What Countries Don’t Tax Crypto? Relocating For Tax-Free Crypto

Introduction

Top 10 Countries That Don’t Tax Crypto

Let’s take a look at some of the best places to move to for getting the most out of your crypto investments, without the hefty taxes.

Crypto Tax in Germany: What You Need To Know

There are some big opportunities in Germany for investors to reduce their tax liabilities on cryptocurrency gains legally.

Here’s the deal: if you own cryptocurrencies like Bitcoin and keep them for more than a year, you won’t have to pay taxes if you decide to sell, swap, or use them. This makes Germany a popular place for those who plan to hold onto their crypto for the long haul.

But there’s a catch. If you sell or use your crypto within a year and make more than €600 in profit, you’ll have to pay taxes on those gains. So, the key to saving on taxes in Germany is to “HODL” your crypto for at least a year.

There are some other activities that will get taxed, too:

• Earning money in crypto
• Mining crypto
• Staking crypto

Understanding these basics can help you make smarter decisions about your crypto tax in Germany. For more tips and expert advice, join our crypto tax community and learn from pros like Andy Wood.

Belarus: A Crypto Tax Haven in Eastern Europe

In 2018, Belarus charted its own course in the crypto world by choosing not to slap taxes on crypto activities.

Instead, they went all-in, legalising these activities and making it a haven for both individuals and businesses involved in crypto, free from taxes until January 2025.

What does this mean for you?

Pretty much every crypto activity you can think of, from mining to day trading, is seen as a personal investment. So, you won’t be paying Income Tax or Capital Gains Tax on what you earn from these activities. Belarus is playing the long game, hoping to boost its digital economy by attracting crypto businesses and investors with this bold move.

In short, Belarus is the place to be if you’re into crypto and want to keep your earnings as far away from taxes as possible, at least until 2025.

El Salvador: Bitcoin as Legal Tender & Tax-Free

El Salvador made headlines as the first country to roll out the red carpet for Bitcoin, embracing it as an official currency.

This attracts more investments, giving the national economy a boost. But what’s the deal for you? Well, for foreign investors, the news is good: El Salvador is letting you off the hook for Capital Gains Tax on Bitcoin earnings.

And since Bitcoin is legal tender, every business in El Salvador must accept it – just like the dollar. Grabbing a coffee or buying a surfboard? You can shop for everything with Bitcoin.

It’s an exciting experiment, offering a glimpse into what the future of finance could look like. For investors and crypto enthusiasts, it’s a unique opportunity to see their Bitcoin go further, tax-free.

Portugal: Sun, Sea, and Crypto Taxes

Portugal has offered tax-free profits from crypto sales since 2018, but the tides changed in January 2023. Now, if you sell your crypto within a year of buying it, you’re looking at a flat tax rate of 28% on your profits.

But there’s a silver lining: sell your crypto after holding it for a year or more, and you’ll enjoy those gains tax-free. Trading one crypto for another? You’re in luck – these trades aren’t taxed. And if you’re dabbling in unique or non-fungible tokens (NFTs), these aren’t seen as typical crypto assets for tax purposes.

In a nutshell, despite 2023’s changes, Portugal can still be a great choice if you’re an investor looking to make your crypto go further and limit its tax costs.

Singapore: A Crypto Tax Haven

Singapore is a top spot for major crypto exchanges and investors, thanks to its friendly tax rules. Here’s the deal: there’s no Capital Gains Tax on crypto, whether you’re an individual investor or a bustling business.

Crypto is seen as intangible property, meaning when you use it to buy stuff, it’s more like a swap than a purchase, keeping it free from the Goods and Services Tax (GST).

But keeping all your crypto earnings tax-free isn’t always straightforward.

If your business accepts crypto as payment or if you’re knee-deep in crypto trading as a service, you’ll need to pay Income Tax. However, compared to many places, Singapore’s Income Tax rates are on the lower side, offering a somewhat sweet deal for crypto players.

Malaysia: A Crypto Tax-Free Zone with Conditions

Right next door to Singapore, Malaysia is another great destination for crypto enthusiasts looking for tax relief. Here, cryptocurrencies are not recognised as capital assets or legal tender, meaning individual investors typically don’t owe taxes on their crypto transactions.

But there’s a catch: the tax exemption applies as long as your crypto dealings are not frequent or repetitive. If you’re hitting the markets as a day trader, you’ll find yourself on the taxman’s radar, with tour gains subject to taxation.

You don’t get the same leeway if you’re a business either – any profits that come from crypto-related activities will be hit by income tax.

Essentially, Malaysia offers a tax-friendly environment for casual crypto investors.

Malta: The Blockchain Island’s Tax Paradigm

Malta is nicknamed Blockchain Island for a reason. Officially recognising Bitcoin and other digital currencies as units of account, mediums of exchange, or stores of value, Malta offers tax advantages for long-term investors.

So, if your crypto serves as a “store of value,” you’re in clear waters, exempt from Capital Gains Tax on any profits.

The story is a little different for crypto traders, though. In Malta, trading activities are viewed similarly to day trading in stocks or shares, meaning a Business Income Tax rate of 35%. There are ways to lower this tax burden – potentially down to 0% or 5% based on specific conditions surrounding your earnings and residency status.

Cayman Islands: A Crypto Sanctuary

The Cayman Islands’ reputation as a tax haven isn’t just for show. This tropical paradise offers a zero-tax environment for both individual investors and crypto-related businesses.

The Cayman Islands Monetary Authority ensures smooth sailing for crypto enthusiasts, eliminating Corporate Tax for businesses and waiving Income Tax and Capital Gains Tax for residents.

In short, it’s a top destination for anyone looking to maximise their crypto investments without the tax burden.

Puerto Rico: Silicon Valley’s Tropical Counterpart

Puerto Rico has become a magnet for billionaires seeking a blend of luxury and tax efficiency. As a US territory with its own tax rules, Puerto Rico offers residents a complete exemption from Capital Gains Tax on crypto acquired while living there. This makes it a coveted spot for crypto investors looking for tax relief.

How do you know if your crypto is tax-free in Puerto Rico? It’s all about the dates. Crypto bought before moving to Puerto Rico is still subject to IRS regulations, but assets acquired after you become a resident will be free from Capital Gains Tax.

This loophole offers a golden opportunity to enjoy the benefits of Puerto Rico’s crypto tax landscape, provided you navigate the timing of your crypto investments and residency status carefully.

Switzerland: The Crypto Valley

Switzerland is known as “crypto valley” for its forward-thinking tax policies. However, it’s important to understand that being tax-friendly doesn’t mean you’re exempt from all taxes. Swiss crypto tax laws have their nuances.

On the downside, Income Tax applies to crypto mining and professional day trading. There’s also a Wealth Tax based on your total net worth, which varies depending on the region you’re living in.

The upside? For individual investors not professionally trading, there’s no Capital Gains Tax on crypto profits. This means that selling and trading crypto can be tax-free for many investors.

Georgia: A Go-To Spot for Crypto Tax Breaks

Georgia is well-known for its lenient crypto tax policies, which are good news for both individuals and corporations.

If you’re selling crypto and keeping it personal, you won’t see a dime of Income Tax on those profits. And since crypto isn’t considered ‘Georgian sourced’, you won’t be dealing with Capital Gains tax either.

For businesses, crypto profits within legal entities face a modest 15% Corporate Income Tax. So, if you’re dreaming of a crypto venture, Georgia might just be your next move.

Bermuda: No Taxes, High Living Costs

Think of Bermuda as your tax-free paradise with a catch. Sure, you won’t pay capital gains or income tax on your crypto stash, but remember, paradise comes at a price.

Living here isn’t cheap, and if you’re planning to stick around, you could end up having to pay land tax.

British Virgin Islands: Smooth Sailing in Tax Waters

The British Virgin Islands are playing it cool with crypto, keeping things straightforward and tax-free.

Since there is a neutral tax stance, you won’t be hit with capital gains tax, corporate tax, income tax, or withholding taxes for your crypto gains, making it a go-to location for anyone with digital assets.

Hong Kong: Tax Exemptions with Conditions

Hong Kong gives individual crypto traders a break from capital gains tax. But, if you’re a corporation or professionally trading on the regular, you will have to pay income tax. It’s a bit of a mixed bag, but for personal crypto dealings, Hong Kong is still a sweet spot for crypto taxes.

Slovenia: Favorable for Individuals

Slovenia offers no taxation on capital gains from virtual currency sales or individual use unless it’s a professional business. Legislation changes could affect this status, so keeping your ear to the ground and staying up to date is important.

What are the worst countries for crypto tax?

Some countries apply higher tax rates and additional taxes to crypto, making them less crypto-friendly. Let’s have a look at some of the places to avoid when it comes to crypto taxes:

Crypto Tax in France

France offers a bit of a mixed bag when it comes to crypto taxes. Trading crypto for crypto? You’re in the clear, tax-wise. But dive into the details, and it gets pretty complex with hefty rates in play. If you’re dipping into crypto now and then, you’re hit with a 30% Single Fixed Levy. But if crypto’s your day job, whether you’re trading full-time or mining, you’re looking at a steeper 45% Business Income Tax.

Crypto Tax in The Netherlands

The Dutch have a unique twist on crypto taxation; they tax you on what they think you might earn from your crypto, even if you’re just holding it tight. Plus, if you’re into staking, mining, or exploring the DeFi space, you could be looking at Income Tax on those activities. The tax rate on these “fictitious gains” ranges from a manageable 0.54% to 1.58%, making The Netherlands one of the rare places where your unrealised gains get taxed.

Crypto Tax in Japan

In Japan, your crypto transactions are mostly seen as Miscellaneous Income, putting them in the line of fire for Income Tax. And we’re not talking small change; Japan’s Income Tax rates can soar up to 55% for the big earners, making it a tough place for crypto gains. Interestingly, profits from stocks get off much easier, taxed at a flat rate of 20%.

Stay On Top of Your Crypto with Crypto Tax Degens

Each country carves its own path in digital currency. In the ever-changing world of crypto, staying informed and making educated decisions is more important than ever.

Whether you’re a seasoned trader, a casual investor, or somewhere in between, our community is a hub for anyone looking to navigate the crypto tax world more effectively.

Cut through the chaos of crypto taxes, get straight to the winning strategies, and unlock advice from the crypto tax legend Andy Wood. No fluff, just the hard-hitting facts and tactics that can turn your crypto tax puzzles into opportunities.

Stop getting tripped up by tax traps. Join Crypto Tax Degens now and arm yourself with knowledge that pays off. With Andy Wood and a community of savvy investors by your side, you can stay ahead of the curve.