I need a crypto-exit plan.

[321run]

I live in Norway, and I dont know how to avoid taxes here. Norway charges up to 22% in tax!!

I really need help!

 

[luckycriminal]

Wouldnt bother unless the Taxes are very high (40-50%) and you have a very big chunk of money. I'll rather sleep well and not bother; do it well once and if the big earnings keep happening move to another country and keep doing the activity there.

 

[Awblackhat]

All the Nordic countries are dangerous when it comes to tax. I would leave to start fresh but it's a risk with the 3 year tax hangover.

If OP wants to stay in the country then there is no way round it. He will have to pay the 22% which is actually quite reasonable compared to the UK @ 40%.

Not true about UK as it is taxed as capital gains which is 20% at the higher rate. You do not may income tax on it. 10% at the lower rate of tax. You have your cgt exemptions too for you and your partner each year.

UK Cryptocurrency Tax Guide | CoinTracker

The UK tax authority (HMRC), has issued comprehensive cryptocurrrency tax guidance. Here is everything you need to know to stay in compliance.

www.cointracker.io

 

[Awblackhat]

Try Denmark. You will have to pay 53% !!!! Pay those 22% or withdraw them by different services like localbitcoin, privately etc. If you want to "enter" the system and law, you will have to pay those 22% - thats cheap man!

I believe local bitcoins is now KYC

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).

Would have to check as I imagine Norway may be similar to UK where trading between coins isna taxable event and treated as disposal. True the interst can offset some.of the fees. Say getting 10% interest and cgt is 22%. I'm looking at buying SOL with interest of up to 12% (not a stablecoin) and think can now get 17-20% on CRO. I already have quite a bit staked at a lower rate.. investigating

 

[Awblackhat]

How much crypto we are talking about?

You might try cashing out via localbitcoins.com (which allows you to exchange fiat/crypto with face-2-face without regulations).

I believe localbitcoins now does KYC/AML but there are other p2p alternatives but I would not risk it if I had used any KYC services to buy in the past.

 

[Awblackhat]

You need to take a long holiday to the Carribbean, UAE, Georgia or Vanuatu.

Norway is not a country to mess around with.

Don't forget Portugal

 

[Awblackhat]

How is the capital gain are calculated in this case?
Usdt, pax, etc, are not strictly cost 1usd. Their price volatile to the usd.
So, exchange one crypto to another, as well as exchange crypto to stablecoins are not same as exchange to fiat.
Calculation capital gain is not so trivial, and probably doable process(until the tax authority in specific country provide exact rules for such events)

UK provides detailed rules for this and crypto to crypto is taxable (cgt). Different for mining and if you are in pools or staking again different.