Setting up in Dubai for crypto trading

[boudica1]

I am UK citizen looking to setup residence in a location where I can pay no tax on selling my crypto assets and crypto trading, and open up bank accounts there and have a permanent residence.

I have decided that Dubai seems to be the place to do this as my other option, Singapore seems very difficult to get a VISA in? (maybe someone can confirm)

I don't mind spending 6 months of the year in Dubai.

Can anyone recommend a pathway for me to do this? Would I need to create a company in Dubai or is that not necessary?

 

[04372]

Check Georgia too, way cheaper COL and crypto trading is tax free.

https://expathub.ge/cryptocurrency-in-georgia/

 

[Fred]

I am UK citizen looking to setup residence in a location where I can pay no tax on selling my crypto assets and crypto trading, and open up bank accounts there and have a permanent residence.

I have decided that Dubai seems to be the place to do this as my other option, Singapore seems very difficult to get a VISA in? (maybe someone can confirm)

I don't mind spending 6 months of the year in Dubai.

Can anyone recommend a pathway for me to do this? Would I need to create a company in Dubai or is that not necessary?

Feel free to send us an E-Mail by clicking the Banner in my signature - we can help you for sure.

 

[boudica1]

Feel free to send us an E-Mail by clicking the Banner in my signature - we can help you for sure.

Thanks, sent you a message on your website

 

[Nomad POV]

Having proper Dubai set up, significant time spent in Dubai and tax residency certificate you might be safe. It would allow you also to maintain certain level of physical and social substance in the UK during the same year. Tax residency certificate shall protect you up to certain level.



If you don’t obtain certificate and don’t create adequate level of substance in Dubai you still might benefit from zero tax but you should limit UK presence to minimum (90 days per year). RDR3: Statutory Residence Test (SRT) notes). Plus in this case you have to be employed in Dubai (you should select proper set up which allows you to be employed in the company).



There are few different set up options with different pricing to become resident in UAE in your case.

 

[boudica1]

Having proper Dubai set up, significant time spent in Dubai and tax residency certificate you might be safe. It would allow you also to maintain certain level of physical and social substance in the UK during the same year. Tax residency certificate shall protect you up to certain level.



If you don’t obtain certificate and don’t create adequate level of substance in Dubai you still might benefit from zero tax but you should limit UK presence to minimum (90 days per year). RDR3: Statutory Residence Test (SRT) notes). Plus in this case you have to be employed in Dubai (you should select proper set up which allows you to be employed in the company).



There are few different set up options with different pricing to become resident in UAE in your case.

Thanks.

I won't be returning to the UK and am already non-tax resident a few years. As I have not stayed in any other country long enough to be declared tax resident, I am currently of no-residency (Which as you can imagine causes me problems should I need to prove this with banks).

I am looking to setup tax residency somewhere where I can do my crypto things for 1-2 years and a crypto friendly bank account that I can setup based on that residency through which I can cash out. As I mentioned I don't mind being there for 6 months a year. It seems Dubai is the best option but I have concerns about how crypto friendly its banks are.

The option seems to be to setup a company in Dubai through which to do all my activity?

 

[bubbledouble]

Check Georgia too, way cheaper COL and crypto trading is tax free.

https://expathub.ge/cryptocurrency-in-georgia/

are you sure about that with the tax free crypto trading? Then again, who want's to live in Georgia at the moment?

 

[boudica1]

are you sure about that with the tax free crypto trading? Then again, who want's to live in Georgia at the moment?

This was my concern with it also.

With Portugal introducing Crypto tax, for tax free crypto cash out it seems that setting up a company in Dubai and living there 6 months of the year is the only option. I looked at Singapore but it seems very difficult to get residence and bank accounts

 

[Nomad POV]

Thanks.

I won't be returning to the UK and am already non-tax resident a few years. As I have not stayed in any other country long enough to be declared tax resident, I am currently of no-residency (Which as you can imagine causes me problems should I need to prove this with banks).

I am looking to setup tax residency somewhere where I can do my crypto things for 1-2 years and a crypto friendly bank account that I can setup based on that residency through which I can cash out. As I mentioned I don't mind being there for 6 months a year. It seems Dubai is the best option but I have concerns about how crypto friendly its banks are.

The option seems to be to setup a company in Dubai through which to do all my activity?

Hi,

yes, Dubai seems a good option. Basically you can either to do crypto activities in the company or at individual level. Trading on behalf of the company adds additional challenges from legal point of view (it we follow all regulations precisely). For example, as a general rule you can pay salary or dividends from the company only in fiat, so you have limited options to get profits from the company in crypto. On the other hand in such case you could give crypto loan to the company and then receive it back in crypto. Having company just as visa sponsor and trading on individual level might be a bit more simple.

As regards banking - basically there are two options. To open crypto friendly EMI account in Europe (where you will be identified as UAE resident and they will share all info with UAE under CRS) or to open local bank account for crypto withdrawals. Since crypto is involved I suggest Emirates NBD (it will take some time to set up it) or SEBA (originally Swiss bank, just recently received permission to operate in ADGM free zone).

 

[boudica1]

Hi,

yes, Dubai seems a good option. Basically you can either to do crypto activities in the company or at individual level. Trading on behalf of the company adds additional challenges from legal point of view (it we follow all regulations precisely). For example, as a general rule you can pay salary or dividends from the company only in fiat, so you have limited options to get profits from the company in crypto. On the other hand in such case you could give crypto loan to the company and then receive it back in crypto. Having company just as visa sponsor and trading on individual level might be a bit more simple.

As regards banking - basically there are two options. To open crypto friendly EMI account in Europe (where you will be identified as UAE resident and they will share all info with UAE under CRS) or to open local bank account for crypto withdrawals. Since crypto is involved I suggest Emirates NBD (it will take some time to set up it) or SEBA (originally Swiss bank, just recently received permission to operate in ADGM free zone).

Thanks, I would prefer it simple so I would setup of the company and get the VISA, tax residence, then after this do my crypto personally.

Is there a average timeframe for how long it takes to get this setup, get tax residence to begin doing this?

Thanks for your advice

 

[Nomad POV]

Thanks, I would prefer it simple so I would setup of the company and get the VISA, tax residence, then after this do my crypto personally.

Is there a average timeframe for how long it takes to get this setup, get tax residence to begin doing this?

Thanks for your advice

You are welcome.

I have contacted you directly. Please check your profile conversations.

 

[JackAlabama]

This was my concern with it also.

With Portugal introducing Crypto tax, for tax free crypto cash out it seems that setting up a company in Dubai and living there 6 months of the year is the only option. I looked at Singapore but it seems very difficult to get residence and bank accounts

Singapore can be done but it is quite expensive. I guestimate it to not make any sense below 1M, if you need a residence visa together with it.

 

[diatessaron]

With so many people running to Dubai I won't be surprised when they start taxing.

 

[JimBeam]

With so many people running to Dubai I won't be surprised when they start taxing.

Naahh...
They want you in their country with your money.
And once you're in, as it's so boring, you'll start spending...

 

[04372]

are you sure about that with the tax free crypto trading? Then again, who want's to live in Georgia at the moment?

Yes, I'm sure. Just Google a bit and you'll find how it works there.

A lot of people live in Georgia, mainly Tbilisi.
If s**t gets bad just leave ¯\_(ツ)_/¯

 

[khinkali]

are you sure about that with the tax free crypto trading?

Having discussed this with several Georgian tax auditors, the way that public decision 201 is worded looks likely to apply regardless of trading frequency.

New rulings can clarify old rulings even with no change of law so it is possible that some kind of badges of trade approach or time of assets held threshold could shift some crypto trading from exempt foreign income to locally taxed "other economic activity". Of course we are seeing ambiguity and changes in these tax treatments in other countries too.

Personally I wouldn't invest in property in Georgia or develop roots such as a staffed office here if I was relying on Public Decision 201 and wanted to be ready to "just leave" if things change, as @04372 suggests.

Then again, who want's to live in Georgia at the moment?

People who like good weather for much of the year, friendly people, nice food, excellent wines, low cost of living, good personal banking, low bureaucracy for some things, decent Internet, good tax options for some people, amazing visa free regime for many nationalities, no need for work permit, inexpensive routes to visas if needed. Of course there are downsides such as banks being unfriendly to being used for offshore business activity, lack of investment advisory options and tax neutral fund regime, frequent but fairly short water and electricity outages, potholes, etc.

With regards to Dubai, the DMCC freezone has a specific business activity for "proprietary trading in crypto-commodities" which looks ideal for a crypto trader, yet members here seem against it and are suggesting to use other freezones. What legal activities or licences are being used for crypto trading in these free zones? I understand that some people just want to "cash out" of crypto and hide the gains from their home country, but is it really safe to have fake substance in some pretend company and use it to run a crypto trading fund? Or if you run a crypto trading business outside of the company, are we sure that this is not mainland business activity? Nobody seems to be clarifying these issues.