Crypto (DeFi) taxes - better as private person or Cyprus Ltd

[calnana]

I know this isn't Cyprus specific, but my hesitance with places like Cyprus is... If one makes profit trading crypto, and ends up with X stablecoin at the end of the year, but he cannot withdraw this money (or the % owned in tax) to an actual bank account. What happens? You're just royally screwed? Has this situation been considered when drafting the new regs in Cyprus?

I realise you would have ideally opened a company bank account before you start trading, but s**t happens, risk appetites change etc...

 

[CyprusLaw]

calnana said:
I know this isn't Cyprus specific, but my hesitance with places like Cyprus is... If one makes profit trading crypto, and ends up with X stablecoin at the end of the year, but he cannot withdraw this money (or the % owned in tax) to an actual bank account. What happens? You're just royally screwed? Has this situation been considered when drafting the new regs in Cyprus?

I realise you would have ideally opened a company bank account before you start trading, but s**t happens, risk appetites change etc...
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Cyprus banks are not crypto friendly, but there are a number of crypto friendly solutions abroad. So even for Cyprus entities we open accounts in crypto-friendly banks abroad.

 

[calnana]

CyprusLaw said:
Cyprus banks are not crypto friendly, but there are a number of crypto friendly solutions abroad. So even for Cyprus entities we open accounts in crypto-friendly banks abroad.
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I get you, but it still amazes me that we keep hearing that certain jurisdictions want to make their countries more attractive and that they're holding consultations with the practitioners in the space and service providers... do issues like the above not come up? Or is there just nothing they can do? I would gladly pay more tax if these issues where tackled.

 

[Jabbar]

Moulaga said:
Whatever decision Cyprus will make I believe a Cyprus Ltd would be a better option as there are many legit ways to increase expenses to make the taxes and benefits look lower.

May I ask what DeFi protocole you use ? My wife and I are interested too. We have 6 fig USDT and are planning to stalk it into a DeFI to get a monthly returns. (Some in low risk and some in medium risk). Thanks in advance for your help
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How to increase legit expenses? Any examples

 

[saponaire]

wife changing money said:
UST Stablecoin is in my opinion the ”žsafest“ Stablecoin out there. Its also the only stablecoin which is fully decentrialized.
maybe you mistook it with USDT(Tether).

back to topic
searching for a tax consultant which is specialized in the crypto wild wild west.
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didn't age well