Thinking of moving to a different country where you don’t have to pay high taxes on your crypto investments? Well, you’re not alone. As the value of crypto skyrockets, several countries around the world are imposing heavy taxes on crypto investors and their respective businesses—which could potentially cripple their profits. These taxes can either be imposed as a capital gains tax or an income tax.
Fortunately, there are still a few countries with no crypto tax that you can move to, or pay very little on your crypto investments. Today, we unveil these top 10 crypto tax free countries for you.
Tax Free Crypto Countries
- Germany
- The Cayman Islands
- El Salvador
- Malaysia
- Malta
- Switzerland
- Puerto Rico
- Belarus
- Singapore
- Portugal
Germany
While Germany is one of the highest-taxed countries in Europe, they have a very interesting approach when it comes to cryptocurrency. Germany does not consider cryptocurrency as a capital asset. This means that if you decide to hold your cryptocurrency for over a year and sell it later on, you’ll not be taxed a single cent.
But the keyword here is ‘holding’ your crypto. Because if you decide to sell your crypto before a year has elapsed, then you’ll get taxed for it—that is, unless the profits you’ve made from the sale are below €600.
Germany also has a unique approach when it comes to taxing staked crypto. If you’re staking your crypto to generate more income, this crypto will be taxed as long as you’ve held it for less than 10 years. Once 10 years elapses, your staked crypto will be tax-free.
Hold on, before you book your flight to Munich, Germany still imposes income tax in the following situations:
- If you are getting paid in crypto
- If you are mining crypto.
So if you’re doing more with your crypto than just staking and holding, then Germany might not be the most ideal cryptocurrency tax haven for you.
The Cayman Islands
The Cayman Islands are one of the most controversial regions in the world of finance. So don’t be surprised that we have this lovely group of islands right here on our list of crypto tax havens.
For several years, the Cayman Islands have been the go-to tax haven for investors in diverse business markets. So cryptocurrency is no exception and Cayman Islands is one of the countries with no crypto tax. If you move here, then you’ll be pleased to find that their tax authority—The Cayman Islands Monetary Authority— imposes neither a capital gains tax nor an income tax on its residents. There’s also no corporate Tax for businesses.
So whether you have a small crypto business or you’re running an entire company, the Cayman Islands won’t tax you a single cent. However, the cost of living here is extremely high because the country generates revenue through luxury goods, tourism, and work permits. So while it might be the perfect cryptocurrency tax haven, you better have your finances in order.
El Salvador
In September of 2021, El Salvador made worldwide news by becoming the first nation to accept Bitcoin as a legal tender. Citizens can now buy everything from groceries to a house using Bitcoin. This country is also a cryptocurrency tax haven for you.
The government did this to market itself as one of the few countries without crypto tax to attract more investment to the region. But that’s not all they did. To give foreigners a greater incentive to move to their country, they announced that all foreigners would be exempted from paying taxes on any income from their Bitcoin gains. So if you’re a Bitcoin investor, then El Salvador is probably the best place to move to.
Malaysia
Just like Germany, Malaysia doesn’t consider cryptocurrency as a capital asset. The Malaysian government doesn’t further recognize it as a legal tender. This means that cryptocurrency is essentially tax-free in the country.
But there’s a slight twist to it. The Malaysian Inland Revenue Board has made it clear that cryptocurrency is tax-free only if it’s not a repetitive or regular form of income. In short, the revenue will tax you if you handle your crypto like a day trader.
Unfortunately for businesses, there’s no way about it. Malaysia imposes an income tax on any profits generated from crypto—and it doesn’t matter whether these profits are in fiat currency or crypto.
Malta
Aside from being on our list of cryptocurrency tax free countries, Malta is also officially known as ‘blockchain island’ because the country recognizes cryptocurrency as a store of value and a medium of exchange—emphasis on the ‘store of value.’
What this means is that you’ll not be subjected to any capital gains tax on all long-term profits you generate from selling your crypto as long as it is recognized as a ‘store of value.’ This is great if you’re looking to hold your crypto for a while and sell it later once the price rises to a profitable value.
However, if you operate as a crypto day trader, then your crypto will be subjected to a business income tax that is as high as 35 percent on all your profits! But this depends largely on the Maltese Tax System which analyzes factors such as your residency and how much you make from crypto. If you fall in the right bracket, you can pay as little as three percent to nothing on your profits. That’s why we consider Malta one of the best crypto tax haven countries.
Malta Permanent Residence Programme:Residence ProgrammeClick to read
Switzerland
For years, Switzerland has been considered one of the finest places in the world for financiers because of its lax approach to taxation. As for crypto, the country recently earned the nickname the crypto valley and is a top crypto tax haven.
But before we move on, we just have to let you know that you can still pay crypto tax in Switzerland; it all depends on factors like your tax bracket and the activities you undertake.
For example, if you’re a qualified day trader or a certified crypto miner, then you’ll be subject to both an income tax and a wealth tax depending on how much revenue you generate every year.
On the bright side, individual investors who are not trading or mining on a professional level will not be subjected to any capital gains tax. Trading in crypto for this group is tax-free.
Puerto Rico
Despite being a territory of the United States, Puerto Rico’s local government has varying views when it comes to tax. With crypto, for example, Puerto Ricans are subjected to a much lower federal income tax rate as compared to Americans in the mainland USA.
What’s even better is that if you acquire digital assets as a resident of Puerto Rico, then you’re not subjected to any capital gains tax. This means that if you move to Puerto Rico, then buy crypto there, you won’t have to pay any taxes on it. However, for any crypto that you bought outside the territory, you’ll have to follow up with the revenue body of your native country. That aside, Puerto Rico is definitely in consideration as one of the countries with no tax on crypto.
Belarus
Belarus has one of the friendlies tax rates in the whole of East and West Europe. So it’s no surprise that it’s on our list of tax free crypto countries. In March of 2018, the country decided to take a very insightful approach to cryptocurrency. Unlike most European countries that imposed some crypto tax laws during the Bitcoin boom, the country opted to legalize crypto transactions and exempt all businesses and individuals from any crypto tax until 2023.
This means that any profits generated from crypto activities like mining, trading, staking, and holding do not incur either a capital gains tax or an income tax.
This law was implemented by the Belarusian government to encourage digital investments within the country. There’s still one more year to enjoy this benefit though, so better act on it if you want to enjoy the perks of one of the finest countries with no crypto tax.
Singapore
You’ve probably noticed the massive migratory trend that crypto exchanges like Phemex and KuCoin have done to move their headquarters to Singapore. Well, there’s a good reason for this: Singapore does not have a capital gains tax. So it doesn’t matter whether you’re making a profit from selling your crypto or trading it, you’ll not be liable to pay any tax from the profits generated. It makes Singapore is one of the tax free crypto countries.
Singapore’s government also views cryptocurrency as intangible property. This means that if buy any goods or services using crypto, then the exchange is viewed as barter trade rather than a payment. So while the goods or services are taxed, your crypto token is not.
Unfortunately, this service is available only to individual investors. If you’re a business that accepts crypto as a payment, then there’s an income tax. This also applies to any company that sells cryptocurrency as its primary service.
Then again, as an individual investor, this is one of the best crypto tax havens.
Portugal
Aside from Portugal’s sunny beaches and amazing resorts, you’ll also want to go to Portugal because of its profitable approach to crypto investors. Portugal is one of the best cryptocurrency tax free countries to move to if you want to enjoy your crypto profits—down to the last penny.
In 2018, the Portuguese government declared all crypto profits generated from selling cryptocurrency tax-free. The Portuguese government also declared that all income generated from crypto trading is tax-free.
So, as long as you’re not a certified crypto business in Portugal, you won’t be subjected to any income tax or VAT. Therefore, for a large pool of crypto investors, Portugal is the best crypto tax haven on the planet.
We hope that our article on crypto tax free countries has been helpful. Still, before you make any relocation plans to no crypto tax countries, you should speak to a tax professional and legal advisor who will guide you better and inform you about the latest regulations.
