Crypto friendly countries, where and how to exchange your crypto with 0 taxes

[Florin_BTC]

Hi there

I read that there are some countries that are crypto friendly when it comes to paying income tax.
These countries are: Germany, Singapore, Portugal, Malaysia, Malta, Belarus, Switzerland, The Netherlands, The Cayman Islands, Slovenia, Puerto Rico.

Is there someone from these countries that has exchanged crypto for a profit and has paid little or no taxes on it?

I have some bitcoins that I've kept for a couple of years and I'd like to sell them for a profit, without paying a big tax on it, and then to transfer the money through bank transfer to my country. Here in my country I'd have to pay 20%, which is not acceptable.

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[1715586721]

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[Poker Player]

How much are we talking about? It's not the same to want to change $10,000 as it is to change $1,000,000.

I have some bitcoins that I've kept for a couple of years and I'd like to sell them for a profit, without paying a big tax on it, and then to transfer the money through bank transfer to my country. Here in my country I'd have to pay 20%, which is not acceptable.

To make things legal if you want to exchange large amouts you would need to move to the country you are exchanging the bitcoins in. You should get the tax residence there. Wanting to go to another country, exchange your bitcons for fiat and transfer them by bank transfer to your country doesn't seem very smart at first sight. If you live in a developed country the most likely scenario is that your bank will inform your IRS or equivalent about all the transfers that surpass $3,000.

[LoyceV]

countries that are crypto friendly when it comes to paying income tax.
~ The Netherlands

Lol
Maybe you should explain what you call "crypto friendly". If you mean it's legal to earn money in crypto, and then sell it, then yes, it's a great country for crypto! But if you mean the income tax percentage, it's not that great: you pay either 37.1% or 49.5%. That's not just on crypto, it's on all income.

Is there someone from these countries that has exchanged crypto for a profit and has paid little or no taxes on it?

Yes: I've sold crypto for euro. No: taxes aren't little.

I have some bitcoins that I've kept for a couple of years and I'd like to sell them for a profit, without paying a big tax on it, and then to transfer the money through bank transfer to my country. Here in my country I'd have to pay 20%, which is not acceptable.

Is that a capital gains tax, or income tax?

Wanting to go to another country, exchange your bitcons for fiat and transfer them by bank transfer to your country doesn't seem very smart at first sight.

That screams "money laundering" indeed!

[figmentofmyass]

I have some bitcoins that I've kept for a couple of years and I'd like to sell them for a profit, without paying a big tax on it, and then to transfer the money through bank transfer to my country. Here in my country I'd have to pay 20%, which is not acceptable.

you need to establish tax jurisdiction first---often a timely and difficult process, and one which usually requires that you establish residency. in malta for instance, that takes physical presence on the island for more than 183 days/year and also the general intent to reside there. they don't want people renting an empty house while living abroad and using malta solely as a tax shelter.

establishing residency in a second country for tax purposes also does not automatically remove your tax liability in your home country. that depends on the tax laws where you currently live and/or do business.

[Theb]

I have some bitcoins that I've kept for a couple of years and I'd like to sell them for a profit, without paying a big tax on it, and then to transfer the money through bank transfer to my country. Here in my country I'd have to pay 20%, which is not acceptable.

Well you still won't get any kind of exemption even if you sold your cryptocurrencies to a tax exempted country, taxation simply doesn't work like that since the tax that will be applied to you is the one where you are currently residing in regardless whether you have sold your cryptocurrency internationally. The profit/capital gains you will have from that sale of crypto would still be taxed at 20%, actually you might just be risking yourself to a scam looking for a buyer online on a international country with you having little to no experience with dealing it. My advice is for you to just pay your tax as I don't see any way around it but try to look if you have some kind of tax exemption or lower rates for assets held over the year since several countries have lower rates on long-term held assets.

[Lorence.xD]

If you do not want to pay for taxes, maybe tries a P2P trading where someone can buy your bitcoin at a given price point with cold hard cash, make sure that it will be a physical P2P trading so there will be no problem. I do not know much about crypto taxation because in my country there is hardly no tax even if we were to withdraw at banks.

[jimmywh]

In my country we pay up to 53% in capital gains tax.

20%.... just pay your taxes man.

[Lucius]

I have some bitcoins that I've kept for a couple of years and I'd like to sell them for a profit, without paying a big tax on it, and then to transfer the money through bank transfer to my country. Here in my country I'd have to pay 20%, which is not acceptable.

You don’t want to pay taxes, but at the same time you want to involve your bank in the whole thing? If it is a larger amount of money, each bank will ask you about the origin of the money or will automatically report it to the tax office if required by law. If you want 0% tax then you have to sell your BTC for cash in the form of a transaction in person or find an ATM that does not have KYC - or a physical store that deals with the sale/purchase of cryptocurrencies.

Of all these countries, you are missing one in which you can really sell significant amounts of crypto without paying any taxes, without being a resident of it or without using any documents

[Findingnemo]

Crypto friendly =/= crypto tax free.

Every government is running on the tax collected from their citizens so if you are going to involve your bank account for the conversion then you are liable to pay the taxes as per your government rules, if not then its tax evading.

The smart way to avoid paying taxes even when you involve your bank account by means of p2p which is suitable for small amount not for huge amount but still its an evading ethically.

[aoluain]

Are you an EU citizen? if yes then there are a few options where Crypto is TAX FREE.

As an example:

1- Germany [Portugal is similar]

On February 27, 2018, the Federal Ministry of Finance (BMF) has clearly expressed its legal position on the VAT treatment of Bitcoins. Referring to the ECJ’s judgment, the tax offices will – from now on – have to treat transactions in Bitcoin and other cryptocurrencies as VAT exempt.

Source: https://www.winheller.com/en/banking-finance-and-insurance-law/bitcoin-trading/bitcoin-and-tax.html

If you are not an EU citizen you will have to apply for residency and be there for 12 months
before VAT exemption applies. As has already been mentioned transferring a substantial amount
of FIAT to your normal bank account could result in an investigation into possible money laundering.

[dansus021]

 

Crypto friendly =/= crypto tax free.

Every government is running on the tax collected from their citizens so if you are going to involve your bank account for the conversion then you are liable to pay the taxes as per your government rules, if not then its tax evading.

The smart way to avoid paying taxes even when you involve your bank account by means of p2p which is suitable for small amount not for huge amount but still its an evading ethically.

but maybe

i dont know about that country are but i do aggree with this


but here in indonesia i dont pay taxes for bitcoin and i usually withdraw it for my local bank and its fine 

[YOSHIE]

As far as I know the laws set by the Singapore government against crypto taxation, especially Bitcoin, are not based on transactions carried out on trading exchanges.

The tax imposed by the Singapore government is based on the purchase of goods using bitcoin by consumers.

For example: you go to a mall, restaurant, etc., if you pay with Bitcoin it is taxed according to the law that has been set in Singapore, however, if you trade on a crypto exchange you do not pay taxes.

[Kazadar]

Spain should also have no tax on crypto iirc.

[Lucius]

Are you an EU citizen? if yes then there are a few options where Crypto is TAX FREE.

You mix two things that have nothing to do with each other - VAT (value added tax) is something that is paid throughout the EU for all products and services, and the percentage depends on each country. When it comes to Germany, they only passed a law according to which no additional tax (VAT + extra tax) is paid on payments with BTC.

As for income tax, their law says that if you buy a crypto and keep it for at least 1 year, you can sell it without paying any tax - although someone mentioned that the crypto must be kept in a custodial wallet.

As for Portugal and their decision regarding the crypto tax :

Portugal has taken the opposite tack: it made clear that buying or selling cryptocurrencies would not be subject to capital gain taxes or value-added tax (VAT). The PTA previously clarified in 2016 that buying or selling cryptocurrency in Portugal would not be considered a taxable event which means that it’s not subject to tax. There are exceptions: the receipt of cryptocurrency in exchange for goods or services doesn’t change the tax treatment of the original transaction, and taxpayers who deal in cryptocurrency as a professional or business activity are still subject to some taxes.

[buwaytress]

Actually, I have exchanged crypto to local currency in two of the countries listed. I'm actually not 100% sure of the legal requirements in one, but as far as I'm told (and I don't hide anything), you do pay taxes on income, or capital holdings, or savings, once converted.

In Malaysia I have enquired anyway, and it is the same (but if earned not locally, you don't owe taxes anyway since income earned abroad is not taxed).

[HeRetiK]

As for income tax, their law says that if you buy a crypto and keep it for at least 1 year, you can sell it without paying any tax - although someone mentioned that the crypto must be kept in a custodial wallet.

It might help to keep crypto in a custodial wallet for record purposes, but it's not a legal necessity. Thing is, if you hold crypto for more than a year and then sell it for profit, you don't need to report it at all since it's not taxable to begin with. You only need to proof that you held crypto for at least a year if the financial authorities come asking. For the moment it seems that the blockchain is proof is enough. (presumably you will also have to disclose the source of your coins, but thanks to AML5 this questioning already starts at the exchange level anyways)

As for Portugal and their decision regarding the crypto tax :

Portugal has taken the opposite tack: it made clear that buying or selling cryptocurrencies would not be subject to capital gain taxes or value-added tax (VAT). The PTA previously clarified in 2016 that buying or selling cryptocurrency in Portugal would not be considered a taxable event which means that it’s not subject to tax. There are exceptions: the receipt of cryptocurrency in exchange for goods or services doesn’t change the tax treatment of the original transaction, and taxpayers who deal in cryptocurrency as a professional or business activity are still subject to some taxes.

That's again a different case from OP though. If you receive crypto as payment in exchange for goods or services (including mining!) it's taxable income based on the fiat exchange rate at the time, even in countries that don't tax trading profits.

[odolvlobo]

FYI, if you are a resident or citizen of U.S.A, then you are required to pay taxes on capital gains, regardless of where you spend or sell your bitcoins.

[figmentofmyass]

Spain should also have no tax on crypto iirc.

they don't have a specific tax framework for crypto. however, as with most countries, the spanish government says the current framework already applies: Spain's Tax Authority Sending Notices to 66,000 Cryptocurrency Owners

Sales of cryptocurrencies are subject to capital gains tax at a variable rate of between 19% and 23%, the publication detailed, noting that the higher rate applies to gains in excess of 50,000 euros ($54,594).

[aoluain]

Are you an EU citizen? if yes then there are a few options where Crypto is TAX FREE.

You mix two things that have nothing to do with each other - VAT (value added tax) is something that is paid throughout the EU for all products and services, and the percentage depends on each country. When it comes to Germany, they only passed a law according to which no additional tax (VAT + extra tax) is paid on payments with BTC.

As for income tax, their law says that if you buy a crypto and keep it for at least 1 year, you can sell it without paying any tax - although someone mentioned that the crypto must be kept in a custodial wallet.

As for Portugal and their decision regarding the crypto tax :

Portugal has taken the opposite tack: it made clear that buying or selling cryptocurrencies would not be subject to capital gain taxes or value-added tax (VAT). The PTA previously clarified in 2016 that buying or selling cryptocurrency in Portugal would not be considered a taxable event which means that it’s not subject to tax. There are exceptions: the receipt of cryptocurrency in exchange for goods or services doesn’t change the tax treatment of the original transaction, and taxpayers who deal in cryptocurrency as a professional or business activity are still subject to some taxes.

I dont follow you Lucius, I'm looking at your post and I'm thinking, thats what I posted anyway.
The OP isnt going to be earning Bitcoin, he has it for a number of years and wants it in FIAT

FYI, if you are a resident or citizen of U.S.A, then you are required to pay taxes on capital gains, regardless of where you spend or sell your bitcoins.

Someone pointed this out to me recently too, I'm amazed by that. Does that mean as a U.S
citizen living abroad if you are liable to pay tax locally and to the U.S?

[odolvlobo]

Someone pointed this out to me recently too, I'm amazed by that. Does that mean as a U.S
citizen living abroad if you are liable to pay tax locally and to the U.S?

I'm not a tax expert, but my understanding is that if the other country has an agreement with the U.S., then you can deduct the taxes paid to the other country from the U.S. taxes you owe.

For example: https://turbotax.intuit.ca/tips/how-are-taxes-assessed-for-u-s-citizens-working-in-canada-347