How Indians Can Pay 0% Taxes on Income and Crypto Legally?
Table of Contents
Introduction
After numerous calls and consultations with our clients from India, a recurring theme has emerged: high taxation and lack of regulation and acceptance of cryptocurrency. Indian nationals and residents are facing significant problems with these issues, especially when it comes to the high taxation on their cryptocurrency capital gains.
If you don’t know us already, We are GenZone. We help our clients establish companies in Dubai, obtain residency visas, open bank accounts, and ultimately become tax residents of Dubai to minimize their tax burden and enjoy a more favorable regulatory environment.
High Taxation in India
Currently, individuals in India earning 10 lakh Rupees (approximately $122,000) are subject to a 30% personal income tax. In addition, cryptocurrency gains are taxed at a rate of 30%, and there is a 1% fee for tax deducted at source. This creates a significant financial burden for those involved in cryptocurrency trading and investments.
Furthermore, some of the largest cryptocurrency exchanges, like Binance, are completely banned in India. These issues are consistently brought up by our Indian clients, and we have helped dozens of individuals from India find the best possible solutions to these problems.
Step 1: Becoming a Non-Resident Indian (NRI)
The first step to alleviating the tax burden is to become a Non-Resident Indian (NRI). As an NRI, only income sourced or produced in India is taxable by the Indian government. This involves changing your work status, physical presence, and maintaining ties outside of India.
Criteria for NRI Status
The NRI status is for people of Indian origin who reside outside of India. To qualify, you must meet the following conditions:
- Reside in India for less than 182 days in the preceding financial year.
- Leave India to reside abroad for a job or other employment motives.
- Leave India or live in another country for business, work, or vocational activities.
- Reside outside India for any purpose indicating an intent to stay abroad for a specific period.
Step 2: Gaining External Residency Status
After obtaining NRI status, the next step is to gain residency in another country to establish tax residency there. For Indian residents, Dubai in the United Arab Emirates (UAE) is an ideal choice due to its 0% personal income tax, 0% crypto taxes on capital gains, and the availability of numerous cryptocurrency exchanges, including Binance.
Dubai’s proximity to India, with an average flight time of about three hours, makes it highly convenient for travel between the two countries.
Establishing Residency in Dubai with GenZone
At GenZone, we specialize in helping our clients establish residency in Dubai through a streamlined and efficient process.
Setting Up a Company in Dubai
The first step is to establish a company in one of Dubai’s free zones. Free zones offer several benefits, including 100% foreign ownership, no personal income taxes, and no import or export duties. By setting up a company in a free zone, we can sponsor you under that company, allowing you to obtain a two-year residency visa and an Emirates ID card.
Opening Bank and Crypto Exchange Accounts
With your residency visa and Emirates ID, you can open bank accounts in Dubai and access various cryptocurrency exchanges, such as Binance, which are readily available in the UAE. This facilitates the management and cashing out of your cryptocurrency assets in a tax-friendly environment.
Meeting Tax Residency Criteria
To maintain your tax residency status in Dubai, you must physically reside in the UAE for at least three to six months of the year. This ensures that you meet the tax residency criteria and can benefit from Dubai’s favorable tax laws.
Our Track Record and Process
At GenZone, we have helped dozens of clients from India and hundreds of clients worldwide navigate this process successfully. Our comprehensive services include:
- Assistance with obtaining NRI status.
- Establishing your company in Dubai.
- Obtaining your residency visa and Emirates ID.
- Opening bank and cryptocurrency exchange accounts.
- Ensuring you meet the tax residency criteria.
Our streamlined process typically takes no longer than 30 days from start to finish, ensuring a quick and efficient transition.
The Benefits of Establishing Residency in Dubai
By establishing residency in Dubai, you can enjoy numerous benefits, including:
Zero Personal Income Tax: Dubai does not impose any personal income tax, allowing you to retain more of your earnings.
Zero Crypto Taxes: There are no taxes on cryptocurrency capital gains, providing a significant advantage for crypto traders and investors.
Business-Friendly Environment: Dubai offers a highly supportive environment for businesses, with numerous free zones that provide various incentives and benefits.
Access to Global Markets: Dubai’s strategic location and world-class infrastructure make it an ideal hub for accessing markets in Europe, Asia, and Africa.
Quality of Life: Dubai offers a high standard of living, with excellent healthcare, education, and recreational facilities.
Conclusion
For Indian nationals facing high taxation and regulatory challenges, establishing residency in Dubai offers a viable and attractive solution. At GenZone, we are committed to helping our clients navigate this process seamlessly, ensuring they can enjoy the benefits of Dubai’s favorable tax and business environment.
If you’re looking to reduce your tax burden and establish residency in a crypto-friendly jurisdiction, book a call with us today. Our team at GenZone is ready to assist you in every step of the process, from obtaining NRI status to setting up your company and securing your residency visa in Dubai. Let us help you achieve your business and financial goals with ease.
