I have actually spent the last two weeks looking into the above UAE solution discussed by 'totlori9' and 'Jessie' in this thread. I have contacted a local tax advisor last week and she confirmed this would work as described. I have also since found a company in the UAE offering storage rooms for expats that have their own postal addresses (think of it like a PO box but instead of the size of a drawer it is the size of a room) and they allow you to rent out the rooms further to someone for profit. Just wanted to say thanks for this idea, and let everyone here know that this was actually confimred to be a viable solution to the' cashing out crypto in your name' problem if your country of residence has a double taxation treaty with the UAE and that I have decided to pull the trigger on this one thanks to this thread.
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Looking for someone to consult me on the best way to cash out Crypto with minimal tax.
- Thread starter Jessie
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I have actually spent the last two weeks looking into the above UAE solution discussed by 'totlori9' and 'Jessie' in this thread. I have contacted a local tax advisor last week and she confirmed this would work as described. I have also since found a company in the UAE offering storage rooms for expats that have their own postal addresses (think of it like a PO box but instead of the size of a drawer it is the size of a room) and they allow you to rent out the rooms further to someone for profit. Just wanted to say thanks for this idea, and let everyone here know that this was actually confimred to be a viable solution to the' cashing out crypto in your name' problem if your country of residence has a double taxation treaty with the UAE and that I have decided to pull the trigger on this one thanks to this thread.
What company is that if you don't mind to share now you got such great help from the banned member?
Since the thread started back in Nov 1st until today BTC has lost around 30% of its value and so has the total crypto market. 
. Put that in perspective with just a 10% Bulgarian tax rate of OP.
What totlori9 (banned) suggested is complete nonsense. Who does that guy think he is - Paul Manafort?
Please share name of the local advisor in UAE that would back this nonsense.....lol. They don't play around in the UAE with people associated with such schemes.
. Put that in perspective with just a 10% Bulgarian tax rate of OP.What totlori9 (banned) suggested is complete nonsense. Who does that guy think he is - Paul Manafort?
Please share name of the local advisor in UAE that would back this nonsense.....lol. They don't play around in the UAE with people associated with such schemes.
I have just sent them their fee today. They should be sending me the contract tomorrow. I'd feel better posting the link to their website once this has been already done.
Since the thread started back in Nov 1st until today BTC has lost around 30% of its value and so has the total crypto market.
What totlori9 (banned) suggested is complete nonsense. Who does that guy think he is - Paul Manafort?
Hi,
You have misunderstood. The advisor is not in the UAE. I have contacted an advisor in my own country of residence, because that's what I needed. Somebody that is familiar with both the local tax authority and the double tax treaties to confirm that subletting a storage room (or a flat or a house) in the UAE is subject to income tax in the UAE ONLY (which is 0%) according to the tax treaty.
The UAE company is not an advisor, they provide storage rooms that have an UAE address that you can receive packages to in your personal name. They are intended for expats moving there who don't have a postal address that they can receive mail or packages to. They have nothing to do with taxes or advising.
When you cash out crypto you receive your funds from a crypto exchange to your bank account in your name. Should the tax authority/bank ask for the source of funds you provide two contracts. One that you have rented the storage room from the UAE company, and another that you have rented it out for profit to an offshore company and that is the source of funds you received. This is income from the renting of a 'permanent establsihment/immovable proeprty' in the UAE. Which is subject to income tax in the UAE, not at your place of residence. In the UAE there is 0% tax and you are not subject to the 5% VAT until you reach the ~€90k threshold. So this is a tax free income certificate up to ~€90k per year per person with a contract (you can repeat this with relatives). This is what the mentioned tax advisor (the one from my own country) confirmed.
I haven't read the whole thread, and maybe it has been adressed already, but I'm not sure i understand this point. Wouldn't the name and other data of Crypto exchange/OTC desk from which you receive your funds clearly contradict to information of the Offshore company you've "sublet" the space to?
There is no contradiction. You are stating that you received the payment from the Offshore company as rent in crypto. The Crypto exchange/OTC desk from which you receive your funds to your bank account were just a payment processor making the exchange of the crypto you received to fiat.
That raises even more questions. Is crypto a legal tender in you country of residence? I doubt. Will you set rental fee in the contract in crypto? No way i would ever show to my home country tax man a contract between myself and offshore company made out in crypto! That's like showing candies to a kid. If anything, if i were you i would enter Malta global residence program, receive malta residence permit and TIN, pay minimum of 15.000 annual tax in Malta, open bank account elsewhere other than your home country, preferrably place like Hong Kong or Georgia, report your tax residence to be in Malta and cash out to it.
@gonharpia22 What is your country of residence?
So you are earning an income in UAE from your home country with an offshore company as your client. So which country are you living in then?
Sorry I have sent this post without finishing it, so I wanted to say that in order to receive payment it doesn't have to be denominated in a legal tender. Think about all the EMIs. They are electronic money issuers. None of the electronic money they issue and provide payments in are considered legal tender. Yet you can send an receive payments through them.
In order for this to work my country of residence can be in any of the countries the UAE has a double tax treaty with. Which is a 115 countries as of now: Avoidance of Double taxation
Isn't better to rent an apartment, get a residence id and cash out on a personal bank account without paying any VAT?
Further to this, the contract doesn't have to be made out in cripto. Let's say we are talking about €50k. The contract says €50k. You receive €50k from the Crypto exchange to your bank account. It doesn't matter from the tax authorities perspective in what currency or how you received that to your address at the exchange. In BTC, XRP or whatever. It is in € when it arrives to your bank account.
I prefer not to tell. But it is the same for that entire list. Income from renting out property located in the UAE is taxable only in the UAE if the country has an OECD double tax treaty with the UAE. So it doesn't matter until it is on the list.
Renting an apartment in the UAE costs €1k/month, you need to travel there, you'll have living expenses, open a bank account etc. This costs €1k/year and I don't have to move a muscle.
This way I can get a residency in any UAE dtt country, for example the Netherlands which has up to 50% tax and using your scheme to cash out crypto paying 0 or 5%. Too good to bee true.
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