Short tax residency options

[fortunespeculator]

Just to clarify, at least for Cyprus:

(a) Capital Gains are only imposed on the sale of real estate or shares connected to real estate.

(b) Cryptocurrency trading falls under the normal income tax rules, so at the moment your income is taxed.

(c) The discussion for the badges of trade above related to whether or not as an individual you would be deemed to be a professional and therefore having to pay social insurance contributions.

(d) If you are doing the trading under a company then you only have 12.5% corp tax and no social insurance.

Generally for the badges of trade, it is based on common law and there are a number of considerations to be taken into account, namely:

• profit seeking motive
• the number of transactions
• the nature of the asset
• existence of similar trading transactions or interests
• changes to the asset
• the way the sale was carried out
• the source of finance
• interval of time between purchase and sale
• method of acquisition.

Therefore each case has to be considered in its own merits.

So getting a cyprus residency and trading through my cyprus company does not alleviate me from taxes.
It seems it gets me deeper and more and more into taxation problems- seems i might be better off trading from a Dubai company staying in Dubai/Phillipines/Paraguay/Georgia(although for Georgia i am not so sure of their laws as per another thread). As an opportunist in the market i have to take advantage of whatever opportunities a market presents me. Although the majority portfolio will be handled by Victor Sperandeo and not me.

 

[backpacker]

So getting a cyprus residency and trading through my cyprus company does not alleviate me from taxes.
It seems it gets me deeper and more and more into taxation problems- seems i might be better off trading from a Dubai company staying in Dubai/Phillipines/Paraguay/Georgia(although for Georgia i am not so sure of their laws as per another thread). As an opportunist in the market i have to take advantage of whatever opportunities a market presents me. Although the majority portfolio will be handled by Victor Sperandeo and not me.

• Georgia -> No!
• Philippines -> Borderline. Read Singapore options (post s #8 & #15)

Easier: Move to the Philippines and do it as a private individual.

 

[mmlimb]

Just to clarify, at least for Cyprus:

(a) Capital Gains are only imposed on the sale of real estate or shares connected to real estate.

(b) Cryptocurrency trading falls under the normal income tax rules, so at the moment your income is taxed.

(c) The discussion for the badges of trade above related to whether or not as an individual you would be deemed to be a professional and therefore having to pay social insurance contributions.

(d) If you are doing the trading under a company then you only have 12.5% corp tax and no social insurance.

Generally for the badges of trade, it is based on common law and there are a number of considerations to be taken into account, namely:

• profit seeking motive
• the number of transactions
• the nature of the asset
• existence of similar trading transactions or interests
• changes to the asset
• the way the sale was carried out
• the source of finance
• interval of time between purchase and sale
• method of acquisition.

Therefore each case has to be considered in its own merit

Thanks for the valuable explanation!

If trading as an individual - is it necessary to register as a sole trader before you start? Or do you declare social fees like taxes once a year within the income tax declaration?

 

[zeroflag]

I'm also in Paphos. The problem is that the accountant is in Larnaca the one that is doing all my taxes. I've talked with a lot of accountants but the most professional I've seen is the Larnaca's one. The one who has the confirmation letter is in Limassol.

I tried to buy the one from the ones who had the confirmation letter but they said that unfortunately they can't because it has the name of the client.

And that the confirmation letter will take 1 to 3 months.

If you want you can give me your email and I can give you the accountant. I don't wanna make spam here xd. I can't send private message here yet.

And if you need help for example to get residence permit or something I can help you because I'm here in Paphos also. I've just got yellow slip.

Hi @Cyprustr, I'm in a similar situation who wants to FIRE in Cyprus, could you please share the contact of this accountant too?
My email: m.magyar3 AT gmail DOT com