Looking for a crypto-exit strategy

[Kol019201]

Indeed. Also in DE, hold for 12 months, no tax. (Staking is a bit more murky here)

... well, there is always the pesky source-of-funds issue that I seem to have stepped in, the tax authorities are happy, the banks, not quite. So don't be me, always track 100% when and where, crypto may be stuck in wallets for a long enough time to not pay tax, but even if 100% legal, above-board and aged-well you can still look like a drug dealer.

Just holding it for a year in a wallet is not enough they want you to also show them when you purchased and if you made any trades..and if it doesn't add up you'll have to pay..most of the people I know did trade or at least tried...

When I cashed out I was thoroughly checked eventough it was completely tax free and sitting in my wallet for 3 years...

And I don't know how the law is but what if they have to report to your country where you did not pay taxes..I mean it's a union..

In Germany there are certain ways to cashout crypto without proof of funds.
There are tax consultants with a focus on crypto that can help you with that.
They will just say you bought the crypto very early with cash person to person. (2011,2012)
But always relocated wallets or used the crypto for gambling or other stuff online.

If you have the crypto on a wallet under a year you will have to pay taxes on all of it.
If you had it over one year on a wallet, with this way you would still have to pay taxes from the purchasing point (like 10€) to the price it had when it reached the new wallet. Everything it gained after would be tax free.
Your personal tax rate applies.

I did not do this by myself, but talked to a tax consultant who showed me this option.
He said he did it with some of his clients already. But dunno if it will be this easy in the end.
Also I would always do it with a tax consultant, just better when they speak with the tax authority.

 

[CaptK]

So this only really applies to people who recently bought and wait a year whilst in Germany.

What we would all like to know if you can give more clarity is

1. You need to prove how you bought it.

2. How do you do this if you don't live in Germany.

3. You are liable for the capital gains difference upto when you hit Germany before your year of hibernation begins.
For an example if I move from France to Germany. Who is that tax liable to Germany of France.

So really this is not a viable option unless you move to Germany and are buying a load of altcoins TODAY FOR $0.0001 and hoping they reach $1 at some point.

Seems like a lot of hassel to cash out plus factor other things like living costs and all for a year.

 

[travelfun]

Just holding it for a year in a wallet is not enough they want you to also show them when you purchased and if you made any trades..and if it doesn't add up you'll have to pay..most of the people I know did trade or at least tried...

When I cashed out I was thoroughly checked eventough it was completely tax free and sitting in my wallet for 3 years...

And I don't know how the law is but what if they have to report to your country where you did not pay taxes..I mean it's a un

do you have to report your over 1 year held trades? Say one sells btc into a stablecoin after holding for 3 years . Does that trade need to be reported in Germany?

 

[letitroll]

In Germany there are certain ways to cashout crypto without proof of funds.
There are tax consultants with a focus on crypto that can help you with that.
They will just say you bought the crypto very early with cash person to person. (2011,2012)
But always relocated wallets or used the crypto for gambling or other stuff online.

If you have the crypto on a wallet under a year you will have to pay taxes on all of it.
If you had it over one year on a wallet, with this way you would still have to pay taxes from the purchasing point (like 10€) to the price it had when it reached the new wallet. Everything it gained after would be tax free.
Your personal tax rate applies.

I did not do this by myself, but talked to a tax consultant who showed me this option.
He said he did it with some of his clients already. But dunno if it will be this easy in the end.
Also I would always do it with a tax consultant, just better when they speak with the tax authority.

Can you send me a pm about this?

 

[jago]

do you have to report your over 1 year held trades? Say one sells btc into a stablecoin after holding for 3 years . Does that trade need to be reported in Germany?

I don’t know... but no matter how long you hold it you’ll have to show how you bought it...
Let’s say you bought it 2017 and transferred it to your wallet in 2020 so it’s tax free now... but they’ll want you to show the history of it too... at least that’s what happened to me

 

[Kol019201]

Can you send me a pm about this?

check pm

 

[travelfun]

check pm

would you be able to pm me infos as well? thank you

 

[Cryptonik]

I would like to add some things that were not mentioned.
Im in same situation as OP and Im actively researching options.

Portugal, crypto is generally not taxable if it does not fit under category of income. There is income tax even under NHR regime 20% now I think.
You have to prove that it is not your job/profession which might be problem if you will be unemployed in Portugal. If they come to conclusion that your main source of money and main activity is crypto then it is your job and you will pay income tax.

Germany, I might be wrong but it is the same thing. You dont pay on capital gains after 1 year of holding, you need to pay tax on your income. Again if you just sit in apartment in Germany watching cryptos whole day and you dont have other source of income or you dont hold a job/profession then your capital gains will be actually seen as income and you will pay tax.

Dubai, no tax at all, but banks in Dubai are not crypto friendly, so best option would be become fiscal resident in Dubai and send your money from Exchange or OTC straight into bank in EU (swiss banks might be best here) - they will want you to prove origin of your crypto because they understand that there wont be audit on your gains in Dubai so they need to make sure they dont take money from illegal activity.

Correct me if Im wrong please.