Moving Bitcoin to El Salvador

[Silberman]

I’m sure everybody loves paying taxes, but I am no expert but say with this current drop In price if I moved bitcoin outside of the US and to an El Salvador wallet, would that be saving on the future sale of bitcoin or what would that look like for capital gains?
I’m asking for a friend, I already lost all my bitcoin in a boating accident.

It does not really work that way, your bitcoin is on the blockchain which means that it is everywhere so you do not really need to move it, the one that will need to move to another country is yourself, now if you are a US citizen this could be very problematic and you will still need to pay those taxes but if you are not then you could move there and convert your bitcoin to fiat and pay no taxes there, however this is only a viable strategy if you have so much bitcoin that you will save a fortune in the process, something that most people cannot do as they do not have as much bitcoin.

[ene1980]

I already lost all my bitcoin in a boating accident.

I'm curious how does one lose bitcoin in an accident?

He went fishing, the bait was bitcoin and the whale swallowed it  .
Unless you move completely to safe heaven it is not possible to get away avoiding the taxes, the authorities are planning to come up with rules and regulations and you think it will be easy like moving to another country cashing out and coming back in.

Suppose you open a bank account in Salvador and cash out everything you still want to move that money back to the US and how you are going to do that without showing the source of income especially if it is a huge amount. The best option is always to find a Chartered Accountant who knows how to file a tax with cryptocurrency and he will help you with filing the tax with the loopholes that is available without getting into trouble.

[Viscore]

Are you thinking of some sort of loophole like selling BTC in El Salvador to avoid paying taxes because out there it's a currency conversion and not taking profit on investment? I'm pretty sure the US or any other government will view it as taxable event, because generally governments always expect taxes from doing foreign investment activity, which usually results in a person having to pay taxes in both countries, unless there's an agreement between both countries.  

Are you trying to avoid taxes to save it for your future? If yes, then El Salvador is still a place that collect taxes especially that it's now accepting bitcoin legally as a medium of payment. Government might have approved it and so taxes are already imposed even in goods or services i think.

Well, paying taxes could really be a little burden because it will add to your expenses but if you think of its real usage which is for the welfare of the people and the country, then you should know how to abide the law.

[Crypto Fireside]

I think it depends where you are from.

In the US I believe the IRS follows you everywhere.

In Australia if I am correct it is in simple terms based on residency so if I live in Aus but have a wallet setup in say Germany and I use a German exchange, I don't think it matters. But don't listen to me :|

[CryptoStar19]

What matters is your country of citizenship... if you are an El Salvadoran, you wouldn't have to pay taxes on your bitcoin gains as it stands right now, but this could change in the future. If you are a US citizen, simply moving to El Salvador and trying to sell the bitcoin there doesn't relieve you of your tax obligations to the US government.

[Anonylz]

I’m sure everybody loves paying taxes, but I am no expert but say with this current drop In price if I moved bitcoin outside of the US and to an El Salvador wallet, would that be saving on the future sale of bitcoin or what would that look like for capital gains?
I’m asking for a friend, I already lost all my bitcoin in a boating accident.

Like what others said, btc wallet don't have a location attached to it differentiating each wallet from one location to another,  best bet is your friend should relocate to El salvasor in other to freely spend his btc if he so desire to avoid paying taxes,  
however, am a bit curious how you manage to lose your btc in a boating accident, are you perhaps saying your btc was in a hardware wallet and was with you when you had the accident? Maybe it fell off without you knowing! Just wondering how that happens.

[pooya87]

~
I used to think like you, bitcoin wallets don't have a location, but today i learned that i was wrong. Yesterday El Salvador launched it's own wallet App with the goal of providing $30 in bitcoin to all the citizens who use their wallets. If you want to read more about the wallet i will leave a link for you.
https://www.trustnodes.com/2021/06/25/el-salvador-unveils-chivo-wallet-30-bitcoin-for-every-user

A "bitcoin wallet" must be an open source software where the user creates his own keys on his own device and doesn't need any middle man to send/receive bitcoin. The user directly connects to other peers on bitcoin peer to peer network and either does full verification of everything (ie. running a full node) or simplified verification (ie. using an SPV client) of necessary things.
Anything else is NOT a bitcoin wallet.

I don't have enough information to say which category "Chivo Wallet" falls into. The articles about it all focus on its features for converting between fiat and bitcoin, receiving bitcoin but converting it to fiat fast and easy and vice versa, and the $30 promotional giveaway. None of them mention the important things we need to know!

[randegibran]

Indonesia
Inggris
tentu saya bukan ahli mengenai pajak,tapi ini akan sedikit sulit apa bila kita memindah nya ke elsavador,kita semua tau bahwa mereka melegalkan bitcoin di negara mereka.mungkin untuk para penambang yang memimdah kan nya kesana tentu akan berpikir ulang karena undang-undang negara mereka tentu sangat beebeda jauh seperti yang di terap kan di negara kita,karena belum mengerti sama sekali tentang suatu pelarangan atau pun perbolehan di suatu negara tersebut,apa lagi menyakut dengan hal pajak yang sangat jarang warga negara lain mengetahui nya
Of course I'm.not an expert on taxes.but it will be a little difficult if we move it to elavador.we all know that they legalize bitcoin in their country. Maybe for the miners.who move it there, of course they will think again because of the laws.of their country Of course, it is very much different from what is applied in our country, because we do not understand at all about a prohibition.or permissibility.in a country, especially with regard to tax matters which other citizens.of other countries
rarely.know about

[Kasabus]

Indirectly, like it or not, taxes are an integral part of this. because if crypto has become legal in the government, this tax is definitely one of the things that is mandatory. and for plans to move your wallet, I think you don't have to do that because there are so many other options that can be taken apart from moving your wallet

For me, there is no need to move your bitcoin into  El Salvador. There are a lot of ways or options where you can transact your bitcoin if you are only thinking of the tax you will have to pay. But if you come to think of it, a small amount of tax will create a huge impact on the country you are in. So you don't have to evade from paying those taxes because you will also get benefits from it. Just learn to live with it. In the end, when bitcoin will be widely accepted in all countries, taxes will definitely become compulsory.

[NicNacCoin]

I’m sure everybody loves paying taxes, but I am no expert but say with this current drop In price if I moved bitcoin outside of the US and to an El Salvador wallet, would that be saving on the future sale of bitcoin or what would that look like for capital gains?
I’m asking for a friend, I already lost all my bitcoin in a boating accident.

EI Salvador already declared, they are ready to make transactions on September with Bitcoin and others cryptocurrencies. The people of EI Salvador can exchange any thing with Bitcoin in their country.

[Silberman]

I think it depends where you are from.

In the US I believe the IRS follows you everywhere.

In Australia if I am correct it is in simple terms based on residency so if I live in Aus but have a wallet setup in say Germany and I use a German exchange, I don't think it matters. But don't listen to me :|

As far as I know only the US charges you taxes for being a citizen no matter where you are around the world, the rest of the countries charge you taxes based on residence so if a person that is not an US citizen has a lot of bitcoin they could just move to a friendly jurisdiction when it comes to taxes or bitcoin and then sell a part of his coins there and save himself a lot of money that way, but for the average holder this is simply not an option as they do not have as much bitcoin to justify this move.

[DarkDays]

I’m sure everybody loves paying taxes, but I am no expert but say with this current drop In price if I moved bitcoin outside of the US and to an El Salvador wallet, would that be saving on the future sale of bitcoin or what would that look like for capital gains?
I’m asking for a friend, I already lost all my bitcoin in a boating accident.

Capital gain is capital gain, you're only delaying paying the tax by moving it to an El Salvador wallet but you'd still be required by law to declare that gain once you take it out in the US and thus pay the tax accordingly.

It is unclear how tax operates in many countries because it is so new and no government have yet taken the time to put an infrastructure in place for this. The best example is to ban crypto or BTC like China but that is not solving anything, it only delays the problem.

[clint25n]

if we just move crypto to el Salvador, it's really irrelevant and doesn't need to be done at all, because every thing can't be separated by the name of tax, because it has become an inseparable part, therefore to move bitcoin to el Salvador it is absolutely not necessary, because it is not very good for an investment world

[marilynmanson21]

I think it's too much to move bitcoin to elsavador
many countries support the existence of bitcoin even though it has not been legalized,
In the case of a bitcoin wallet, only you know your personal data, after all, bitcoin is not a bank
if you are afraid of taxes and move your wealth into bitcoin and throw it to elsavador it means you are the group of people who don't want to pay taxes where by you move your bitcoin assets to elsavador wallet you cover your assets

[worle1bm]

I’m sure everybody loves paying taxes, but I am no expert but say with this current drop In price if I moved bitcoin outside of the US and to an El Salvador wallet, would that be saving on the future sale of bitcoin or what would that look like for capital gains?
I’m asking for a friend, I already lost all my bitcoin in a boating accident.

Why not just move your bitcoin to a hardware wallet? I'm also not expert on taxes, but what advances that El Salvador? Yeah, I know that they have legalised and adopted bitcoin but I'm sure you have to pay government some taxes if you are holding your bitcoin in that country? Just friendly advice, not your keys, not your coins.

You are right that hardware wallets provide extra security of funds like keys don't leave the device and you can backup the seed phrase on safe place and providing confirmation from the device for any transaction makes it more secure.

But the El Salvador has made btc legal tender and capital gain tax are exempted for the bitcoin users which is good thing as mostly they take 30-40% of your profits but El Salvador has made this decision not to tax bitcoin gains.But the residents are to benefit from it not other users living outside the country.So it is better to have your funds safe with you.

[Dhoe]

moving bitcoins to el salvador, for now I don't have the time, but if we make it an option in the future I think it's okay, for now we just keep our bitcoins in a safe wallet that we have, if one day the government has banned bitcoin mining, and many countries that no longer accept crypto exchanges, then we move our bitcoins to elsalvador, for now there are still many countries that want to accept bitcoin, so for now we just store bitcoins in a safe wallet that we have..

[Shenzou]

I’m sure everybody loves paying taxes, but I am no expert but say with this current drop In price if I moved bitcoin outside of the US and to an El Salvador wallet, would that be saving on the future sale of bitcoin or what would that look like for capital gains?
I’m asking for a friend, I already lost all my bitcoin in a boating accident.

Wallets are not banks they are not tied to a certain location, the wallet that you think you created in the US is probably somewhere in a data center random in the world depending on the nature of the wallet, so the idea that you have to avoid paying taxes is not gonna work, as long as you physically live in the US you are going to be a subject to it.

[DarkDays]

I’m sure everybody loves paying taxes, but I am no expert but say with this current drop In price if I moved bitcoin outside of the US and to an El Salvador wallet, would that be saving on the future sale of bitcoin or what would that look like for capital gains?
I’m asking for a friend, I already lost all my bitcoin in a boating accident.

WE're all asking for a friend - joking -

Anyway, it depends on who's going to claim the BTC on the other side, if it's an El Salvador citizen or US citizen. It also depends on how much you already declared to your government already, right? Because moving funds across can just mean that you're selling your BTC and capital gain could be imposed on that amount. It's all a matter of tracking all of these transactions, and I suppose it depends on the amount transferred.

These are the types of considerations you have to think about, unfortunately, it's not straight forward at all but it is what it is!

[Wong Gendheng]

to move our bitcoins to the country of El Salvador is certainly not easy, indeed we admit that with elsavador already adopting bitcoin national history.but we do not understand the regulations applied regarding bitcoin in that country, and it can be a little risky because we are not residents natives who live in the country, and even that can cause us to lose bitcoins

Right, I think it's too much if we want to move bitcoin to El Salvador, it's too risky, as long as we can still buy or sell bitcoin at any time then there's no need to move it to El Salvador, I'm worried if bitcoin owners in El Salvador have to do various verifications and strict KYC.

[Dunamisx]

if I moved bitcoin outside of the US and to an El Salvador wallet, would that be saving on the future sale of bitcoin or what would that look like for capital gains?

You need to understand that your coins are not in your wallet but rather on the block chain, your coin only bears the keys which is needed to access it on through the wallet to decrypt the encrypted access through your private keys.

secondly, you don't need to change location before you can have your coins in safety, as long as you're using a decentralized exchange wallet.