In a recent video, the leading cryptocurrency Youtube channel Coin Bureau shares the top 10 countries that have taken a more liberal approach for these emerging asset class to develop and to be adopted.
“You need to know that tax rules around the world differ from country to country and it’s not as easy as just popping onto a plane and offloading all that crypto for tax-free gains. However, as a general rule of thumb, if you are a non-resident individual, for a certain period of time, you usually won’t be liable for capital gains tax and income tax generated overseas”.
Vanuatu
The first country on the list is Vanuatu. This archipelago is home to zero percent capital gains tax rates.
“Yes, those amazing tax benefits sound great. However, if you are not into nature then there is frankly little to do here. Also, as everything is imported, the cost of living isn’t as cheap as you might think”.
It is also interesting that the Vanuatu government has approved the payment of Citizenship by Investment applications with cryptocurrency. In exchange for bitcoin, the government will grant investors a Vanuatu passport. The so-called Vanuatu crypto passport — valid for a duration of five years — allows investors and their families to reside in Vanuatu without any stay requirements.
Costa Rica
Costa Rica is yet another location with no capital gains tax.
According to the analyst, investors can trade crypto to their heart’s content here and avoid that taxman.
“If you’re incorporating in Costa Rica and your cryptocurrency business carries out business activities outside the country, you don’t need to pay any income tax on that revenue”.
Puerto Rico
In Puerto Rico, the 0% capital gains tax is only applicable to US citizens.
However, if traders want to stay, they’ll need to buy a property within two years of residency. That requirement has sent property prices skyrocketing, which means this isn’t the cheapest long-term option out there.
Portugal
Portugal has one of the most crypto-friendly tax regimes in the world.
“This EU country doesn’t have any crypto related taxes. It’s got vibrant nightlife, great weather and an affordable cost of living”.
Proceeds from the sale of cryptocurrencies by individuals have been tax-exempt since 2018, and cryptocurrency trading is not considered investment income. However, businesses that accept digital currencies as payment for goods and services are liable to income tax.
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.
Dubai
As Coin Bureau says, there is no tax here whatsoever. It’s also a bit of a playground for the wealthy too – perfect for those crypto go-getters.
Besides, Dubai has established a cryptocurrency valley with special terms in the country’s free zone where there is no personal or corporate income tax.
“Designed to foster growth, collaboration and integrity across the global blockchain economy, the DMCC Crypto Valley will be the world’s largest ecosystem for cryptographic, blockchain and distributed ledger technologies”.
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%.
“This is a place for the hodlers. Day traders are taxed at 35%”.
Switzerland
It’s no surprise that Switzerland, home to the innovation hub known as “Crypto Valley”, has one of the most forward-thinking tax policies too. Cryptocurrency profits made by a qualified individual through investing and trading are treated as tax-exempt capital gains.
“There are no capital gains taxes here for individuals. However, Switzerland is one of the most expensive places in the world to live”.
Singapore
“This country has 0% capital gains tax. The problem is that it’s tricky to get residency, which may rule this great city out for the majority of people”, the crypto KOL says.
Capital gains tax does not exist in Singapore, so neither individuals nor corporations holding cryptocurrency are liable. But companies based in Singapore are liable to income tax, if their core business is cryptocurrency trading, or if they accept cryptocurrency as payment.
Bermuda
The last country on the analyst’s radar is Bermuda. Bermuda doesn’t impose income, capital gains, withholding, or other taxes on digital assets, or on transactions involving digital assets.
“There are no crypto taxes here whatsoever. The downside is that the population is only around 60,000 people, meaning there is little to do here except chill on a beach with mountains of cash”.
Disclaimer: Opinions expressed at AZCoin News are not investment advice. Investors should do their due diligence before making any high-risk investments in cryptocurrencies. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. AZCoin News does not recommend the buying or selling of any cryptocurrencies.
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