Republic of Georgia for a crypto strategy?

[RustCohle]

(some numbers might be off, please correct me if that is the case).
100k rental investment gives you resident visa (I assume this also means tax resident visa?)
property is cheap and beautiful, buy some for at least 100k and rent it out for passive income.
get the resident visa
no VAT on mining crypto, just stake eth (hoping it's in the same category as mining)
sell as much btc as you please, no VAT.
feel free to travel the world and do whatever.
Hopefully your country of origin will not bother you.

Am I missing anything?

 

[Coin]

Why would there be VAT on crypto? I think that you are confusing VAT with‌ tax.

 

[nomad999]

staking falls under interest earned i believe, similar to interest from a fixed deposits in‌ the bank.

 

[RustCohle]

Sorry, I meant to say tax. ( whenever I‍ google 'republic of Georgia tax crypto' I get most results about being VAT free, which⁠ got me confused for a moment, I though maybe it's considered a special kind of⁤ asset). Should be tax free for residents: https://coinmarketcap.com/headlines/news/georgia-a-case-study-of-crypto-adoption/

 

[khinkali]

You should check for exit tax‌ and tax residence for "leavers" based on connections. The rules are very different, depending on‍ whether you're leaving US, UK, DE, ES, DK, etc.

Where would you be spending your⁠ time? "feel free to travel the world and do whatever" sounds good, if we're talking⁤ a week in one place and a week in another, with your base in Georgia.⁣ But different jurisdictions have different rules on how long you can spend, depending on if⁢ you're working, have other ties, spend more days that any other country, etc.

If you︀ are not working or running an active business, but really just staking ETH and moving︁ around the world from one vacation to the next, then you might actually achieve a︂ tax free nomadic lifestyle. 🙂

I suspect your big problem is banking. Yes, Georgia is a︃ good residency for staking and selling BTC. But where do you cash out? How do︄ you justify the money if it is big amounts? For small amounts there are crypto︅ ATMs and p2p but I don't think Georgian banks are going to work if part︆ of the plan is to sell 100k of BTC for a rental property.

 

[JackAlabama]

You can buy property with btc︇ there.

 

[RustCohle]

Could you please‌ share some resources about this? I found some articles online, but I am not sure‍ they are legit. Plus, would I have to declare/pay tax to EU if I do⁠ such a big purchase with btc in Georgia?

Yes, I am thinking about getting the 100k with more classical methods (selling⁢ a cheap property I have in EU) and hopefully selling some BTC OTC and bringing︀ in some cold hard cash (not sure this will work though, but I might try).︁ Some real estate development companies accept installments (for a 50k studio, a downpayment is about︂ 10k and then monthly around 2-3k), wondering if I can get them to accept cash︃ for that so I can sell BTC at ATMs or whatever. I will be slow︄ process, but in ~1 year or so should be over.

 

[JackAlabama]

First I would make sure to︃ get your covid vaxx so georgia lets you in as they insist on this. 😉

Actually, for doing property deals there, most prefer cash. They count it in the notary. The︄ average joe there does not have much opportunity to make much and they do not︅ trust banks so showing up with bills helps the case.

Georgia is not yet in︆ eu, so what you care about that besides them swallowing georgia pretty soon?

 

[KJK]

"Showing up with bills" sounds very refreshing, almost the way it worked in Europe⁤ in 1980s or 1990s. Now if you do that in EU, I wouldn't be surprised⁣ if you're arrested and/or reported lol.

 

[JackAlabama]

Have you been to Georgia⁠ already?
It is largely cash based especially outside tbilisi.
usd cash is also a common⁤ way for bigger purchase (not necessarily lari cash).

It is like the 1950s Europe there⁣ with sovjet monuments and turkish/arab/asian flavors mixed in.

But they will soon go the way⁢ of the eudssr. Joining crs "voluntarily" will just be the first of many rules to︀ be adopted.

 

[cyprus123]

Depending on your passport you can enter Georgia without vaccination at the moment, I just‌ returned yesterday.

In order to become tax resident you will need to spend 183 days‍ in the country. The property purchase of 100.000 USD minimum will make the residence possible⁠ for you, not to be mixed up with tax residency.

It is an interesting option⁤ though, but in my opinion you will need professional help as regulations are more complicated⁣ than you might expect.

 

[JackAlabama]

exactly, the passport is the issue⁢ 😉 maybe stuff changed since the last time I looked into.
How is life in Georgia︀ at this moment after having been closed for a year?

 

[RustCohle]

Any idea I⁣ can easily fly/drive there with ~50k in cash or so?