Cryptocurrency is the money of the modern age. With the rapid adoption of digital assets by users worldwide, countries are focusing on the issue of regulating cryptocurrencies. While some countries have adopted a crypto-friendly approach, others still need help to make crypto tax-free. If you are thinking about packing your bags and heading to a crypto tax haven, the following list of the top 10 crypto tax-free countries should come in handy. 

Is crypto tax-free?

Crypto is only partially tax-free in some countries. However, some destinations are more crypto-friendly than others. The rules on how crypto transactions are taxed vary from country to country, for example: 

• In the United States, cryptocurrency is taxable. While buying crypto doesn’t involve fees, selling, trading and spending crypto is subject to capital gains tax. You should also be ready to pay income tax for the crypto earned from mining and airdrops. 
• Germany has special tax rules for crypto. Crypto is tax-free if you hold your funds in crypto for a year and then decide to sell your assets. However, if you hold your funds for less than one year and your gains are over €600, crypto is taxed. So, if you are looking for a destination to add to your crypto tax-free countries, Germany is one possibility. 
• In India, the crypto policy is the same for everyone. They have a flat 30% tax on all crypto income and capital gains, with no tax benefits for crypto losses. 
• In Spain, you need to report your crypto balances and transactions. Crypto investors pay up to 47% of crypto income and can offset 25% of losses against gains. 

Crypto Tax-Free Countries in 2024

Although crypto is taxed in most locations, it’s still possible to find crypto havens like El Salvador and Georgia with more crypto-friendly policies. To avoid crypto taxes, you must move to a country that does not tax crypto at all. Consider the countries listed below if you want crypto tax-free countries in 2024 or destinations with more favorable policies.

1. Belarus

Belarus is one of the most crypto tax-friendly countries, where all mining and trading activities are exempt from capital gains until at least 2025. In March 2018, crypto transactions were legalized, and all individuals and businesses were exempted from crypto taxes, which has now been extended to 2025. The law was implemented to encourage digital investments in the country and boost the digital economy. Belarus is also deemed one of the most forward-thinking hubs for blockchain development and crypto legislation, making it one of the most attractive destinations for crypto investors. 

2. El Salvador

El Salvador is deemed a crypto heaven. It became the first country to adopt Bitcoin as a legal tender in 2021. It remains one of the leading countries with no crypto taxes, offering many benefits for crypto activities. This tax-free status makes El Salvador an attractive destination for crypto investors and entrepreneurs. The country is a hub of crypto innovation, expected to drive more crypto innovation and economic growth. The government has implemented regulations to support the adoption of Bitcoin. Furthermore, they’ve mandated the adoption of BTC by businesses and invented a nationwide Bitcoin wallet to accept crypto transactions. 

3. Germany

Although Germany is not a completely crypto tax-free country, it has a favorable tax code for crypto investors. In Germany, income tax is applied to crypto earnings from mining, staking and short-term trading. Crypto holdings are treated as private money. If you hold your crypto assets for over a year, you won't need to pay any taxes or fees when selling or swapping your holdings. If you hold cryptocurrency for less than a year, you will be taxed on your profit unless it is less than €600. 

4. Portugal

Although Portugal is not a completely tax-free destination for cryptocurrency in 2024, it’s still worth mentioning on our list of the top 10 crypto tax-free countries. One reason why we’ve chosen this destination is its tax-free crypto-to-crypto trades, meaning that if you exchange cryptocurrency from one asset to another, you won’t be subject to fees. Gains from selling crypto for less than one year are subject to a 28% flat tax. Income from professional crypto trading or crypto business activities is subject to Portugal's progressive income tax rates, ranging from 14.5% to 53%. Crypto income from mining and staking is taxed as self-employed at progressive rates. 

5. Switzerland

Switzerland has no capital gains for individual or personal crypto holdings, making it one of the best no crypto tax countries. Income from crypto staking, mining and trading is subject to Switzerland’s regular income tax rates. As for crypto mining and trading by professionals, it is subject to business income tax. All salaries paid in cryptocurrency must be declared as regular income. Crypto holdings are subject to Switzerland’s wealth tax, levied annually based on your total net worth. 

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6. Malta

In Malta, you are not charged any long-term capital gains on digital assets, making it a destination worthy of being listed as a country with no taxes on crypto. Although Malta is not a completely crypto tax-free country, it has relatively favorable crypto tax policies compared to other destinations. In Malta, crypto trades are viewed as similar to day trading stocks and are subject to the business income tax rate of 35%. The country has implemented progressive regulations to support the crypto industry, such as the Malta Digital Innovation Act (MDIA) and the Virtual Financial Assets Act (VFAA). In Malta, Bitcoin and other cryptocurrencies are recognised as a "unit of account, medium of exchange, or a store of value", providing legal clarity for crypto businesses.

7. Malaysia

In Malaysia, individual investors are not subject to capital gains taxes, so this destination makes our tax-free countries for crypto list. Although profits from long-term crypto investments are not taxed, frequent crypto activities are considered taxable income. Malaysia’s crypto tax policies for 2024 are as follows: 

• Crypto trading profits for individuals are taxed at the regular income tax rates, which vary from 0% to 30%.
• Businesses are subject to a flat 24% income tax on crypto earnings. 
• Malaysia imposes a 6% GST (goods and services tax) on the crypto supply.

The country has a relatively simple tax system and easy guidelines on how cryptocurrency is taxed, making it one of the most appealing countries with the lowest crypto tax for investors.

8. Singapore

Singapore is a moderately tax-free country for crypto. It is the home of many leading crypto exchanges and fintech companies, creating a vibrant ecosystem. The country offers a favorable environment for traders and investors. There are no capital gains taxes. The profit from selling or trading crypto is tax-free. In Singapore, income derived from cryptocurrency trading or business activities is subject to Singapore's regular income tax rates, ranging from 0% to 22% for residents and a flat 15% for non-residents on employment income and 22% on other income.

9. Slovenia

When selling digital assets in Slovenia, individuals are not subject to capital gains fees, making it one of the top crypto tax-free countries in Europe. Individuals profiting from mining and trading crypto are subject to Slovenia's progressive income tax. If you own a crypto-related business, you should include crypto earnings in the overall corporate tax base. Crypto transactions are qualified as financial services and are exempt from Slovenia's 22% value-added tax (VAT). 

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10. Georgia

Georgia is one of the top crypto tax-free countries. Crypto is also not subject to capital gains tax in Georgia, as it is not considered a ‘Georgian sourced’ asset. There is no personal income tax or capital gains tax on crypto. Individuals are exempt from income tax on crypto profits, and corporations face a low 15% tax. Georgia does not charge value-added tax (VAT) on cryptocurrency transactions, reducing the tax burden. 

Worst Countries for Crypto Tax

Crypto taxation varies significantly across countries, with some imposing higher rates and additional types of taxes.

• France. While trading crypto for crypto isn't taxed, several other taxes apply with high rates. Occasional investors face a single fixed levy of 30%, while professional traders and miners pay a business income tax of 45%.
• The Netherlands. The Netherlands taxes fictitious gains instead of a capital gains tax, meaning you'll pay tax even if you just hold crypto. The tax rate on these gains is low (0.54%-1.58%), but staking, mining and DeFi activities might also be taxed as income.
• Japan. Most crypto transactions are subject to miscellaneous income tax, with rates reaching 55% for high earners. This is much higher than the 20% tax rate on stock profits. Japan hopes to revise its crypto tax laws to reduce the burden.

Crypto tax policies and regulations vary from country to country. Whether planning a relocation or launching a business in a new place, consider local crypto tax policies in the country where you are heading. Use our list of the top 10 crypto tax-free countries as your guide, which you can bookmark for further reference. 

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