Most Tax friendly country in Europe

[Palcinko]

Hello guys,

We found an investor who wants to invest some money to mining business. He would like to do everything by the law and tax every coin we mine and exchange.

We are going to use GPUs for mining, that means we will mine shitty coins and we will exchange them to Bitcoin.

What is the best country to have company in for paying the lowest possible taxes if you change Bitcoin to fiat? What is the most tax friendly country in EU?

I read about Germany and holding BTC for one year, but does it also include legal person - company?

Thank you for your answers!

[TMAN]

Hello guys,

We found an investor who wants to invest some money to mining business. He would like to do everything by the law and tax every coin we mine and exchange.

We are going to use GPUs for mining, that means we will mine shitty coins and we will exchange them to Bitcoin.

What is the best country to have company in for paying the lowest possible taxes if you change Bitcoin to fiat? What is the most tax friendly country in EU?

I read about Germany and holding BTC for one year, but does it also include legal person - company?

Thank you for your answers!

Tax is a consideration, but unless you are somewhere with low power costs it wont make sense to mine. Finland, Iceland and Bulgaria all have cheap power and attractive tax.

[gentlemand]

Tax is a consideration, but unless you are somewhere with low power costs it wont make sense to mine. Finland, Iceland and Bulgaria all have cheap power and attractive tax.

Indeed. The difference in power costs between countries mean it might still make more sense to pay 50% tax in a country with cheap power vs a 0% tax regime with expensive power. I'd forget worrying about tax until you have your costs figured out.

Bulgaria has the cheapest power in the EU followed by Lithuania then Hungary according to this. Bulgarian power is over 3x less than German.

http://ec.europa.eu/eurostat/documents/10186/8482435/Q12017_electricity_prices_graphics.pdf

Iceland isn't in the EU.

[Palcinko]

We are going to mine in Slovakia, we have good price of electricity, but we are able to create a legal entity - company inside of any EU nation country. This company will pay taxes according to country in which it is created.

So my question is what is the best country in EU to have company in for officialy exchange Bitcoin to fiat and tax the fiat.

[TMAN]

Indeed. The difference in power costs between countries mean it might still make more sense to pay 50% tax in a country with cheap power vs a 0% tax regime with expensive power. I'd forget worrying about tax until you have your costs figured out

Iceland isn't in the EU.

You are correct about Iceland, it was pretty late and I was only thinking of farms that I am aware of. Domestic power in BG costs me 7c at peak rate, combined with 10% tax it is attractive although the 40c summer heat does mean extra cooling for 2 months, pretty sure the -20c we had as a low in the winter should counter the summer cooling costs

[Palcinko]

Indeed. The difference in power costs between countries mean it might still make more sense to pay 50% tax in a country with cheap power vs a 0% tax regime with expensive power. I'd forget worrying about tax until you have your costs figured out

Iceland isn't in the EU.

You are correct about Iceland, it was pretty late and I was only thinking of farms that I am aware of. Domestic power in BG costs me 7c at peak rate, combined with 10% tax it is attractive although the 40c summer heat does mean extra cooling for 2 months, pretty sure the -20c we had as a low in the winter should counter the summer cooling costs

Hello Tman,

So you are a miner too. Are you mining just for yourself as a private person? Have you ever exchange Btc to fiat? Did you pay any tax?

Thanks for reply

[TheQuin]

A decent accountant with a speciality can help a lot as well. For instance, opening a company in a tax haven that owns the mining equipment and rents it to another company where it is physically located can shift the profit to where it attracts less taxation.