Hello
I have zero experience with (offshore) tax havens. I am, live and have tax domicile in an European country. My question is - is there a way to optimize (=pay less or ideally no tax) on ones (selling) of bitcoin/crypto...? The crypto would be legally obtained, one can prove its origin etc. Theres nothing illegal about the crypto or source of funds etc. One just wants to pay no tax.
Traditionally tax havens would probably NOT be a good way how to optimize ones selling of crypto i assume, mainly because you would want to use the profits in a way that benefits you - buy a property in your country for example etc. which may (and would) catch the eye and attention of local tax man, who would ask you where did you get the money...
A) So in this sense - selling bitcoin (using a company in a tax haven through which you would sell it) and wanting to use the profits to buy "real things" is NOT a good idea at all, correct? (Because the authorities will see the "real things" and ask you where did you get the funds to buy them..)
B) But what if one wants just to re-invest the profits back into bitcoin at a lower price? E.g. You sell your bitcoin at, i dont know, 100 000 usd, then you obtain fiat money (USD, EUR whatever) and you need it to just to "sit" somewhere, in some safe bank account, until BTC price falls to 50 000 USD (lets say) in 6-12 months. And then you buy back the bitcoin at a lower price... You just want to re-invest the profits from BTC sale, you dont want to buy ANYTHING with it at all... And of course you dont want to really pay any tax on it (why would you if you wanna just re-invest it)
In this case, using (offshore) tax haven is a valid and functioning strategy/aproach...?
There are couple of questions/problems i would like to ask about:
1) Is this a valid and functioning approach that would work to begin with...?
2) Would any "serious" and "safe" bank open a bank account for such (newly created at that) offshore based tax haven company...?
3) Would any "serious" and "safe" bitcoin/crypto exchange (like binance, coinbase, bitfinex, kraken etc.) open and validate an exchange account for such newly created company, bases in a tax haven...? (i think majority of these exchanges have quite strict AML/KYC requirements, so i think there might be a problem...?)
4) Would the bank that would open a banking account for such (newly formed) offshore tax haven company keep the bank account opened and functioning (and not "close or freeze" or whatever it, immediately) even if lets say a 6 figure ammount of EUR/USD would land on such banking account, comming from the crypto exchange... (binance, kraken, bitfinex etc...)?
Thank you
I have zero experience with (offshore) tax havens. I am, live and have tax domicile in an European country. My question is - is there a way to optimize (=pay less or ideally no tax) on ones (selling) of bitcoin/crypto...? The crypto would be legally obtained, one can prove its origin etc. Theres nothing illegal about the crypto or source of funds etc. One just wants to pay no tax.
Traditionally tax havens would probably NOT be a good way how to optimize ones selling of crypto i assume, mainly because you would want to use the profits in a way that benefits you - buy a property in your country for example etc. which may (and would) catch the eye and attention of local tax man, who would ask you where did you get the money...
A) So in this sense - selling bitcoin (using a company in a tax haven through which you would sell it) and wanting to use the profits to buy "real things" is NOT a good idea at all, correct? (Because the authorities will see the "real things" and ask you where did you get the funds to buy them..)
B) But what if one wants just to re-invest the profits back into bitcoin at a lower price? E.g. You sell your bitcoin at, i dont know, 100 000 usd, then you obtain fiat money (USD, EUR whatever) and you need it to just to "sit" somewhere, in some safe bank account, until BTC price falls to 50 000 USD (lets say) in 6-12 months. And then you buy back the bitcoin at a lower price... You just want to re-invest the profits from BTC sale, you dont want to buy ANYTHING with it at all... And of course you dont want to really pay any tax on it (why would you if you wanna just re-invest it)
In this case, using (offshore) tax haven is a valid and functioning strategy/aproach...?
There are couple of questions/problems i would like to ask about:
1) Is this a valid and functioning approach that would work to begin with...?
2) Would any "serious" and "safe" bank open a bank account for such (newly created at that) offshore based tax haven company...?
3) Would any "serious" and "safe" bitcoin/crypto exchange (like binance, coinbase, bitfinex, kraken etc.) open and validate an exchange account for such newly created company, bases in a tax haven...? (i think majority of these exchanges have quite strict AML/KYC requirements, so i think there might be a problem...?)
4) Would the bank that would open a banking account for such (newly formed) offshore tax haven company keep the bank account opened and functioning (and not "close or freeze" or whatever it, immediately) even if lets say a 6 figure ammount of EUR/USD would land on such banking account, comming from the crypto exchange... (binance, kraken, bitfinex etc...)?
Thank you
, no i dont live in a BTC tax friendly country, so i would have to leave (change tax residency) to another country. I know all this and already had few consultations with local tax lawyers...
