It will take at least 3 years to become non tax resident, and you also face an exit tax (that can be avoided if you don't sell for 5 years after you've become non tax resident).I live in Norway, and I dont know how to avoid taxes here. Norway charges up to 22% in tax!!
I really need help!
It will take at least 3 years to become non tax resident, and you also face an exit tax (that can be avoided if you don't sell for 5 years after you've become non tax resident).
Alternatively you can become tax resident in a country where there is a tax treaty that covers capital gains, and that also is not a credit treaty where you'd only get credit for the tax paid in the other country against your Norwegian taxes.
Is it not possible to do this another way? I will sell out of my position in the coming months. I really do not want to tax 22%.You need to take a long holiday to the Carribbean, UAE, Georgia or Vanuatu.
Norway is not a country to mess around with.
by the way when you exit positions, do you actually exit into fiat or stablecoins? IMHO exiting to stablecoins and waiting for a good next entry point in the next crypto winter is a good choice, at least for some % of the funds, unless you really need all of it for real life purchases in an urgent manner. Next cycle also supposed to be good I'm definitely stashing at least 50% of this bull run earnings in stablecoins for the entry positions in the next run 3-4 years from now. Until then, it is safe, and also pays interest. Companies like BlockFi and Coinbase won't go anywhere, billion valuation companies that are backed by VC and really strong finances, they'll survive any crypto winter and I easily can trust them for hundreds of thousands (I would be careful to trust millions but I don't have millions, so my thought process is at a different scale than probably others are in. For mid 6 figures it seems a good strategy, but I'm just learning as well ).
Thanks, this seems like a good plan. I entered the market through USDT and planning on exiting in USDT.You can also park it all in the stable coins like USDC and USDT, it will also give you interest, pretty high yields in blockfi.com, kucoin, hotbit, kraken. Stake some of it in strong long term crypto projects for yields, and park some in stablecoins for great %, if you have enough amounts this can be your monthly income for all basic needs just from the interest earned that you can spend with crypto debit cards and cash out in small amounts (paying the 22% tax on these random small amounts seems not too bad, you cash out for daily needs while still parking most of it in stablecoins).
And you can do that for several years while you are moving to some tax friendly places like UAE or Montenegro etc'. I personally plan to live permanently in Montenegro to benefit from their 9% flat tax on both income and capital gains taxes, which is pretty good. Also getting residency is easy. But I'm also from a good country that doesn't hunt you down like the US IRS does, so I'm lucky to not be American (despite I'm a US resident now [H1B worker], but a year after the relocation I will not be tax resident of US anymore, so I'll start using my parked stablecoins safely for various larger purchases like a house and a car, but until then will just rent stuff and travel a bit in neighboring EU countries).
Also keep in mind that by giving away the 22% you help your country, probably healthcare for someone is being paid from this, and not wars in Iraq are funded by that money. Some countries tax up to 45% and 50% and that's where it becomes slightly unfair, it's too much for hard earned income to be taxed so high. 10-20% seems fair if the country is good and cares for its citizens (unless you have ideological problems with what the tax money is used for, I'd say pay some tax on some amounts that you withdraw, it's not a big deal unless you must withdraw hundreds of thousands ASAP for some larger purchases, or millions).
you're welcome. one thing I noticed about stablecoins and the US tax laws for example is if you enter with stablecoin and exit , you have no capital gains tax (unless you withdraw more than what you invested) so up to the exact same amount you've put "in" , you can get "out" with 0% tax legally in US (not an adviser lol but that's what I've read on IRS site itself about the crypto rules they came up with). Might be worth to check exact Norway rules about gains tax and what it applies to, it could help to plan properly in the near future.Thanks, this seems like a good plan. I entered the market through USDT and planning on exiting in USDT.
Thank you for taking your time to write this.
I would not park all my capital in stable coins.
MT is very good jurisdiction and 9% tax worst cast and down to 5% is possible but not worth the headache.you're welcome. one thing I noticed about stablecoins and the US tax laws for example is if you enter with stablecoin and exit , you have no capital gains tax (unless you withdraw more than what you invested) so up to the exact same amount you've put "in" , you can get "out" with 0% tax legally in US (not an adviser lol but that's what I've read on IRS site itself about the crypto rules they came up with). Might be worth to check exact Norway rules about gains tax and what it applies to, it could help to plan properly in the near future.
One more option that I'm personally looking at, is Montenegro, since they officially don't tax or regulate the crypto industry yet, based on my research, so whatever you put into their banks from crypto services, might just be considered foreign earned income and not be taxed at all (they're happy whenever people bring money into the country, like in Thailand, so they won't bother bugging you as long as you "bring and spend") or taxed by their 9% which is pretty low rate (I'm still researching this all myself, so please double check anything I say).
Thats not true. International law trumps domestic law. Norway can pass any domestic tax law they want but an unamended DTA will have legal precedent. Thats why he needs to go through each DTA to see if therein lies an opportunity. Until then no one knows.@travelES only @Sols made the best advice, haha.
Technically Norway has the right to tax you on your current crypto holdings no matter if you leave the country for ever or not. Because you earned it while being in Norway, right? So technically relocating would make you liable to exit tax for the value of your crypto on the leaving date.