Crypto mining avoiding tax

[abbas]

Hi, I recently started mining crypto and I've been trying to find the safest solution to use my crypto to pay for living expenses and avoiding tax. Right now I'm using Coinbase->PayPal->Transferwise debit card, but I realize this isn't a good long term solution as tax authority in Sweden can request information from PayPal. What is my best solution to remain anonymous/leave as few traces as possible, for as cheap as possible? I would only need around 2-5k$ withdrawn a month.

Appreciate any advice!

 

[newNomad]

One curiosity, how much hardware you have to be able to mine 2-5k usd of‌ bitcoin in a month? 🙂 I mean is it something possible to do in a normal‍ flat?

 

[abbas]

I'm not there yet but my goal is to⁠ reach these levels. But yes it would be possible with just 12x gpu 3060ti 2x⁤ psu 2500-3000W to reach 2k a month. This is however very expensive at current GPU⁣ prices and it would be very hot in a small flat. I'm trying to plan⁢ long term, currently at 750$ a month and ultimately I want a regular monthly workers︀ wage, however with high tax rate in Sweden, especially in crypto it would require double︁ that.

I found another solution but I don't know how safe it is, sending my︂ crypto to Binance and use their crypto Visa debit card.

Could really use some advice︃ from someone experienced.

 

[dlttrading]

For two k a month it is not worth really doing a professional setup.
I would just sell the btc on holiday in some btc atms or load prepaid cards....‌

 

[abbas]

Yeah, I don't need some super anonymous setup, just a⁠ method to avoid records being sent to Skatteverket (tax authority). I feel sooner or later⁤ PayPal will send records to Skatteverket more regularly instead of just sending when requested. I'm⁣ gonna try the Binance debit card, its decently cheap at 0.9% fee per purchase, market⁢ conversion rate and no other fees. I can't imagine Binance sending out information on their︀ customers to tax authorities in the forseeable future.

 

[khinkali]

Binance are active in Sweden. They currently have‍ a full-time, onsite job advertisement for a "Growth Marketing Manager" in Stockholm. They already bind⁠ VISA cards to Swedish Krona. If they are offering a debit card to someone who⁤ lives in Sweden, they can't do this outside of Swedish laws or EU regulations.

Swedish tax authorities are more aggressive than most, for example matching the cardholder names from Swedish⁣ ATM withdrawals to non tax resident citizens many years before people knew it was a⁢ thing. I suspect they might also have thought to compare the names on non-Swedish cards︀ with the names of Swedish residents.

As @dlttrading says you can "just sell the btc︁ on holiday in some btc atms". But are you actually doing doing the mining in︂ Sweden? Some countries are investigating people with above average electricity consumption for their neighborhood. Also︃ purchases of mining equipment.

 

[dlttrading]

Than buy the mining equipment abroad and bring to SE.
In SE you use not‌ much cash. Just go to Germany, Austria, Switzerland, PL, CZ . These countries are very‍ cash friendly , have btc atm¨s, big supply for localbitcoin.com, car dealers, gold sellers etc...⁠ all happy to accept foreigners cash savings

In Germany you can buy sport cars with⁤ bags full of cash....
It is famous for this. All europe go to Germany to⁣ get rid of their cash...
There are lot of wholesalers for everything who also accept⁢ cash. Everyone is happy to accept your cash. You don¨t need even ID for cash︀ transaction below 10k euro.

 

[dlttrading]

this sounds like DDR , the old comunist eatern german state between 1949-1990 .
like

 

[khinkali]

I haven't lived there, but yes it probably feels like that when you get a‌ Swedish tax investigation.

The DDR and others wanted to own and/or control the means of‍ production and distribution. The Scandinavian model is market liberalisation with heavy taxation. What they have⁠ in common, is that both need an intrusive level of intel on their residents. But⁤ isn't that the same in many places? USA have FATCA, most of the world is⁣ implementing CRS (and/or other, secret AEOI), the previous UK PM wanted to ban end to⁢ end encryption unless the government had a backdoor, German tax office bribed Swiss bankers to︀ illegally violate clients' privacy. Sweden has a reputation of being quite aggressive on enforcement, but︁ it's only a matter of degree - and time.

 

[dlttrading]

Germany is also kind of a rat. It is Also is going after their (tax)residents‌ whily accepting billions of black money from foreigners to invest in real estate, cars, funds‍ etc.
And Germany also buys illegal data with bank datas from whistle blowers....

 

[MurrayRothbard]

Crypto is︄ NOT taxable.

Anyone telling you different its a fU.-.-c,k-..ing ignorant.