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How to sell Bitcoins and other crypto without paying taxes

Cryptocurrencies are all the rage.

Investment in cryptocurrencies, such as the famous Bitcoin, has skyrocketed in recent months, not only because of the disruptive nature of its technology but also because of the support of institutional investors, such as the well-known bank Goldman Sachs or the genius founder of Tesla Elon Musk.

Although cryptocurrencies like Bitcoin may seem like something new, the same already had a big boom at the end of 2017 (reaching a value of almost €17,000) and has been around for more than 10 years since supposedly Satoshi Nakamoto created it.

Thus, tax agencies in many countries have already been thinking for years how and how much taxes taxpayers have to pay for example for the sale of Bitcoins or any other cryptocurrency.

How much tax is paid on the sale of Bitcoins or cryptocurrencies is not an easy answer, since the taxes paid on the sale or holding of Bitcoins depends on the residence of the taxpayer.

Since most of our readers are located in OECD countries, we will focus on the taxation of Bitcoins in these countries (or any other cryptocurrency), i.e. how much tax is paid on the sale of Bitcoins.

How much is paid for the sale of Bitcoin and crypto?

In general terms, in most of the OECD countries taxes are paid for the sale of Bitcoins to fiat par (euro, dollar or any official currency) and for the exchange of Bitcoins to any other cryptoasset, known as a swap.

When this sale or exchange takes place, the tax agencies understand that a capital gain occurs to the extent that the taxpayer’s professional activity is not the purchase and sale of bitcoins.

All this regardless of whether your Bitcoins were purchased on foreign Exchanges (such as Binance, Coinbase, Kraken…), abroad, in cash or wherever. In general terms, bitcoins are taxed wherever the bitcoin holder resides.

That means that taxes are paid in your country of residency on the sale of Bitcoins regardless of whether the transactions are made in foreign markets or stored in virtual wallets located outside your country of residency.

Is it important to declare Bitcoins to the IRS or tax authorities?

The existence of Bitcoin is not alien to the tax authorities.

Since 2017, tax authorities of many European Union and OECD countries cryptoasset holders are under the scrutiny of the tax authorities.

Also, from 2021, according to the lastes EU directives, your country of residency is about to receive part of the information on Bitcoins and other cryptocurrencies held abroad, especially in mainstream exchanges such as Coinbase, Kraken or Binance.

Thus, we strongly recommend declaring the sale and holding of Bitcoins and other cryptoassets to avoid penalties or even criminal offenses such as tax fraud.

And how can I avoid paying taxes?

If you have already sold Bitcoins being a tax resident in high tax jurisdiction you can do almost nothing, you will have to pay taxes if not you may be under tax evasion.

However, in case you have not sold yet your Bitcoins, you still have an option. Move to a low tax country to sell Bitcoins and make the so called “cashout”.

Many do not levy taxes on the sale of Bitcoins so hundreds of people are moving to low tax countries to avoid paying taxes… But…

Where are the big owners of cryptocurrencies moving to?

Several of our clients and collaborators have undertaken a change of tax residence to sell their Bitcoins or cryptocurrency, so we have first-hand information of those “cryptofriendly” countries that welcome investors with cryptoassets with open arms.

Thus, in our top 4 destinations for 2022 where to sell Bitcoins are the following countries:

United Arab Emirates

It is one of the prominent financial centers of the Gulf known for its tall skyscrapers, international airport and zero taxation. Over the last decade it has attracted thousands of new residents who have decided to relocate their residence or their companies there, whether holding companies or start ups, mainly attracted by the zero direct taxes and the facilities offered by the “free trade zones”.

In such zones residents would pay no taxes on the sale of Bitcoins and not only that, Bitcoins and Altcoins are accepted for the purchase of assets, such as luxury cars, yachts, watches or real estate.


The pearl of the Mediterranean known for its glamour and casinos is also a favorite destination for large cryptocurrency owners. Selling Bitcoins tax-free is the order of the day in Monaco, especially with a bank that seems to be quite cryptofriendly when it comes to monetizing.

An ideal destination for large property owners who can afford to live there and which some of Relocate & Save’s clients have already tried.


The country of the Pyrenees, despite establishing a 10% taxation on profits from the sale of Bitcoins or other cryptocurrencies, offers a very favorable taxation compared to other EU countries and is developing a Cryptocurrency Law that would allow to apply large exemptions to those who sell cryptocurrencies and reinvest the profits in assets of the country (banking products, real estate etc).

However, the banking industry still seems reluctant to accept the “cashout” and the Cryptoassets Law is a bit “green”. Despite this at Relocate & Save we have helped several of our clients to move to Andorra to avoid paying Wealth Tax on cryptoassets and thus reduce the tax bill of selling Bitcoins.


Apart from the well-known NHR regime, the cosmopolitan Lisboa and the amazing views from the Algarve shore, Portugal is also famous as a great distination to sell Bitcoins or crytpocurrencies.

In general terms Portugal does not levy taxes on the sale of cryptocurrencies since according to a tax ruling issued by the Portuguese tax authorities in 2016 capital gains derived from the selling of Bitcoins or othe cryptocurrencies don’t fall under any taxable category according to Portuguese legislation.

Despite the other cases, be aware that taxation in Portugal over cryptocurrencies has raised controversy since under some cases will be taxed at a 20%. Thus, a previous analysis from a tax expert is highly important.

However, the sale of cryptocurrencies is a major problem that many countries have not solved, and that is the bankability or transformation of Bitcoins to euros or other legal tender currencies.

The traceability of Bitcoins and cryptocurrencies depends mainly on how the regulations of the fight against terrorism and prevention of money laundering interpret the movements of buying and selling them. Therefore…

How to exchange my crypto assets to euros, USD, pounds…?

Mostly, traditional banks do not understand cryptocurrencies and tend to block any bank transfer from the sale of cryptocurrencies in exchanges or veto OTC operations on the grounds of counter-terrorism and prevention of money laundering.

Thus, it is essential to be able to prove the origin of the funds through which you acquired the Bitcoins and to be able to prove from whom you acquired them, i.e. to demonstrate traceability. This is extremely controversial, complicated and probably your bank will not understand it and will block your bank account once you sell your Bitcoins.

However, in case the origin of your funds is lawful, if you are a large owner of Bitcoins or other cryptoassets and you have an interest in this topic, do not hesitate to contact us at [email protected], we can help you with our contacts in International Banking specialized in cryptoassets.

How to relocate to avoid paying taxes on the sale of Bitcoins?

As you may have guessed from our name, at Relocate&Save we are defenders of your right to change your residency as a legal way to escape tax confiscation.

The change of tax residence to avoid paying taxes on the sale of Bitcoins is an absolutely legal method that leaves no loopholes for prosecution: if you do things right, you will simply stop paying taxes in your current country of residency.

Logically, this solution requires the effort of changing your residence at least six months a year or at least living in these countries more than any other.

What are you waiting to change your residency to sell your bitcoins? Contact us at [email protected] to start your change of tax residence.

If you are seriously interested in changing your tax residence, we recommend you to download for free and read our updated report “The top three tax destinations right now.”

Picture of Andreu Capmajó
Andreu Capmajó

Tax director

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