Topic: European crypto tax laws (Read 169 times)
They just are about to restructure tax - incl that staking crap or lending... what a mess
Every country has its own TAX laws, but when it comes to wealth and trading of
shares and assets including Bitcoin some countries are more favourable than
others as in the OP, i.e Portugal, which doesnt tax profits on Bitcoin.
In the case of Portugal, you have be be a resident for 1 year to avail of this.
There are logistics around how to avail of various TAX laws from different countries,
but those logistics are not public knowledge. Amazon, Facebook, Google to name
a few have been "minimising" their TAX liabilities for years and its difficult for the average
Joe or Jane to access the knowledge.
shares and assets including Bitcoin some countries are more favourable than
others as in the OP, i.e Portugal, which doesnt tax profits on Bitcoin.
In the case of Portugal, you have be be a resident for 1 year to avail of this.
There are logistics around how to avail of various TAX laws from different countries,
but those logistics are not public knowledge. Amazon, Facebook, Google to name
a few have been "minimising" their TAX liabilities for years and its difficult for the average
Joe or Jane to access the knowledge.
But if one is a citizen of a country that wants to tax you no matter where (e.g. US), you still have to pay taxes? Anyone has successfully and legitimately moved elsewhere and reduced taxes?
Most countries have taxation rules based on the "residence" of an individual rather than the "nationality" of an individual. Therefore, if you stay in foreign country for a specified period of time, you will be considered a resident of that state and taxed accordingly. Further, the Double Tax Avoidance Agreements generally provide for taxation on the basis of the residence too.
In the case of US, from the IRS website I understand that foreign income of a US citizen will not be taxed if:
- The US citizen is a genuine resident of a foreign country for an uninterrupted period of a tax year,
- The US citizen is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.
You can use the IRS’s Interactive Tax Assistant tool to help determine whether income earned in a foreign country is eligible to be excluded from income reported on your US federal income tax return.
Trust this is helpful.
You don't need to pay an expert for tax matters. Just call the tax office in your country and ask them.
It's their job to inform people about such matters and it's free or I should rather you're already paying them.
You just have to explain to them your situation, that you are going to move to another country and that you want to know when you are supposed to pay taxes.
It's their job to inform people about such matters and it's free or I should rather you're already paying them.
You just have to explain to them your situation, that you are going to move to another country and that you want to know when you are supposed to pay taxes.
That'd be dangerous in my country, you gotta have that in writing.
Another thing to consider are exit taxes in some countries which can make moving with wealth more difficult.
But if one is a citizen of a country that wants to tax you no matter where (e.g. US), you still have to pay taxes?
Yes, you still have to pay taxes. AFAIK you have to renounce your nationality in order not to be taxed.
Anyone has successfully and legitimately moved elsewhere and reduced taxes?
Nomad Capitalist renounced US citizenship and has a channel dedicated to it.
From my research it looks like Portugal, Switzerland, and Germany have decent crypto tax laws.
https://bitvalex.com/article/the-best-european-crypto-tax-guide
https://www.bitrates.com/news/p/bitcoin-betting-and-crypto-taxation-in-the-eu-and-around-the-world
https://decrypt.co/43513/10-countries-that-dont-tax-bitcoin-gains
But if one is a citizen of a country that wants to tax you no matter where (e.g. US), you still have to pay taxes? Anyone has successfully and legitimately moved elsewhere and reduced taxes?
I don't know about a lot of countries but if you have earned your income in that country or through a business that had its ownership in that country you'll be taxed no matter where you go even if you are receiving it anywhere around the globe. But in the case of bitcoin finding the source of that income becomes really difficult in fact it's too debatable. Most of the countries work this way: If you leave the country for taking up employment elsewhere and you have lived in that country for less than half a year you are considered a non-resident. So whatever you would earn after leaving the country in that very year wouldn't be taxable. However, the incomes you earned during the tenure you were in the country would still be taxable. https://bitvalex.com/article/the-best-european-crypto-tax-guide
https://www.bitrates.com/news/p/bitcoin-betting-and-crypto-taxation-in-the-eu-and-around-the-world
https://decrypt.co/43513/10-countries-that-dont-tax-bitcoin-gains
But if one is a citizen of a country that wants to tax you no matter where (e.g. US), you still have to pay taxes? Anyone has successfully and legitimately moved elsewhere and reduced taxes?
I didn't understand your question clearly but to give you some clarity you must look for your tax law if they specify anything about non-resident citizens being taxed from their income sourced outside of the country. Basically if you still want to keep your citizenship from the country where you came from but immigrated to another country and you earn a living their this will be your label. Most countries I have seen is a nonresident citizen has no tax obligation from their country of origin if their earnings are purely coming from another country.
Thanks @LeGaulois and @20kevin20.
You don't need to pay an expert for tax matters. Just call the tax office in your country and ask them.
It's their job to inform people about such matters and it's free or I should rather you're already paying them.
You just have to explain to them your situation, that you are going to move to another country and that you want to know when you are supposed to pay taxes.
Thanks @LeGaulois and @20kevin20. Will look for some experts, though expect they aren't cheap. (Though if I find them to be expensive, then I probably haven't made enough money to matter!)
Perhaps one way this could work is if you literally leave away everything related to your current country and completely, fully move on to another government. If you can get citizenship for another country and revoke your current one and move everything on there so that you will not be related to your current country anymore, they can't ask you to pay taxes in a country you aren't a citizen of no more. Anyone feel free to prove me wrong.
Anyway, I fully sustain the argument above by LeGaulois. You can't do this based on forum suggestions. Contact experts so that you don't mess up based on opinions..
Anyway, I fully sustain the argument above by LeGaulois. You can't do this based on forum suggestions. Contact experts so that you don't mess up based on opinions..
For a lot of countries, you still have to pay the taxes up to 1 year after you moved to another country.
Also, most countries have DTAs (tax treaties) between them, especially in Europe, to avoid "double taxation" and to defines circumstances how tax residence is determined and others stuff.
So your question is difficult to answer without knowing which country you leave and which country you move to. You should rather search for the double taxation rules between "your country" and "countries listed on the links".
Nobody will be able to give you an accurate answer in a forum
Also, most countries have DTAs (tax treaties) between them, especially in Europe, to avoid "double taxation" and to defines circumstances how tax residence is determined and others stuff.
So your question is difficult to answer without knowing which country you leave and which country you move to. You should rather search for the double taxation rules between "your country" and "countries listed on the links".
Nobody will be able to give you an accurate answer in a forum
From my research it looks like Portugal, Switzerland, and Germany have decent crypto tax laws.
https://bitvalex.com/article/the-best-european-crypto-tax-guide
https://www.bitrates.com/news/p/bitcoin-betting-and-crypto-taxation-in-the-eu-and-around-the-world
https://decrypt.co/43513/10-countries-that-dont-tax-bitcoin-gains
But if one is a citizen of a country that wants to tax you no matter where (e.g. US), you still have to pay taxes? Anyone has successfully and legitimately moved elsewhere and reduced taxes?
https://bitvalex.com/article/the-best-european-crypto-tax-guide
https://www.bitrates.com/news/p/bitcoin-betting-and-crypto-taxation-in-the-eu-and-around-the-world
https://decrypt.co/43513/10-countries-that-dont-tax-bitcoin-gains
But if one is a citizen of a country that wants to tax you no matter where (e.g. US), you still have to pay taxes? Anyone has successfully and legitimately moved elsewhere and reduced taxes?
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