Bitcoin Forum

"Slovenian regulators have released a statement clarifying certain ambiguities related to bitcoin and other digital currencies.  Personal income tax is not paid on capital gains. Hence, individuals who generate income by selling bitcoins will not pay income tax."

http://www.coindesk.com/slovenia-clarifies-position-cryptocurrency-tax/

-B-

My interpretation of this is simply that you don't have to pay "income tax" - that does not necessarily mean that you don't have to pay "capital gains tax".

now... how do we become citizens

That's a good start, now we need the same response from a few more countries!

In my opinion Slovenia might be an exception here but more countries will absolutely taxed those people who generate income selling Bitcoins.

France is a good option too i belive over 50% is taxed if amount >100 000k euro!
but hey only 15% if < 5 000

I really like Slovenia, it's a nice place and this is good news to hear. But to me I don't really care that much if we have to pay capital gains on the sales, because that's just like anything else. In fact maybe if will end up being a positive because it could encourage people to use bitcoin rather than sell it for fiat.

This announcement will give an enormous boost to Bitstamp. The exchange is registered in Slovenia.  :)

would only be temporary

What about VAT? EU harmonization?

More places where you don't pay capital gains tax on bitcoin?

I would like to see a list:

1. Slovenia
2.
3.
4.
5.
6.
7.
8.
9.

I believe there's no capital gains tax in my own country (Belgium)

I think in Switzerland there is no Cap Gains on Bitcoin profits. However, there is a wealth tax.

I hope it is available in Asian countries? :)

Haha.

Why exclude the wealth tax countries? The maximum wealth tax in Switzerland is 1.6%, which seems minuscule to me. So Switzerland should be on that list.

How exactly does one misinterpret "individuals who generate income by selling bitcoins will not pay income tax."

This is exactly why I asked the question.

And one more thing... I think that the 1.6% tax applies in Switzerland only if you owns more than 1 million CHF worth of coins. For the other slabs, the rate is much lower.

It wasn't me, it was Alias. Can you verify that CGT does not have to be paid either?

1. Slovenia
2. Germany
3. Isle of Man
4. Belgium
5. Switzerland (1.2% tax)
6.
7.
8.
9.

Any others yet?  

As a side note, we joke about citizenship, but I see no reason why it wouldn't make sense to do two things immediately:  Work on citizenship (dual?) and set up a bank account there.  If you are going to cash out large quantities, you'll want a bank account that has some longevity and activity, so as to avoid questions from the bank.  No reason why you wouldn't set that up now and begin accruing longevity.

As for citizenship, do you have to renounce your US (or other) citizenship to get citizenship in one of these other countries?  I mentioned "dual citizenship" because I've heard of such a thing.  Know nothing about it though...

-Burger

Are you sure that if in Germany you buy 5,000€ in bitcoins and after some time you cashout 50,000€ you have 0% to pay? No capital gains tax? No other tax? I don't think is that easy.

If you hold the coins for more than 1 year, there is no capital gains tax in Germany.  http://arstechnica.com/tech-policy/2013/08/germany-recognizes-bitcoin-as-a-private-money-subject-to-capital-gains-tax/
(note the subtext on the title).   "The Ministry also clarified that if a German taxpayer holds bitcoins for more than a year, she is exempt from paying the 25 percent capital gains tax." Germany was actually the first country I heard announce this, so it's been on the list for awhile now.

-Burger-

You don't have to renounce it but in the case of my friends they both had to turn in their original birth certificates to the nation of which they were requesting citizienship from. I don't know if that applies to all other nations though.

Then there might even be Cantons which don't require any tax at all.  ;D

The problem is that gaining residency in Switzerland is difficult as hell.  ???

Look at these two also:

Antigua citizenship by investment:
http://cip.gov.ag

If you are a US citizen, Puerto Rico to avoid capital gains taxes:

http://www.caseyresearch.com/articles/the-only-legal-way-to-escape-us-taxes-besides-death-and-renunciation


These are good summaries, but they've been covered in the WSJ and NYT and other places too.

The Dominican citizenship for cash program is much more in demand as compared to that from Antigua. But all these nations do have extradition treaties with the US. No not 100% risk-free.  ???

In Dubai you pay 0%. But you need employment there to be able to pay tax.

wtf? can't be true.

BittBurger thanks for sharing the news. Wow no capital gain tax on profit made by selling bitcoins but I guess this is just a technique to persuade bitcoin holders to sell all the digital currencies so I will recommend not to sell bitcoins as bitcoins will rise above $2000 soon so keep on holding it don’t sell them.

The easiest option might be Rwanda. And there is no income tax as well.

But if you are serious, then Dominica / St. Kitts / St.Vincent is a good option. Visa-free travel to 150+ nations!

slightly off topic for those who joke about slovenian citizenship ;D

Slovenia is a little bit of a tax haven right now. Nobody really pays taxes except government employees. There isn't much regulation on banks. You can pretty much have money in the bank and don't have to prove where you got it from. However, things are changing, there's a regulation being proposed that would introduce 70% tax on any income you can't prove the source of and it would be retroactive for 5 to 10 years. Also, a lot of other stuff I don't know the details for. Some regulation will probably happen in 2014. It's sad, there's so much corruption in Slovenia that people will probably buy into it, not realizing how in the long run this hurts the economy even more.

just wanted to chime in because we're talking about Slovenia, not sure if I even understand what the change for bitcoin is

oh I thought so ;D

I don't see how they could enforce that anyway.

to become a citizen member of Slovenia there is few ways already:

1- be a family member of a Slovenian citizen and get it after 3 years of living here (my case).
3- live and work in Slovenia for 7 years and apply for it
4- finish high studies in Slovenia and apply for it ( PHD, Master...)
5- or be so famous, or athlete and you will get it as well ( there were cases were athlete got it to play for the national team)

at least this what I know, maybe there are other ways ? although I am not sure about the 4th..


getting the Slovenian citizenship might look easy but believe me it is not, there is no bureaucracy or anything like that, paper work is the easiest thing, now learning Slovenian language is one of the hardest things, you have to be integrated in order to get the citizenship which usually means that you have to understand/speak/write Slovenian, there is a test for that that you take in the faculty of philosophy in Ljubljana it is well sophisticated and a real hard one that most people fail to pass.

and there is the other and hard thing (some countries take it as a betrayal) , cancelling your original citizenship when you are accepted here, Slovenian law doesn't allow multiple citizenship.

yes you do not to be a Slovenian citizen if you are already EU citizen, you have to just move and register your new address here....

BTW if you mind me asking you this question, I see you only talking about BTC lately, many Bitcoiners doesn't know that you are one of the biggest LTC holders !! do you still hold that portion or did you give up LTC and completely moved to BTC ?

so open your bitcoin hedge fund in Slovenia.  See what happens when you have a dispute and you need to take it to Slovenian courts for resolution.

what If I get you one? I take LTC at 1/4 its Price now ?  ;D

Edit: I take my words back, that car is worth $4 million  :o ?

haha I know a lot of people like that in Slovenia. To me that's awesome. But Slovenians are jealous (stereotype that's somewhat true) and they want regulation to make sure nobody can make money unless he's a government slave.

I'm actively looking in to this atm & should know more in the next couple of weeks.

Quote:

Hi Redacted,

I’d be happy to discuss further with you.    Do you want to have an initial phone conversation first?    I don’t want to scare you off, but I want to ensure you are comfortable with our firm’s fees (i.e. they just raised my rate to $720/hr) and we would likely need a $10,000 retainer to get started.

Feel free to give me a call to discuss.  I’m  generally around tomorrow morning and then on the 30th and 31st of December.

I look forward to speaking with you,

Best,

Redacted


Dood's charging approx 1 BTC an hour  8)  he comes most highly recommended as being top of the field for this with many clients of much fame & fortune, we'll see...

ah ! what is this about ?

Unless you're really rich or you want to do something really hard, you will get the same result with one who charges $150-$200.

Of course you will need to search more, and know he's good.

Consultation on just where in the world that it would be advantageous to become fiscally resident & what this would entail (ie, just paying taxes there on local &/or global income &/or some physical residency, property ownership, investment, citizenship or dual citizenship, etc...), how it would effect any biz done with citizens of other countries re potential tax liabilities in their countries.

Is it best to be trading as a person or as a company, income versus capital gains or loans from the company to oneself, offshore companies & bank accounts, trusts & charitable foundations, inheritance, deductibles, time limits for visiting other countries so as not to get enmeshed in their tax reporting requirements, like generally not more than six months per year - but more specifically 183 days for the States (but to take in to account previous years stays which are counted as fractions of a day & added on) or the UK with maybe not more than 51 consecutive days, etc.

Plus some more stuff that I haven't itemized as yet due to the hols & traveling, also whatever comes up at the initial consultation & a few undisclosed things as well.

good luck  :)

Finally I'm moving to Dubai this year, 0% tax there  ;D

Tax on any income if evil. When they started America they intended it never be paid, "the power to tax is the power to destroy". Today most are brainwashed like it's normal to tax income. I don't care if Slovenia doesn't tax even if it did I wouldn't pay.

Bitcoin gains look to be free of CGT in Cyprus.

http://uk.practicallaw.com/4-500-7179