If you have worked hard or got lucky with earning a good profit with Bitcoin you will want to ensure that the government is not taxing you on a decentralized unregulated currency.
So, Today we will be discussing Bitcoin/Cryptocurrency taxation.
Living in India or U.S., cryptocurrencies come under the scope of the definition of income as well as capital assets. Therefore the confusion arises and it can be taxable both as capital gains tax or business tax.
Since it is classified as a capital asset, any gains on the sale will be as capital gains. This is divided into short term and long term gains.
Short term gains in India that are more than $10 lakhs are taxed a whopping 30% of the gains while the long term from an investment for atleast a year are taxed 20% of the total gain. The conflict is, what if Bitcoin is sold on a short-term basis and then made into a long-term buy, what the tax structure will be is not known.
Therefore with such losses in profits from Bitcoin and the need for legal advice so that no future implications arise, it is best to ride the safer way home.
To ensure this is done there has to be a legal way out. You don’t need to brainstorm yourself into confusion into the manipulation of accounts but instead just understand which countries have a tax free structure for Bitcoin.
The real problem is some countries are really confused on whether to consider Bitcoin/Cryptos as a commodity, currency, or an asset. Therefore it can come under a majority of acts.
For now, I would take advantage of countries which have a tax free approach toward Bitcoin trades and gains, as every penny saved could be turned into every penny earned.
Moreover, a few years from now, most of the sincere crypto traders and HODLers would be a millionaire, so it’s better to reside in a tax-free country and enjoy the money.
But the first question that arises in your mind:
- If there are any countries where your money is not taxed?
The answer is Yes!
So, Today I will share a complete list of countries which are heaven for millionaires and you can take a safer route from.
Top Tax-Free Bitcoin Countries
Singapore is the land of haven like savings for major investors in the stock market, and now the cryptocurrency market.
As of now, Singapore does not consider Bitcoin as a commodity nor a currency. Therefore if you are hoping to save the unnecessary taxes in Singapore it is best to consider Bitcoin purchases as investments as investments are tax exempted.
Individuals such, Vitalik the founder of Ethereum has even moved to Singapore thanks to this reason.
I would personally choose Singapore as the place to stay in, for its amazing lifestyle which can be enjoyed by the tax savings from cryptocurrency gains.
Denmark is technology friendly and has shown interest in going cashless. Hence with its helpful policies in place, it has become a hub for cryptocurrency trades and investments.
Thanks to its attitude towards technology, it has boosted the presence of Bitcoin. Being one of the first to declare Bitcoin trade to be tax free in March 2014, where the Central Bank of Denmark announced that Bitcoin cannot be considered a currency.
It is no wonder Denmark is always voted as one of the happiest countries in the world. It is a great supporter of what people love, which is as of now all things, cryptocurrencies. Keep smiling with the tax-free benefits in this lovely country!
What better way to get on the map in terms of tourism and a boost to the economy than by the president signing a legal document on legalizing cryptocurrency.
The president of Belarus, Alexander Lukashenko, has signed a decree which legalizes cryptocurrencies, initial coin offerings (ICOs), and smart contracts. Crypto transactions and all related income, including from mining, will be tax-free thanks to this decision.
Take a trip to Belarus, and enjoy life on your own terms. Freedom is the name of the game in this country, with no stopping of cryptocurrency movements; you will be living the life.
Belarus is definitely in the making of becoming a wealthy nation thanks to the choices made.
Germany is one of the most developed nations that has allowed cryptocurrency to be gained on in a tax-free climate. It is not considered an asset, commodity or currency but considered as private money.
Capital gains on long-term gains from cryptocurrency and if profits do not exceed 600 Euro, will be included in the tax free stance for Bitcoins.
This is the ideal location where cryptocurrency would be my ideal side hustle, to pay off my traveling expenses and sip on some good German beer!
The notorious Caveman islands don’t have any tax on Capital gains from Bitcoin sales. This include both long-term and short-term capital gains.
Also, if you receive Bitcoin as income, it is tax-free. The main reason for this is that income tax is not considered.
This is for the big time traders who want to open up a separate account either personal or business and opt for residency. This will allow full freedom of the verification process taking details from your Caveman account.
If you want to live all shady like and be the manipulators of finance this would be the ideal place. It is advisable to speak to a friend who is an expert and is practically living this type of life, or a specialist legal advisor.
Slovenia is another Bitcoin tax haven for individual investors where capital gains are not taxed and not considered as part of their income. Slovenia has 0% tax on Forex trading, and that covers Bitcoin too.
There’s no wonder now why Slovenia’s Bitcoin scene is the second largest in Europe based on Google search queries. It is also home to one of the largest Bitcoin exchanges, Bitstamp.
With Bitcoin being tax-free in Slovenia, and 7 ATMs currently disposing of fiat currencies when inputting Bitcoin details it seems like a Bitcoin Utopia after all.
My View on Bitcoin Taxation
I personally would keep moving from country to country enjoying their benefits of cryptocurrencies being tax-free. Whether it be to enjoy the islands of Caveman and meet successful Bitcoin traders and getting tips to roaming around Slovenia withdrawing tax-free Bitcoin in the form of fiat currencies.
You too can enjoy your dream lifestyle of traveling while earning, by tuning on to Coinscage. Coinscage looks into helping you meet your dreams with the use of cryptocurrencies!
The most popular question – if a fiscal resident from a particular country where cryptocurrency is taxable moved to a country of non-taxable cryptocurrencies, would this resident be taxed?
The best answer to this question is if the resident revokes his residency and clears his settling taxes, then the move would be to his benefit. If the precautionary steps are not taken, there would be no use in moving to a non-taxable cryptocurrency nation.
It is always advisable to consult a flag theory and tax consultant from the representative country.
So, This is it on my end today. I did a lot of research before compiling this amazing list and if you know some other tax-free countries then don’t forget to comment below.
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