Move to UAE, wait 6 months and cash out tax free, is it that simple?
- Thread starter PinkCat
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To end your tax residency from your home country, usually requires an exit tax. You'll have to pay capital gains tax on the crypto at market place when moving out from when you bought it. Research exit or departure tax for your home country for more details.
Actually not. Cashing out crypto in UAE WILL be a problem since banks there are not crypto friendly yet. The thing is you don't have to cash it out via local banks, you just need the tax residency to do it tax free.
Yeah there are many OTC offices where you can cash out for actual cash, but good luck depositing that into any bank.
Well not quite tax evasion, just not declaring︅ it. Yeah still a problem but the local authority published a guidance on how to︆ do that not too long ago, so i feel they will still be lenient on︇ it.
Crypto was acquired through investment, not by working for it So no tax event︈ yet.
- is it ok if properties are owned via foreign company?
- do they really check gym memberships and phone subscription? Damn, I knew I shouldn't work out that hard.
- how do they know how much time i've spent here since the EU borders are open and I can be in any other EU country without that being registered anywhere?
the rest is pretty much sorted out
ah i've spent more money on tax attorneys than︄ i care to admit, the bitter truth is they are not up to date yet︅ and this forum is actually much much better place to brainstorm those things.
Yeah there are many OTC offices where you can cash out for actual cash, but good luck depositing that into any bank.
Well not quite tax evasion, just not declaring︅ it. Yeah still a problem but the local authority published a guidance on how to︆ do that not too long ago, so i feel they will still be lenient on︇ it.
Crypto was acquired through investment, not by working for it So no tax event︈ yet.
- is it ok if properties are owned via foreign company?
- do they really check gym memberships and phone subscription? Damn, I knew I shouldn't work out that hard.
- how do they know how much time i've spent here since the EU borders are open and I can be in any other EU country without that being registered anywhere?
the rest is pretty much sorted out
ah i've spent more money on tax attorneys than︄ i care to admit, the bitter truth is they are not up to date yet︅ and this forum is actually much much better place to brainstorm those things.
If that's the case, the situation is less serious than I had previously assessed. If the crypto was acquired through legitimate (declared/taxed) funds and you're just now thinking about cashing out the investments, you have probably not committed tax evasion. You might've filed false/incorrect tax︀ returns if you didn't state your assets (if required) but that's much less serious of︁ a crime.
I think that your former home country in the EU may still technically︂ have some claims on you, if you go by the letter of the law. But︃ in reality, the risk is very low. Just don't do something stupid like live in︄ Dubai for 181 days and then the rest of the year in your EU country.︅ Stay outside of the EU properly for at least a couple of years at least.︆ Only visit your EU country as a tourist (a few weeks a year).
I think that your former home country in the EU may still technically︂ have some claims on you, if you go by the letter of the law. But︃ in reality, the risk is very low. Just don't do something stupid like live in︄ Dubai for 181 days and then the rest of the year in your EU country.︅ Stay outside of the EU properly for at least a couple of years at least.︆ Only visit your EU country as a tourist (a few weeks a year).
🙂 It really varies across countries. Keywords: e.g. wealth tax, exit tax.
Exit tax. But it's imposed only somewhere.
The UK has no exit tax? Interesting. (Possible of course, I am not oriented in the UK tax system.)
It depends on your tax jurisdiction. Somewhere it︁ is even tax free
True.
I do not think that this is the core of the problem 🙂
If done properly, it︆ is not a problem. See e.g. discussion here Dubai cash deposit of $1.000,000 in two︇ different bank accounts
Nobody here can judge about it unless we know what country you are︊ talking about.
Possible but unsuitable for discussion without knowing the︌ jurisdiction.
If the company is not formally linked to you (as director, UBO, etc.),︍ then yes; otherwise no.
The former – difficult to say; the latter – very probably️ yes (it is totally easy).
🙂 Thank you for the compliment to all forum members. And yes, as the crypto is (relatively, wrt the law systems) a new phenomenon for tax attorneys, they are many times not much oriented – but not always.
Nevertheless, I repeat: without knowing what's your jurisdiction, all the opinions make more or less just an (interesting) academic debate that can be to the remarkable extent useless for you (but useful generally 😉 )
Exit tax. But it's imposed only somewhere.
The UK has no exit tax? Interesting. (Possible of course, I am not oriented in the UK tax system.)
It depends on your tax jurisdiction. Somewhere it︁ is even tax free
True.
I do not think that this is the core of the problem 🙂
If done properly, it︆ is not a problem. See e.g. discussion here Dubai cash deposit of $1.000,000 in two︇ different bank accounts
Nobody here can judge about it unless we know what country you are︊ talking about.
Possible but unsuitable for discussion without knowing the︌ jurisdiction.
If the company is not formally linked to you (as director, UBO, etc.),︍ then yes; otherwise no.
The former – difficult to say; the latter – very probably️ yes (it is totally easy).
🙂 Thank you for the compliment to all forum members. And yes, as the crypto is (relatively, wrt the law systems) a new phenomenon for tax attorneys, they are many times not much oriented – but not always.
Nevertheless, I repeat: without knowing what's your jurisdiction, all the opinions make more or less just an (interesting) academic debate that can be to the remarkable extent useless for you (but useful generally 😉 )
how to setup a new company in UAE and invoice your current company or your self from the company there! I don't know but this way you can transfer everything legally (at least on public view) and setting it up in some sort of free zone if still exists would get you a good 0% tax.
Has he, though?
Is it tax evasion (i.e., Spies evasion) xor passive failure to file? 🙄
Source: https://www.irs.gov/pub/irs-utl/tax_crimes_handbook.pdf - Page 22 of 176.
Is it tax evasion (i.e., Spies evasion) xor passive failure to file? 🙄
Source: https://www.irs.gov/pub/irs-utl/tax_crimes_handbook.pdf - Page 22 of 176.
In that post, I was still under the previous understanding that the funds gathered for 10 years had been business/work income that hadn't been declared or taxed.
Making false/incomplete tax return is a far milder crime, especially if no taxes end up having been owed.
Making false/incomplete tax return is a far milder crime, especially if no taxes end up having been owed.
He didn't mention receiving payments in crypto, he talked about︇ accumulating crypto through regular investments, i.e monthly dollar-cost averaging. In this scenario, tax obligations typically︈ arise only when he decides to sell or convert the crypto into fiat.
However, if︉ he receives crypto as payment for goods or services within a business context, it's of︊ course a different situation. This could lead to potential accounting and tax violations if proper︋ reporting isn't done, if they ever find out.
However, if︉ he receives crypto as payment for goods or services within a business context, it's of︊ course a different situation. This could lead to potential accounting and tax violations if proper︋ reporting isn't done, if they ever find out.
Most countries I’ve come across - and we do pay︇ in stablecoins - it’s treated as income or it’s treated as capital gains.
If it’s︈ income I.e a payment then its declared as such and taxed as such.
Likewise if︉ its a gift its and its under the threshold its tax free and if converted︊ later only the amount above is taxed as capital gains.
As for undeclared income if︋ it is then he better sort that with the tax afency
If it’s just buying︌ and storing then there shouldn’t be any tax unless he’s sold/exchanged some.
Life’s much simpler︍ living in Asia with a company overseas with staff in it 😀
If it’s︈ income I.e a payment then its declared as such and taxed as such.
Likewise if︉ its a gift its and its under the threshold its tax free and if converted︊ later only the amount above is taxed as capital gains.
As for undeclared income if︋ it is then he better sort that with the tax afency
If it’s just buying︌ and storing then there shouldn’t be any tax unless he’s sold/exchanged some.
Life’s much simpler︍ living in Asia with a company overseas with staff in it 😀
my country doesn't have exit tax
so in order to legally cash out without owing taxes how long i have to live in UAE before doing it? In most countries there is some period (statute of limitations) after which they can't touch you, does that apply in this case?
Unfortunately I have one mortgaged property and one business where i participate under my own name directly.
The rest is via foreign owned company but im still registered as UBO in my country since it's required by law
Would those things make it impossible to NOT be considered tax resident in my home country?
so in order to legally cash out without owing taxes how long i have to live in UAE before doing it? In most countries there is some period (statute of limitations) after which they can't touch you, does that apply in this case?
Unfortunately I have one mortgaged property and one business where i participate under my own name directly.
The rest is via foreign owned company but im still registered as UBO in my country since it's required by law
Would those things make it impossible to NOT be considered tax resident in my home country?
Depends on your home country, but most high tax western countries have rules about ties or center of vital interest that mean that you are still a tax resident if you have a property or a business in the country. So in this case it doesn't matter how long time you spend in the UAE, as long as you have a business or a home in your home country.
There was this football player from Montenegro , Vucinic I think, who played football in the UAE and lived there full time, but since he had a house in Italy, and had lived in Italy a︀ while, the Italian tax authorities claimed that he was an Italian tax resident and had︁ to pay italian tax on his worldwide income including the salary in the UAE.
However, if your home country is Ireland or the UK, tax residency is more about days︂ spent in Ireland/UK, and you may ok even if you have business/property there. Eastern European︃ countries are often more lenient on these things too.
There was this football player from Montenegro , Vucinic I think, who played football in the UAE and lived there full time, but since he had a house in Italy, and had lived in Italy a︀ while, the Italian tax authorities claimed that he was an Italian tax resident and had︁ to pay italian tax on his worldwide income including the salary in the UAE.
However, if your home country is Ireland or the UK, tax residency is more about days︂ spent in Ireland/UK, and you may ok even if you have business/property there. Eastern European︃ countries are often more lenient on these things too.
OK
Many countries of origin can touch you abroad after 9 years or even more. Until you share the country name, nobody can tell you.
Be assured that in such a case you will be considered tax resident there︀ almost surely, regardless of what EU country it is.
See above.
Exactly; and it concerns not only high tax︉ western countries.
Well, I can't say about Ireland but re:UK, if︌ you have there a house and a running business, you will be forced to talk︍ to HM taxmen, I am afraid 😉
Sometimes yes and sometimes definitely not (Romania as️ an example, or Hungary with its worldwide taxation).
Many countries of origin can touch you abroad after 9 years or even more. Until you share the country name, nobody can tell you.
Be assured that in such a case you will be considered tax resident there︀ almost surely, regardless of what EU country it is.
See above.
Exactly; and it concerns not only high tax︉ western countries.
Well, I can't say about Ireland but re:UK, if︌ you have there a house and a running business, you will be forced to talk︍ to HM taxmen, I am afraid 😉
Sometimes yes and sometimes definitely not (Romania as️ an example, or Hungary with its worldwide taxation).
I mean you will still have to pay tax to the HMRC on your income from the UK house, and/or corporate tax on your business if it is an LTD (and not non-resident), but the house and business doesnt cause you to be tax resident in the UK (except in the rare case you meet none of the days tests, and the sufficient ties tests are used).
See Am I︀ a tax resident in the UK?.
Basically, just looking at the first overseas days︁ test, if you spend less than 16 days in the UK, you are not a︂ UK tax resident, and that's it, no other factors matter.
See Am I︀ a tax resident in the UK?.
Basically, just looking at the first overseas days︁ test, if you spend less than 16 days in the UK, you are not a︂ UK tax resident, and that's it, no other factors matter.
Oh well. Now I see.︁ You are right. With a house and a running business one will probably satisfy Accommodation︂ tie and Work tie but with less than 91 days in the UK he/she is︃ safe; and 90 days is quite enough. My bad. Memory does not serve so well︄ 🙁
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