Belgium how to cash out without paying taxes?
There is currently no way of avoiding paying crypto taxes in Belgium. However, it is possible to route your crypto to a country with very low or no crypto taxation to cash out. This approach is an easy and legal way to reduce the cost of cashing out your cryptocurrency.
Profits derived from cryptocurrency transactions may be subject to different tax treatments, including:
- Taxation as miscellaneous income due to speculative or high-risk activities, incurring a 33% capital gains tax alongside communal tax (from 0% to 9%. Average rate 7%).
- Taxation as standard income arising from professional engagements, with a progressive income tax ranging from 25% to 50%, along with communal tax and social security contributions.
- Exemption from taxation under the “Bon père de famille” condition, contingent on cautious investment practices in managing personal assets.
Capital Gains Tax
The most common form of cryptocurrency taxation in Belgium is capital gains tax. It is applied to any profits or gains arising from cryptocurrency transactions, including selling cryptocurrency for fiat currency (e.g., exchanging Bitcoin for Euros) or trading one cryptocurrency for another (e.g., exchanging Bitcoin for Ether). Speculative income from activities like cryptocurrency trading is subject to a fixed 33% capital gains tax rate.
Income Tax
In certain situations, gains from cryptocurrency transactions may be categorized as professional income. This can encompass income from activities such as professional cryptocurrency mining, participation in Initial Coin Offerings (ICOs), or receiving airdrops, among others. Professional income is subject to a progressive tax rate as follows:
For income between 0€ and 13,540€, the tax rate is 25%.
Income falling between 13,541€ and 23,900€ is taxed at a rate of 40%.
Earnings ranging from 23,901€ to 41,360€ are subject to a 45% tax rate.
Any income exceeding 41,361€ is taxed at the highest rate of 50%.
Resource: https://blockpit.io/en/tax-guides/crypto-taxes-belgium-spf/
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