Hi,
imagine you are trading for a living and are a tax resident of a country which does not have the CFC Rules ( https://www.freedomsurfer.com/cfc/ ) and which does not tax dividends received from a company abroad.
Mostly Futures/FX/Options/Cryptos are traded actively ( so it would be considered as income due to high volume and not capital gains anymore; thats the reason to use a own company to trade with).
Sure you could open a Belize/Seychelles company, but the problem is going to be that you most likely will not get a proper bank or brokerage account with firms like InteractiveBrokers.
Also, the more offshore you go, the more problematic it will be to get the money properly out in the form of dividends.
Therefore I thought about a Cyprus Limited Company.
The tax lawyer I spoke to confirmed that stock trading profits, even though if done through DayTrading, are 0% tax on a corporate level.
Other trading profits are taxed 12.5% on a corporate level.
They seem not to have a ruling yet how they consider crypto yet.
Of course, only the company should be on Cyprus but banks/brokers can be used abroad.
IB for example accepts Cyprus Companies as Clients and https://revolut.com/ or http://transferwise.com/ can be used for corporate bank accounts.
Does anyone of you have good experience with trading professionally (only own money, no clients money) through a own Company?
Thank you and have a good Day,
TLT
imagine you are trading for a living and are a tax resident of a country which does not have the CFC Rules ( https://www.freedomsurfer.com/cfc/ ) and which does not tax dividends received from a company abroad.
Mostly Futures/FX/Options/Cryptos are traded actively ( so it would be considered as income due to high volume and not capital gains anymore; thats the reason to use a own company to trade with).
Sure you could open a Belize/Seychelles company, but the problem is going to be that you most likely will not get a proper bank or brokerage account with firms like InteractiveBrokers.
Also, the more offshore you go, the more problematic it will be to get the money properly out in the form of dividends.
Therefore I thought about a Cyprus Limited Company.
The tax lawyer I spoke to confirmed that stock trading profits, even though if done through DayTrading, are 0% tax on a corporate level.
Other trading profits are taxed 12.5% on a corporate level.
They seem not to have a ruling yet how they consider crypto yet.
Of course, only the company should be on Cyprus but banks/brokers can be used abroad.
IB for example accepts Cyprus Companies as Clients and https://revolut.com/ or http://transferwise.com/ can be used for corporate bank accounts.
Does anyone of you have good experience with trading professionally (only own money, no clients money) through a own Company?
Thank you and have a good Day,
TLT
