Cyprus Taxation for Traders: The FINAL Answer.
Вставка
- Опубліковано 27 чер 2024
- Is trading in Cyprus tax-free, or not? How do you tax crypto, forex, stocks and other assets? This is the final answer to all your questions.
A lot of traders contacted me over the last few years because they want to move to Cyprus and live tax-free here.
I helped a lot of them, however there are some things that every trader needs to know, before moving to Cyprus.
No matter what asset you are trading, you should definitely do a big research before actually moving.
This video is for day trading, long term investors and other kinds of traders as well.
There are many factors and requirements that are worth noting, so make sure to watch this video until the very end.
I’m not a lawyer or accountant, so an individual consultation always makes sense. Contact me to get my personal recommendation for an accountant and lawyer in Cyprus.
If you are unsure about your move, or if you still have questions, you can reach out to me via cypru@ricardogorski.com
Contact me: Ricardogorski.com/cyprus
Connect with me on Insta: @ricardogorski
Songs: Causmic - Luxery, Sappheiros - Falling
Very helpful, thank you
Thanks for the video, especially in relation to crypto.
How about copytrading under a corporate Ltd in Cyprus?
I saw your video very informative. However, does that apply to the dropshipping business model? Thank you
Hi there. Regarding trading as an individual... does cyprus makes a difference between the sale of short - term - held and long - term - held stocks or ETfs? Or are both options tax free? Cheers
Very clearly explanation thank you Rico sir
Hi Rico! I am tax resident if Cyprus and I've registered trading account at one of the Cyprus forex broker. If I trade only stocks derivatives (without durectly buying shares), am I eligible to taxes for this kind of income? Thanks in advance!
Hi Rico, could you tell me how a prop trader is taxed in Cyprus? Is it taxed as an income if I trade as a person? Or is it taxed by the instruments I trade like CFDs with 0%?
I also have this question, did you find out?
Hi Rico. Great Video. But you didn't cover an issue with trading futures in a Prop Firms. Will my earning be counted as 0% like a general futures trading? In this case I still earn money from trading but Ican do it even witout brokarage account. If anyone else knows please share your reply in coments.
You are wrong on share trading as an individual from my undertanding its tax free no income or capital gains tax. Only tax is dividend tax. Capital gains tax are only immovable property. Share trading income within a company setup is different from an individual
I mentioned that stock trading is tax-free. 1:42
He isnt a trained tax consultant or lawyer or accoutant and he doesnt claim to be 😁
For anyone that wants a simplified tax card info just type kpmg cyprus tax card into google it will show up a useful little 20 page book on all cyprus tax
@@Assd-mn2mt True the water is very heavy on minerals and is not trustworthy you might get stomach issues everyone filters it before drinking it. He over exaggerates cyprus benefits he is a salesman to be honest. I have shown his videos to many cyprus locals and they are mystified over his crazy over the top positive videos on cyprus 😂
@@Saab-sr1cy @Saab-sr1cy Yes tourist based business goes into sleep mood for about 5 months of year but service sector businesses work year round. Yes nothing has changed much for 20 years ever since it joined the EU the initial forced changes to join the EU are over. It is one of the most corrupt places in europe nothing changes it has a political public service caste class that just scoop up and rape the country of just about everything and if you get caught in a legal case for justice i think its about 7 years to reach a first court date. Slowest in europe.
Hi Rico. When I consulted tjis here in Cyprus, they told me that though CGT is nill, you still need to pay 2.65% of your capital gains to social security. So, its not zero per se. Pretty good, but not as good as Dubai, and several others countries.... gor some reason many internet sides omit this info. Non-dom is purely exemption of defence tax. Hope it helps
Hi there, yes, I mention the 2.65% health care fee at 5:20. Thanks for reminding!
@@RicoWould you have to pay a 2.65% of the capital gains or from dividend income? I understood the 2.65% only applied to dividend income
@@alex9105 GESY applies to all kinds of income from individuals, so also capital gains.
This was a bit confusing, I understood that capital gains are completely tax-free, but now it seems that you have to pay 2.65% on everything, capital gains, and dividends.
What happens if a foreigner has private insurance, do they still have to pay 2.65% for health care?
@@p.c.h.6721 Yes
Hey Rico! So if you day trade forex and setup a company, once you've paid the company taxes, how do you pay yourself? Can you avoid personal incomes taxes when you get the cash out of the company? Thanks!
.
You pay yourself dividends.
hello first of all great video though i have one question that is not clear to me, i am a forex trader if i am an individual then i pay income tax up to 35% right? and if i am a company then i pay only 12.5% and only that or i have to give myself a salary and then again to pay the personal income tax? please clarify that one cheers =]
From what I understand, you pay yourself a very small salary, and then the rest of the money that you make you pay yourself dividends, which are taxed at 2.65%, that is what I understood.
Hi. Trading gold is tax free?
Believe or not, CGT in Belgium is zero. There is a small tax 0,15% for >1M portfolios to be paid once a year.
What tax would you pay if you are a Cypriot individual trader and cannot get non domicile status?
Why can't you just register your company in an offshore, 0% jurisdiction, trade there and distribute dividends to non-dom resident in Cyprus? Why bother with a Cyprus company?
What about receiving payouts from prop firms trading forex? How much tax you will pay? Do you have to have a company and pay VAT also? I mean because you receive payouts trading a simulated account with live data. Does capital gains tax apply to that or one should open a company and pay business tax. Also in that case are you liable to pay VAT?
I also have this question did you find anything?
@@mypersonaljournay only place with minimal tax is Dubai, that’s what I found out
As far as I understood a trader would pay the 2.65% Gesy contributions, but not get healthcare. Is that correct?
Of course they do. If you live in Cyprus and you're a tax resident here, you apply for the NHS GESY system, and then you are covered Europe wide. Even as a trader. I have a separate video about the health care system on my channel where I explain it further.
@@Rico I heard if you are not EU citizen you need to pay GESY , and you get no coverage.
Gold ETF would be taxed as a regular ETF or as a metal?
ETF
Can you do a video comparing Cyprus to Panama? Panama is also quite favorable for traders.
More comparisons will follow soon. Noted, thanks!
Yesss please!
You don't pay taxes in Panama as long as you make the money outside of Panama. It's a territorial tax system.
@@p.c.h.6721 Yes, it is a Territorial tax country. And Cyprus is non-Dom, which means you can potentially achieve the same ends using a structure that avails that system. What I was asking for is for Rico to do a comparison of the two systems as it specifically pertains to those two countries, and specifically for someone that trades the markets for a living. Just stating that Panama is a Territorial tax country (something found on Google in 30 seconds) doesn't even begin to answer that question.
@skranz7790
I don't know if this helps... I just came back from Panama, I was there for 12 days. I'm a trader myself, I trade futures. I have, at the moment, 4 friends living in Panama that are trading as well, and they do not pay taxes (they all use Interactive Brokers, or Charles Schwab). Then, in Cyprus, I have 5 friends who are also traders. They don't pay taxes either, except for the 2.65% that they pay to the health care system (they all use Interactive Brokers).
I will be visiting Cyprus in a few months, then I will decide where to relocate, I'm done paying taxes. But, getting residency in Cyprus is easier than getting residency in Panama, although in Panama, you don't need to spend 60 days per year. You only have to visit Panama once every 2 years. But in Panama, you can no longer show up and show them that you have some savings to get residency. If you're a pensioner, then go to Panama, you'll get discounts on many things, restaurants, cinema, medications, flight tickets and so on. I hope that helps.
4:18 "nobody knows about offshore bank accounts", ummm FATCA, OECD, AEoI, CRS??? Ever heard about em'?
I believe even under a corporate structure there is no tax on all securities that are tax free for individuals? (But have asset protection benefits of llc)
You are correct. Capital gains from securities are also tax-free for companies.
@@Rico However, does the 2.65% tax still apply for tax residents? What about for non-resident's that only spend maybe 3 months in Cyprus and the other 9 months elsewhere?
Hi, what if my earnings come from prop trading?
Good point! I have the same question.
If you trade stocks as an individual wouldn't that mean that your portfolio of stocks would have no asset protection in the event of a future court case? Would trading through a Dubai company while living in Cyprus get around this?
Hey, well, this is not just the case in Cyprus, in every country when individuals directly own stocks or other assets, the assets could potentially be at risk in the event of a lawsuit, bankruptcy, or other judgment against the individual. Of course.
Putting it into a company entity or a trust would limit the liability, yes. I actually made a video about the Dubai option. It's called "How to legally pay no tax in Cyprus".
If you're considering this option for you, feel free to reach out for an individual consultation.
Hey Rico, what about crypto mining as an income do you have info on this as not a trader? Cheers
Hey, very complex, and at this moment no one can give you a fully legal answer. You would need to wait to find out whether it's taxed with a capital gains, or income tax. In the meantime, you could go with the corporate solution to know the "worst case scenario" (profits taxed with 12.5% corporate tax).
So futures day trading by an individual is not taxed?
Are you sure that you pay taxes on forex trading as an individual because I have read that it is tax free?
Hey! It may be that you read about currency exchange differences. Those are tax-free. Let's say you issue an invoice for 10K USD = 11K EUR, and you receive it a month later where 10K USD = 12KEUR, that 1K extra gain will be non-taxable then. However, someone day trading Forex needs to pay either income/capital gains tax, or corporate tax when trading in a company entity.
Understand, thank you for clarification
Very clear explanations ! Thanks Rico
Grazie Raffaello!
@@Rico Sprichst du Italienisch ?😊 PS: something important to know > it's more difficult and much more expensive to be client of a broker as a company rather than as an individual. Reason: insolvency in the event of bankruptcy...
@@raffaelloschirinzi2072I only speak the basics, Raffaello! :)
how about trading precious metal ETFs (e.g. gld, slv) ? I assume this is what is meant here? or do you mean physical precious metals or what?
Yes, I was referring to precious metals ETFs for example. When it comes to physical precious metals, also note that even VAT might be added.
I'm waiting for them to come to a conclusion for crypto taxation, annoying
Same here.
Another great video Rico!
Do they distinguish between 'traders', who do high-volume, daily trading, and mere 'investors' (e.g. people who buy and hold and will just sell over a few months near the market top)?
Can someone who has crypto in their personal name capitalize their company with the crypto, without needing to sell it, capitalize the company with cash, and then buy it back?
Thank you, David! They rather distinguish between the assets you are trading, as explained in the video. However, high volume day trading could be seen as personal income (if it's your only income source), whereas swing trading with other businesses defines capital gains. Hope it helps!
Thanks RIco!@@Rico
Always nice input. Thanks for sharing. Unfortunately, you live at the other side of CY, otherwise I would've invited you to Kafedaki. Grüße aus Larnaka
Thanks for the kind words, I appreciate it a lot. I've been to Larnaca a few weeks ago. Regards from Paphos, I'll surely visit again. And if you want more nature, come to Paphos, haha. :)
but if we are already European, can we become non-dom in 60 days with a year-round rental apartment? And that without creating a company in Cyprus, and without having a big wallet? Thank you
Hello! Yes, you can. A company formation is not required for individuals to obtain the Non dom status in Cyprus.
cool! so the only problem is cfc, because if we got an offshore company (without employee) we do not have the right to manage it from cyprus without being taxed there if I understand correctly. Watch you from France, forfait m'y english ahah
Forgot*
@@louisalexandre7841 Basically like this, and Dubai is actually also in the CRS. So moving to another country is the best option these days. Your English is good, we can also schedule a call together for an individual consultation.
Also have to mention that as a non-dom I do not pay taxes on bank or bond interest earned! Makes a huge difference in a world where we now get interest on our assets.
Von 55% Steuern in AT auf 35% in Zypern klingt schon besser aber auch noch "hoch" vielleicht gibt es da auch noch andere Möglichkeiten die du einem erklären könntest falls man sich mal Offline trifft ^^ :)
Hey, wie genau kommst du auf 35%? In einer Firma ist die totale Steuerlast maximal 15.65%. Gerne können wir ein Meeting (ob online oder offline) ansetzen. Lg!
@@Rico Meinte die Einkommenssteuer als "Individual" (für Forex Trading) wie ich verstanden habe geht die up to 35%, vielleicht habe ich es falsch verstanden sorry, aber ja als Firma hast du schon recht 👍
Habe vor mit meinen Kollegen nach Zypern (Paphos) auszuwandern deswegen sehr neugierig, habe schon alle deine Videos auf deinem Kanal geschaut, feier deine Videos. LG
@@Aleks789456123Genau, also mit der Firmenvariante bist du fix bei 15.65% bei allen Tradingaktivitäten + sonstige Einnahmen.
Wenn ihr vorhabt auszuwandern, meldet euch gerne bei mir via Videobeschreibung und wir besprechen das ausführlich. Bis dato Lg aus Paphos. Und danke für den Support! :)
Hi Rico I was trying to contact you regarding a accountant recommendation I cant see any links in the video description ?
You are right, I just added the link. It's Ricardogorski.com/cyprus - Thanks for noticing!
I just figured out yesterday that most rich crypto holders invest with professional crypto traders to learn new strategies and earn huge amount of money. How true is this
Please educate me, I’ve come across this name before, Now i'm interested to start trading with her
Mary Gail Benner is in jail for touching little kids.
@@TESLA_MOTOR Mary Gail Benner is in jail for touching little kids.
Mary Gail Benner is in jail for touching little kids.@Lucas-467
@seanhenry4898 Mary Gail Benner is in jail for scammer