Is any crypto currency taxed worldwide in 2020?

[aage]

I was wondering what the status is in 2020.

If I hold bitcoins and several ALT coins are they all taxed, and does it matter where I live or are there still countries which don't tax crypto?

How would you avoid taxes on crypto, is there a easy way?

 

[khinkali]

It mostly depends where you live. If you're holding for the long term then in UK or France you could expect to pay capital gains tax, but in Germany or Portugal there should be no tax on gains from long term crypto holding.

If you're actively trading (e.g. more frequent trades, as your business) then UK and I think most EU countries would tax profits as income. I am sure there are expensive tax lawyers who try to figure out the grey area between holding and trading.

Thailand seemed good as a territorial tax country, but they change their minds too often for my liking and I don't like the bureaucracy.

Georgia now has Ministry of Finance Public Decision No. 201, which looks very promising for trading as an individual (I would love to find the original Georgian language text and ask someone to translate it).

I wonder what other countries have no (or low) tax and no (or little bureaucracy) for crypto trading, and are well serviced by crypto exchanges and banks?

How would you avoid taxes on crypto

Choose a tax friendly country for your residence, and not be a citizen of USA (and maybe Eritrea).

 

[Rael]

In most countries, Crypto earnings are taxed the moment they are converted back to fiat currencies (at least for individuals). In some countries, there is a treshold below which you are not taxed for profits from currencies, as you are not considered a professional broker.

 

[nomad999]

Thailand seemed good as a territorial tax country, but they change their minds too often for my liking and I don't like the bureaucracy.

Actually Thailand tax any crypto gains at 15% worldwide since last year from a royal decree. "Crypto is everywhere and has no border" they say ...

Obviously they can't enforce this, at least for now as they will enter CRS in the coming years it seems ...

Other interesting countries in south east asia :
Malaysia no tax on capital gains.
Philippines no tax on foreign income for resident aliens.
Hong Kong no tax on capital gains, dividends, interests.

 

[khinkali]

Actually Thailand tax any crypto gains at 15% worldwide since last year from a royal decree.

Thanks for that @nomad999 I left Thailand 18 months ago after spending a few $000 on legal advice. The advice was conflicting ("Bitcoin is everywhere, or nowhere, or where you are, or where you exchange it, nobody knows!") and I felt it was just better to go somewhere with a more deterministic tax system and less corruption.

Obviously they can't enforce this

True, but I've noticed that people who accumulate a lot of crypto holdings can have serious problems later when they move to another country and then want to cash out.

I don't know what happens if you move to USA, UK, EU etc and want to sell a few thousand BTC to buy property. You're asked about source of funds by your bank and/or tax office and you answer "Well, it's undeclared income from when I lived in [country X] but they don't have CRS so it's OK..."

 

[nomad999]

yep you are absolutely right, if you intend to make serious money this is not a good play. for those that are just making a living it's fine I guess.
now a good solution for Thailand is to trade the crypto behind a llc somewhere else with no tax, that's what I am currently planning while in Thailand.

 

[JohnLocke]

Depending on the number of coins you hold or trade Switzerland wín some of the low to no tax cartons may be the right solution. Personally I know two guys who moved there and have a nice living. Dispite what I read other peoples experience is then Switzerland seem still to suite these guys.

I will be visiting them in Lugano soon

 

[Elve]

A company in Estonia could be a good solution for someone who has a lot of crypto and inject all the funds in the company and then move into a country where taxes are relatively low for personal expenses.

While the funds do not leave the company's accounts in Estonia it is 0% tax and everything can be reinvested in the name of the company.

 

[aage]

A company in Estonia could be a good solution for someone who has a lot of crypto and inject all the funds in the company and then move into a country where taxes are relatively low for personal expenses.

While the funds do not leave the company's accounts in Estonia it is 0% tax and everything can be reinvested in the name of the company.

What are the requirements to get a company setup like that in Malta?

 

[Spinat]

Say you receive 10 BTC's from someone in an normal not verified Blockchain wallet - would you take the risk to not report it to the tax office? I consider to withdraw them in small chunks using an ATM card.

 

[Ashitaka]

Depending on the number of coins you hold or trade Switzerland wín some of the low to no tax cartons may be the right solution. Personally I know two guys who moved there and have a nice living. Dispite what I read other peoples experience is then Switzerland seem still to suite these guys.

I will be visiting them in Lugano soon

That's very interesting! I heard that Zug is a good place too. Do you know if they do it as individuals or with a company? Cheers

 

[Nishizawa]

The South Korean government has declared that they will promote the inclusion of crypto into the CRS, while taxing the cryptocurrency in 2020. I wonder if other countries said the same thing.

 

[JohnLocke]

I have found some of the old threads we have here about Switzerland as well as ZUG - maybe it can help clarify some urgent questions:
https://www.offshorecorptalk.com/th...zerland-zug-does-this-work-for-company.23055/https://www.offshorecorptalk.com/threads/swiss-ag-or-gmbh-what-corporate-tax-they-pay.23166/https://www.offshorecorptalk.com/threads/company-in-switzerland.29980/https://www.offshorecorptalk.com/th...-a-company-that-sells-cryptocurrencies.22646/
It would make good sense if someone has time to SUM up a brief description about the UP's and DOWN's of the low tax KARTON's in Switzerland i.e. Lugano, Zug, Geneve etc.