Ask HN: Bitcoin/crypto and taxes – how does it work, worldwide? - simonebrunozzi
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TooSmugToFail
In my country (EU), the tax authority has explicitly stated that profits from
crypto trading are treated as capital gains. This means roughly 12% of your
profits are taxed. However, this also means that if you've been hodling for
over 2 yrs, you're exempt (still need to report it).

Now, the catch 22 is that the taxman in my country is still not technically
sophisticated enough to be able to determine your holding period (although
everything is public), so everything is still theoretical.

Germany, apparently, has similar thing. Two years and a day, and you're tax-
free. (1) Spend 6 months there to get tax residency, (2) declare it after
having been hodling for 2yrs + 1 day, (3) profit (tax-free). Never checked it
myself, so it's purely anecdotal.

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hacalox
If you make profits you should declare them like any other person. You'll be
taxed as a trader, more specifically a FOREX trader, as you are trading with
currencies.

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simonebrunozzi
That's not always true. In the US, for example, Bitcoin is not a currency, but
it's treated like property. Therefore, you pay long term capital gains if you
have held BTC for more than 1 year. Also, in the US capital gain depends on
your income, which is why, for example, Steve Jobs had a salary of $1 as CEO
of Apple.

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zeep
If you make cash profits, you should declare them, probably

