Relocation plans: Some thoughts and questions about Crypto Tax

belemo(78)

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As I've said on numerous occasions, I'm actively plotting my exit from Nigeria. This quest has led me to do a bunch of inquiries about different countries, and due to my peculiar source of income, I have to look at the bigger picture.

Crypto tax is something that I've not necessarily had to contend with within Nigeria. This is because you get absolutely zero protection from the government and their agencies because the assets are not recognized by them. In fact, regulated financial institutions are banned from facilitating crypto transactions in the country.

Anyway, relocating to a different country will come with a whole new world of challenges with balancing my finances. You see, unlike many advanced countries with your advanced financial system, Nigeria is still very crude, particularly with its surveillance and dealings with earnings outside of the "norm".

By Norm, I mean anybody that doesn't rely on any state-owned mechanism is pretty much insulated from tax. So people like freelancers and the rest don't have to pay direct tax to the government, while banks take out indirect tax through duties and bank charges that they remit to the government, those are fixed charges, rather than percentages.

Adjusting to a new Taxing system

When I read articles from people in USA, Australia, and many parts of Europe, I notice how you guys talk about "doing your taxes". That's a luxury that I've never had and it's my biggest fear in relocating.

I'm a fast learner, and I know damn well that I'll adjust really fast. Also, I think I'm good with money, so I won't ever be on the wrong end of any taxing spectrum.

The only problem I foresee is the crypto part and the level of surveillance that governments in other parts of the world have on their citizens. Again, I'm not entirely used to being watched or cared about by my government, so nobody cares how much I have in my Splinterlands deck and stuff.

Relocating to a country that gives a shit will be a problem for me, especially when it comes to the asset declaration part. For example, let's say I move to Canada where crypto tax exists and I don't declare my crypto assets but I also never take profit into my bank account, am I committing tax fraud?

They're watching you

The entire concept of constantly being watched is new to me. Am I going to have the police kick down my door one day because Cub hit $20 and I'm a millionaire?

Assuming from the day I set foot in a new country, I never withdraw any crypto to my bank account, does that make me a criminal in the country? Bear in mind that cryptocurrencies technically belong to no country in the World, and since I laid the foundation of that crypto while in Nigeria, shouldn't it just be treated as a business running in another country?

I'm not sure about how these things work and I'd like to hear your thoughts about the topic. What are the crypto tax laws like in your country? Are they invasive or are they solely based on the transactions in your bank account? Will a VPN service fix the problem? I'm made of questions right now.