MultiversX Tracker is Live!

El Salvador - Bitcoin now legal tender - Does it change the taxation of BTC...?

Bitcoin Reddit

More / Bitcoin Reddit 229 Views

So BTC is now a legal tender in the country of El Salvador in Middle America...

My question is: Does this somehow change "globally" bitcoin "tax heavens"...? I mean currently there are ways for people to legally NOT pay taxes on their bitcoin sales - they "just" need to change their tax residency (for 183+ days a year) to a country that does NOT tax bitcoin sales - e.g. - Germany (after 1 year of holding), Singapur, United Arab Emirates, Slovenia, Portugal, Belarus and i think few more...

The problem is that bitcoin is "just" not taxed in these countries (but is still NOT considered a legal tender in these countries)... You still need to move your tax residency to these countries (that means moving into the country for 183+ days a year and rather moving and staying there like 1 or 2 years) (which is not so easy/convenient ...

Does the El Salvador situation somehow change how you can legally pay NO taxes on selling your bitcoin...? Im an European BTW, not an American, so keep that in mind (USA has tougher resitrictions on these things). Can i just go to El Salvador for a "holiday" - few days, sell my bitcoin there for USD or EUR and fly right back to my European country with these USD or EUR (sent them via bank transfer rather) and voilΓ  - i dont have to pay any taxes on my sold bitcoin... Not in El Salvador, not even in my home country (because i sold them in El Salvador, wheres its just "normal money" - legal tender...)...

I got the feeling that its still NOT that easy right...? And i would still need to change my TAX RESIDENCY to El Salvador, correct...?

If its still not that easy and i would still need to change my tax residency, can someone answer my why...? Its like i would go to El Salvador and in El Salvador i would change my EUR to USD and return to my home country... In this case i would NOT have to pay any taxes on the exchange of EUR to USD, correct...? So why is the situation with BTC different...? From the viewpoint of El Salvador, BTC is money, like USD or EUR etc..? So changing BTC to USD is like chaning EUR to USD...? So why would i have to pay tax in my home country for this operation...(???) Is this because BTC is still considered a TAXABLE "good" (or whatever) in my HOME country...? Is this the catch...? Is this where the problems lies...?

submitted by /u/FineNobodyXYZ
[link] [comments]
Get BONUS $200 for FREE!

You can get bonuses upto $100 FREE BONUS when you:
πŸ’° Install these recommended apps:
πŸ’² SocialGood - 100% Crypto Back on Everyday Shopping
πŸ’² xPortal - The DeFi For The Next Billion
πŸ’² CryptoTab Browser - Lightweight, fast, and ready to mine!
πŸ’° Register on these recommended exchanges:
🟑 Binance🟑 Bitfinex🟑 Bitmart🟑 Bittrex🟑 Bitget
🟑 CoinEx🟑 Crypto.com🟑 Gate.io🟑 Huobi🟑 Kucoin.



Comments