Is there any tax free countries for professional crypto traders and investors?

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04372

New member
No, it is not tax free. The country is a tax hell when it comes to crypto!
Thailand considers crypto to always being with you. Therefore it is irrelevant where you buy/hold/sell your crypto - it is always "onshore" for Thai tax purposes. And Thai tax rates are quite high conf/(% .
Read this -> Best country for a crypto hermit? (post #10).

TH has no CFC rules tho so if you trade crypto through a foreign company and then the company pays you to a bank account outside of TH then the 1 year remittance applies.
 

04372

New member
:rolleyes:
Pride goes before destruction, and a haughty spirit before a fall.

man, what say. I lived there for 6 years and nobody asked for anything like never.

Can it happen in the future? yeah maybe but it's not happening now so why bother worrying about it.
There's no perfect solution in the offshore industry anymore, we've to play with whats available.
 

Dom pedro

New member
It looks like there are many countries but you cannot do this as your main financial activity. Are there any countries if it is your main income source in the 5 figures per month?
Paraguay and Uruguay don't have taxes on foreign income. Paraguay is really easy to get permanent residency. And you don't even need to stay there, just visit the country once every 3 years.
 

Bill D

Silver Member
Paraguay and Uruguay don't have taxes on foreign income. Paraguay is really easy to get permanent residency. And you don't even need to stay there, just visit the country once every 3 years.
But as long as you trade/operate from that country, where you are resident, its no more foreign income in theory ?

Interested in Bahamas, but enjoy travelling/working remote in different place throughout the year.
Is there a days spent in requirement in Bahamas? Or if you have buy a home ($750k value) you are good to go.
Some mentionned you cannot get the TRC with this scheme alone
 

backpacker

Entrepreneur
But as long as you trade/operate from that country, where you are resident, its no more foreign income in theory ?
For this you have to study the tax code of each specific country.
Many countries with territorial taxation distinguish between business activity and private income. If you are an active trader it is highly likely that your foreign sourced income will be considered "business activity" and taxes accordingly.
 

Dom pedro

New member
But as long as you trade/operate from that country, where you are resident, its no more foreign income in theory ?
It's a grey area still, but from what I've heard nobody faced that issue yet. What you can also do is create an offshore on top of being a resident there, and making your trades in the name of that company. This basically guarantees 100% that your profits have foreign origin. Another alternative to get more protection is getting a permanent residency in Paraguay but living there less than 6 months a year. This way you are a resident there, but not a fiscal resident and not liable to do any tax form. They wouldn't even know what you have or not.
 

fortunespeculator

Entrepreneur
For this you have to study the tax code of each specific country.
Many countries with territorial taxation distinguish between business activity and private income. If you are an active trader it is highly likely that your foreign sourced income will be considered "business activity" and taxes accordingly.
Will it be considered business activity if somebody else is managing or trading it for me.

It's a grey area still, but from what I've heard nobody faced that issue yet. What you can also do is create an offshore on top of being a resident there, and making your trades in the name of that company. This basically guarantees 100% that your profits have foreign origin. Another alternative to get more protection is getting a permanent residency in Paraguay but living there less than 6 months a year. This way you are a resident there, but not a fiscal resident and not liable to do any tax form. They wouldn't even know what you have or not.
Have you done this living less than 6 months stuff and got away with it?
 
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backpacker

Entrepreneur
What you can also do is create an offshore on top of being a resident there, and making your trades in the name of that company. This basically guarantees 100% that your profits have foreign origin.
Wrong!
What you suggest guarantees a myriad of problems.
Keywords: UBO, Permanent Establishment, CFC, DTA, majority owned ....
Note: Things that were common in 1985 lead to disaster in 2022.
Another alternative to get more protection is getting a permanent residency in Paraguay but living there less than 6 months a year. This way you are a resident there, but not a fiscal resident and not liable to do any tax form. They wouldn't even know what you have or not.
He then faces the problem to either be a tax resident nowhere or in another country. On top of it the country where he has the closest ties to can claim that he is a tax resident there despite the fact that he is present for less than 183 days.

Will it be considered business activity if somebody else is managing or trading it for me.
Yes, because the business is majority owned by you and you are the UBO.
Moreover, look into Permanent Establishment rules to get a better understanding of the issue.
 

fortunespeculator

Entrepreneur
Sure, plenty of people do that. Not everyone wants to buy a $750k home but still they like to reside in the BS or just be able to come and enjoy the place whenever they want without limitation.
ok so we can enjoy 0% tax with just this small expenditure and taking up a rental here. Will they provide some type of id that can be used similarly like a PR card. Mine will be trading through a company. Seychelles ibc to be precise.
 

JohnnyDoe

Mentor Group Gold
ok so we can enjoy 0% tax with just this small expenditure and taking up a rental here. Will they provide some type of id that can be used similarly like a PR card. Mine will be trading through a company. Seychelles ibc to be precise.
I don’t know about renting, I only heard from people whose properties are below the $750k threshold.

me too ki#¤%

If you are not bound to where you live and just can pick a country I would choose the Bahamas.
remember that the Bahamas is not just New Providence/Nassau. There’s something for every taste across the archipelago (even though real estate inventory is shrinking).
 
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