Crypto-to-crypto transactions are not taxed in Poland & Germany!

[JosephLL]

I lived in Cyprus for over a decade, and I have a parent there still. Personally I live in one of the Balkans counties now, which is where I'm originally from (and the only passport I have).

With crypto being down now, I'm thinking of getting some $5.000 of crypto and waiting for the next bull run. I should be able to cash out anywhere from $10,000 to $50,000 or more, depending on how lucky I get with the cryptos I buy.

That said, I wanna do it legit...

In my country the tax on crypto is 15% on your profits. So if you bought $5,000 and cashed out $55,000, you'd pay 15% on the $50,000, which is $7,500

I got a little excited when I found out there's no tax on crypto in Cyprus, as I could do through my parent and make out with no tax. However, after realizing that when it's all said and done we'd still have to pay the income tax, it would cost even more, depending on how much my parent already earns from their job and how much I cash out in the end.

Right?

No Scorpy. In Serbia, 15% cgt on crypto means in this case: 5000*.15=750$. That's if you can pursade the stone age taxman that your purchase price was $50000.

But, the taxman is the least of yout worries. No bank in Serbia would ever allow the incoming wire transfer, irrelevant of your wish to pay taxes.

 

[Scorpy]

No Scorpy. In Serbia, 15% cgt on crypto means in this case: 5000*.15=750$. That's if you can pursade the stone age taxman that your purchase price was $50000.

But, the taxman is the least of yout worries. No bank in Serbia would ever allow the incoming wire transfer, irrelevant of your wish to pay taxes.

Wait, are you sure? The 15% is on your profit, not on your buy. If I buy crypto for $10 and cash out $100,000, the tax isn't on the $10.

Really? Why wouldn't a bank accept a wire if the government has regulated it?

 

[JosephLL]

Wait, are you sure? The 15% is on your profit, not on your buy. If I buy crypto for $10 and cash out $100,000, the tax isn't on the $10.

Really? Why wouldn't a bank accept a wire if the government has regulated it?

Yes, the capital gains are payed on the difference between purchase and sell price. But I understood your example to be $50k purchase and $55k as a sell price?

Unfortunately for us, a bank transaction is not your constitutional right. It is solely a matter of a private bank to bless you with a transaction. Paying taxes or legal status of crypto has nothing to do with it. Furthermore it need not to even explain to you why your tx is forbidden.

For regular mortals in Serbia you have only 1 cashout option and that's ecd.rs (sleazy exchange setup by or in collusion with Serbian police apparatus). You'll get 5% provision & payed in dinars

However if you get lucky and by some magic succeed in performing incoming foreign wire transfer from outside legal entity to personal account in Serbia, please be so kind to report here.

 

[Junya | 純也]

I can confirm it is true. Hold crypto 1 year and it is tax free. Also a new law was just released that this also goes for staking. It was previously assumed that staking profits would be tax free after 10 years but it is now in fact 1 year. The problem comes up when you need to provide documentation for when you bought the crypto and also where the money came from (AML) so it is not from criminal activity. If you got these docs straight then you are good to go. My question is, what if you dont have these docs? Ive been trading quite a lot and have completely lost control of the source of funds. Does anybody have a solution for this? Ive heard a lot of ideas but none that I fully trust yet.

 

[fortunespeculator]

it is not the same as buy coin keep it for 1 year and sell it tax free.

Imagine if you bought 50 btc in 2013 kept them til 2021 and sell them tax free in Germany, so you would have been a millionaire without paying tax, enjoy life!

Hindsight is always 20/20

 

[Scorpy]

Yes, the capital gains are payed on the difference between purchase and sell price. But I understood your example to be $50k purchase and $55k as a sell price?

Unfortunately for us, a bank transaction is not your constitutional right. It is solely a matter of a private bank to bless you with a transaction. Paying taxes or legal status of crypto has nothing to do with it. Furthermore it need not to even explain to you why your tx is forbidden.

For regular mortals in Serbia you have only 1 cashout option and that's ecd.rs (sleazy exchange setup by or in collusion with Serbian police apparatus). You'll get 5% provision & payed in dinars

However if you get lucky and by some magic succeed in performing incoming foreign wire transfer from outside legal entity to personal account in Serbia, please be so kind to report here.

That is so stupid.

But wait a minute, how would a bank even know a wire is coming for crypto? Or from a crypto exchange?

I'm not even sure which exchanges allow cash withdrawals, but for the sake of argument let's say that Binance does.

So you withdraw money from Binance to Raiffaisen or Intesa bank. The money arrives. But the money doesn't arrive from Binance LLC or whatever, it arrives from their bank. So the local bank doesn't know what this money is for.

And let's say they call you and ask you to state what the source of the funds is. You can say anything you want. They're not the tax authority, they can go f**k themselves. Oh yeah, the money is a gift from my cat overseas, thank you.

Then they put the money in your account, and you go pay your tax, and it's done.

No offense, but I just find it weird that a bank would refuse a wire from another bank. How would they even know the purpose of the payment? And then, since the government has regulated and taxed it, what does the bank care to refuse the money? It makes no sense.

It's not that I don't believe you, but I'm gonna look into this a bit further because it doesn't smell right.

 

[ImKing]

It's not that I don't believe you, but I'm gonna look into this a bit further because it doesn't smell right.

what will you do about it. They can use the reason of money laundering, failing to provide source of funds.. etc.

 

[Scorpy]

what will you do about it. They can use the reason of money laundering, failing to provide source of funds.. etc.

What money laundering? Look, let's say we're dealing with King bank.

1) I deposit cash in my account on King bank
2) I buy crypto on Binance using that money
3) I wait, crypto goes up, I convert it to cash on Binance and withdraw to my account on King bank

When the money comes in the bank, you can provide all the proof.

1) I bought the crypto on Binance, using my account in King bank, and here is the receipt. You have it on your records anyway

2) I bought 1 BTC with it. Here is the transaction from my Binance account. Here is how much 1 BTC was worth when I bought it

3) A year later I converted the 1 BTC into cash on Binance, here is the transaction proof. Here is how much 1 BTC was worth when I converted it

4) And the money that came in my account on King bank is exactly the same amount that I converted the 1 BTC to cash in the above point

Where's the money laundering? There's your proof of funds. As pure as it gets. It's all there. With proof. Legit.

Where's the problem?

 

[johndunham]

Where's the problem?

The problem is that the banks are not obliged to accept you as a client, or accept your wire transfer as legitimate. So, to be frank, it doesn't matter that you are legit. You are at the mercy of the banks.

 

[clemens]

the problem is that they may ask where the cash comes that appears on your bank account. And are you sure King Bank does not ask you for where the cash comes before they credit your account?

 

[CryptoTrader87]

Banks are a bunch of bitc*es.

 

[Scorpy]

Banks are a bunch of bitc*es.

Well, technically, the people are a bunch of bitches. The banks are like a bunch of pimps, pimping everybody out.

I don't know, I could be wrong

 

[CryptoTrader87]

Well, technically, the people are a bunch of bitches. The banks are like a bunch of pimps, pimping everybody out.

I don't know, I could be wrong

Hahahahha good one ))

 

[SoNewToAllShit]

Well, technically, the people are a bunch of bitches. The banks are like a bunch of pimps, pimping everybody out.

I don't know, I could be wrong

that fit the shoe!

 

[bubbledouble]

The problem is that the banks are not obliged to accept you as a client, or accept your wire transfer as legitimate. So, to be frank, it doesn't matter that you are legit. You are at the mercy of the banks.

you go with some of the hundred of neobanks or EMI's, just have 3 - 4 in place, what's not working here?