Cryptocurrency three including Bitcoin, Ethereum, and Binance Coins, are taking the world by storm, with the public and institutions intrigued with its features and incentives. Today, the Plan B passport is the perfect example for current projects involving crypto, especially Bitcoin.
The company offers consultancy to their crypto-owning clients, encouraging them to gain their second passports and relocate to tax-haven spaces like the Caribbean lands. Tax havens don’t simply mean exemption from tax-paying. Instead, they also mean you can avoid paying capital gains taxes arising on your cryptocurrency holdings!
We’re sure by now that you’re beyond intrigued by the offer and are seriously considering ditching your primary passport to follow this path. This is a quick guide including everything you must know about Plan B passport’s new strategy for crypto-rich individuals.
How Does The Plan B Passport Policy Work?
The number of U.S. locals acquiring plan B passports increases at a favorable rate. Over the years, passport companies like Plan B passport have assisted several clients globally, helping them gain citizenship in tax haven countries to protect their investments.
Today, the U.S. nationals understand that Bitcoin isn’t like paper currency. Crypto values can fluctuate. For example, a $1,000 investment can grow in value of up to $10,000 in just a few years or even months. While that’s a medium of people generating capital gains, slight reluctance is common when paying capital gains taxes.
According to the American citizens, why do they pay a hefty percentage of their capital gains to the government? We’re sure you think so too. This is the appeal for shifting to tax havens to forgo this tax and enjoy returns on personal bitcoin investments increases even more.
Why Change My Primary Passport?
It’s valid, though, to be confused about ditching your primary passport. Why can’t you keep your U.S citizenship and the “plan B passport” and use them simultaneously?
Most nations base their taxation policies on residency. However, the dynamics in the United States are slightly different. U.S. taxes are based on citizenship, with every U.S. passport holder having to send their tax amounts back to the country regardless of wherever they may reside.
That’s primarily why Plan B passport advises clients to let go of their U.S. passports and charms of dual citizenship for the greater rewards: no tax payment and more monetary worth of your cryptocurrency. Plus, having to report transfers of more than $10,000 to the IRS and chances of new capital gains taxes of 15 to 20% over cryptocurrency further push the Americans into adopting legal ways to avoid these payments.
That subsequently makes Plan B passport’s strategy even more intriguing. You must understand that capital gains taxes might not seem like a substantial amount for individuals. However, professional investors participating in active cryptocurrency trading can face significant annual tax amounts because of Bitcoin’s rapid and extensive appreciation.
Where To Relocate?
According to Plan B passport, there are several countries where crypto holders can move, including Grenada, Dominica, Saint Kitts, Saint Lucia, and Antigua. With the U.K., parts of the E.U., and Canada also establishing Cryptocurrency taxes, demand for relocators to Caribbean tax havens is expected to increase further. While Plan B citizens may not work for everyone, it’s still the best current legal solution to save your costs and tax status.