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List Of Countries That Don’t Tax Crypto Gains

countries-which-don't-tax-crypto

– GERMANY

For German residents, any cryptocurrency held for over a year is tax-exempt, regardless of the amount. If the assets are held for less than a year, capital gains tax doesn’t accrue on a sale, as long as the amount does not exceed 600 euros ($692).

However, for businesses it’s a different matter; a startup incorporated in Germany still needs to pay corporate income taxes on cryptocurrency gains, just as it would with any other asset.

countries-not-taxing-crypto

– HONG KONG

It isn’t a country per se, but a Special Administrative Region of China, with theoretical autonomy over its own affairs. And Hong Kong’s tax legislation on cryptocurrencies is a broad brush affair, even after new guidance was issued in 2020.

– EL SALVADOR

Bitcoin is their legal tender lol

– MALAYSIA

In Malaysia, cryptocurrency transactions are currently tax-free, and cryptocurrencies don’t qualify for capital gains tax, because digital currencies are not considered assets or legal tender by the authorities.

MALTA

The government of the so-called “Blockchain Island” recognizes Bitcoin “as a unit of account, medium of exchange, or a store of value.”

Malta doesn’t apply capital gains tax to long-held digital currencies like Bitcoin, but crypto trades are considered similar to day trading in stocks or shares, and attract business income tax at the rate of 35%. However, this can be mitigated to between five percent and zero, through “structuring options” available under the Maltese system.

– PORTUGAL

Portugal has one of the most crypto-friendly tax regimes in the world.

Proceeds from the sale of cryptocurrencies by individuals have been tax-exempt since 2018, and cryptocurrency trading is not considered investment income (which is normally subject to a 28% tax rate.)

However, businesses that accept digital currencies as payment for goods and services are liable to income tax.

– SINGAPORE

Capital gains tax does not exist in Singapore, so neither individuals nor corporations holding cryptocurrency are liable.

– SLOVENIA

Slovenia is another country that treats individuals and businesses separately under its cryptocurrency tax system.