How to leave no bank payment trace when buying crypto

[WeThePe0ple]

I live in Europe, in a country where most banks hate crypto and you are at risk of them closing your bank account when you cash out.
Each bank here has its individual policy, but most of them are negative or at risk of becoming negative. Taxes on crypto profits are huge here, depending on the amount of money you have made.

My wife is from Brazil. She has lived here in Europe for 6 years and she is a tax resident in Europe.
However I have noticed that when you open an account on Bybit (I am not sure about Binance) it generally asks for your residency or nationality. Not tax residency.

My wife has an active bank account in Brazil, which is not declared to tax authorities in Europe. This is because they wish to tax people on universal income.
Taxes on crypto earnings are more friendly in Brazil than they are here, which is why I consider putting all my crypto in my wifes name and trading it in her name.

https://www.kraken.com/learn/brazil-crypto-tax-guide

15% is a joke, compared to where I live.

I am thinking about the best possible way to leave no traces (to European tax authorities) when my wife buys crypto.

- Buying crypto with one of her European bank cards --> definitely a no go. This is how our tax men can find her immediately.

- Buying crypto with one of her active Brazilian bank cards, which is not declared in Europe --> I consider this. I don't have much of a problem with Brazilian tax authorities finding her, and demanding 15% tax. Also, she is now a tax resident in Europe so they have nothing to ask of her. But in reality I like the idea of paying 15% tax in Brazil. Proof of this payment maybe helps when a European tax agent demands taxes. We can say they were already paid abroad and double taxation is not legal. I don't know if they can make a case that she had to pay the tax in Europe.

- Buying crypto by sending money from her Brazilian card to PayPal, and from there to a crypto exchange. I have read that Binance does not accept deposits directly from PayPal. It would have to come from a third party bank such as Revolut. But I have read that Revolut is based in Europe and therefore the European tax man will immediately know when money is transfered to a Revolut account. So I highly doubt this option. My idea is that she keeps the crypto profits in Brazil, not in Europe.

- Another preferred option is for me to buy stablecoins and put them on my wifes account. Leaving no bank deposit trace.
But it does connect my crypto account to my wifes account. Maybe a way for our tax men to find her?

Any thoughts and suggestions? Other ideas?

[philipma1957]

Well no one here can properly advise you in your attempt to straddle 2 countries to take vantage of the better tax law (Brazil)

To give advice the other country needs to be known.

Since the laws need to be known so as not to break them while attempting to dodge the higher tax legally.

[Macro Exchange]

I live in Europe, in a country where most banks hate crypto and you are at risk of them closing your bank account when you cash out.
Each bank here has its individual policy, but most of them are negative or at risk of becoming negative. Taxes on crypto profits are huge here, depending on the amount of money you have made.

My wife is from Brazil. She has lived here in Europe for 6 years and she is a tax resident in Europe.
However I have noticed that when you open an account on Bybit (I am not sure about Binance) it generally asks for your residency or nationality. Not tax residency.

My wife has an active bank account in Brazil, which is not declared to tax authorities in Europe. This is because they wish to tax people on universal income.
Taxes on crypto earnings are more friendly in Brazil than they are here, which is why I consider putting all my crypto in my wifes name and trading it in her name.

https://www.kraken.com/learn/brazil-crypto-tax-guide

15% is a joke, compared to where I live.

I am thinking about the best possible way to leave no traces (to European tax authorities) when my wife buys crypto.

- Buying crypto with one of her European bank cards --> definitely a no go. This is how our tax men can find her immediately.

- Buying crypto with one of her active Brazilian bank cards, which is not declared in Europe --> I consider this. I don't have much of a problem with Brazilian tax authorities finding her, and demanding 15% tax. Also, she is now a tax resident in Europe so they have nothing to ask of her. But in reality I like the idea of paying 15% tax in Brazil. Proof of this payment maybe helps when a European tax agent demands taxes. We can say they were already paid abroad and double taxation is not legal. I don't know if they can make a case that she had to pay the tax in Europe.

- Buying crypto by sending money from her Brazilian card to PayPal, and from there to a crypto exchange. I have read that Binance does not accept deposits directly from PayPal. It would have to come from a third party bank such as Revolut. But I have read that Revolut is based in Europe and therefore the European tax man will immediately know when money is transfered to a Revolut account. So I highly doubt this option. My idea is that she keeps the crypto profits in Brazil, not in Europe.

- Another preferred option is for me to buy stablecoins and put them on my wifes account. Leaving no bank deposit trace.
But it does connect my crypto account to my wifes account. Maybe a way for our tax men to find her?

Any thoughts and suggestions? Other ideas?

Using your wife’s Brazilian bank account and a non-EU exchange is likely the safest path just avoid funding it from any EU. Keep everything off European platforms, and don’t link your wallets to hers to avoid traceability... Also, paying tax in Brazil may help if double taxation ever comes up.

[goldkingcoiner]

Nobody here is going to advise you how to avoid legal and tax obligations, as a member already mentioned above. Anything you do is your responsibility.

But if you are interested in not involving banks, have you thought about using a decentralised P2P exchange like BISQ? Cash-only P2P like BTC to cash in person or by mail options exist. But there are risks to that as well, as you can imagine (scams, robbery). But there is no KYC, no direct bank links and Bisq does not report to any tax agencies.

However, if you cash out to a bank, banks might still flag unusual transactions or if you move your coins to a known wallet, it could link that wallet to your other wallets.

cash to btc in person or mail buying/selling does not absolve you of your legal and tax obligations, so check the laws for yourself.

You do not necessarily have to use a centralised crypto exchange, as larger transactions could trigger AML/KYC and result in your funds being frozen until you pass the KYC.

[Oshio-man]

There are some ways you can deposit or withdraw your money without your bank know that the transaction is from crypto, all you need to do is to alert the buyer not to include crypto in his discretion because that is were banks official use to identify crypto transactions once you include crypto in the transaction, but if you are using p2p, there will not be a single trance because the seller and the buyer will be on an agreement not to expose each other in crypto transactions.

[NeuroticFish]

Any thoughts and suggestions? Other ideas?

If you do this through banking services (Revolut included) and centralized exchanges you have no 100% certainty that the details don't get to the EU country's tax authorities.
Some exchanges send details automatically.
Some countries ask for details better than others.

Solutions? P2P: for cash (in person) or non-reversible means of payment (online).
Of course, there are risks involved, since not everybody is well intended.
Of course, you may pay a bit extra.
And (possibly important!) when you'll ever want to sell your coins you will probably have to pay "full" tax on them (not only for the price difference from the moment of buying).

So this could help for your anonymity. But if you want to just avoid tax, you can easily end up paying that money anyway, so it's not really a "good business".

[DeathAngel]

If you wanna buy crypto without banks knowing use cash. Find someone local who’ll sell it peer-to-peer (like on crypto meetups or sites like Bisq). You give them cash, they send you crypto so no bank involved. Or use Bitcoin ATMs that take cash but watch the fees. Don’t use your debit card or bank transfers. Also use a wallet that’s not tied to your name. Keep it simple, stay private.