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Informed traders, enlightened amateurs or simply curious, all those who bet on Bitcoin have had a great time in recent years. However, the euphoria of the increase quickly fades when it comes time to pay the tax. But rest assured, there are perfectly legal ways to delay this dreaded moment, or even avoid it altogether! Here are 2 you absolutely need to know.
Convert your bitcoins… to stablecoins!
The financial authorities are not doing Bitcoin investors any favors. Once your cryptocurrency earnings exceed 305 euros per year, you have to pay a high price: 30% flat deduction! Enough to seriously cut into your super-profits earned by the sweat of your virtual brow. Fortunately, tax regulations provide a great way out.
When you make profits in cryptocurrencies like Bitcoin, you can convert them… to other cryptocurrencies! More precisely in stablecoins, these tokens indexed to the main traditional currencies.
Donation and expatriation
One of the easiest methods to optimize the capital gains taxation of your cryptocurrencies, especially Bitcoin, is to use donations. In France, the gift is limited to 15 years and to the recipient, allowing for a tax reduction that wipes out the capital gain. This is because when donating, the acquisition value is revalued to the market value at the time of donation, which means that no capital gain is recorded at this stage.
But the tide could quickly turn with future European MiCA regulations. Due to be implemented in 2024, this transnational law could end the abuse by introducing precise oversight of stablecoins. An unsettling prospect for Bitcoin enthusiasts seeking extraterritorial tax optimization.
These three tips, completely legal, offer great tax optimization opportunities for Bitcoin investors. However, this blessed parenthesis will end with the harmonization of legislation at the European level. Until then, take advantage of the last remaining windows of opportunity. But beware, if you defy the tax laws too much, you will always end up burning your wings!
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The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.
