If someone runs a legal online business offering digital services and gets paid in cryptocurrency (like Bitcoin),
could the following strategy be used to achieve 0% income tax , legally?
Imagine this setup:
A crypto payment processor is used to track all incoming payments.
Each transaction is logged with details like:
- Customer name
- Payment date
- Amount
- Type of service
- Wallet address or TXID
- Exchange rate at the time of payment
All the crypto goes into a dedicated business wallet that’s only used for:
- Receiving client payments
- Keeping clean, auditable records
- Cashing out funds when needed
There’s no mixing with personal funds, and the intent is full transparency , not tax evasion , but compliance-ready bookkeeping.
Now the key question is:
If someone de-registers from their current country of tax residence,
becomes a tax resident in a country that doesn’t tax foreign income (like Panama, UAE, Paraguay, etc.),
could this setup legally result in 0% income tax on their crypto revenue?
While not staying in any single country for more than 183 days , following a mostly nomadic lifestyle.
And in terms of documentation , what kind of data should someone keep to prove the income is legitimate and foreign-sourced?
Would the above listed be sufficient?
could the following strategy be used to achieve 0% income tax , legally?
Imagine this setup:
A crypto payment processor is used to track all incoming payments.
Each transaction is logged with details like:
- Customer name
- Payment date
- Amount
- Type of service
- Wallet address or TXID
- Exchange rate at the time of payment
All the crypto goes into a dedicated business wallet that’s only used for:
- Receiving client payments
- Keeping clean, auditable records
- Cashing out funds when needed
There’s no mixing with personal funds, and the intent is full transparency , not tax evasion , but compliance-ready bookkeeping.
Now the key question is:
If someone de-registers from their current country of tax residence,
becomes a tax resident in a country that doesn’t tax foreign income (like Panama, UAE, Paraguay, etc.),
could this setup legally result in 0% income tax on their crypto revenue?
While not staying in any single country for more than 183 days , following a mostly nomadic lifestyle.
And in terms of documentation , what kind of data should someone keep to prove the income is legitimate and foreign-sourced?
Would the above listed be sufficient?
