Re: Countries with best BTC taxes & regulations for individuals (not companies)
With ever increasing BTC prices, where can BTC holders move to minimize taxes? I'm confused by many of the tax laws that I'm reading about. It seems like clear rules have yet to emerge in many countries. Some countries have a wealth tax, which means that you must sell a certain amount of your BTC every year, which is regrettable. I think one should try to avoid these countries at least. But other than that, it is only the capital gains tax that is relevant?
So, basically you want a country that doesn't tax your coins at all. Most countries don't. For instance in the whole European Union you aren't taxed for holding your coins, the tax obligation appears the moment you sell for fiat.
Next are countries with low income tax like Bulgaria with only 10% flat rate, or Qatar with 0% income tax. There are more similar countries where income tax is at 10% or less, which seems reasonable. I wouldn't mind paying that.
There are also countries where you can easily sell your coins due to some regulations. Like in Germany, where coins kept for more than a year are tax free. In GB it's also nice as there's a certain amount of money you can withdraw from your investment every year that is tax free.
Thanks for sharing some details about taxes levied by different countries to their citizens. I am wondering: if I am not a citizen, let's say of Germany, can I avail of the same tax rate if I will stay in that country or do I have to be a legal resident first? I understand that with USA even if one is living in another country as long as they remained to be US citizen then they are subject to the same USA tax laws. I happened to live in a country where the government has not yet focused on implementing tax codes on cryptocurrency but I am suspecting that exchanges are the ones collecting the tax when we convert our Bitcoin into the fiat money, which can be convenient for all of us. As of now, the government has not yet ordered us to declare our Bitcoin capital gains or any income derived from Bitcoin related activities but am sure that once Bitcoin can reach a certain level of popularity then the government can get so creative in generating revenues from Bitcoin holders and traders. Personally, I have no problem with paying tax because by paying our share we can demand the government to shape up or be ship out.
