Which countries are crypto tax-free? If you are lucky enough and gained some nice profit in the crypto market, you may ask yourself, how much tax do you have to pay for your gains.
After amazing bull run we had in the crypto market in 2017, many governments saw opportunity to take their tax share and we saw many updates in the tax regulations. Many of previous tax-free countries or countries without crypto regulations are not tax-free anymore. Some of them left only a few exceptions. There are also new countries who declared crypto tax haven. I decided to find out and make an updated list. Here is the list of cryptocurrency tax haven countries in 2018.
Image (Belarus Flag) from Pixabay
Belarus is currently at the top of this list. This country legalized cryptocurrencies, ICO’s, smart contracts and everything that has to do with crypto’s. It’s entirely tax-free for everyone who trades or holds them. That includes individuals and also business investors. Belarus is relative cheap place to live and it’s one of the safest countries in the eastern europe. Tax-free for traders, miners and all capital gains. until January 1st 2023.
This year 2018 Portugal declared completely tax-free for individuals buying or selling cryptocurrencies! This announcement was declared at the best possible time when many other countries started to regulate and tax cryptos.
Photo (Portugal Algavre Benagil Caves) from Pixabay
Residents of Panama are paying 0% tax on their crypto profits. Panama extemps all taxes earned outside of Panama. You may become a resident of Panama if you invest $20.000.
Photo (Panama City) from Pixabay
This year Slovenia regulated cryptocurrencies but there is still 0% tax for individuals who are not over-trading. For individual investors there is a little bit complex way to determine if someone must pay tax for crypto profits or not. But in general individuals pay 0% tax on their crypto gains if they have less than 100 trading days activity per year. You can have several trades in a single day and it only counts as 1 trading day. It depends on every individual circumstances. You also don’t pay any tax for example: if you invested $500.000 and you gained 1,5 million profit in just 10 days with 20 trades. Airdrops are taxed with 25% rate.
Photo (Bled Slovenia) from Pixabay
Cryptocurrency tax there is still not regulated. The Maltese Prime Minister is very pro Bitcoin and pro Crypto orientated. Attracting many crypto related companies and exchanges to this mediterranean island.
If you qualify for Act 22 (link) you will pay 0% tax on your crypto trading profits. Puerto Rico residents are free of tax on their cryptocurrencies.
Photo (Puerto Rico) from Pixabay
There is no tax if you hold Bitcoin/Crypto for one year. If you hold your crypto less than one year you also don’t pay tax if your gains are less than 600 eur. This applies only for private individuals.
Photo (Neuschwanstein in Germany) from Pixabay
Individuals in Singapore don’t pay any taxes on profits from the crypto trading. This doesn’t apply for bussines investors.
A self proclaimed microstate is working hard for an international recognition. The leader is very pro crypto orientated. It plans to realese it’s own cryptocurrency. Redidents could stake crypptocurrency on a voluntarily basis in order to vote and fall under Liberland jurisdiction.
Many other countries are still not crypto regulated. Many residents of those places still don’t pay any taxes for their crypto profits. There are some other countries which are very crypto-friendly like Switzerland and Gibraltar. Specially Swiss Canton Zug is considered to be a new Crypto Valley. and very friendly for new ICO’s and for crypto business investments. Nederland has also a very low tax rate which you pay for every year.