking that compared to it even Spain may look like Somalia.⁠ One drawback is that it's too small and can get boring, but as a base⁤ for a tax residence does not look bad at all.

Also I have info from⁣ a Slovenian guy that that virtually all banks are crypto friendly there. Even Gorenjska bank⁢ is the Bank of Bitstamp and BTW on their page it says they open accounts︀ for non-residents.

May I ask where are you from and what's are the tax conditions︁ in your country?

 

[Bill D]

I was referring about actually moving to⁣ Dubai, with the classical opening FZ and get residency route, then live 183 days+ there.⁢
The problem is most consultant are proposing a bit shady roads where your freezone is︀ dummy freezone with an unrelated activity, so it will be either dormant (then in theory︁ you fail to quality for the tax residency certificate), either it will be used then︂ you need to lie to the bank to be able to transact and grant yourself︃ the salary needed to get the tax residency certificate.

Beside the new VARA law will︄ maybe be applied to random natural persons residents, seems not clear in the articles. Also︅ not clear if the 9% tax will apply to professional traders, in theory professional trading︆ could be seen as a commercial activity done from your dubai office (personal appartment in︇ this case). In theory, I saw a law consultant youtuber mentionning The fines there can︈ go up to 50% of profits aka 5x the tax due, without talking about the︉ lawyers fees.

They mentionned that normally freezone business, despite being subject to the new corporate︊ tax, could still be 0% if they cumulatively
1)do not conduct business within UAE (isn't︋ owning your trading desk in Dubai and performing your professional trading throught dubai meaning you︌ conduct business within uae ?)
2)respect all the FZ rules (that's not the case with︍ the dummy FZ setups)

 

[Verbatim]

- Have you heard of actual stories of people who have a company︉ through which they receive a salary failing to procure the tax residency certificate? What do︊ you mean by fake company exactly? If the company is capitalized and is paying a︋ salary to its employee that should suffice, right?
- Don't the laws on corporate taxation︌ take affect in the second semester of 2023? In other words for 2022 you are︍ not liable to any corporate tax. This is per the government website.
- Even after︎ the laws take effect in 2023, you will still be able to enjoy tax free️ gains in the UAE as long as you don't trade frequently. I guess the government‌ is saying is someone trades frequently, they should set up a UAE crypto company for‍ 0% tax rate, accept the 9% tax rate or leave.
- Please correct me if⁠ I'm wrong.

 

[Bill D]

If you get a⁤ local sourced salary you do comply with the requirement to get the tax residence certificate,⁣ I was meaning if the company stay dormant.
By fake company I mean, if you⁢ are a professional day trader or a crypto trader and open a license to sell︀ toothbrush or a consultancy company, but insterad of it only trade crypto throught your company,︁ that does not fit the real purpose of your setup and I imagine at a︂ point you necessarily need to lie to the bank. That's why instead I thought about︃ a financial freezone which let you trade some stocks on traditional markets, and maybe keep︄ the crypto as an individual. However I didn't see a consultant who advice to create︅ a real financial freezone.

Right I︈ read here and there is start on 1 july 2023 or 1 jan 2024 depending︉ some company time features
It seems really complicate now to create a︎ crypto company for trading crypto.
So there would be two methods to trade in Dubai,️ either throught your FZ, either keep it as an individual, interesting to know the consequences‌ in terms of tax of this choice :

1)suppose you trade crypto throught your financial,‍ or crypto company, from Dubai from your office or dubai flat, on locally VARA licensed⁠ UAE platforms like binance, isn't it gonna be considered as a local business within UAE⁤ and subject ANYWAYS to the 9% tax ?

2)As an other way, as we raised⁣ this question elsewhere, if you keep it as an individual but trade crypto or other⁢ markets as a professional from Dubai, isn't it gonna be requalified as a commercial activity︀ and de facto subject to the 9% new tax ?

I sent you a PM

 

[Bill D]

Now that with the new⁠ CT system it seems day traders or individuals trading regularly as opposite to occasionaly will⁤ be undergoing the CT in UAE, does someone know about Bahrain, is it a good⁣ alternativ, it seems there are not CT there, is it easy to settle there and⁢ get the tax residence ? (Kuwait doesn't seem to be a good one with a︀ CT of 15% and I did not check but I guess it would put traders︁ (even individuals trading their own, as it seems it will be the case in uae)︂ at risk of undergoing the CT.
What are the alternativ for individual day traders in︃ 2023 among the 0% countries with the least hassles ?

 

[JackAlabama]

Why do you have that idea? It does not︁ seem the case.