Hey! I have acquired quite a bit of Bitcoin's in last few years, mostly through the monthly sales of my software to my foreign clients.
The problem is, my country (3rd world country) views cryptocurrencies as only for assets for investments (also there is no capital gains tax on crypto in my country), and sales of the goods directly/indirectly via crypto is prohibited, and illegal by law, so I didn't cash out any of it yet via bank, but soon want to buy a house / car etc, so I need an exit strategy. I have talked with some tax lawyers in my country and they told me there will be low risk, as long as I can get it to be sent it via Wise/Payoneer to my bank account, as this is what many freelancers / self-employed people do it in my country. So I need to hide the crypto origin of the money to hide in the plain sight.
I could do it in another country where cryptocurrencies is allowed to be used in payments, but then I miss the opportunity of getting %80 tax free income from my country, because this is software sales to outside of the country, and its really good deal.
I can also just send it to my personal account from Kraken / Binance and act as if this was just investment, but in case of an investigation I am done, because there won't be any paper trail proving this (no initial investment). I also have some close relatives/friends that offered me to use their bank accounts for this, but I don't want to get anyone in trouble so I don't want to go this route.
My current plans are:
1) Use P2P so I give someone BTC and they send money using Wise to my bank.
Big problem with this approach seems to be, I can't trust the person that is sending me fiat, if the person who sends me money is involved in some kind of fraud / money laundering investigation, I would automatically be investigated as well, so it is quite risky. As of now I have pretty low chance of getting investigated as I have nothing in my bank accounts / reporting exchanges, and all of my coins are "clean", they are sourced from the exchanges that clients used to pay me.
Also, initial invoices I did are for my customers, not for the person who would send me this money via p2p. I don't think it would be a huge problem because I was told that in my country people who do ecommerce and many bulk sales, they make one invoice at the end of day / week that is to an anonymous entity for the sum. Alternatively, I can issue fake invoices for the person sending me the funds, but now we are taking more risks, and I don't know if the p2p guy would cooperate if someone contacted him for this.
2) Use some kind of Crypto friendly EMI, withdraw to it from Kraken/Binance first, then send the money to my bank account from the EMI.
Potential problem can be if government asks about the origin of the money to the EMI, crypto can show up and this will be bad for me. I think chances of this happening is quite low, why would government care about a random person receiving some money from an EMI that lots of other people use as well, unless EMI decides to report me for some reason if they think I am laundering money.
Another problem is, many EMI's like Paypal are banned in my country.
3) In theory I can set up a company in another crypto-friendly country, and pay company income taxes in that country, then pay myself salary and pay income tax here, but in this case I will potentially lose the tax opportunity and more money will be lost to the taxes.
I can also just wait and accumulate more crypto, but it is kind of stressing me out to be constantly be "outside" of the system, and always have to pay for things with weird methods, etc. But I also notice that making a stupid move is a lot worse than not making a move for cashing out. The legal advice I got was If I am paying taxes here, chances of investigation will be drastically lower than my current situation, which on paper shows I have no kind of employment / income.
What are your advices?
Thanks for reading!
The problem is, my country (3rd world country) views cryptocurrencies as only for assets for investments (also there is no capital gains tax on crypto in my country), and sales of the goods directly/indirectly via crypto is prohibited, and illegal by law, so I didn't cash out any of it yet via bank, but soon want to buy a house / car etc, so I need an exit strategy. I have talked with some tax lawyers in my country and they told me there will be low risk, as long as I can get it to be sent it via Wise/Payoneer to my bank account, as this is what many freelancers / self-employed people do it in my country. So I need to hide the crypto origin of the money to hide in the plain sight.
I could do it in another country where cryptocurrencies is allowed to be used in payments, but then I miss the opportunity of getting %80 tax free income from my country, because this is software sales to outside of the country, and its really good deal.
I can also just send it to my personal account from Kraken / Binance and act as if this was just investment, but in case of an investigation I am done, because there won't be any paper trail proving this (no initial investment). I also have some close relatives/friends that offered me to use their bank accounts for this, but I don't want to get anyone in trouble so I don't want to go this route.
My current plans are:
1) Use P2P so I give someone BTC and they send money using Wise to my bank.
Big problem with this approach seems to be, I can't trust the person that is sending me fiat, if the person who sends me money is involved in some kind of fraud / money laundering investigation, I would automatically be investigated as well, so it is quite risky. As of now I have pretty low chance of getting investigated as I have nothing in my bank accounts / reporting exchanges, and all of my coins are "clean", they are sourced from the exchanges that clients used to pay me.
Also, initial invoices I did are for my customers, not for the person who would send me this money via p2p. I don't think it would be a huge problem because I was told that in my country people who do ecommerce and many bulk sales, they make one invoice at the end of day / week that is to an anonymous entity for the sum. Alternatively, I can issue fake invoices for the person sending me the funds, but now we are taking more risks, and I don't know if the p2p guy would cooperate if someone contacted him for this.
2) Use some kind of Crypto friendly EMI, withdraw to it from Kraken/Binance first, then send the money to my bank account from the EMI.
Potential problem can be if government asks about the origin of the money to the EMI, crypto can show up and this will be bad for me. I think chances of this happening is quite low, why would government care about a random person receiving some money from an EMI that lots of other people use as well, unless EMI decides to report me for some reason if they think I am laundering money.
Another problem is, many EMI's like Paypal are banned in my country.
3) In theory I can set up a company in another crypto-friendly country, and pay company income taxes in that country, then pay myself salary and pay income tax here, but in this case I will potentially lose the tax opportunity and more money will be lost to the taxes.
I can also just wait and accumulate more crypto, but it is kind of stressing me out to be constantly be "outside" of the system, and always have to pay for things with weird methods, etc. But I also notice that making a stupid move is a lot worse than not making a move for cashing out. The legal advice I got was If I am paying taxes here, chances of investigation will be drastically lower than my current situation, which on paper shows I have no kind of employment / income.
What are your advices?
Thanks for reading!
