Informed traders, enlightened amateurs or simply curious, all those who have bet on Bitcoin have had a great time in recent years. However, the euphoria of the increases quickly subsides when the time comes to pay the tax bill. But rest assured, there are perfectly legal ways to postpone this dreaded moment, or even avoid it altogether! Here are 2 you absolutely need to know.
Convert your bitcoins… into Stablecoins!
The tax authorities are not doing any favors for bitcoin investors. As soon as your crypto earnings exceed 305 euros per year, you must pay a heavy price: 30% flat rate deduction! Enough to seriously cut into your super-profits obtained through the sweat of your virtual brow. Fortunately, tax regulations provide a great way out.
When you make gains in crypto like Bitcoin, you can convert them… into other cryptos! More precisely in stablecoins, these tokens indexed to major traditional currencies. “When you stay in the blockchain via a stablecoin, you are not taxed,” explains Claire Balva, crypto specialist.
Donation and expatriation
One of the simplest methods to optimize taxation on the capital gains of your cryptos, in particular Bitcoin, is to use donations. In France, the donation is limited by 15-year period and by beneficiary, thus allowing a tax reduction which erases the capital gain. Indeed, when making a donation, the acquisition value is reassessed at the market value at the time of the donation, which means that no capital gain is recorded at this stage.
But the tide could quickly turn with future European regulations Mica. Scheduled to be applied in 2024, this transnational law could put an end to abuses by imposing precise supervision of stablecoins. A worrying prospect for Bitcoin enthusiasts eager for extraterritorial tax optimization.
These three tips, completely legal, offer great tax optimization opportunities to bitcoin investors. But this blessed parenthesis will end with the legal harmonization in sight at European level. Until then, take advantage of the last remaining windows of opportunity. But be careful, if you defy tax laws too much, you always end up burning your wings!
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
