Buy Sell Hold Cryptocurrencies without Taxes

By Steven Anderson June 26, 2019 Off
bitcoin BTC

It is common for tax agencies to be hunting for those who are avoiding taxes. It is quite a beautiful thing to be in a situation where it is entirely and sanctioned by the state to not pay the taxes.

So, it is natural for crypto-enthusiasts to acquire some tax gaining residency in one jurisdiction.  This also means that you will not be taxed in yet another residency.  In the US, taxes are by citizenship.  And the income from across the world is liable.

Germany has provided an exemption for Bitcoin transactions from VAT.  Germany has to state that bitcoin is not a currency and therefore the capital gains applicable on the cryptocurrency will be relevant if someone held Bitcoin for more than one year.  The tax is not from the standpoint of income.  The benefits do not accrue from the perspective of capital gains due to the exemption.  Businesses are supposed to pay taxes on their profits, which are derived from the Bitcoin through corporate income taxes.

Those who are an EU citizen are free to take up a residency in Germany.  It is possible for non-Europeans to take up residence and to apply for a permit after that.  The tax residency is decided in Germany based on whether the person stayed there for six months and more.  In cases of dual residency, the tax residency is determined by “the contracting state in which the employee has a center of vital (personal and economic) interests.”

Businesses which are based in Singapore buy and sell virtual currencies during their business, and they will be taxed off their profits like it were an income. For those who spend more than 183 days in Singapore, the country provides visas and permits for foreign entrepreneurs — thus making it easy for applicants who are qualified to establish their residence in Singapore.

Portugal does not tax for cryptocurrencies, for buying, selling or holding.  Those who own a house in Portugal or those who stay in a country for more than 183 days will be considered eligible for a tax residency.  While EU citizens can move to Germany, they need to be holding a registration certification if they should stay for more than three months.

In Malta, tax residency is decided by regular residency.  The minimum tax is applicable for those who are on the Global Residence Program of 15,000 Euros.  In Malta trades within a day are considered to be at par with trading stocks or currency pairs and are taxed as a business income.