Are individuals taxed on crypto trade in Cyprus?

Individuals trading in cryptos are subject to PAYE tax as any self employed person would be taxed.

This means that the profits on their trades will be added to their existing salaries and be taxed usually at 35%!!

We strongly recommend you to create a Company to minimise the tax. Contact us for more guidance 

 

Are Companies taxed on crypto trade in Cyprus?

Crypto trading is taxed like any other trade and it is subject to 12.5% Corporation Tax and dividend tax for Cyprus tax residents and domiciled persons.

 

What is the best way to trade cryptos?

The best way to trade Cryptos is via a Cyprus company primarily due to low taxes involved.

 

Can I use a company in a tax free zone to trade cryptos and receive my profits? In Dubai for instance or equivalent jurisdiction?

Yes you can but you need to bear in mind that you are still taxable on your worldwide income in Cyprus or at the place of your tax residency. Therefore, even if your Dubai company will not be taxed, the dividends or income you receive must be reported on your tax return at the country of your tax residency.

 

Using overseas tax free companies could be risky if you do not have the appropriate consultation so please contact us for further guidance.

 

Is getting a tax ruling popular? Will it create suspicion for me?

Getting a tax ruling is very popular and will not generate any potential issues. Different departments of the Cyprus income tax office are dealing with the tax ruling enquiries. In addition it is very profitable for the Cyprus Income Tax Office to receive such enquiries as there are disbursements involved for the application.

 

What are the disbursements for tax rulings?

• Euro 2,000 for the expedite process which takes appr. 1month; or
• Euro 1,000 for the slow process that takex appr. 2-3 months to get a response.

 

---

Read / Watch our latest articles on Cyprus Crypto Tax

Cyprus Crypto Tax for Companies and Individuals

Watch a video on Crypto currency tax (Video)

Tax Free Crypto Currency Trade (Video)

Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as legal or tax advice. Please consult with a professional tax advisor for advice on your specific situation.

 

CYAUSE AUDIT SERVICES

 

CYAUSE Audit Services is an Audit & Assurance firm with offices in Cyprus and the UAE regulated by the UK ICAEW, International ACCA and the Cyprus ICPAC. 

 

Our firm has extensive knowledge and experience in local tax legislations with specialisation in cryptocurrency tax and audit engagements, relocation consultation, international tax planning solutions and licensing of investment firms, funds and insurance agents / brokers. Our routine day to day services include accounting, audit, tax and advisory services to international businesses interested in relocating or establishing presence to Cyprus.

 

Our Partnership with  BKR International  ( aUSA association ranked number 10 in the world), ACCACE Circle (European Network) and 3E Accounting International, a Hong Kong Network, ensures that we are wired and closely connected in all jurisdictions, getting the latest corporate and tax news ensuring our tax planning is accurate and validated before finalisation. Being part of international networks ensures seamless collaboration with overseas experts and access to fast and accurate information on overseas tax and corporate legislations.

 

Feel free to contact us at enquiries@cyprusaccountants.com.cy or call us at +357 99 428 543.

 

Learn More about Cyprus Corporate Environment

Information about CYAUSE Audit Services and the Cyprus Corporate & Tax System can be obtained from our Website and our YouTube channel which provides valuable information about the Corporate & Tax Environment of Cyprus.