Real client enquiry: Cyprus for CGT

Client:

Dear Cyprus Accountants,

I am a UK resitdent and UK tax resident and was wondering if I were to set up a LTD company in Cyprus and invest in crypto via that and then sold the assets but kept the money in the company would I be subject to CGT in the UK?

Kind regards, 

Client

CYAUSE team response:

That would be the ideal scenario - you will only be taxed corporation tax!

We can assist you with the entire process. Let me know if you would like to proceed to provide you with next steps.

Thank you in advance,

Client response:

Hi Kyriakos, 

If I were to do this how would it work in terms of taking the money out?

Also if I am still a UK tax resident and own the Cyprus LTD company, will HMRC allow me to do this, or expect me to pay tax on this as well?

Kind regards, 

CYAUSE team:

Hello, upon declaration of UK dividends in your UK tax returns taxes may apply in the UK.

You will have to run this with your local accountant in the UK.

Client response:

Hello,

What would be the next steps with regards to going ahead with this?

Kind regards, 

CYAUSE response:

Hello,

Our fees for company formation will be Euro 950 plus disbursements and VAT if applicable. If you want us to set up a bank account for you our fees will be Euro 950 plus VAT, if applicable. These fees are one off fees; like buying a product you buy a company with its bank account.

Thereon once your company is up and running we will be performing your accounting, audit and tax so that the company is compliant with its legal obligations. Our fees for such services depend on the volume, complexity and risk our firm takes to perform them. 

An indication of the fees can be obtained here:

https://www.cyprusaccountants.com.cy/About-Us/Our-fees/Full-Package

Thank you,

CYAUSE response:

Hello Client,

I hope all is well.

Kindly advise if we are proceeding with this enquiry or if we should close it.

If you feel you need to obtain quotation from other service providers you can always use www.finhub.com.cy a very popular Cyprus search engine for accountants and lawyers.

Thank you in advance,