Which zero bitcoin tax country is best for relocation of ones tax domicile in order to pay zero tax on BTC...?

[Horeskal]

Hello

Im thinking about moving my tax domicile to a country where you dont have to pay taxes on selling of your BTC (or crypto currencies in general)... There are a couple of choices AFAIK:
Portugal, Malta, Slovenia, Germany, Switzerland, Belarussia, Malaysia, Singapore, El Salvador, Dubai... (maybe i forgot one?) and i also think that Croatia and Cyprus belong on this list. Im an individual, not a company. I dont really trade the crypto or do anything with it (staking etc.). Im from one of EU states.

Because of many reasons, i have basically narrowed my choice to about 3 pieces: Portugal, Croatia and (maybe) Cyprus... All the other countries didnt really seem so attractive to me for whatever reason:

(el salvador is a crime ridden *hithole, Singapore, Malaysia and Dubai are AFAIK too much different culture-wise from mine, or expensive (Dubai), Switzerland really is NOT a BTC zero tax country AFAIK, In germany they will probably soon wanna force jab you ("vaccine") + theres a 1year hold period of crypto only after which BTC is tax free, anything other than that is taxed QUITE HIGH (35%+ (?) ), Slovenia will soon introduce 10% (really 25%) tax on crypto. Bellarusia im scared to go to , who knows if EU wont cut it from swift, cause banking troubles+ im not sure about rule of law there etc.), Malta is TINY TINY island (where i dont really wanna spent whole 2-3 years i would need to be away from my country in order not to have a tax domicile here)...

So basically im left with 3 choices - Portugal, Croatia and Cyprus (maybe)...

I like Portugal the most, but from all i have heard, its more then probable that BTC wont stay tax free there for much longer, so moving there might be risky...

Im basically left with Croatia, where (AFAIK) BTC is tax free after holding it for more then 2 years... Otherwise there is (somewhat "tolerable") tax - 11,5%. Cyprus im not sure if BTC is really tax free+even if it is, you still (AFAIK) have to pay 2,68% (or whatever) "tax" for health insurance... +Cyprus is also quite a small island (not as much as malta, but still), i think it has only 1,5 milion inhabitants... + is split in two parts (can i move freely between the parts even ? )...

So basically its one of those three for me (Portugal, Croatia, Cyprus)...

What do u think about these choices? Do you know someone who moved to these countries to optimize CRYPTO/BTC taxes...? Did i miss some even more fitting country for my case...? Do you think that Portugal will really soon introduce a tax on BTC?

Any input really on this would be appreciated... Especially if you or someone u know are dealing with the same issue... (BTC/Crypto tax optimalization via moving your tax domicile (as an individual) to other country).

Thank you

 

[JackAlabama]

Hello

Im thinking about moving my tax domicile to a country where you dont have to pay taxes on selling of your BTC (or crypto currencies in general)... There are a couple of choices AFAIK:
Portugal, Malta, Slovenia, Germany, Switzerland, Belarussia, Malaysia, Singapore, El Salvador, Dubai... (maybe i forgot one?) and i also think that Croatia and Cyprus belong on this list. Im an individual, not a company. I dont really trade the crypto or do anything with it (staking etc.). Im from one of EU states.

Because of many reasons, i have basically narrowed my choice to about 3 pieces: Portugal, Croatia and (maybe) Cyprus... All the other countries didnt really seem so attractive to me for whatever reason:

(el salvador is a crime ridden *hithole, Singapore, Malaysia and Dubai are AFAIK too much different culture-wise from mine, or expensive (Dubai), Switzerland really is NOT a BTC zero tax country AFAIK, In germany they will probably soon wanna force jab you ("vaccine") + theres a 1year hold period of crypto only after which BTC is tax free, anything other than that is taxed QUITE HIGH (35%+ (?) ), Slovenia will soon introduce 10% (really 25%) tax on crypto. Bellarusia im scared to go to , who knows if EU wont cut it from swift, cause banking troubles+ im not sure about rule of law there etc.), Malta is TINY TINY island (where i dont really wanna spent whole 2-3 years i would need to be away from my country in order not to have a tax domicile here)...

So basically im left with 3 choices - Portugal, Croatia and Cyprus (maybe)...

I like Portugal the most, but from all i have heard, its more then probable that BTC wont stay tax free there for much longer, so moving there might be risky...

Im basically left with Croatia, where (AFAIK) BTC is tax free after holding it for more then 2 years... Otherwise there is (somewhat "tolerable") tax - 11,5%. Cyprus im not sure if BTC is really tax free+even if it is, you still (AFAIK) have to pay 2,68% (or whatever) "tax" for health insurance... +Cyprus is also quite a small island (not as much as malta, but still), i think it has only 1,5 milion inhabitants... + is split in two parts (can i move freely between the parts even ? )...

So basically its one of those three for me (Portugal, Croatia, Cyprus)...

What do u think about these choices? Do you know someone who moved to these countries to optimize CRYPTO/BTC taxes...? Did i miss some even more fitting country for my case...? Do you think that Portugal will really soon introduce a tax on BTC?

Any input really on this would be appreciated... Especially if you or someone u know are dealing with the same issue... (BTC/Crypto tax optimalization via moving your tax domicile (as an individual) to other country).

Thank you

Switzerland is a 0% tax country regarding to your crypto, IF and ONLY IF you exactly do what you just said, which is hodl and no trading nor anything DeFi related. Especially if you have a job besides, you can even trade to some extent and pay 0% cap gains. Or you put all this in a company and pay a very minimal tax in the low single digits.
Panama and Paraguay you can also add to the list which are popular (however Panama is now much more expensive than before unless you are Italian). In theory also Hong Kong, but it is still closed de facto afaik. Also Montenegro and Georgia seem popular option.

Many did and still do this and I've met many. Especially Portugal is popular from your list.

 

[Horeskal]

Yeah, i read more things that switzerland really is NOT a BTC tax haven at all (at least for most poeple). For example AFAIK, even if u do everything "right" - you have other source of funds (regular job), you dont trade at all, you dont stake etc... even than, AFAIK all it takes is that BTC earnings would be more then 50% of your income in that year (which can easily happen if you have some crypto or been in crypto for a while) and voila - you are considered a profesional trader or whatever and u have to pay tax... Basically if BTC earnings are too big part of your yearly income you are f*cker, which again - can happen easily, especially in a bull market (when u should sell of course, you sell in bull, not in bear )... SO switzerland really is a no no, correct me if im wrong...

You had more interesting points in your post, thank you for that.

You wrote:
" Or you put all this in a company and pay a very minimal tax in the low single digits."

- Im not aware of this...? Swiss is somewhat of a corporate BTC haven...? Never heard about that...? There must be a ton of IFs and WHENs...?



You wrote:
Panama and Paraguay you can also add to the list which are popular (however Panama is now much more expensive than before unless you are Italian). In theory also Hong Kong,
- Im a lazy european... Paraguy, Panama etc. even Hong Kong seem too much of a foreign and generally unkown states, i have never heard about them being tax havens for crypto INDIVIDUALS...?


You wrote:
Montenegro and Georgia seem popular option.

- There are in Europe and much more doable to me, how does it work there..? Is there specific law that BTC is a no tax? Does BTC belong to some category that is already zeto tax (like stocks) etc...?


You wrote:
Many did and still do this and I've met many. Especially Portugal is popular from your list.

- So chaning your tax domicile is a popular choice how to reduce your taxes among crypto people, and people actually do this often...? I dont know personally anyone who did it , just keep reading about people online saying they MIGHT DO IT IN FUTURE...

Yeah thats the problem, thank you for confirming that Portugal is such a popular option for crypto milionaires... ! Thats why i would be scared shi*less to go there, i think the PT government will notice this and try to milk them HEAVILY ) :-(.

 

[Horeskal]

Nobody has any input into this... comme on guys!

help me

 

[lsc5]

Hi,
I am more or less in the same boat.
I was also leaning towards Portugal, but you have to be careful, that you are not considered as a professional. Apparently they apply something like BIM20205 - Business Income Manual - HMRC internal manual - GOV.UK (badges of trade). SO how do you really know beforehand, if you will be considered as professional.
Anyone has insides here, how you could get clarification here?
Maybe a contact to a Portuguese tax lawyer (English speaking)?

So atm I am more leaning towards Cyprus and funding a ltd there, even though you pay 12,5% then.

 

[CyprusLaw]

Hi,
I am more or less in the same boat.
I was also leaning towards Portugal, but you have to be careful, that you are not considered as a professional. Apparently they apply something like BIM20205 - Business Income Manual - HMRC internal manual - GOV.UK (badges of trade). SO how do you really know beforehand, if you will be considered as professional.
Anyone has insides here, how you could get clarification here?
Maybe a contact to a Portuguese tax lawyer (English speaking)?

So atm I am more leaning towards Cyprus and funding a ltd there, even though you pay 12,5% then.

Hi,
I am more or less in the same boat.
I was also leaning towards Portugal, but you have to be careful, that you are not considered as a professional. Apparently they apply something like BIM20205 - Business Income Manual - HMRC internal manual - GOV.UK (badges of trade). SO how do you really know beforehand, if you will be considered as professional.
Anyone has insides here, how you could get clarification here?
Maybe a contact to a Portuguese tax lawyer (English speaking)?

So atm I am more leaning towards Cyprus and funding a ltd there, even though you pay 12,5% then.

Cyprus is a solid choice. 12.5% is still quote low and as a non dom you have no sdc/tax on dividends, except for 2.65% towards the GHS. Therefore your effective tax rate will be around 15% total

 

[backpacker]

Yeah, i read more things that switzerland really is NOT a BTC tax haven at all (at least for most poeple). For example AFAIK, even if u do everything "right" - you have other source of funds (regular job), you dont trade at all, you dont stake etc... even than, AFAIK all it takes is that BTC earnings would be more then 50% of your income in that year (which can easily happen if you have some crypto or been in crypto for a while) and voila - you are considered a profesional trader or whatever and u have to pay tax... Basically if BTC earnings are too big part of your yearly income you are f*cker, which again - can happen easily, especially in a bull market (when u should sell of course, you sell in bull, not in bear )... SO switzerland really is a no no, correct me if im wrong...

You had more interesting points in your post, thank you for that.

You wrote:
" Or you put all this in a company and pay a very minimal tax in the low single digits."

- Im not aware of this...? Swiss is somewhat of a corporate BTC haven...? Never heard about that...? There must be a ton of IFs and WHENs...?



You wrote:
Panama and Paraguay you can also add to the list which are popular (however Panama is now much more expensive than before unless you are Italian). In theory also Hong Kong,
- Im a lazy european... Paraguy, Panama etc. even Hong Kong seem too much of a foreign and generally unkown states, i have never heard about them being tax havens for crypto INDIVIDUALS...?


You wrote:
Montenegro and Georgia seem popular option.

- There are in Europe and much more doable to me, how does it work there..? Is there specific law that BTC is a no tax? Does BTC belong to some category that is already zeto tax (like stocks) etc...?


You wrote:
Many did and still do this and I've met many. Especially Portugal is popular from your list.

- So chaning your tax domicile is a popular choice how to reduce your taxes among crypto people, and people actually do this often...? I dont know personally anyone who did it , just keep reading about people online saying they MIGHT DO IT IN FUTURE...

Yeah thats the problem, thank you for confirming that Portugal is such a popular option for crypto milionaires... ! Thats why i would be scared shi*less to go there, i think the PT government will notice this and try to milk them HEAVILY )

Switzerland is indeed uninteresting. There are certain criteria and they have been put together in an easy-to-understand article The Truth About Capital Gains And Taxes In Switzerland - The Poor Swiss . Read between the lines and you will understand that Switzerland is not the right country for capital gains.
In effect, you will be on the mercy of authorities who have not much sympathies for "speculators".
Note that as soon as you are considered to be "professional" you are liable for both tax + social security contributions (no upper ceiling on the latter)!

If you want a clear cut solution in the heart of Europe than look into the Netherlands and their system of wealth taxation as an alternative option.

Regarding Georgia & cryptocurrencies, the relevant ruling is “Public Decision No. 201 of 28-June-2019 of the Ministry of Finance of Georgia”.

 

[JackAlabama]

Switzerland is indeed uninteresting. There are certain criteria and they have been put together in an easy-to-understand article The Truth About Capital Gains And Taxes In Switzerland - The Poor Swiss . Read between the lines and you will understand that Switzerland is not the right country for capital gains.
In effect, you will be on the mercy of authorities who have not much sympathies for "speculators".
Note that as soon as you are considered to be "professional" you are liable for both tax + social security contributions (no upper ceiling on the latter)!

If you want a clear cut solution in the heart of Europe than look into the Netherlands and their system of wealth taxation as an alternative option.

Regarding Georgia & cryptocurrencies, the relevant ruling is “Public Decision No. 201 of 28-June-2019 of the Ministry of Finance of Georgia”.

A simple google query just throws up insane numbers such that as even a simple Millionaire one gotta pay over 15 (!!!) k in just wealth tax for having the privilege to live there.
What is so particularily good about the Netherlands?


https://www.companyformationnetherlands.com/wealth-tax-netherlands"

Wealth tax rates in the Netherlands​

The personal income taxation system in the Netherlands is based on progressive rates which can slightly vary from year to year.

Out of the income tax, the Dutch wealth tax represents only a fraction when it comes to the rates imposed, as it follows:

• - the first 30,360 euros are exempt from taxation in the Netherlands;
• - 0.58% is the wealth tax levied on an annual income raging between 30,361 and 102,010 euros;
• - 1.34% is the wealth tax imposed on income between 102,011 and 1,020,096 euros;
• - any amount surpassing 1,020,096 euros will be taxed at 1,68%.

"

 

[backpacker]

A simple google query just throws up insane numbers such that as even a simple Millionaire one gotta pay over 15 (!!!) k in just wealth tax for having the privilege to live there.
What is so particularily good about the Netherlands?


https://www.companyformationnetherlands.com/wealth-tax-netherlands"

Wealth tax rates in the Netherlands​

The personal income taxation system in the Netherlands is based on progressive rates which can slightly vary from year to year.

Out of the income tax, the Dutch wealth tax represents only a fraction when it comes to the rates imposed, as it follows:

• - the first 30,360 euros are exempt from taxation in the Netherlands;
• - 0.58% is the wealth tax levied on an annual income raging between 30,361 and 102,010 euros;
• - 1.34% is the wealth tax imposed on income between 102,011 and 1,020,096 euros;
• - any amount surpassing 1,020,096 euros will be taxed at 1,68%.

"

We were talking about cryptocurrencies and potential capital gains. Not a millionaire who buys and holds.

If somebody wants to live in the heart of Europe, the Netherlands offers a clearly structured tax system. Something quite rare in that part of world.

Compared to Switzerland the Dutch system offers certainty when it comes to capital gains taxation. When the majority of your income consists of capital gains, the Dutch system is better than the Swiss.

 

[JackAlabama]

We were talking about cryptocurrencies and potential capital gains. Not a millionaire who buys and holds.

If somebody wants to live in the heart of Europe, the Netherlands offers a clearly structured tax system. Something quite rare in that part of world.

Compared to Switzerland the Dutch system offers certainty when it comes to capital gains taxation. When the majority of your income consists of capital gains, the Dutch system is better than the Swiss.

The certainty which you did not address is to having to pay high wealth tax ON TOP of capital gains.

 

[backpacker]

The certainty which you did not address is to having to pay high wealth tax ON TOP of capital gains.

Please read -> No capital gains tax in the Netherlands - Taxsavers