Cyprus crypto EUR cash out?

[JoeBlow]

What am I missing here with the following potential crypto sale? (assume Cyprus residency)

Step 1 - Sell crypto on Kraken
Step 2 - Send EURs from Kraken to German Fidor Bank (individual account).
Step 3 - Forward at your leisure from Fidor Bank to established Cyprus Bank account - funds aren't coming directly from an exchange thus shouldn't get blocked for the customary "internal bank policy" reasons.

Is this not possible? Tax implications?

Cheers

 

[roberto007]

This would never be accepted without Due diligence of the source of funds by a Cyprus bank and once they realize the source of funds is crypto they will block the account.

The main options are through an EMI in Cyprus or abroad. Or keeping it in foreign bank.

Another option would be to cash out through purchasing property using crypto.

yes or buy car in UK from VAT company so without VAT then sell car. I have sold numerous cars and banks are OK showing that you sold car they dont ask where you got money for a car. It was up to 30000EUR for 100K could be different. But you can buy several cars and use several banks. But yeah could be different ball game. I would guess 2 cars each 50K is ok but if you plan every month then you need to think about some business.

 

[Almouk]

Can anybody confirm if staking and lending cryptos in Cyprus as natural person considering the Non Dom status would be tax free?

About traditional financial markets, trading stocks and futures are tax free but what happens if you trade stocks or indexes through CFDs? I guess in this case, profits, maybe are not tax free, so I hope someone can clarify me this.

Thanks in advance!

 

[Almouk]

I thought someone, at least could give us a proper information if staking and lending cryptos in Cyprus as natural person considering the Non Dom status would be tax free.

What do you think about that @CyprusBusiness @CyprusLaw ?

Thanks in advance!

 

[CyprusLawyer101]

I thought someone, at least could give us a proper information if staking and lending cryptos in Cyprus as natural person considering the Non Dom status would be tax free.

What do you think about that @CyprusBusiness @CyprusLaw ?

Thanks in advance!

The matter is not clear as there is no specific legislation or circular being issued. However approaching the matter correctly cqn result into favorable tax treatment while minimizing tax riak exposure. This might sound vague, but in the absence of definitive legislation a tax risk assessment approach is the optimum approach.

 

[CyprusBusiness]

I thought someone, at least could give us a proper information if staking and lending cryptos in Cyprus as natural person considering the Non Dom status would be tax free.

What do you think about that @CyprusBusiness @CyprusLaw ?

Thanks in advance!

Hello

No specific legislation has been enacted as of now, which depicts the tax treatments for trading in cryptographic assets. We are anticipating a formal announcement this year. Therefore, the common practice is to consider any crypto trading activity as taxable under the normal trading route.

Even in case of staking or liquidity mining, rewards and transaction fees would be deemed taxable. Of course, there are several grounds to optimise tax position which need to be considered on case by case.

With these type of activities, operating through a company in Cyprus rather than on freelance basis would be more optimised.

 

[detailoriented]

I've been thinking about moving to Cyprus and trade crypto-to-crypto as a natural person (I'm not in a hurry to cash out fiat currency) but then I found out that an EU citizen needs the yellow slip to live more than 90 days in Cyprus: @CyprusLaw can an EU citizen without a job but who has the financial means to pay the rent, bills and health insurance get the yellow slip?

I'm in a similar boat. Although I would be paid regularly in stable coins and tokens. Did you progress on the matter? Have you opted for Cyprus?

 

[antani]

I'm in a similar boat. Although I would be paid regularly in stable coins and tokens. Did you progress on the matter? Have you opted for Cyprus?

I only had a phone call with an accountant in Cyprus a couple of months ago and he told me:

- lack of legislation regarding crypto (every accountant sees things differently);

- crypto-to-crypto trades don't generate tax events;

- gaining money from staking falls under capital gains and is taxed at 20% ;

- impossible to cash-out crypto to Cypriot banks;

- people cash out using ATM or spending with a card such as Binance card, crypto.com card or Coinbase;

- EU citizens who have a health insurance and more than 50k euro (to prove with bank statement) won't have issues to get the yellow slip (a document that allows to live longer than 3 months in Cyprus); in this scenario it should be easy to move the tax residence there also without an income.

In my situation Cyprus seems to be a good option as the crypto-to-crypto is tax free, but the lack of legislation and banks not accepting crypto cash-out might turn out to be a waste of time and a loss of money moving there.
So I'm still thinking if moving there or not.

 

[CyprusLaw]

I only had a phone call with an accountant in Cyprus a couple of months ago and he told me:

- lack of legislation regarding crypto (every accountant sees things differently);

- crypto-to-crypto trades don't generate tax events;

- gaining money from staking falls under capital gains and is taxed at 20% ;

- impossible to cash-out crypto to Cypriot banks;

- people cash out using ATM or spending with a card such as Binance card, crypto.com card or Coinbase;

- EU citizens who have a health insurance and more than 50k euro (to prove with bank statement) won't have issues to get the yellow slip (a document that allows to live longer than 3 months in Cyprus); in this scenario it should be easy to move the tax residence there also without an income.

In my situation Cyprus seems to be a good option as the crypto-to-crypto is tax free, but the lack of legislation and banks not accepting crypto cash-out might turn out to be a waste of time and a loss of money moving there.
So I'm still thinking if moving there or not.

The CGT point is 100% wrong, CGT in Cyprus only applies for real estate property sale or shares linked to real estate property. What you describe would fall under income tax/corporate tax

 

[detailoriented]

I only had a phone call with an accountant in Cyprus a couple of months ago and he told me:

- lack of legislation regarding crypto (every accountant sees things differently);

- crypto-to-crypto trades don't generate tax events;

- gaining money from staking falls under capital gains and is taxed at 20% ;

- impossible to cash-out crypto to Cypriot banks;

- people cash out using ATM or spending with a card such as Binance card, crypto.com card or Coinbase;

- EU citizens who have a health insurance and more than 50k euro (to prove with bank statement) won't have issues to get the yellow slip (a document that allows to live longer than 3 months in Cyprus); in this scenario it should be easy to move the tax residence there also without an income.

In my situation Cyprus seems to be a good option as the crypto-to-crypto is tax free, but the lack of legislation and banks not accepting crypto cash-out might turn out to be a waste of time and a loss of money moving there.
So I'm still thinking if moving there or not.

I would look to spend crypto with crypto.com but otherwise not cash out so that doesn't really bother me. I suppose the only negative is the lack of long term clarity. It would be a big bummer to go through the effort of getting everything setup and moving over only to have a negative ruling that makes it unviable.

 

[CyprusLaw]

I would look to spend crypto with crypto.com but otherwise not cash out so that doesn't really bother me. I suppose the only negative is the lack of long term clarity. It would be a big bummer to go through the effort of getting everything setup and moving over only to have a negative ruling that makes it unviable.

Just to clarify even though the tax circular has yet to be formally published we have information as to what this will include. Please note that as things stand the circular will simply confirm the position stated above i.e that such income falls under income tax with some potential exemtpions such as security tokens.

Any differentiation to the above will be to give incentives to crypto-traders, not the other way around

 

[Almouk]

Just to clarify even though the tax circular has yet to be formally published we have information as to what this will include. Please note that as things stand the circular will simply confirm the position stated above i.e that such income falls under income tax with some potential exemtpions such as security tokens.

Any differentiation to the above will be to give incentives to crypto-traders, not the other way around

So staking fall under Personal Income Tax? And lending criptos? Even having the Non Dom status? I suppose, at least, first 20k are tax free as usual.

About this tax circular you mentioned above @CyprusLaw that is not formally published but you have info, can you go deeper or advance the most meaningful points, terms or changes?

Thanks in advance.