Cyprus - taxes on full time trading?

Discussion in 'Taxes and Accounting' started by anon9812, Mar 1, 2020.

  1. anon9812


    Hey all, I've been thinking of moving to Cyprus due to their 0% capital gains tax and low/normal cost of living. I trade stocks and options, sometimes forex.

    I know in some countries trading for a living, i.e. trading as the only source of income or frequent trading, are taxed as income, not capital gains. In other countries, it's taxed as capital gains in any case.

    So I'm wondering how is it exactly in Cyprus? If there's really a 0% tax on trading income, are there any other charges or taxes tied to income, like social security and such? Anyone here trading out of Cyprus?

    I contacted tax advisors in Cyprus but they didn't reply.
    Last edited: Mar 1, 2020
  2. Robert Morse

    Robert Morse Sponsor

    I have heard banking in Cyprus is very restrictive. I have been told that Puerto Rico has no tax on trading, but you should check. Look for Puerto Rico Act 20 and 22 .
  3. anon9812


    Thanks. Unfortunately I'm not a US citizen so I can't just move to Puerto Rico.
  4. Nighthawk


    You can trade for 0% tax in Cyprus as long as you fulfill certain requirements.


    Email of the auditor/tax team:
  5. Nighthawk


    If your name is Paul Mannafort and you have Millions in undeclared revenues, you will certainly be reported to the IRS - which Bank of Cyprus did in Mr Mannfort´s case - rightfully!


    In Paul Manafort’s Trial, a Cyprus Bank Is a Cooperating Witness

    Otherwise banking in Cyprus is just "cool"....! :thumbsup::thumbsup::thumbsup:
  6. anon9812


    Well thanks, but lets not detour from the original question, I don't care about Cypriot banking.
  7. PXG


    I've been researching relocating to Cyprus as a trader. I trade etfs and futures. I contacted a tax advisor in Cyprus, and was told there is no tax on my profits from trading. However, I wonder if it's really the case for trading futures? The information I found researching the internet is a little confusing. Can anyone point me in the right direction please? Thank you.
  8. anon9812


    Ask the Cyprus tax authority directly.

    I asked them specifically about day trading, since in many countries that's considered an income / business, not capital gains. They confirmed me it's really 0% even for day trading.

    I'd say it applies also to futures.
  9. PXG


    Thank you for your recommendation. I will do that. I guess that's the safest route before doing any more planning.
  10. d08


    From what I've found it's not 0% but 2.65% (GHS/healthcare) even if you opt for private healthcare. Some sources claim you also need to pay social insurance but most suggest you don't.

    It does apply to futures and options as well but not to crypto and forex.
    #10     Oct 14, 2021