Cryptocurrency is growing every single day. Also, the people who are investing in it are growing. With so many people and business owners adopting it, many countries are trying to regulate it. Many governments are trying to impose income tax or capital gain tax on the profits earned through crypto trading. But there are a few tax havens and these countries have different tax rules for crypto traders. You can find more about it at british bitcoinprofit.
When you call them tax havens, you cannot say that they are completely free from tax. But they tax very low or there are methods to escape from tax. You just need to follow certain rules or conditions. If you can meet them, then you can be exempted from paying tax on the income that you earn from cryptocurrencies. So, if you are thinking about investing too high in crypto and still escaping from tax, you need to pack your bags. Yes, pack your bags and move to tax-free countries.
Here we have a list of the top 10 crypto tax-free countries in 2022. You can simply call them Tax Havens:
Germany: The first country is Germany and we cannot say that it is tax-free. But like we already said, there are ways to escape from taxation. It is considered private money and if you can hold it for at least one year and then sell it, it will not be taxed. And if you wish to less before a year and the profit is less than 600 Euros, it is still not taxable. There are a few such rules that help you avoid tax.
El Salvador: It is one of those first countries where Bitcoin is now a legal tender. This is done to attract investors. Foreign investors need not pay any tax for their Bitcoin investments. Above all, they also asked businesses to accept Bitcoin as a mode of payment. You can get many products and services in exchange for Bitcoin.
Belarus: If you are looking for a completely tax-free country, then you should check out Belarus. While many countries and their governments are busy making laws for taxing the income earned from cryptocurrencies, Belarus did quite opposite to it. Till 2023, any income earned from crypto trading is not taxable.
Portugal: The next country where you can move to enjoy tax-free crypto trading or selling is Portugal. Since 2018, any income that investors earn by selling crypto is tax-free. Also, crypto trading is not taxable. If you are not a business owner, there will not be any income tax or VAT. So, individual investors are mostly free from tax.
Singapore: This country is a tax haven for many individual investors and business owners as well. There is no concept of capital gain in Singapore and hence so you won’t be taxed for cryptocurrency as well. Whether you trade or sell crypto, you don’t have to pay any tax.
Malaysia: Malaysia doesn’t look at crypto as a legal tender or capital asset, so there is no tax involved for any individual who trades. But there is a condition for it. If you are doing it repetitively or regularly, you will have to pay tax for it. That means intraday trading is taxable.
Cayman Islands: the Cayman Islands are a must on this list because they don’t impose any corporate tax on the business owners. They don’t even have a capital gain or income tax for individuals. The same applies to cryptocurrency in the Cayman Islands.
Malta: In this place, they consider, Bitcoin or other cryptocurrencies as a medium of exchange, the unit of account or store of value. So, there is the capital gain tax on them.
Switzerland: Switzerland is also considered a tax haven, but only for those who don’t trade at a professional level. That means intraday traders will have to pay tax. They have different taxation policies.
Puerto Rico: Puerto Rico is close to the US, but it is not part of the US. If you buy crypto after moving to Puerto Rico, then you are exempted from paying capital gain tax. But if you bought it in the US and then moved to Puerto Rico, then you have to pay the tax.
So, these are some of the tax haven countries in the world.
Taylor is a freelance SEO copywriter and blogger. His areas of expertise include technology, pop culture, and marketing.