Netherlands to Cyprus

[monkeyb0y]

Hello! Do you see any problems moving from the Netherlands (30% ruling tax status) to Cyprus to obtain the non dom status. I hold shares in a non EU private company, some listed shares and some crypto that I will dispose of at one point. My wife and I are separated (not divorced) and she lives in a third EU country.

When I loose my job I will be loosing the 30% ruling status and would need to move then and I can only sell the shares in private company next year.

Thanks!

Last edited: Jan 4, 2022

 

[CyprusLawyer101]

Hi,
From the Cyprus perspective you shouldnt have any capital gains at disposal of your shares. If you hold your crypto as an investor ( less frequest transactions) and not a trader you shouldn't face any tax implications either. Additional matters you require to address would be potential exit taxes in the Netherlands. If you would be interested to discuss this further, kindly let me know and I can PM you.

 

[monkeyb0y]

Thank you for the reply, I understood the Dutch do not have exit taxes. Please PM me

 

[backpacker]

Lawyer101 said:
If you hold your crypto as an investor ( less frequest transactions) and not a trader you shouldn't face any tax implications either.
Click to expand...

Is this new?
At least until a few weeks ago the rules were: Crypto -> crypto (e.g. selling BTC ./. ETH) is considered to be tax neutral. Whereas for cash out (i.e. crypto ./. fiat) normal CY income tax is applicable.

 

[CyprusLawyer101]

Bagpacker said:
Is this new?
At least until a few weeks ago the rules were: Crypto -> crypto (e.g. selling BTC ./. ETH) is considered to be tax neutral. Whereas for cash out (i.e. crypto ./. fiat) normal CY income tax is applicable.
Click to expand...

True, crypto to crypto does not appear to carry a tax implication. However when assessing crypto to cash, then the investor/trader distinction should kick in. This is not some legislation that has passed on crypto ( nothing as of yet) but it is a prudent way to approach it from a tax risk perspective and according to the customary treatment by the Tax Office.
Let me know if its clear.

 

[CyprusLaw]

Lawyer101 said:
True, crypto to crypto does not appear to carry a tax implication. However when assessing crypto to cash, then the investor/trader distinction should kick in. This is not some legislation that has passed on crypto ( nothing as of yet) but it is a prudent way to approach it from a tax risk perspective and according to the customary treatment by the Tax Office.
Let me know if its clear.
Click to expand...

The investor/trader assessment does not apply to crypto. And from the draft being prepared from the tax authorities it does not appear that this will be implemented for crypto.

 

[backpacker]

Lawyer101 said:
True, crypto to crypto does not appear to carry a tax implication. However when assessing crypto to cash, then the investor/trader distinction should kick in. This is not some legislation that has passed on crypto ( nothing as of yet) but it is a prudent way to approach it from a tax risk perspective and according to the customary treatment by the Tax Office.
Let me know if its clear.
Click to expand...

Thank you for the clarification. However, I have to disagree with your point of view. @CyprusLaw already delivered the reasoning.

 

[CyprusLawyer101]

CyprusLaw said:
The investor/trader assessment does not apply to crypto. And from the draft being prepared from the tax authorities it does not appear that this will be implemented for crypto.
Click to expand...

Which draft are you referring to?
I had in hand a draft from the tax office lately, following the batches of trade principles. Can you point me towards a different direction?

Bagpacker said:
Thank you for the clarification. However, I have to disagree with your point of view. @CyprusLaw already delivered the reasoning.
Click to expand...

Please do share your thoughts.

 

[monkeyb0y]

Is anyone aware of any exit taxes that should be considered in the Netherlands for a private individual?

 

[CyprusLaw]

Lawyer101 said:
Which draft are you referring to?
I had in hand a draft from the tax office lately, following the batches of trade principles. Can you point me towards a different direction?


Please do share your thoughts.
Click to expand...

There is a circular being prepared by the tax department which will act as a guide as to the taxation of crypto assets, essentially categorising the assets. There is no batches of trade in the current draft of the circular, and in all honesty I would find this unreasonable to be included.

 

[CyprusLawyer101]

CyprusLaw said:
There is a circular being prepared by the tax department which will act as a guide as to the taxation of crypto assets, essentially categorising the assets. There is no batches of trade in the current draft of the circular, and in all honesty I would find this unreasonable to be included.
Click to expand...

Thank you for promptly reverting.Good to hear something concrete is expected to be issued. In the absence of it yet, what would you consider as a prudent approach?

 

[backpacker]

CyprusLawyer101 said:
Please do share your thoughts.
Click to expand...

My thoughts are over there -> https://www.offshorecorptalk.com/threads/cyprus-company-non-dom.35313/#post-192109 (post #6 and post #7). Even though it is mostly related to the definition of the word "securities".