Bitcoin: Here is the solution to not pay taxes!

Experienced traders, enlightened amateurs, or just the curious, everyone who has bet on Bitcoin could feast in the recent years. However, the euphoria from the price surges quickly dissipates when it’s time to settle the tax bill. But rest assured, there are perfectly legal ways to postpone this dreaded moment, or even to avoid it completely! Here are 2 you must absolutely know about.

Convert your bitcoins… into Stablecoins!

The tax authorities don’t give any gifts to bitcoin investors. Once your crypto earnings exceed 305 euros per year, you must pay a heavy tribute: a 30% flat tax! This can significantly cut into your super-profits earned through virtual sweat. Fortunately, the tax regulations leave a fantastic way out.

When you realize gains in cryptocurrencies like Bitcoin, you can convert them… into other cryptos! More specifically, into stablecoins, which are tokens pegged to major traditional currencies.

Donation and Expatriation

One of the simplest methods for optimizing your crypto capital gains taxation, especially for Bitcoin, is to use donations. In France, donations are limited by a 15-year period and per beneficiary, allowing for a tax exemption that erases capital gains. Indeed, when making a donation, the acquisition value is reassessed to the market value at the time of donation, which means that no capital gain is recorded at that stage.

But the winds could quickly change with the upcoming European regulation MiCA. Scheduled to be applied in 2024, this transnational law could end abuses by imposing precise regulations on stablecoins. A worrying prospect for Bitcoin enthusiasts eager for extraterritorial tax optimization.

These three legal tricks offer great tax optimization opportunities for bitcoin investors. But this blessed loophole will close with the legal harmonization in sight at the European level. Until then, take advantage of the last open windows of opportunity. But be careful, by defying the laws of the tax system too much, you always end up getting burned!