Ways to cash out without the government knowing about it (in Europe)
Before you say "just pay the tax!" I want to point out that plenty of countries in Europe do not sufficiently recognize crypto as a store of value or anything else really, so you'd have to pay a hefty tax even if you cash out at a loss. I doubt anyone thinks that's fair.
So, the method I currently use (and the only working one I know about that doesn't cost a massive percentage) is this:
- Transfer your crypto to Bitpanda
- Sell it and cash out to either Skrill or Neteller
- Get a prepaid Mastercard from either Skrill or Neteller
- Spend or cash out at an ATM with your Mastercard.
Alternatively, you can convert your crypto into Amazon.de vouchers at Bitpanda at a decent rate.
Also, note that funding Skrill or Neteller with Bitcoin directly will make you unable to spend or cash it out in a way other than a bank transfer (which your will probably need to report and pay a tax on).
If anyone knows of another way that eats less of a percentage (this disqualifies most Bitcoin ATMs) and is not shady/risky (such as in-person trades for cash) let us know here 🙂