The family that sold everything to live off Bitcoin (BTC) investments has now decided to move to Portugal to avoid expensive taxes on cryptocurrency investments.
In 2017 Didi Taihuttu’s family made headlines when they announced they had sold all of their assets, including their family home, and used all the funds to purchase BTC.
The next few years proved stressful for the family as the bear market dropped the price of BTC significantly.
Finally in 2021 their risk paid off as BTC hit new all-time highs and the value of their investment rose dramatically.
There are very few countries left which do not tax cryptocurrency transactions. Germany, Singapore, Portugal, Malta, Malaysia, Switzerland, Belgium and the Netherlands are among the few remaining countries where cryptocurrency is legal and tax free.
There are a host of large cryptocurrency holders who have moved to these countries to avoid being taxed or due to anti-crypto regulations.
The value of BTC at the time of their investment was $900.The family who made the bold move have seen more than a 40x growth on their investment.
Many countries would charge capital gains tax on anything they sold but countries like Portugal have a 0% tax on cryptocurrency trades.
Taxes around cryptocurrency have been a major topic recently. The US has not fully decided on what digital assets it will tax but only recently announced it will not tax on unrealized gains.
India on the other hand has recently stated it will charge a flat tax of 30% on all cryptocurrency trades. Unfortunately for Indian residents, any losses made on trades cannot be factored into taxes.
No one knows how long these eight countries will remain tax free on cryptocurrencies. The European Union has been increasingly focused on stablecoins and digital asset regulations.
If the regulation changes include taxes on cryptocurrencies the amount of ‘crypto havens’ will drop significantly.
There have been many posts in cryptocurrency communities asking how to move into one of these countries. The longer the tax advantage stays, the more we will see a shift of new people moving into these countries.
If your portfolio was to increase dramatically, would you consider moving to one of these tax havens? If so, which one? Let us know in the comments on our Twitter!