Last Updated on January 23, 2023 by cryptocreed
I know how it feels when someone forcefully says give me your hard-earned money and you can’t say no to them. Nowadays governments are imposing huge taxes on cryptocurrency earnings.
It is new for most people and even Tax assistants are not able to understand how to file taxes.
In different countries, governments are imposing taxes that are not sustainable. Paying taxes is not a bad idea in my opinion but it should be affordable like 5 to 12%.
Note Educational: If you are from India and want to save Tax on crypto tax then use services like Angadia.
Countries With Taxes On Crypto
There are many countries that they started imposing taxes on crypto in recent times Government of India imposed a 30% tax on your crypto profit.
USA – 0 to 37% (considered crypto as an asset, not currency)
India – 30% (tax on crypto profit)
UK – 10 to 20% (no tax on below $16610)
Netherlands – 31% (depends on different rates & holdings)
Italy – Different % (on sale more than $58,232)
Australia – 50% (coins kept for 12 months or more)
Canada – 15 to 33% (depends on the income you generated)
Germany – No tax on crypto transactions of 600 USD or less
Cyprus – 12.5% (corporate tax)
Countries Without Crypto Tax In 2023
Following are the countries where you can move to save huge taxes on your crypto. If you are not one then you can suggest someone whom you know.
El Salvador is one of the first countries that approved Bitcoin as a legal tender. In mid-2021, the assembly approved a bill to legalize Bitcoin as a legal tender.
El Salvador is located in Central America with a population of 6 million people. Currently, the country has two legal tenders, Bitcoin and the US Dollar.
The country doesn’t impose any tax on their citizen, in order to promote investment.
The country’s financial condition is not quite good, the country will have total debt of 95% of its total GDP. It is important to note that legalizing Bitcoin doesn’t make any positive changes in its financial position.
The cost of living in El Salvador is low.
Malaysia is a real haven for crypto tax savers, there is no tax on crypto earnings in Malaysia. Even though the country doesn’t consider cryptocurrencies as legal tender.
But the local or anyone registered person, trading crypto may need to pay tax which is not open yet, locals from Malaysia may comment so others can know how much tax is there on crypto in Malaysia.
The cost of living in Malaysia is low.
According to govt of Malta Bitcoin and any other cryptocurrencies are a “unit of account, medium of exchange or a store of value”. Their tax rules make them a haven for crypto holders.
There is no tax on Capital Gains on long-term gains from selling crypto. It is known as a store of value.
The income tax imposed varies from 0 to 35%. Multiple factors are there which affect your tax slab according to your earnings and trading etc.
The government of Malta is following crypto for a long time hence they introduced their tax rules in 2018.
The cost of living in Malta is considered average.
Portugal is another crypto-friendly country that can help you save your taxes. They have produced a law that exempted cryptocurrencies sale by individuals from tax since 2018.
The cost of living in Portugal is low.
Bermuda was the first country that accepted USDC coin as the official payment currency method, which can be used to pay for taxes, fees, and any other government services. They don’t have capital gains or income tax on cryptocurrency.
The cost of living in Bermuda is a bit high hence if you are planning to move there forever then it might cost you more.
Bermuda doesn’t’ impose any tax on income, capital gains, withholding, or anything related to cryptocurrency transactions.
No doubt why Switzerland calls it a Crypto Valley, they have one of the best and crypto-friendly crypto policies for every type of crypto investor or holder.
Cryptocurrency income and capital gains are taxed free but apply only to individual investors or crypto holders. You have to pay taxes if you are a business or professional.
Also, professional crypto traders and miners have to pay taxes on their crypto. Plus Income Tax department charges some % of your assets as wealth tax, varying from 0.50 to 0.80%.
The cost of living in Switzerland is high.
You might have noticed that most of the cryptocurrency exchanges have their headquarters in Singapore, it is the first destination for exchanges to launch from.
Singapore is a crypto tax haven for every type of cryptocurrency holder or business.
Singapore doesn’t have a Capital Gains tax which makes individuals and businesses not pay any tax on capital gains. You can sell and trade crypto without paying any tax.
Businesses have to pay some percentage of tax under GST which is not avoidable but yes they are less in comparison to any other country.
The cost of living in Singapore is high.
Since 2018 there is a law in Belarus that allows crypto users from paying taxes. In 2018 Belarus has passed a law that exempts cryptocurrencies from income tax and capital gains for everyone.
The law was valid till 2023, 2023 this law will review and the government will decide if they want to extend this law or impose new tax rules
Still, it’s important to remember that these policies will be up for review in 2023. It’s unclear how cryptocurrencies will be taxed in Belarus in the future.
The cost of living in Belarus is low.
The Cayman Islands is not only a tax haven for crypto holders but for any other individuals or businesses that are willing to save taxes. They have no capital gains or income taxes on cryptocurrencies.
If you are planning to settle down in the country then it might cost you more. Cayman Island has import duties that generate revenue for them, 22 to 26% of import duties.
The cost of living in the Cayman Islands is high.
United Arab Emirates
UAE tops the list of Countries Without Crypto Tax for big companies and influencers.
The UAE government or financial authorities doesn’t ask you to disclose your crypto earnings. The United Arab Emirates doesn’t have capital gains or income tax for individual investors.
You have to pay 5% of the VAT for any purchase of goods or services using cryptocurrencies. The amount of percentage is very sustainable.
The cost of living in the UAE is high.
Puerto Rico is a part of the United States and they have its own tax policy. Moving to Puerto Rico for American citizens might be easier in comparison to persons living in other regions.
Puerto Rico has lower tax rates like you have to pay Territorial income tax which is quite low in comparison to America.
There is no capital gains tax or crypto tax in Puerto Rico. If you are living in America and moving with your crypto to Puerto Rico then you will have to pay taxes according to the US Federal Income Tax rate.
But if you make crypto after residing in Puerto Rico then it will get exempted from capital gains.
The cost of living in Puerto Rico is average.
Georgia is a tax-free country for individuals but there is a tax on crypto for legal entities which is a 15% corporation tax.
The cost of living in Georgia is average.