Swing Trader Taxtation

[CyprusLawyer101]

If you relocate to Cyprus and only trade stocks and cryptos you get not taxed on the gains in Cyprus, or only apply for stocks ?

If trading i.e. regularly transacting then only stcks should be exempted.

So if

So if EU citizen wants to relocate Cyprus without the usual non dom procedure, what should he do?

Nothing much. Find a place to stay, register with migration office and get an Tax ID. You are then good to go!

 

[A1988]

I only trade futures, so I have no idea about bonds and the interest, but I imagine interest are treated as foreign income, so I don't think there are taxes on that.
Also there is no withholding on foreign dividends in Cyprus.
Of course if you generate dividends in the US you're subject to the US withholding rate, which is 15% based on the double tax treaty the US has with Cyprus.

No need for the Non-dom.

Hope that helps..

I trade futures too, in the usa, how can that income be exempt in europe? I heard Malta, Cyprus, Ireland and also Spain with beckham law would not tax futures trading in the usa ? Would you have any idea about it?

My only problem with Cyprus is that it's too close to Palestine and Israel, maybe nothing will happen but it's just too risky in the current environment to move with a family in my opinion

 

[liroyb]

If trading i.e. regularly transacting then only stcks should be exempted.


Nothing much. Find a place to stay, register with migration office and get an Tax ID. You are then good to go!

Thank you for your comment.

I've been hearing some conflicting information about it - Is it possible to receive Advanced Tax Rulling from the Cyprus Tax Authorities that day trading in stocks is exempt?

Does the 2.65% GHS also apply on stock trading income?

Would I need to show rent agreement for at least 1 year in order to register?

Is it mandatory to have private health insurance?

 

[CyprusLawyer101]

Thank you for your comment.

I've been hearing some conflicting information about it - Is it possible to receive Advanced Tax Rulling from the Cyprus Tax Authorities that day trading in stocks is exempt?

Does the 2.65% GHS also apply on stock trading income?

Would I need to show rent agreement for at least 1 year in order to register?

Is it mandatory to have private health insurance?

1. Yes a ruling is possible;
2.GHS does not directly apply to gains from trading stocks. It may arise though as part of your obligation to register as a self employed and pay social insurance contributions. If though the activity is done through a company then nothing of the above arises, unless you are tax resident in Cyprus and recieve the dividend income then the GHS will apply with a cap of less than 5k on that income;
3. At leasr one year rent agreement is advisable;
4. Yes;

 

[Radko]

So if

So if EU citizen wants to relocate Cyprus without the usual non dom procedure, what should he do?

It's very easy, you just have to go to Cyprus, rent a property, and with the contract you go to immigration and they will give you the "yellow slip" which is your residency permit.

If you don't become a Non-dom, then you have to stay in Cyprus for 6 months in each calendar year, to be able to qualify as a tax resident.

And that's it, it's very simple.

If you relocate to Cyprus and only trade stocks and cryptos you get not taxed on the gains in Cyprus, or only apply for stocks ?

There is no capital gains tax in Cyprus, so no taxes at all.

Here is a summary....

I trade futures too, in the usa, how can that income be exempt in europe? I heard Malta, Cyprus, Ireland and also Spain with beckham law would not tax futures trading in the usa ? Would you have any idea about it?

My only problem with Cyprus is that it's too close to Palestine and Israel, maybe nothing will happen but it's just too risky in the current environment to move with a family in my opinion

What you need is a jurisdiction that doesn't tax capital gains, so Cyprus for example.
It doesn't matter if you trade futures in the US, or in any other country, it's all about getting rid of the capital gains tax.
There are a lot of future traders living in Cyprus, I know a few, many Germans and Brits.

You have nothing to worry with the Hamas and Israel war, it's not that close. There are many families living happily in Cyprus. Living in Cyprus is very safe.

 

[liroyb]

1. Yes a ruling is possible;
2.GHS does not directly apply to gains from trading stocks. It may arise though as part of your obligation to register as a self employed and pay social insurance contributions. If though the activity is done through a company then nothing of the above arises, unless you are tax resident in Cyprus and recieve the dividend income then the GHS will apply with a cap of less than 5k on that income;
3. At leasr one year rent agreement is advisable;
4. Yes;

If actively trading individual is required to be registered as self-employed, he would be required to contribute to social insurance at 15.6% and NHS at 4% (total 19.6%)?

So while no income tax on his trading income, he would still pay close to 20% of his trading income?

 

[A1988]

It's very easy, you just have to go to Cyprus, rent a property, and with the contract you go to immigration and they will give you the "yellow slip" which is your residency permit.

If you don't become a Non-dom, then you have to stay in Cyprus for 6 months in each calendar year, to be able to qualify as a tax resident.

And that's it, it's very simple.



There is no capital gains tax in Cyprus, so no taxes at all.

Here is a summary....

View attachment 7507



What you need is a jurisdiction that doesn't tax capital gains, so Cyprus for example.
It doesn't matter if you trade futures in the US, or in any other country, it's all about getting rid of the capital gains tax.
There are a lot of future traders living in Cyprus, I know a few, many Germans and Brits.

You have nothing to worry with the Hamas and Israel war, it's not that close. There are many families living happily in Cyprus. Living in Cyprus is very safe.

Thanks for the information, what about Malta? I saw Malta doesn't tax capital gains arising outside of Malta, hence futures trading in the usa wouldn't attract any capital gains tax in malta too with non dom regime?

 

[liroyb]

It's very easy, you just have to go to Cyprus, rent a property, and with the contract you go to immigration and they will give you the "yellow slip" which is your residency permit.

If you don't become a Non-dom, then you have to stay in Cyprus for 6 months in each calendar year, to be able to qualify as a tax resident.

And that's it, it's very simple.



There is no capital gains tax in Cyprus, so no taxes at all.

Here is a summary....

View attachment 7507



What you need is a jurisdiction that doesn't tax capital gains, so Cyprus for example.
It doesn't matter if you trade futures in the US, or in any other country, it's all about getting rid of the capital gains tax.
There are a lot of future traders living in Cyprus, I know a few, many Germans and Brits.

You have nothing to worry with the Hamas and Israel war, it's not that close. There are many families living happily in Cyprus. Living in Cyprus is very safe.

Let's say a trader make a trading profit of 250,000 EUR/Year

The trader does not have a company and registered as self employed. Does his deductions would look like this?
GHS - 4,770 EUR
16.6% Social Insurance - 41,500 EUR

 

[Radko]

Let's say a trader make a trading profit of 250,000 EUR/Year

The trader does not have a company and registered as self employed. Does his deductions would look like this?
GHS - 4,770 EUR
16.6% Social Insurance - 41,500 EUR

No capital gains tax on the 250K

I know a few traders and no one registers as self employed.

 

[zaybxc]

GHS does not directly apply to gains from trading stocks. It may arise though as part of your obligation to register as a self employed and pay social insurance contributions.

I know a few traders and no one registers as self employed.

To be, or not to be self-employed?

 

[Radko]

To be, or not to be self-employed?

Not to be!
(If you trade from the comfort of your home why would you.. You would be the first one to start the trend, I don't think it will catch on)

 

[liroyb]

What if EU citizen comes to Cyprus, rents some cheap shithole to register in the system, maintains the rent year round without being present at all, and files tax return every year just to get the documentation he needs (utility bills and tax declarations) to satisfy his hysterical bankers?

 

[aniglo22]

What if EU citizen comes to Cyprus, rents some cheap shithole to register in the system, maintains the rent year round without being present at all, and files tax return every year just to get the documentation he needs (utility bills and tax declarations) to satisfy his hysterical bankers?

What i've heard from some guys , that they cross to North Cyprus and then fly from Ercan Airport without getting monitored while maintaining tax residency in south cyprus and they didn't have any problems . (Take it with a grain of salt )

 

[Radko]

What if EU citizen comes to Cyprus, rents some cheap shithole to register in the system, maintains the rent year round without being present at all, and files tax return every year just to get the documentation he needs (utility bills and tax declarations) to satisfy his hysterical bankers?

To be a tax resident you must either stay in Cyprus for 6 months per year, or become a a Non-dom and then you only have to stay there for 60 days, that's the law.

What i've heard from some guys , that they cross to North Cyprus and then fly from Ercan Airport without getting monitored while maintaining tax residency in south cyprus and they didn't have any problems . (Take it with a grain of salt )

I've heard this too, but I've never done it, although it seems possible since Turkey is so close to Cyprus.