Moving to Dubai to work. Will also be cashing out crypto holdings there.

[manzonl2]

Hi All,

I am considering moving to Dubai to work for a couple of years. I purchased some cryptocurrencies while living in Australia 2 years ago but I am originally from Ireland. Im currently living back in Ireland as a tax resident but I have yet to cash out my crypto holdings. The holdings have appreciated quite a bit.

My question is- if I was to move to Dubai in the next couple of months to work, but then eventually cashed out my crypto in Dubai while living there, where do I pay my CGT? Or will I not owe any as I am now employed and tax resident in Dubai?

Also is Dubai crypto friendly- if I was to cash out 500K or more from my investments does this pose as an issue?

Any help or advice greatly appreciated. Thanks!

 

[Gediminas]

Hey,

In any case, Dubai will not challenge you, and you are subject to 0% tax here. The question is if Ireland or Australia might challenge your tax residency.

In order to estimate it, you need to assess your physical presence (home, real estate, economic interest, days spent) in Ireland and Australia. By the way, Ireland has a treaty for the avoidance of double taxation with the UAE, where residency rules between countries are discussed.

 

[manzonl2]

Hi Gediminas,

Thanks a lot for the response.

I only lived in Australia for 1.5 years on working holiday visa so I doubt they have any grounds to challenge.

Also, my only physical presents in Ireland at the moment is me actually living here. I'm unemployed (hence the move to Dubai) and own no properties or corporations etc.

Therefore I would probably need to look into the double tax treaty I suspect....

 

[Skadevolder]

Wouldn't either Australia or Ireland have the right to "exit-taxation" like they do with stocks etc?

 

[manzonl2]

Wouldn't either Australia or Ireland have the right to "exit-taxation" like they do with stocks etc?

I was under the impression that taxes were due when the gains were realized (profit taking).

 

[Skadevolder]

I was under the impression that taxes were due when the gains were realized (profit taking).

Yea, but as that avoidance of taxation to just move to another place and realize your profits, they will require taxes on profits (if any) upon leaving the country. Therefore an exit-taxation.
I do not know if this is applicable for Crypto (I dont even think the tax administrations know), but I could foresee it, if they ever found out.

 

[dlttrading]

I heard that exit taxation in Germany (when you leave Germany) is not applied for private crypto stash

 

[NicolasMaduro]

I was under the impression that taxes were due when the gains were realized (profit taking).

No usually they "pretend" that you sold the assets on the date you leave the country, and then you have to pay tax of the gains.

I know some countries have purchased information from 3rd parties and have managed to identify wallets and owners by tracking the original purchase. Now they are claiming tax.

I dont know how aggressive the Australien government is.

 

[manzonl2]

No usually they "pretend" that you sold the assets on the date you leave the country, and then you have to pay tax of the gains.

I know some countries have purchased information from 3rd parties and have managed to identify wallets and owners by tracking the original purchase. Now they are claiming tax.

I dont know how aggressive the Australien government is.

The assets were actually technically in a loss when I left Australia so how would that work in that scenario?

 

[Gediminas]

The assets were actually technically in a loss when I left Australia so how would that work in that scenario?

I don't think you should worry about Australia

 

[manzonl2]

I don't think you should worry about Australia

haha yeah I agree!

However, I need to investigate further if Ireland can come looking for taxes even though I will be a tax resident in Dubai and I will have not "cashed out" the gains while living in Ireland either.

 

[Verbatim]

some people from Ireland told me only after you have left Ireland for 3 years are any profits tax free. You should consult with a tax advisor.