Crypto tax rates across countries

By cryotosensei | CryptoSensei | 29 Jul 2023

I fancy myself a free-spirited person who can uproot myself and forge a life in a new country. That’s why I have a keen interest to collect data regarding the capital gains taxes in various countries. This is to help me make an informed decision should I take the plunge one day.

These facts and figures were compiled as I interacted with people from all over the world. If I wasn’t rigorous enough in my fact check and made certain errors, please let me know so that I can clarify misconceptions.

Vietnam - Crypto is untaxed.

Singapore - Crypto is untaxed.

Indonesia - Tax is 0.1%.

Germany - Tax free if you HODL the asset for one year.

Switzerland - No need to pay any taxes as long as you own the crypto assets for 6 months or longer and the crypto profits do not exceed 50% of your net income.

United Kingdom - Used to be Allowed £12,300profits before one has to pay any tax. However this amount was halved in April 2023, which would again be halved next year. You then pay either 10% or 20% capital gains tax, depending on your income bracket. If your total income is less than £50,270, you will fork out 10% tax. If it exceeds £50,270, a 20% tax will be incurred on you. Fun fact, if you are married, you are allowed to spilt profits between you and your spouse.

Bulgaria - Capital gains tax is 8%.

America - Capital gains tax is 24% for any portfolio under a year. The rate does drop substantially if your crypto is held over a year. You are also not only allowed $41,675 profits before having to pay taxes, but are empowered to offset up to $3k of crypto losses every year.

Also for the United States, geographic arbitrage isn’t a valid option because even if you move to another country, you will not get to benefit from its lower tax rate. This is because you are obligated to pay US rates, or the higher rates of the country you live in and then report that to the US. Only when you give up your American citizenship can you entertain the thought of lower capital gains taxes elsewhere.

Canada - Capital gains tax is 10-25%, depending on the province you come from. The saving grace is that the capital gains are just half of your reported income at your current tax rate. You will also get a personal allowance of $14,398 profits before having to pay any taxes.

Brazil - Citizens get to enjoy tax exemptions for crypto gains if they aren't higher than USD$6.5K per month. Otherwise, a 15% tax applies.

Thailand - Used to have 15% capital gains tax on crypto trading and mining profits. But this law seems to be suspended following public outrage.

Italy - Capital gains tax is 26%.

Sweden - Capital gains tax is 30%.

France - Capital gains tax is 30%. And losses cannot be carried over to offset crypto gains in subsequent years.

Finland - Capital gains tax is 30% below $30k. Beyond $30k, it increases to 34%. Plus, every time you swap one crypto for another crypto, you are obliged to pay a tax. This effectively disincentivises people from swapping their crypto.

India - Capital gains tax is 30% from 1st April 2022. From 1st July 2022, they also got to pay 1% tax on every crypto they trade.

Ireland - Capital gains tax is 33% on all profits after the first €1270.

Spain - Different tax brackets imposed depending on your particular profit margin:

€0-€6000 —>19%

€6000-€50000 —>21%

€50,000-€200,000 —>23%

more than €200,000 —> 26%

Denmark - All crypto gains must be reported for income taxes. An asymmetric taxation system where we have to pay the full amount for any gains and can only deduct like 27% of losses from the gains applies. So, the Danes can actually suffer a huge loss and still have to pay tax.

Australia - You get a 50% discount for your long term capital gains tax. It’s then taxed at your marginal tax rate.

Any interesting information about capital gains taxes in your country will be most welcomed!

originally posted on r/

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