Crypto Capital gains in Cyprus

[Tango]

i have been told that only crypto to Fiat goes into the computation of CG in Cyprus as compared to Crypto to Crypto. If true that would be great as i can defer until I cash out to my euro/usd bank account - is that true ? In the UK any transaction is computed but in cyprus appears to be different - can someone confirm ?

 

[LondonOTC]

Thats true, its only consider CG when you cash it. Some of my customers do‌ it that way

 

[JackAlabama]

So park stuff in stablecoins and then‍ cash it when you want and pay tax that way.

 

[xipoid]

I was under the impression that Crypto gains are taxed at 0% anyway in Cyprus?‌

 

[erni]

me to, I don't think you get taxed on crypto,‍ royalties or dividends in Cyprus!

 

[LondonOTC]

In cyprus all income is taxable with a list of specific exemptions to this rule‌ such as dividends and share proceeds. CG are taxed so that includes Crypto

My customer‍ told me ha has a way to legaly pay only 3%

 

[boomy]

avoid paying taxes as an foreigner owning a Cyprus company isn't difficult.‍ No one will hurt you or even recognize you do it. Alternative, register the company⁠ non-dom and you can forget about it.

 

[gmbh]

How can you avoid to pay⁠ the 12,5% tax as a foreigner?

And if you fill your profits into your tax⁤ return, of course the tax office will recognize it.

 

[heliotrope]

What are the most reliable stablecoins for this‍ purpose?

 

[JackAlabama]

None. Maybe some of these get sued this year as well.
So I would split into‌ 10 different ones in equal parts according to your risk tolerance.

 

[boomy]

S non dom Cyprus company has not to pay any‍ tax, personal tax may apply, that's a different story.

 

[gmbh]

I think this is wrong. If‍ you have a Cyprus Limited as Non-Dom the company still has to pay 12.5% tax.⁠ Just the dividends you pay to yourself are tax free.

 

[boomy]

I don't think this is wrong unless the tax⁠ reform has changed in Cyprus. Have you spoken to a tax advisor there?

 

[gmbh]

Yes, I spoke‍ to two accountants. One said it is tax free, the other one said if trading⁠ stocks is the main business of the company and you trade actively/often it will be⁤ taxed with 12,5%.

I can't find clear information about this. Do you have a link⁣ to a government website where they clearly state the law regarding this?

Very annoying situation⁢ because I am not sure how it is...

https://www.offshorecorptalk.com/threads/cyprus-limited-necessary-for-professional-trading.31708/

 

[Plavivoz]

He is right.‍ A non dom individual pays on dividends just the GHS fee of 2,65%.
You are⁠ right too. A non dom legal entitiy is tax free.

How can a non dom⁤ individual earn crypto capital gains tax free in Cyprus?
Create an offshore company and payout⁣ dividends. You pay only the GHS fee.

 

[gmbh]

Dividends are free, yes. The difference is the "active trading" part. So if you frequently⁤ buy/sell stocks the gains from this are not tax exempt anymore.

 

[gmbh]

Don't you think the tax authorities will say that the offshore company is‍ managed from Cyprus?

 

[heliotrope]

This topic has come up quite frequently and the‍ consensus seems to be that the tax office mostly turn a blind eye, but of⁠ course that could change at any time.

 

[Plavivoz]

Receiving dividends from your offshore company is not active trading.
You are non-dom. A nominee director is enough for cypriot tax authorities.

 

[gmbh]

My tax accountant told me the same but I⁠ am still quite sceptical. Do you have practical experience that this works?