Where to pay tax?

[pirbtc]

Hi all,
I am currently eu passport holder but long term UK tax resident
Planning to move to Cyprus in April, before new financial year start

I am currently holding some crypto with decent unrealised profits

As I understand i won't be tax resident and as uk has no exit tax (yet) I am free to sell my crypto after leaving.
I aslo won't become a Cyprus tax resident for at least few months

If I sell my crypto after stop being uk tax resident and before becoming Cyprus tax resident it's officially tax free? Or is missing something?

 

[daniels27]

Yes, this is possible.

 

[Xshore]

If you stay 183+ days in Cyprus this year, won't you become tax resident for all of 2025?

Anyway, isn't capital gains tax free i Cyprus?

 

[jeffbean]

I think you would become tax resident in Cyprus from the day you get your residency card. I assume you will tell hmrc you have left etc via the self service form online on that date or the day you left via plane.

Check with a lawyer there it is nothing people haven’t done thousands of times.

There is no law there on crypto, so if you hold generally long term and don’t say trade then it won’t be seen as trading or income tax.

 

[Martin Everson]

If I sell my crypto after stop being uk tax resident and before becoming Cyprus tax resident it's officially tax free? Or is missing something?

You need to time it right when you leave the UK and its best to wait one whole tax year before selling. But moving before April is fine as if you leave UK any later i.e in October 2025 and sell in December 2025 you will still be subject to UK CGT. That's because HMRC can treat you as tax resident for the whole year of your departure unless you can qualify for split year treatment. You must also remain non-UK tax resident for 5 complete tax years after leaving and not return before that otherwise you will have to pay the CGT.

I am free to sell my crypto after leaving.

Yes but if money from crypto sale flows to a bank or EMI then where are you gonna say you are tax resident for CRS reporting purposes? Also what adresses will you be giving bank or EMI? You could open a can of worms here.

In reality your best to establish a tax free or territorial tax residency somewhere.

 

[pirbtc]

thanks for reply
I am leaving before 5th of April with tickets already booked.
I was worried about banks as well.

Can use my temp address in my home country ( Estonia) for cashing out after getting confirmation from hmrc ( if I get one after filling p85 form)
I occasionally visiting Estonia for few weeks per year and still hold bank account here.

Or go to Dubai for 1 year before Cyprus?

Not sure what is more safe really

 

[daniels27]

It is important, that HMRC has a good address in a country where somebody gets your mail. We had some discussion here:

D

Post in thread 'Revolut 2024 auto CRS-'

Jan 3, 2025

Yes you can call HMRC hotline and ask if there is any outstanding communication related to tax filings you need to complete. You only really need to do this if your address has changed over the years. If not then any issues they would contact you with what they have on record.

FYI: I called HMRC. You can actually give them your current address. They will then send you all there and you won't have any bad surprised. They told me that I can then leave whatever I want with the banks as they would use my current address on file.

• daniels27

• 

For the banks, I would give them your parent's address in Estonia. Just something where you can receive mail with confidence.