Can you migrate to Kuwait and trade crypto with zero tax as a natural person?

[khinkali]

-Georgia : could be 0% on crypto trading, but not that clear and there is some retroactive risk, but it's clearly not 0% on traditional markets trading but it's way way worst than 10% so not a good option imo (stocks, cfd, futures, etc),

A natural person is not taxed on selling foreign stocks (unless the company has assets of immovable property located in Georgia). The gains are considered to be outside the territory of Georgia. This is probably relevant to the motivation behind Public Decision 201 on crypto income.

Georgia doesn't have a differentiation between income and capital gains in the tax code. So for now, the assumption by most folk is that trading at any frequency is just generating tax exempt offshore income.

I agree with you completely about retroactive risk. The attitude of foreign crypto traders tends to be "wow this is great. if the law changes or the Revenue Service issue a new Public Decision with a 'badges of trade' rule then i'll just get a ticket on the next flight out".

 

[JackAlabama]

I've read that since bitcoin is not sourced anywhere specifically in Georgia is tax free but don't know if RS shares the same opinion.



If all he does is trading Swtizerland treats it as professional income so it is taxed.

Instead if it's a side hustle and trades are infrequent is tax exempt.

Yes and you can be seen as a pro trader if you do not have other job beside, use leverage and do frequent trades. So it can happen quick and the tax is not exactly low if it is not just a side hustle (and consequently involves lower amounts).

 

[flyingadventures662]

Looking for the same as you, so very interested in your threads, with UAE seeming to be a not so reliable solution now that 9%+VARA+grey list (these three could induce uncertainty on accessing all crypto platforms, and on the risk of taxation etc, penalty, so I prefer to wait and see before considering this as an option)

Do you refer to moving to Dubai or to opening a Dubai company and trading remote from other place? Because if it's real moving to Dubai from what I heard I am quite certain it's 0%. And not sure about future uncertainty but I doubt it as all biggest crypto traders/youtubers live there, there are even rumors Binance's CEO will be moving there.

Not sure if I understood the Malta stuff.

From my research it seems in Switzerland the worst will be 11% on profit + 0.3-1% on wealth which is far away from zero but does not seem bad for such country.

- Also I read that in Slovakia you pay 7% dividend, so if offshores work there it's definitely worth considering. And in Estonia 0 or 7% on foreign dividend, but that's not confirmed.

- In Slovenia they are working on accepting a new law to tax crypto (I read this is in a local website so it must be quite relevant). If they accept the law as it was described, crypto to crypto trades (and as far as I understood derivatives as well) are not taxed). Taxed is just what you cash out in fiat at 10% and the first 10-15K are EUR tax-free. And on one website there was mentioning that you have the right to calculate 50% spending so it effectively becomes 5%. But on other websites this info lacks. If you were early in crypto and bought on much lower prices that might be cool. Because you pay only on what you cash out, regardless of the price on which you bought. If this law is accepted it should come into force in 2023 but I will keep track on that. I have lived in Slovenia and it's actually a very nice country, it has nothing to do with the Balkans and other Slavic countries. It's so western and modern looking that compared to it even Spain may look like Somalia. One drawback is that it's too small and can get boring, but as a base for a tax residence does not look bad at all.

Also I have info from a Slovenian guy that that virtually all banks are crypto friendly there. Even Gorenjska bank is the Bank of Bitstamp and BTW on their page it says they open accounts for non-residents.

May I ask where are you from and what's are the tax conditions in your country?

 

[Bill D]

Do you refer to moving to Dubai or to opening a Dubai company and trading remote from other place? Because if it's real moving to Dubai from what I heard I am quite certain it's 0%. And not sure about future uncertainty but I doubt it as all biggest crypto traders/youtubers live there, there are even rumors Binance's CEO will be moving there.

I was referring about actually moving to Dubai, with the classical opening FZ and get residency route, then live 183 days+ there.
The problem is most consultant are proposing a bit shady roads where your freezone is dummy freezone with an unrelated activity, so it will be either dormant (then in theory you fail to quality for the tax residency certificate), either it will be used then you need to lie to the bank to be able to transact and grant yourself the salary needed to get the tax residency certificate.

Beside the new VARA law will maybe be applied to random natural persons residents, seems not clear in the articles. Also not clear if the 9% tax will apply to professional traders, in theory professional trading could be seen as a commercial activity done from your dubai office (personal appartment in this case). In theory, I saw a law consultant youtuber mentionning The fines there can go up to 50% of profits aka 5x the tax due, without talking about the lawyers fees.

They mentionned that normally freezone business, despite being subject to the new corporate tax, could still be 0% if they cumulatively
1)do not conduct business within UAE (isn't owning your trading desk in Dubai and performing your professional trading throught dubai meaning you conduct business within uae ?)
2)respect all the FZ rules (that's not the case with the dummy FZ setups)

 

[Verbatim]

I was referring about actually moving to Dubai, with the classical opening FZ and get residency route, then live 183 days+ there.
The problem is most consultant are proposing a bit shady roads where your freezone is dummy freezone with an unrelated activity, so it will be either dormant (then in theory you fail to quality for the tax residency certificate), either it will be used then you need to lie to the bank to be able to transact and grant yourself the salary needed to get the tax residency certificate.

Beside the new VARA law will maybe be applied to random natural persons residents, seems not clear in the articles. Also not clear if the 9% tax will apply to professional traders, in theory professional trading could be seen as a commercial activity done from your dubai office (personal appartment in this case). In theory, I saw a law consultant youtuber mentionning The fines there can go up to 50% of profits aka 5x the tax due, without talking about the lawyers fees.

They mentionned that normally freezone business, despite being subject to the new corporate tax, could still be 0% if they cumulatively
1)do not conduct business within UAE (isn't owning your trading desk in Dubai and performing your professional trading throught dubai meaning you conduct business within uae ?)
2)respect all the FZ rules (that's not the case with the dummy FZ setups)

- Have you heard of actual stories of people who have a company through which they receive a salary failing to procure the tax residency certificate? What do you mean by fake company exactly? If the company is capitalized and is paying a salary to its employee that should suffice, right?
- Don't the laws on corporate taxation take affect in the second semester of 2023? In other words for 2022 you are not liable to any corporate tax. This is per the government website.
- Even after the laws take effect in 2023, you will still be able to enjoy tax free gains in the UAE as long as you don't trade frequently. I guess the government is saying is someone trades frequently, they should set up a UAE crypto company for 0% tax rate, accept the 9% tax rate or leave.
- Please correct me if I'm wrong.

 

[Bill D]

- Have you heard of actual stories of people who have a company through which they receive a salary failing to procure the tax residency certificate? What do you mean by fake company exactly? If the company is capitalized and is paying a salary to its employee that should suffice, right?

If you get a local sourced salary you do comply with the requirement to get the tax residence certificate, I was meaning if the company stay dormant.
By fake company I mean, if you are a professional day trader or a crypto trader and open a license to sell toothbrush or a consultancy company, but insterad of it only trade crypto throught your company, that does not fit the real purpose of your setup and I imagine at a point you necessarily need to lie to the bank. That's why instead I thought about a financial freezone which let you trade some stocks on traditional markets, and maybe keep the crypto as an individual. However I didn't see a consultant who advice to create a real financial freezone.

- Don't the laws on corporate taxation take affect in the second semester of 2023? In other words for 2022 you are not liable to any corporate tax. This is per the government website.

Right I read here and there is start on 1 july 2023 or 1 jan 2024 depending some company time features

- Even after the laws take effect in 2023, you will still be able to enjoy tax free gains in the UAE as long as you don't trade frequently. I guess the government is saying is someone trades frequently, they should set up a UAE crypto company for 0% tax rate, accept the 9% tax rate or leave.

It seems really complicate now to create a crypto company for trading crypto.
So there would be two methods to trade in Dubai, either throught your FZ, either keep it as an individual, interesting to know the consequences in terms of tax of this choice :

1)suppose you trade crypto throught your financial, or crypto company, from Dubai from your office or dubai flat, on locally VARA licensed UAE platforms like binance, isn't it gonna be considered as a local business within UAE and subject ANYWAYS to the 9% tax ?

2)As an other way, as we raised this question elsewhere, if you keep it as an individual but trade crypto or other markets as a professional from Dubai, isn't it gonna be requalified as a commercial activity and de facto subject to the 9% new tax ?

Do you refer to moving to Dubai or to opening a Dubai company and trading remote from other place? Because if it's real moving to Dubai from what I heard I am quite certain it's 0%. And not sure about future uncertainty but I doubt it as all biggest crypto traders/youtubers live there, there are even rumors Binance's CEO will be moving there.

I sent you a PM

 

[Bill D]

Title says it all. For those going to suggest Dubai "if there is no specific reason" not to go there, there is: the climate. From what I see Kuwait is dry and Dubai is humid.

Now that with the new CT system it seems day traders or individuals trading regularly as opposite to occasionaly will be undergoing the CT in UAE, does someone know about Bahrain, is it a good alternativ, it seems there are not CT there, is it easy to settle there and get the tax residence ? (Kuwait doesn't seem to be a good one with a CT of 15% and I did not check but I guess it would put traders (even individuals trading their own, as it seems it will be the case in uae) at risk of undergoing the CT.
What are the alternativ for individual day traders in 2023 among the 0% countries with the least hassles ?

 

[JackAlabama]

Now that with the new CT system it seems day traders or individuals trading regularly as opposite to occasionaly will be undergoing the CT in UAE, does someone know about Bahrain, is it a good alternativ, it seems there are not CT there, is it easy to settle there and get the tax residence ? (Kuwait doesn't seem to be a good one with a CT of 15% and I did not check but I guess it would put traders (even individuals trading their own, as it seems it will be the case in uae) at risk of undergoing the CT.
What are the alternativ for individual day traders in 2023 among the 0% countries with the least hassles ?

Why do you have that idea? It does not seem the case.