Countries without taxes on cryptocurrencies

In recent years, there has been a lot of talk about cryptocurrencies and the possibility of them being used to paying taxes. However, there are many countries where this measure has not yet been implemented and where cryptocurrencies remain an unregulated form of payment.

In these countries, cryptocurrencies are still an underutilized and tax-free form of payment. This translates into the investment of cryptocurrencies without having to submit to any regulation, which makes this practice a good option to obtain extra benefits.

In addition, in these countries, cryptocurrencies usually have a good reputation and are considered a good form of investment. This is mainly because they see this market as a safe form of investment that is not subject to inflation.

Do you want to know which are these countries where you do not have to pay taxes for investing in cryptocurrencies? Then stay with us and keep reading this post.

10 countries without taxes on cryptocurrencies

Cryptocurrencies are digital assets that use cryptographic encryption to guarantee ownership and ensure the integrity of transactions. It is established as a digital medium of exchange fulfilling the function of a digital currency. They are decentralized, which means that they are not controlled by any government or financial entity.

However, as blockchain technology advances, with it, new tools appear that are gradually being established in some sectors of our society. Due to the high profits that we can obtain from the investment of cryptocurrencies, many countries have imposed a series of payments for those investors who have bet on this market.

Other countries are friendlier to these crypto assets and have no taxes on investment in cryptocurrencies. We have made a list of 10 countries where you do not have to pay taxes for cryptocurrencies:

• Swiss

Switzerland is one of Europe's crypto havens. The Swiss Federal Tax Administration considers cryptocurrency transactions the same as transactions with traditional fiat currencies, thus exempting them from tax reporting.

However, this regulation is limited to cryptocurrency transactions. Profits from cryptocurrencies and professional trading are subject to Swiss annual income and wealth tax. The same goes for the minority of cryptocurrencies, as it is considered self-employment.

• Singapore

There is no capital gains tax in Singapore, so any individual or legal entity holding cryptocurrencies does not have to pay this tax. This country is one of the richest in economy and stands out as the centre of financial technology in Southeast Asia.

Companies that trade cryptocurrencies or accept payments with crypto assets are subject to income tax. The Monetary Authority of Singapore, the country's financial body, has made it clear that above all, it wants to develop a safe environment for cryptocurrencies.

• Monaco

This is one of the preferred destinations for large cryptocurrency owners. Its banking is quite crypto-friendly when it comes to monetizing, as it allows the sale of cryptocurrencies such as Bitcoin without the obligation to declare taxes.

• Andorra

Andorra does establish a 10% taxation for the profits from the sale of cryptocurrencies, but it is a very favourable destination compared to the rest of the European countries.

The country is developing the Cryptocurrency Law, which is presented as a rule that will allow large exemptions to those cryptocurrency traders who want to reinvest their profits in the assets of the country.

• Gibraltar

Gibraltar is the almost tax haven of Europe. Its jurisdiction is considered low-tax, and one of the reasons is that it does not file capital gains taxes on cryptocurrency investments.

However, we can only apply this to people, since companies do have a fixed rate of 10% that is applied to cryptocurrency trading.

• The Savior

It has been the first country in the world to qualify Bitcoin as legal tender. The objective of this country is to attract foreign investors, and the tax exemptions apply to them. It exempts the tax on capital gains or income from any foreigner who wants to invest in cryptocurrencies in the country.

These are official declarations that El Salvador has yet to comply with, but are eagerly awaited.

• Germany

Germany is a very crypto-friendly country. It encourages individual investors and exempts them from paying capital gains tax if they keep the investment for more than one year and for a maximum value of €600.

Those that are not exempt from paying these taxes are companies since they are subject to income taxes on earnings with cryptocurrencies since they consider it like any other asset.

• Malta

Malta is a blockchain island. Investors and companies are not required to file capital gains or income tax. However, they do have to declare trading operations or exchanges, which receive 35% in income taxes.

• Portugal

Portugal does not tax cryptocurrency trading or transactions with these assets. It exempts these operations from income tax and capital gains.

• Belarus

Here even the politicians themselves say it, who want to turn the country into a digital economy based on crypto. In 2017, a law was signed that legalized cryptocurrencies. This rule exempts companies and individuals from taxes on cryptocurrencies until 2023 when the revision of the law will take place.

Activities such as mining or trading are considered private investments that should not be subject to tax. If I were you, I would take the opportunity right now to catch a plane to Belarus, because time flies.

Cryptocurrencies are increasingly a topic of conversation around the world, and their vast reward possibilities are what have caused many countries to establish regulatory laws. We hope that with this list of crypto-friendly countries we have solved some of your doubts, do not hesitate to contact us if you still have more.