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.
About Us
CYAUSE Audit Services has extensive experience in the insurance industry has helped tens of insurance brokers and agents register and get licensed by the local Cyprus regulator granting them passporting access to the rest of the European Union.
CYAUSE Audit Services is an Audit & Assurance firm with offices in Cyprus and the UAE. During 2015 we have been awarded by I.C.P.A.C and the A.C.C.A (local and international association of Chartered Certified Accountants) for the Quality of our Audit Services and our Office's Procedures.
Being a Truly International Audit & Assurance firm, we have associates from all over the world and we are constantly looking for new associates to expand our network further. At present, CYAUSE Audit Services operates internationally through its membership with BKR International amongst the largest American associations in the world, Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience. Our network covers almost 40 jurisdictions with over 2,000 professionals, it supports more than 10,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and processes at least 170,000 payslips globally.
CYAUSE Audit Services Ltd is also a member of BKR International one of the biggest US Accounting Associations of the word and the 3E Accounting Network, an international accounting network which originates from Hong Kong and has more than 80 members from all over the world.
Learn More about Cyprus Corporate Environment
Information about CYAUSE Audit Services and the Cyprus Corporate & Tax System can be obtained from our Website or our YouTube channel which provides valuable information about the Corporate & Tax Environment of Cyprus.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
