Question Salary funded by crypto

[padi7]

Hi,

I've been in crypto since 2017, have a portfolio of around $2M and am not ready to cash out quite yet. German taxes are looming over my head and will eat too much, so I'm putting my faith into this cycle in the hope of "making it" to maybe $6M and then finally being able to come clean. I didn't document anything all these years, so this will be hard.

Anyway, I notice my mental health declining a lot, I feel I'm already in the middle of a burn-out, and I'm urgently hoping there's a way that I'll be able to quit my job (I'm a software backend developer) but still receive some sort of salary on my bank account to pay off bills, mortgage etc. For other expenses I have a crypto debit card.

Advice on options would really help me. I was thinking about creating some company in Dubai perhaps, funding it with USDC, and drawing salary through that for myself in Germany. I've seen there are companies specializing in payroll services that claim to accept stablecoin funding, but I have no idea about how this would all work and the potential risks. I cannot provide a thorough source-of-wealth declaration, alas.
Ideally, I would send stables somewhere and get a 7000EUR monthly salary as remote worker for a foreign company that I can pay income tax on. Additionally, I'd also like to support a friend in France in the same manner and provide an income for him if possible.

Last edited: May 1, 2024

 

[zarvenia]

I am exact same situation except the fact i cashed out a small amount by buying a property directly with crypto. With all of them sitting on crypto, it gives me nightmares. It started to look like monopoly money you know. Start documenting before everything is late, more money = more headache.

If someone offers this kind of payroll services, i am interested aswell

 

[Martin Everson]

I would firstly find out whether tax is actually due i.e long term crypto capital gains versus short term taxable gains.

https://koinly.io/guides/crypto-tax-germany/
Are you saying your an active crypto trader versus a buy and hold investor?

What your suggesting could land you in hot water.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[padi7]

Martin Everson said:
I would firstly find out whether tax is actually due i.e long term crypto capital gains versus short term taxable gains.

https://koinly.io/guides/crypto-tax-germany/
Are you saying your an active crypto trader versus a buy and hold investor?

What your suggesting could land you in hot water.
Click to expand...

I'm already in hot water, as I've never declared anything since 2017 - initially because I was oblivious to it, and later because I didn't see any way that I could ever retrace all my steps, there are huge holes and quite a few things I would not want to declare. Exchanges went bust, all records gone, shady ICO investments with multiple bought KYCs, thousands of trades (pretty much all short term)... This is all hanging over me now and contributing to my stress. While I would love to straighten everything out, doing so now would likely eat 50% or more of my gains, and what would be left is not enough to achieve my goal of financial independence. So close but yet so far...

As I'm in very hot water already, there's the hope to at least alleviate some of my stress by enabling me to drop out of the job that eats up all of my daytime and sanity, and free up enough time for family, crypto and trying to cleaning up my act.

Assumptions/hope:
- this is a temporary thing, maybe for a year
- afterwards there'll likely be enough funds (please, ETH, do something) where coming clean and giving up 50% wouldn't hurt so much anymore
- doing this will not get me into much hotter waters than I'm in already anyway

Last edited: May 1, 2024

 

[jafo]

padi7 said:
Hi,

I've been in crypto since 2017, have a portfolio of around $2M and am not ready to cash out quite yet. German taxes are looming over my head and will eat too much, so I'm putting my faith into this cycle in the hope of "making it" to maybe $6M and then finally being able to come clean. I didn't document anything all these years, so this will be hard.

Anyway, I notice my mental health declining a lot, I feel I'm already in the middle of a burn-out, and I'm urgently hoping there's a way that I'll be able to quit my job (I'm a software backend developer) but still receive some sort of salary on my bank account to pay off bills, mortgage etc. For other expenses I have a crypto debit card.

Advice on options would really help me. I was thinking about creating some company in Dubai perhaps, funding it with USDC, and drawing salary through that for myself in Germany. I've seen there are companies specializing in payroll services that claim to accept stablecoin funding, but I have no idea about how this would all work and the potential risks. I cannot provide a thorough source-of-wealth declaration, alas.
Ideally, I would send stables somewhere and get a 7000EUR monthly salary as remote worker for a foreign company that I can pay income tax on. Additionally, I'd also like to support a friend in France in the same manner and provide an income for him if possible.
Click to expand...

Hong Kong says "Hello" 😉

 

[zarvenia]

jafo said:
Hong Kong says "Hello" 😉
Click to expand...

A bit more detail maybe? 🙂)

 

[Martin Everson]

padi7 said:
I'm already in hot water, as I've never declared anything since 2017 - initially because I was oblivious to it, and later because I didn't see any way that I could ever retrace all my steps, there are huge holes and quite a few things I would not want to declare. Exchanges went bust, all records gone, shady ICO investments with multiple bought KYCs, thousands of trades (pretty much all short term)... This is all hanging over me now and contributing to my stress. While I would love to straighten everything out, doing so now would likely eat 50% or more of my gains, and what would be left is not enough to achieve my goal of financial independence. So close but yet so far...

As I'm in very hot water already, there's the hope to at least alleviate some of my stress by enabling me to drop out of the job that eats up all of my daytime and sanity, and free up enough time for family, crypto and trying to cleaning up my act.

Assumptions/hope:
- this is a temporary thing, maybe for a year
- afterwards there'll likely be enough funds (please, ETH, do something) where coming clean and giving up 50% wouldn't hurt so much anymore
- doing this will not get me into much hotter waters than I'm in already anyway
Click to expand...

Well there is little you can do legally as you already in hot water as you say. You can either come clean and take a probable 50% haircut plus penalties or hold out for some sort of crypto tax amnesty program to emerge 😕. A few people however seem to take a hiatus abroad to liquidate their holdings but I don't think that is the right thing to do if you ever want to return to Germany.

P.S I don't think the tax man will care much as long as they get whats owed but when you say shady ICO's and the other stuff it does not sound good for you if they investigate you.

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[sareshobokhor]

padi7 said:
Hi,

I've been in crypto since 2017, have a portfolio of around $2M and am not ready to cash out quite yet. German taxes are looming over my head and will eat too much, so I'm putting my faith into this cycle in the hope of "making it" to maybe $6M and then finally being able to come clean. I didn't document anything all these years, so this will be hard.

Anyway, I notice my mental health declining a lot, I feel I'm already in the middle of a burn-out, and I'm urgently hoping there's a way that I'll be able to quit my job (I'm a software backend developer) but still receive some sort of salary on my bank account to pay off bills, mortgage etc. For other expenses I have a crypto debit card.

Advice on options would really help me. I was thinking about creating some company in Dubai perhaps, funding it with USDC, and drawing salary through that for myself in Germany. I've seen there are companies specializing in payroll services that claim to accept stablecoin funding, but I have no idea about how this would all work and the potential risks. I cannot provide a thorough source-of-wealth declaration, alas.
Ideally, I would send stables somewhere and get a 7000EUR monthly salary as remote worker for a foreign company that I can pay income tax on. Additionally, I'd also like to support a friend in France in the same manner and provide an income for him if possible.
Click to expand...

did you find any good solution?

 

[jafo]

sareshobokhor said:
did you find any good solution?
Click to expand...

I hope he moved to Hong Kong!

 

[clemens]

padi7 said:
I've been in crypto since 2017, have a portfolio of around $2M and am not ready to cash out quite yet. German taxes are looming over my head and will eat too much, so I'm putting my faith into this cycle in the hope of "making it" to maybe $6M and then finally being able to come clean. I didn't document anything all these years, so this will be hard.
Click to expand...

I don't understand your problem, according to German tax laws you can keep your cryptos untouched in an account for 1 year and after that you can cash out tax free! What is it I don't understand here?

Also well descrivbed here inside mentor group gold
https://www.offshorecorptalk.com/th...ophole-for-crypto-”“-ways-to-reduce-tax.37291/

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One of my favorit articles in Mentor Group ~ Sending money anonymously archieve Financial Anonymity

 

[jafo]

clemens said:
I don't understand your problem, according to German tax laws you can keep your cryptos untouched in an account for 1 year and after that you can cash out tax free! What is it I don't understand here?

Also well descrivbed here inside mentor group gold
https://www.offshorecorptalk.com/th...ophole-for-crypto-”“-ways-to-reduce-tax.37291/
Click to expand...

His concern: He hasn't revealed to his useless and unproductive "slave masters" his assets. The uninitiated and gullible refer to it as "filing your taxes." ca#"!

If the guy has nothing in terms of physical property in Germany, he could just immigrate to Hong Kong and enroll in a university program there to, for example, learn Chinese.

If he has property, he could sell it and run away.

Slow learners get stuck around their tribe, and most tribe members only care about the benefits they can extract from others. He's not figured this out yet. Most elderly in the West figure this out when they are already too old and crippled to "move on." 🙄

PS. Jokes aside, I was a part-owner of a gym in a Western nation a long time ago. I never really sat down to do the accurate numbers, but +60% of the "obese" members wanted to pay the annual membership and lose weight. They did NOT want to come in every day to the gym, change their diet (lifestyle), or put any effort (aerobic & anaerobic exercises) into it. To them, they should be able to pay a "tax" (read membership fee), and the pounds should be melting off. People want life to be so easy! BTW, everything about those people was TOXIC AF. stupi#21
I sold my portion of the gym at the first opportunity and relocated far away. There was too much negativity in the air and it was wearing me down! 😡

 

[Houdini]

jafo said:
His concern: He hasn't revealed to his useless and unproductive "slave masters" his assets. The uninitiated and gullible refer to it as "filing your taxes." ca#"!
Click to expand...

Well, you can go to a good Steuerberater in Germany close to you and let him help you. All this fluff around here can piss me off, it shows how people are thinking and want to look cool rather than help.

One thing is what you can find public about the laws and rules in Germany another thing is to approach a professional, you will see a huge and immense different including eye openers.

 

[jafo]

I'mRobot said:
Well, you can go to a good Steuerberater in Germany close to you and let him help you. All this fluff around here can piss me off, it shows how people are thinking and want to look cool rather than help.

One thing is what you can find public about the laws and rules in Germany another thing is to approach a professional, you will see a huge and immense different including eye openers.
Click to expand...

You should have responded THAT to him! 😉


PS. I'm NOT in the business of sending the "cow to the butcher to discuss the cow's future." I'll take a hard pass on that one!
I only tell people what I have successfully been able to accomplish.
I don't even mention what I fail at because no one has THAT much time to listen to my nonsense, either. I have failed so many times that Dinosaurs would question my longevity! smi(&%
I write down my fantasies (read "ideas that I think should work but never tried myself") in a book I intend to publish as science fiction. rof/%

 

[sareshobokhor]

jafo said:
I hope he moved to Hong Kong!
Click to expand...

do you have any idea/solution for my problem?
https://www.offshorecorptalk.com/th...-structure-for-nomad-visa-requirements.45586/