Bitcoin ($BTC) billionaire Christian Angermayer calls this proposal a ‘bigger act of national self-harm than Brexit.’
Meanwhile, Switzerland strengthens its position as Europe’s crypto hub by attracting foreign investment with favorable tax policies.
Billionaire $BTC investor Christian Angermayer claims the UK’s latest tax proposal is ‘an act of national self-harm’ and has reportedly left the country for Switzerland.
Angermayer, previously considered a non-dom in the UK (a permanent resident of a different country), was exempt from paying tax on overseas income. However, the UK’s Labour Party now seeks to abolish tax advantages for assets held in offshore trusts.
Let’s unpack the UK’s potential tax reform and what it means for $BTC holders like Angermayer.
End to UK’s Non-Dom Tax Regime
Under the UK’s current tax regulations, non-doms are exempt from paying taxes on overseas income and earnings for 15 years. This regime is meant to attract wealthy individuals and investors to the country.
As a German native, Angermayer, who resided in the UK for over a decade, was only obliged to pay tax on income from his British firms.
Angermayer’s Malta-based Apeiron Investment Group owns shares in companies in the US, Germany, Australia, the UK, and Canada. However, Gov.uk suggests Angermayer’s only UK-based company, Westend Brokers Limited, was dissolved in 2012.
In March, the UK government proposed to reduce the non-dom tax benefit period from 15 years to four years. Now, Prime Minister Keir Starmer’s Labour Party wants to abolish inheritance tax exemptions for assets held in foreign trusts.
Wealthy individuals like Angermayer consider the change a ‘huge mistake’ and are exploring alternative residency options.
Switzerland – The New Crypto Haven
One such destination is Switzerland, a hub for the super-rich due to its high standard of living and stability.
Switzerland is tax-free for private crypto investors and only has a 7.8% capital gains tax for retail investors. Some investors may also be subject to a small annual wealth tax.
It’s easy to see why Angermayer has reportedly moved to Lugano, a cozy town located at the Swiss-Italian border.
Despite being a small town, Lugano has long posited itself as the heart of the Swiss crypto economy. Over 250 local merchants accept $BTC and $USDT, and the crypto conference Plan ₿ Forum takes place at the Lugano Convention Center every year.
Besides, as a country situated in Europe but not part of the EU, Switzerland appeals to crypto businesses seeking access to the region while avoiding the strict Markets in Crypto-Assets Regulation (MiCA) legislation.
According to the Henley Crypto Adoption Index, Switzerland ranks #11 overall, while the UK ranks #5. The UK outpaces Switzerland in public and infrastructure adoption and has a more developed regulatory environment.
However, Switzerland is ahead of the UK in terms of economic factors and tax-friendliness by a small margin. The UK’s tax reform proposal could change next year’s ranking in favor of Switzerland.
UK’s Tax Gambit
The UK’s proposed tax reforms threaten its position as the global financial hub. Investors like Angermayer flee the country for greener pastures, which could have far-reaching consequences for the UK economy.
To safeguard its position, the UK must reassess its regulatory approach and balance the pursuit of economic growth with support for entrepreneurship.
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Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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Publish date : 2024-09-30 04:23:00
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