If ultimately intend to move in Cyprus and enjoy the non dom status then appropriate prior structuring can allow you to enter the country and enjoy 0% taxation even if the country eventually taxes crypto trading under any of its applicable taxes. This can be achieved by receiving the income as a dividend instead of trading income
Cryprus non dom status
- Thread starter joachimssj
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Nothing official yet. But on what basis would you consider it to be treated as security?Lawyer101 said:
Hello Where do you have this info on Cyprus taxing profits from crypto trading? I would expect that it will treated as a security and therefore not taxable. Please point me towards the rifht direction id you have something concrete.
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I would reasonably think such income to be considered as capital gains rather than trading income, unless the person under assessment is daily or almost daily carrying out transactions which is not usually the case. If we then accept such income to be treated as capital gains, then I cannot see how the tax office would deviate from its long standing position that the only tax imposed on capital gains applies to those arising out of the disposal of immovable ( real ) property. So my conclusion is based solely on the basis of the formulation of the character of the Cyprus tax system through the years. I could of course be wrong as my reasoning has more of an assumptive basis rather than anything concrete.CyprusLaw said:
Nothing official yet. But on what basis would you consider it to be treated as security?
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Lawyer101 said:
I would reasonably think such income to be considered as capital gains rather than trading income, unless the person under assessment is daily or almost daily carrying out transactions which is not usually the case. If we then accept such income to be treated as capital gains, then I cannot see how the tax office would deviate from its long standing position that the only tax imposed on capital gains applies to those arising out of the disposal of immovable ( real ) property. So my conclusion is based solely on the basis of the formulation of the character of the Cyprus tax system through the years. I could of course be wrong as my reasoning has more of an assumptive basis rather than anything concrete.
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You can fill a form asking them whether they will consider your gains, capital gains or trading nature.
https://www.mof.gov.cy/mof/tax/taxdep.nsf/page66_en/page66_en?opendocument
This will not be tha case (unless something changes dramatically). The official circular should be issued (hopefully) in the next couple of months.Lawyer101 said:
I would reasonably think such income to be considered as capital gains rather than trading income, unless the person under assessment is daily or almost daily carrying out transactions which is not usually the case. If we then accept such income to be treated as capital gains, then I cannot see how the tax office would deviate from its long standing position that the only tax imposed on capital gains applies to those arising out of the disposal of immovable ( real ) property. So my conclusion is based solely on the basis of the formulation of the character of the Cyprus tax system through the years. I could of course be wrong as my reasoning has more of an assumptive basis rather than anything concrete.
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Thanks for this. It appears like you have some information at hand. I would like to know more, even in a private message if you would be willing to share.CyprusLaw said:
This will not be tha case (unless something changes dramatically). The official circular should be issued (hopefully) in the next couple of months.
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