I need a crypto-exit plan.
- Thread starter 321run
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"You will always be tax resident in Norway in the year in which you move abroad and the three following income years if you have lived in Norway for ten years or more before the income year in which you take up permanent residency abroad."
Those 10 years count from when you were born or after you become of legal age?
If you are a minor, are you a tax resident? So if OP is younger than 28, does he really have to?
All the Nordic countries are dangerous when it comes to tax. I would leave to start fresh but it's a risk with the 3 year tax hangover.
If OP wants to stay in the country then there is no way round it. He will have to pay the 22% which is actually quite reasonable compared to the UK @ 40%.
If OP wants to stay in the country then there is no way round it. He will have to pay the 22% which is actually quite reasonable compared to the UK @ 40%.
Try Denmark. You will have to pay 53% !!!! Pay those 22% or withdraw them by different services like localbitcoin, privately etc. If you want to "enter" the system and law, you will have to pay those 22% - thats cheap man!
Come to germany, in worst case you will pay up to 60 % with obligatory insurance. 🙂
I don't suggest avoiding tax but I totally, totally understand the waking nightmare that is accounting paperwork.
I suggest:
- don't cash out yet. Look into stablecoins, even if they are a bit risky
- get an accountant to help you simplify everything
- have a look at TaxBit: The #1 Cryptocurrency Tax Software
Tax authorities are the most powerful entity in any country. They will follow you to the ends of the earth. 22% is a cakewalk worth paying for to put the fear of jail behind you.
Good luck finding an accountant in Norway. Maybe a specialist serving financial traders might be a good place to start. I don't know the specifics of Norway.
Try posting the question on a Norwiegan website aimed at professional stocks and shares traders, maybe?
22% is actually pretty darn good for a high tax country. Most western countries are 26% for capital gains and others will just treat it like income so 50-55%.
also stable coins do not do anything helpful for tax. Selling your crypto to stable coins is a taxable event and if you do this on a fiat exchange it will most likely be reported to your tax authority. Stable coins are just there to lock in your gains and I wouldn't trust USDT. There are ones like PAX, USDC, BUSD that seem more trust worthy.
It's actually not the worst idea to just cash out, pay the 22% and then move to a zero tax residency country so all your gains going forward can compound rather than languish in 22% capital gains country.
I guess the problem with most people in crypto is they want it both ways. They want zero tax AND be able stay in their home country, buy multiple properties and supercars to show off to their friends and family.
also stable coins do not do anything helpful for tax. Selling your crypto to stable coins is a taxable event and if you do this on a fiat exchange it will most likely be reported to your tax authority. Stable coins are just there to lock in your gains and I wouldn't trust USDT. There are ones like PAX, USDC, BUSD that seem more trust worthy.
It's actually not the worst idea to just cash out, pay the 22% and then move to a zero tax residency country so all your gains going forward can compound rather than languish in 22% capital gains country.
I guess the problem with most people in crypto is they want it both ways. They want zero tax AND be able stay in their home country, buy multiple properties and supercars to show off to their friends and family.
How is the capital gain are calculated in this case?
Usdt, pax, etc, are not strictly cost 1usd. Their price volatile to the usd.
So, exchange one crypto to another, as well as exchange crypto to stablecoins are not same as exchange to fiat.
Calculation capital gain is not so trivial, and probably doable process(until the tax authority in specific country provide exact rules for such events)
22% is a pretty good rate for peace of mind..I was taxed 40% on my 2017 gains by UK tax authorities..
Also stables are in most countries equivalent to cash, so if you sell ETH for USDC, you will pay CGT on that transaction. Lastly I would be very weary of parking your cash in stables on several protocols, due to lack of rights of recourse, and collapsing yields during the upcoming bear market.
Also stables are in most countries equivalent to cash, so if you sell ETH for USDC, you will pay CGT on that transaction. Lastly I would be very weary of parking your cash in stables on several protocols, due to lack of rights of recourse, and collapsing yields during the upcoming bear market.
Could you, please, provide some first hands info with link to tax authorities that stablecoins are equivalent to cash?
At least if so, they should also be considering to the legal tender, which i believe they dont
many countries (UK is a first hand example, there are many other afaik) tax crypto to crypto transaction, so cashing out to usdc won't save you from CGT
Frankly the regulation around crypto is changing every day. Some times cryptos are commodities, other times they are securities and they can be considered currencies. Each country taxes or doesn't tax each differently. In most countries cryptocurrencies are considered virtual currencies and as currencies, they should not be taxed. You don't see Albania taxing people who convert their currency to Saudi money do you? Is there a tax on trading like kind commodities in your country? The only thing I could consider taxable would be digital securities, which there are currently only a handful of. Personally, I would not sell anything unless there were regulatory clarity on cryptocurrencies in your country.
Trade the Crypto's you own for UST, USDT crypto. Not an expert, but you are not really selling you are trading, I guess the Capital Gains are taxed when selling the cryptos for Fiat so you can hold the Stablecoins until you leave the country for tax purposes or reinvest when the market drops.
Depending on your country's laws that could be a taxable event. Best to check first.
It's so in most EU countries. That could work. Only problem I face is if you move to another country with a low personal income tax, and only a month or two later you sell the cryptos, at some point I could be paranoia but I believe your former country will come after you.
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Totally. Forgot to mention, I'll writte it properly:
- If you've bought crypto with a KYC and send it to a wallet. They can link that wallet to you, example: bought crypto within Binance and send it to the Ledger Wallet adress. Since it is directly linked they can link both, if you tell them that the wallet is not yours, you'll have to tell whose is.
- If you bought it or exchange without KYC exchange, if there's an important sum of money that is worth for the Gov to trace it: they can link your IP adress with you and then with your wallet. The only way to go around this would be making all transactios with an empty laptop on a public wifi/starbucks and using a VPN.
- Send the crypto between wallets; on ledger you can create multiple wallets, or just use Wasabi since it gives different adresses (that's what I've found but didnt try). This will make very hard to link the owning of the crypto linked to you.
- Either you move to a different country for 1 or 2 years and sell it there: exchange with someone, sell within an online exchange, LocalBitcoin etc.
- Or create an offshore Company to deposit it there.
I also thought of buying things (a house for example or a business) with Crypto, but the Gov can ask the seller how the payment was made.
This are my 2cents, but there's probably people on this forum that knows a lot more than I do.
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