Living in Cyprus as a Stock Trader (NHS Tax?)

[Paul Tudor Jones]

Stock\Crypto trader, thinking about moving to Cyprus. I don't need a visa to live in Cyprus.

Most of my money is in accounts and investments outside of EU and I don't intend to keep ANY money in Cyprus. I will not work in Cyprus.

Apparently in Cyprus there is NHS tax of 2.65%, limited to around $4-5K per year. Is anybody checking how much you report as annual income in Cyprus?
Do the CY authorities check or even care about CRS reports?

It seems that many CY residents have some offshore company and it is tolerated (= nobody is enforcing the CFC rules). Is this a way to limit NHS?

Interested to know how people here are dealing with NHS and generally tax declarations in Cyprus.

 

[algotrader]

Taxation of crypto trading in Cyprus is a controversial topic.

Most accountants/lawyers think profits from active trading are taxable (at a marginal rate of 35% for individuals or 12.5% for Cyprus corporations):
https://www.mondaq.com/cyprus/fin-tech/1298272https://knews.kathimerini.com.cy/en...currency-for-own-benefit-cyprus-tax-treatment
But others think it should be treated like trading "titles"/securities and therefore not taxed:
https://pahalaw.com/areas-of-practice/cyprus-regulatory-licensing/blockchain-cryptocurrency/

 

[Paul Tudor Jones]

algotrader said:
Most accountants/lawyers think profits from active trading are taxable (at a marginal rate of 35% for individuals or 12.5% for Cyprus corporations):
Click to expand...

Thanks for your reply, great to know.

I'm mostly trading stocks, very rarely crypto so I should edit my post to make it clearer (unfortunately I can't edit).

It seems that stock trading is tax exempt: "Cyprus residents are only liable to capital gains tax on the sale of Cyprus property"

 

[algotrader]

Paul Tudor Jones said:
Thanks for your reply, great to know.

I'm mostly trading stocks, very rarely crypto so I should edit my post to make it clearer (unfortunately I can't edit).

It seems that stock trading is tax exempt: "Cyprus residents are only liable to capital gains tax on the sale of Cyprus property"
View attachment 4777
Click to expand...

Yes, trading profits from securities are exempt from cap gains tax (but not for social security). Discussed here:
https://www.offshorecorptalk.com/th...th-a-cyprus-company-how-does-that-work.38005/
However, I remember an old post here on the forum where one trader claimed to have gotten a binding consultation response from a local Cyprus tax office exempting him from payment of social security contributions on his trading profits. Cannot find it anymore.

 

[Paul Tudor Jones]

algotrader said:
Yes, trading profits from securities are exempt from cap gains tax (but not for social security). Discussed here:
Click to expand...

Do they actually check any of this?
Or for example if you get a monthly salary payment from some offshore company, will that be your main activity?

I wonder how strict they are towards non-doms.