Does transferring tax residency purge capital gains?

[Blockvol]

Hello,

In many European countries, at least France and Italy, there is a capital gains tax on crypto. France taxes on the entire portfolio, while Italy taxes in LIFO (Last In First Out), but the principle remains the same in the sense that there are acquisition dates from which to calculate.

However, when you move abroad, and considering that there is no exit tax, once you arrive in the new country, do capital gains tend to restart from scratch? Maybe people here already know if this is the case for capital gains of other forms than crypto?

Thanks

 

[Martin Everson]

However, when you move abroad, and considering that there is no exit tax, once you arrive in the new country, do capital gains tend to restart from scratch? Maybe people here already know if this is the case for capital gains of other forms than crypto?

When you move abroad to a new country anything you bring with you is generally considered capital. The problem is with the country you are departing from. Countries like Spain ensure you are still liable to pay their capital gains tax in specific circumstances. See below post.

Renouncing tax residency (Spain) - still liable for tax after I leave?

Hi guys. I am currently resident in Spain, and having made realised gains in crypto and using algorithmic trading (lots of small trades with small profits, ie. taxable events) I realise I already will need to pull my pants down for the Hacienda. Looking to the future, I would prefer not to be...

www.offshorecorptalk.com

France also has something you may wish to investigate further.

Do I have to pay an "Exit Tax" ?

www.impots.gouv.fr

So a lot depends on country you are leaving and also program under which you seek residency in new country in some circumstances. Some residency programs have very specific rules around qualified shareholding etc and can prevent you from cashing in capital gains tax free within the first 5 years of residency for example. The Italian 100k a year non-dom scheme is such a program.

Get professional advice always. As 99% of people just move and cross their fingers no one will chase them for anything which often works but not with certain countries and assets over certain values etc.

 

[Blockvol]

France also has something you may wish to investigate further.

Do I have to pay an "Exit Tax" ?

www.impots.gouv.fr

There is no exit tax on crypto in France. I'm 100% sure. I live here and watch this very carefully. On the French-speaking web, you can find 2-3 sites of tax lawyers who are surprised (and not the other way around) and say that this flaw should be closed quickly.

Get professional advice always. As 99% of people just move and cross their fingers no one will chase them for anything which often works but not with certain countries and assets over certain values etc.

Yes, I can't afford to take that risk. I try to obtain information from my side, before contacting a tax lawyer because I do not trust them, nor do I necessarily find them very creative. I contacted a firm in Monaco, but they seem overwhelmed.

 

[Martin Everson]

There is no exit tax on crypto in France. I'm 100% sure. I live here and watch this very carefully. On the French-speaking web, you can find 2-3 sites of tax lawyers who are surprised (and not the other way around) and say that this flaw should be closed quickly.

Then escape while you can from France and work out where you really want to live later . Normal bolt hole is Dubai but you can also investigate some other places with easy residence programs and clear tax rules for new residents.

 

[Blockvol]

Then escape while you can from France and work out where you really want to live later . Normal bolt hole is Dubai but you can also investigate some other places with easy residence programs and clear tax rules for new residents.

There are my last months in France. I'm thinking about Switzerland (italian side because italian food, sun, italian fashion, and less leftist than french side), or Monaco but it's too difficult because privates bankers doesn't seems to like people who make wealth thanks to Bitcoin... I'm too suspect for them... but I will retry !! And at the same time I don't really know if it's a good idea because of pollution, noise... and tiny appartment, I want 200sqm and I don't know if it's worth it to rent 25k€/months for this kind of life ? I don't really know !

But my initial question is about purging capital gains because before leaving France, I want to find some magic tricks to combine like crossing borders (I live near many borders, France/Italy/Monaco), swaping cryptos to cryptos (operation not taxed in France), or make a gift in a country without gift tax, but it's too hard to find something great.

 

[JohnnyDoe]

What about a French overseas territory? Some have advantageous tax rates and very interestingly no import duties, which on the long run are a pain in the back.
For example Tahiti or St. Martin. Both much better than Monaco.

 

[Mercury]

If you dare you can relocate to French territory Wallis and Futuna as there is no tax of any kind including free healthcare as a resident.

 

[Blockvol]

What about a French overseas territory? Some have advantageous tax rates and very interestingly no import duties, which on the long run are a pain in the back.
For example Tahiti or St. Martin. Both much better than Monaco.

If you dare you can relocate to French territory Wallis and Futuna as there is no tax of any kind including free healthcare as a resident.

I don't know ! Some are very poor (Wallis and Futuna), or tiny, or nowhere in the ocean (Tahiti)...

I'm looking for a country where there are ultra-rich people all year round, not just a particular period for vacations; a country that will not suffer from shortages of wealth therefore, nor of energy or of products or services of any kind.

 

[JohnnyDoe]

I don't know ! Some are very poor (Wallis and Futuna), or tiny, or nowhere in the ocean (Tahiti)...

I'm looking for a country where there are ultra-rich people all year round, not just a particular period for vacations; a country that will not suffer from shortages of wealth therefore, nor of energy or of products or services of any kind.

Consider the Bahamas then. You can easily go back and forth to Miami whenever you want if you find Nassau too small or boring. Your Cigarette parked in your backyard canal will take you there in no time!

 

[Martin Everson]

Consider the Bahamas then. You can easily go back and forth to Miami whenever you want if you find Nassau too small or boring. Your Cigarette parked in your backyard canal will take you there in no time!

Lol....you watched too much Miami Vice . People just take Fast Ferry on day trip to Miami for around $100. You won't get chased by coast guard that way...lol.

 

[JohnnyDoe]

Lol....you watched too much Miami Vice . People just take Fast Ferry on day trip to Miami for around $100. You won't get chased by coast guard that way...lol.

I know a guy who does island hopping and trips to FL all the times with his Magnum 80’… but, admittedly, the ferry is a bit cheaper proposition