Does Cyprus have a CGT for precious metals?
- Thread starter fc70
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Hello
CGT under Cyprus income tax law is omly applicable for immovable property.
If a Cyprus tax resident operates a business selling precious metals the sale is subject to income tax liability. Progressive tax bands (0%-35%) if trading as freelancer and 12.5% if operating through a CY company. Also, special licences to own a pawn shop/jewelry shop are required.
Quite recently the law relating to VAT has been amended for precious metals and now purchase of semi-finished precious metals are subject to the reverse charge mechanism (effective from 7.10.2022).
Hope this helps
CGT under Cyprus income tax law is omly applicable for immovable property.
If a Cyprus tax resident operates a business selling precious metals the sale is subject to income tax liability. Progressive tax bands (0%-35%) if trading as freelancer and 12.5% if operating through a CY company. Also, special licences to own a pawn shop/jewelry shop are required.
Quite recently the law relating to VAT has been amended for precious metals and now purchase of semi-finished precious metals are subject to the reverse charge mechanism (effective from 7.10.2022).
Hope this helps
Okay, so any profit on trading gold/silver is treated as income and taxed accordingly.
Are there any circumstances where the profit from selling gold/silver is not taxed? For example, you buy a gold coin from a coin dealer and six months later you sell it back to the dealer or a friend for 20 euros more...do you have to declare this profit as income?
Are there any circumstances where the profit from selling gold/silver is not taxed? For example, you buy a gold coin from a coin dealer and six months later you sell it back to the dealer or a friend for 20 euros more...do you have to declare this profit as income?
Yes correct but of course this applies if you are a taxable person meaning you are conducting a business selling/buying precious metals. See publication (KPMG) below
https://home.kpmg/us/en/home/insigh...icable-to-acquisition-of-precious-metals.html
If you are making a one-off︀ sale tax isnt applicable. You need to conduct a business to be subject to tax︁ and meet the ‘bubdles of trade’
https://home.kpmg/us/en/home/insigh...icable-to-acquisition-of-precious-metals.html
If you are making a one-off︀ sale tax isnt applicable. You need to conduct a business to be subject to tax︁ and meet the ‘bubdles of trade’
You can trade exchange traded futures or options on precious metals instead. AFAIK, these are tax free in Cyprus since they are considered securities. I'm not sure about CFDs because these are technically OTC products.
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