Hi guys. I signed up again for mentor group gold premium bc I really want someone to look at my reasoning in this thread.
I left my high-tax Western country in Jan, 2024 and moved to Cyprus.
I stopped working in 2020. I survive from investment income and savings.
I thought I would keep a few ties to my former country so I insisted on moving to a country that had a DTAA where I could use the residency tiebreaker clause.
I was also very concerned that bc I own many different cryptos that I might be considered a trader. Because of that, Portugal was initially off the list bc if your income gets misclassified, you are paying ca. 50%.
But, after enough consultation, I am confident the crypto sales of my long-held crypto will be considered capital gains, and not business income. By the time I sell, I will have held everything for 1.5-2 yrs with no trading at all for at least a year.
I have been assured by several accountants that the numebr of coins you have is not that important. It is far more important how often you trade. Selling in 4-8 tranches, a week apart near the expected peak so you have a better chance of catching the top, will not reclassify you due to frequency of trading. As a precaution, one can prune down the number of coins by either selling the dud projects in 2024, or simply not selling the losers so you have fewer sales overall. Another strategy is to sequester the majority of coins that you think will only have modest gains in a holding company, and keep the coins you think will be real winners in your personal portfolio.
I am also willing to sever every last tie with my former country, (although for reasons too complicated to go into, it would still be better to keep a few).
So that really opens up the playing field....
My initial plan was to move to Cyprus, get the non-dom (both of which I did), and inject all the crypto into a company to pay 12.5%. It balanced the presence of a DTAA and minimized taxes if income was classified as business instead of cap gains. But in the end I am only injecting the cryptos that I sold in 2024 and keeping the rest in personal portfolio. There is no exit tax on unrealized gains if held personally.
Now I can do much better than 12.5%...
I am expecting to sell a lot in late 2025.
My 2nd citizenship is UK so I can now just move to Jersey, Guernsey, Isle of Man for 2025 without the need for a visa. (Gibraltar cat 2 HNWI is also an option although I am having trouble getting the bank reference letter!) All 4 have no personal or corp capital gains taxes. I was told by Big 4 in Gibraltar that I wouldn't have to declare the gains so that makes the filing rather simple, although I'm guessing I would want to get an audited statement in order to prove SOF in later years?
Portugal is also back on the list bc they have a specific crypto tax regimen for longterm holders that is unlikely to be removed and they still have the DTAA.
Georgia is also possible, although rather close to a country that the West seems to really want to draw into a war.
Monaco - can't do this year - need to get enough profits together first
Poland - lump sum is attractive but too much paperwork to get it done in time
Malaysia - hot and far.
Carib tax havens - could do if above doesn't work.
Dubai - also possible but ++ paperwork
I have narrowed it down to Jersey vs Portugal.
Advantage of Portugal is DTAA, bigger, nicer weather, better lifestyle. Downside is paperwork and language.
I ony need to stay in Jersey 1 night in the year as long as I have accommodation available and don't become tax resident anywhere else.
Portugal D7 visa paperwork is a slight pain but doable and worth it.
Finally, I'm wondering if there is a setup where I setup an offshore corp with local substance to avoid Cyprus corp tax res and CFC rules, but it seems easy enough to just move somewhere else for 2025. But please chime in if you know of a solid 0% tax setup.
So....the question is about asset protection and cashing out.
Am I better off with the assets in a company? I don't have any impending threats like the possibility of divorce or anything.
Is there a difference in how easy it is to move cryptos/cash-out funds around between EMIs and banks if they have been held personally or in a corp, or does it not matter as long as you have a good SOF trail?
Also, please mention any other issues I didn't think of.
Would be grateful if the group could guide me. Many Thanks!!!!
W.C.
Last edited: Oct 5, 2024
I left my high-tax Western country in Jan, 2024 and moved to Cyprus.
I stopped working in 2020. I survive from investment income and savings.
I thought I would keep a few ties to my former country so I insisted on moving to a country that had a DTAA where I could use the residency tiebreaker clause.
I was also very concerned that bc I own many different cryptos that I might be considered a trader. Because of that, Portugal was initially off the list bc if your income gets misclassified, you are paying ca. 50%.
But, after enough consultation, I am confident the crypto sales of my long-held crypto will be considered capital gains, and not business income. By the time I sell, I will have held everything for 1.5-2 yrs with no trading at all for at least a year.
I have been assured by several accountants that the numebr of coins you have is not that important. It is far more important how often you trade. Selling in 4-8 tranches, a week apart near the expected peak so you have a better chance of catching the top, will not reclassify you due to frequency of trading. As a precaution, one can prune down the number of coins by either selling the dud projects in 2024, or simply not selling the losers so you have fewer sales overall. Another strategy is to sequester the majority of coins that you think will only have modest gains in a holding company, and keep the coins you think will be real winners in your personal portfolio.
I am also willing to sever every last tie with my former country, (although for reasons too complicated to go into, it would still be better to keep a few).
So that really opens up the playing field....
My initial plan was to move to Cyprus, get the non-dom (both of which I did), and inject all the crypto into a company to pay 12.5%. It balanced the presence of a DTAA and minimized taxes if income was classified as business instead of cap gains. But in the end I am only injecting the cryptos that I sold in 2024 and keeping the rest in personal portfolio. There is no exit tax on unrealized gains if held personally.
Now I can do much better than 12.5%...
I am expecting to sell a lot in late 2025.
My 2nd citizenship is UK so I can now just move to Jersey, Guernsey, Isle of Man for 2025 without the need for a visa. (Gibraltar cat 2 HNWI is also an option although I am having trouble getting the bank reference letter!) All 4 have no personal or corp capital gains taxes. I was told by Big 4 in Gibraltar that I wouldn't have to declare the gains so that makes the filing rather simple, although I'm guessing I would want to get an audited statement in order to prove SOF in later years?
Portugal is also back on the list bc they have a specific crypto tax regimen for longterm holders that is unlikely to be removed and they still have the DTAA.
Georgia is also possible, although rather close to a country that the West seems to really want to draw into a war.
Monaco - can't do this year - need to get enough profits together first
Poland - lump sum is attractive but too much paperwork to get it done in time
Malaysia - hot and far.
Carib tax havens - could do if above doesn't work.
Dubai - also possible but ++ paperwork
I have narrowed it down to Jersey vs Portugal.
Advantage of Portugal is DTAA, bigger, nicer weather, better lifestyle. Downside is paperwork and language.
I ony need to stay in Jersey 1 night in the year as long as I have accommodation available and don't become tax resident anywhere else.
Portugal D7 visa paperwork is a slight pain but doable and worth it.
Finally, I'm wondering if there is a setup where I setup an offshore corp with local substance to avoid Cyprus corp tax res and CFC rules, but it seems easy enough to just move somewhere else for 2025. But please chime in if you know of a solid 0% tax setup.
So....the question is about asset protection and cashing out.
Am I better off with the assets in a company? I don't have any impending threats like the possibility of divorce or anything.
Is there a difference in how easy it is to move cryptos/cash-out funds around between EMIs and banks if they have been held personally or in a corp, or does it not matter as long as you have a good SOF trail?
Also, please mention any other issues I didn't think of.
Would be grateful if the group could guide me. Many Thanks!!!!
W.C.
Last edited: Oct 5, 2024
