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Photo by The New York Public Library on Unsplash

Top 8 Crypto-Friendly countries in terms of tax and regulation

By TheNiftyRevolution | CrypticPedia | 16 Aug 2022

Photo by The New York Public Library on Unsplash


1. El Salvador

  • Regarding legislation that is favorable to cryptocurrencies, El Salvador is without a doubt king
  • El Salvador passed a law in 2021 making Bitcoin legal tender
  • As a result, you can use Bitcoin to pay for goods and services there just as easily as you can with US dollars
  • As a result, Bitcoin is not subject to income or capital gains taxes in the nation
  • Despite harsh criticism from well-established financial institutions, it also intends to keep its reputation as a cryptocurrency hub by constructing the first Bitcoin City in the world


2. Singapore

  • Singapore is another well-known nation that welcomes cryptocurrency
  • The South-East Asian nation does not impose a capital gains tax or a tax on goods and services purchased with cryptocurrency
  • On income from cryptocurrency-related activities like staking, there is an income tax, though
  • Additionally, Singapore’s financial regulators are somewhat accommodating to virtual currencies, allowing cryptocurrency businesses to operate without a license for a grace period of six months


3. Portugal

  • One of the most well-known nations that support cryptocurrencies in Portugal
  • Portugal taxes cryptocurrency income, but there are no capital gains taxes or trading taxes
  • Additionally, through investments, non-EU nationals can become eligible for a residency permit and eventually a passport through Portugal’s Golden Visa program
  • However, you can’t stay in Portugal for longer than 183 days a year if you want to apply for the Golden Visa and avoid becoming a tax resident
  • One of the factors contributing to Portugal’s rapid rise in industry popularity, with Lisbon emerging as one of the continent’s major hubs, is its tax-free lifestyle for cryptocurrency investors


4. Malta

  • Due to its acceptance of cryptocurrencies as a “unit of account, medium of exchange, or store of value,” Malta is another well-liked location for cryptocurrency
  • When the nation passed a law in 2018 governing distributed ledger technology, cryptocurrencies, and blockchain, it became a haven for initial coin offerings
  • Cryptocurrency trading in Malta is subject to a tax of up to 35%, but depending on your tax bracket and financial situation, you may be able to reduce that to 0% to 5%


5. Puerto Rico

  • Since Puerto Rico is treated as a separate country for tax purposes, it is a favorite vacation spot for North Americans
  • Therefore, if you purchased cryptocurrencies while a tax resident, there is no federal income tax in Puerto Rico and no capital gains tax
  • However, the IRS will tax any cryptocurrency you bought before relocating to Puerto Rico and establishing a residency


6. Switzerland

  • Switzerland is a well-known crypto hub, particularly in Zug, and Lugano is emerging as a second crypto-friendly city with plans to accept cryptocurrency as payment for taxes
  • While there are no capital gains taxes in Switzerland, there is an income tax on mining and a wealth tax based on an individual’s net worth
  • Additionally, profits from trading professionally are taxed


7. Slovenia

  • Despite ICOs being subject to taxation, the tiny Alpine nation has the highest market capitalization of blockchain projects per resident
  • Additionally, mining income is subject to a 25% income tax for Slovenian tax residents, but there is no capital gains tax


8. Germany

  • German law, which defines cryptocurrencies as private money rather than financial assets, makes tax optimization relatively simple
  • Capital gains tax is not due on cryptocurrency sales or holdings that have lasted longer than a year
  • Digital assets that have been held for less than a year and have generated gains of more than €600 are taxed
  • Furthermore, despite the fact that cryptocurrency staked for ten years becomes tax-free, Germany taxes income from mining and staking








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Hi, I'm Mo and I'm an entrepreneur passionate about crypto, NFTs, and the blockchain. This publication aims to educate the masses on adopting Web 3.0 early before it's too late :) I'm here to write, if it takes off, thanks a lot fam, if not thanks still


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