How to Reduce Taxes for Investors & Crypto Investors_5
When it comes to countries with attractive tax rates, two islands are most often mentioned - two former "competitors" under the Citizenship by Investment Program (CIP) - Cyprus and Malta.
After the closure of CIP in Cyprus, the local authorities had few arguments on how to attract foreign investors. The main reason is obvious - taxes.
As a reminder, non-domiciled individuals are exempt in Cyprus from dividend and interest tax, income from the sale of securities, from employment outside Cyprus in non-resident companies, from capital gains tax on the sale of real estate ...
Crypto currencies and DLT technologies can become another "attractiveness factor" for investors. Although at the moment in Cyprus there is no legal framework governing blockchain and cryptocurrencies, the authorities have taken positive steps to create one. The Cyprus Securities and Exchange Commission (CySEC) has established an Innovation Center to accelerate the creation of business models that are consistent with CySEC's commitment to safeguarding investor interests.
For owners of crypto assets, Cyprus is interesting from the ICO point of view. Despite the fact that funds received from ICOs are taxed in Cyprus (as they relate to taxable income), the corporate tax rate of 12.5% looks tempting, and the ICO procedure itself is becoming a "popular mechanism" for collecting funds.
In addition, resident companies can receive an effective tax rate of 2.5% on intellectual property income.
The most common options for "moving" to Cyprus:
- the so-called Pink Slip - without the right to work, subject to long-term rental housing and the availability of funds to cover living expenses;
- through the formation of a Cypriot company with an investment (authorised) capital of 200,000 euros;
- as a result of the acquisition of real estate with a value of 300,000 euros and by placing a deposit in the amount of 30,000 euros.
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