Looking for a crypto-exit strategy

[Kol019201]

In Germany there are︆ certain ways to cashout crypto without proof of funds.
There are tax consultants with a︇ focus on crypto that can help you with that.
They will just say you bought︈ the crypto very early with cash person to person. (2011,2012)
But always relocated wallets or︉ used the crypto for gambling or other stuff online.

If you have the crypto on︊ a wallet under a year you will have to pay taxes on all of it.︋
If you had it over one year on a wallet, with this way you would︌ still have to pay taxes from the purchasing point (like 10€) to the price it︍ had when it reached the new wallet. Everything it gained after would be tax free.︎
Your personal tax rate applies.

I did not do this by myself, but talked to️ a tax consultant who showed me this option.
He said he did it with some‌ of his clients already. But dunno if it will be this easy in the end.‍
Also I would always do it with a tax consultant, just better when they speak⁠ with the tax authority.

 

[CaptK]

So this only really applies to people who recently bought and wait a year whilst‌ in Germany.

What we would all like to know if you can give more clarity‍ is

1. You need to prove how you bought it.

2. How do you do⁠ this if you don't live in Germany.

3. You are liable for the capital gains⁤ difference upto when you hit Germany before your year of hibernation begins.
For an example⁣ if I move from France to Germany. Who is that tax liable to Germany of⁢ France.

So really this is not a viable option unless you move to Germany and︀ are buying a load of altcoins TODAY FOR $0.0001 and hoping they reach $1 at︁ some point.

Seems like a lot of hassel to cash out plus factor other things︂ like living costs and all for a year.

 

[travelfun]

do you︀ have to report your over 1 year held trades? Say one sells btc into a︁ stablecoin after holding for 3 years . Does that trade need to be reported in︂ Germany?

 

[letitroll]

Can you︅ send me a pm about this?

 

[jago]

I don’t know... but no matter how⁠ long you hold it you’ll have to show how you bought it...
Let’s say you⁤ bought it 2017 and transferred it to your wallet in 2020 so it’s tax free⁣ now... but they’ll want you to show the history of it too... at least that’s⁢ what happened to me

 

[Kol019201]

check pm‌

 

[travelfun]

would you be able to pm me infos‌ as well? thank you

 

[Cryptonik]

I would like to add some things that were not mentioned.
Im in same situation‌ as OP and Im actively researching options.

Portugal, crypto is generally not taxable if it‍ does not fit under category of income. There is income tax even under NHR regime⁠ 20% now I think.
You have to prove that it is not your job/profession which⁤ might be problem if you will be unemployed in Portugal. If they come to conclusion⁣ that your main source of money and main activity is crypto then it is your⁢ job and you will pay income tax.

Germany, I might be wrong but it is︀ the same thing. You dont pay on capital gains after 1 year of holding, you︁ need to pay tax on your income. Again if you just sit in apartment in︂ Germany watching cryptos whole day and you dont have other source of income or you︃ dont hold a job/profession then your capital gains will be actually seen as income and︄ you will pay tax.

Dubai, no tax at all, but banks in Dubai are not︅ crypto friendly, so best option would be become fiscal resident in Dubai and send your︆ money from Exchange or OTC straight into bank in EU (swiss banks might be best︇ here) - they will want you to prove origin of your crypto because they understand︈ that there wont be audit on your gains in Dubai so they need to make︉ sure they dont take money from illegal activity.

Correct me if Im wrong please.