Withdraw crypto in UAE

[fredkassos]

Hi all,

I am a Belgian citizen and national. I live and work in Belgium.

Around 3–4 years ago, I transferred all my savings to Binance (approximately €100,000). I made some good investments and some less successful ones, but I should now be able to cash out between €900,000 and €1,000,000.

I have lived in the UAE a few years ago, so I am familiar with how things work over there.

My current plan is to go to the UAE, cash out my funds from Binance, make a few real estate purchases, then return to Belgium and continue living my life while benefiting from the rental income.

I know this sounds too good to be true, which is why I’m seeking your advice on how to make this plan a reality.

From what I understand, Belgium does not tax rental income generated from properties located in the UAE. However, I might be questioned about the source of the funds used to purchase these properties — and that's where things could get complicated.

Thank you for your help.

 

[fredkassos]

It might also be worth mentioning that, given the uncertain future of Belgium (or Europe in general), obtaining a UAE Golden Visa could be a valuable asset for difficult times.

Additionally, I would like to clarify that I am not fixated on the UAE or Dubai specifically. I am, of course, open to considering other countries if they offer better opportunities in terms of taxation and investment.

 

[JustAnotherNomad]

I am a Belgian citizen and national. I live and work in Belgium.

The words "citizen" and "national" mean the same thing. I think you meant "resident".

Around 3–4 years ago, I transferred all my savings to Binance (approximately €100,000). I made some good investments and some less successful ones, but I should now be able to cash out between €900,000 and €1,000,000.

Are you sure it's even that bad?
This article sounds like you may not even have to pay tax?

https://www.publish0x.com/galaxie-c...haven-for-cryptocurrencies-in-belgium-xmjnolo

As mentioned in the article, I would also be worried that your crypto holdings have already been reported to Belgium.

I have lived in the UAE a few years ago, so I am familiar with how things work over there.

Whatever that means.

My current plan is to go to the UAE, cash out my funds from Binance, make a few real estate purchases, then return to Belgium and continue living my life while benefiting from the rental income.

Ok.

From what I understand, Belgium does not tax rental income generated from properties located in the UAE.

I googled quickly and it absolutely seems like Belgium will not tax rental income from UAE properties if the income is taxed in the UAE.
You would have to check if it actually counts as taxed in the UAE (taxed at 0%), or if it counts as "not taxed" - if the latter, then I would guess that it would still be taxable in Belgium.
In any case, you would have to declare the income, as this will increase the tax you pay on your other income.

However, I might be questioned about the source of the funds used to purchase these properties — and that's where things could get complicated.

Maybe speak to @Fred - maybe he can offer you a job.
Working physically for a UAE company in the UAE would also be exempt from Belgian tax.
But you would have to work from the UAE, otherwise you would have to pay tax on the salary in Belgium.
And as mentioned, you would have to declare this, as it will increase the tax you pay on your other income.

 

[daniels27]

The words "citizen" and "national" mean the same thing. I think you meant "resident".

I thought that anybody born in American Samoa or Swains Island is a US national but not a US citizen.

 

[fredkassos]

The words "citizen" and "national" mean the same thing. I think you meant "resident".

I didn't know. Thanks.

Are you sure it's even that bad?

Quite sure. We are talking for my case of 33% to 50% taxes.



Indeed, it will increase my taxes, but it's a fine by me. Belgium is all about taxes, it will just put me in the higher tax brackets.

 

[Martin Everson]

From what I understand, Belgium does not tax rental income generated from properties located in the UAE.

True...but be careful here.

"Belgium and the UAE thus have a DTA in place but due to the UAE’s lack of (personal) income tax, Belgium may not automatically exempt UAE-sourced income from taxation. In practice, Belgian tax authorities often require proof that the income has been effectively taxed in the UAE to grant an exemption. Given the UAE’s current tax structure, providing such proof can be challenging, potentially leading to the income ultimately being taxed in Belgium."

However, I might be questioned about the source of the funds used to purchase these properties — and that's where things could get complicated.

You said you transferred your savings to Binance and you will use the gains from that to buy property. The source of funds for the property would be your savings.

Whats the issue? Have you failed to declare something?

 

[fredkassos]

Whats the issue? Have you failed to declare something?

Indeed, I didn't declare my crypto earning to Belgium... yet.


I'm still trying to figure out the best strategy here.

 

[Fred]

As mentioned by @JustAnotherNomad you might be interested in our USDT to WPS Salary Service.