Five countries that are crypto tax havens

Investing and trading in digital currency can be a costly affair. Your transaction invites taxes. Many countries consider your virtual business agreement as a legitimate source of income.

So they impose income tax or capital gains tax on them. See Edge Edge for more information on Bitcoin trading.

At the same time, there are countries that refuse to tax cryptocurrencies. They are the world’s crypto tax haven. Alternatively, they may impose a nominal tax on your transactions. Check out these five tax havens.

Belarus

Belarus is located in Eastern Europe. In March 2018, it decided to give a boost to its digital economy. So the Belarussian government has taken three big steps.

First, it declares that all crypto activities are legal. These activities included day trading, mining, etc. Second, all crypto activities will be viewed as private investment. Third, such activities will be exempt from tax.

This happy situation for individuals and businesses will continue till 2023! In other words, they don’t have to pay corporate tax, income tax, or capital gains tax. The situation will be reviewed in 2023.

Portugal

In 2018, Portugal mimicked the activities of Belarus. As an individual, you can trade in cryptocurrencies. The government does not consider it eligible for investment tax.

Similarly, you can sell digital currency. No matter how much you earn, you don’t have to pay crypto tax.

If you do not own a business, you do not have to pay income tax or VAT. In this way, you will benefit in three ways – capital gains tax, income tax and freedom from crypto investment tax.

The wonderful climate of Portugal is an added bonus. Therefore, you can move to that country without any hesitation!

Singapore

This country is a tax haven for both business and individuals. This is why there are several digital currency exchange headquarters here. Examples are Phemex, KuCoin, etc.

The government treats digital currency as a vague asset. Instead, such property is not liable for tax.

Similarly, if you purchase services or products through cryptocurrency, you are engaged in exchange trading. The authority refuses to provide the term ‘payment’ in such an agreement. True, service / product owners impose Goods and Services Tax (GST). However, your token / coin is safe from GST / VAT

You are also exempt from capital gains tax. Therefore, you can trade-in / sell cryptocurrency to your heart’s content!

The tax you pay is income tax. However, this only happens if you own a business and accept payments in cryptocurrency. Similarly, if your organization’s core service trades in crypto, you will need to pay income tax.

Cayman Islands

These islands have long been known as crypto tax havens. The benefit is for both the individual and the business owner. It’s only expected, for tax law, in general, to relax in the Cayman Islands!

The Cayman Islands Monetary Authority is responsible for making tax decisions. Residential traders do not have to pay capital gains tax or income tax. Businesses do not have to pay corporate tax.

The government thinks that adequate revenue comes through GST, tourism and work permits.

Switzerland

People call it Crypto Valley. They consider it one of the best countries in the world in terms of tax law. Indeed, all tax policies are coming up for regular review, consistent with modern trends.

Now, don’t get me wrong, Switzerland doesn’t impose any cryptocurrency tax at all. It is true that its tax behavior is very different from other nations.

Suppose you are an independent dealer. In addition, you are not involved in professional / business transactions. You are only engaged in trading as a hobby / side hostel / non-professional freelancer. You can buy / sell cryptocurrencies freely without fear of taxes. You do not have to pay capital gains tax.

If you are a business owner or a professional dealer, the situation is different. You can be a qualified day trader. You can be a crypto minor. Income tax must be paid.

You will also have to pay property tax in line with your annual revenue. Income tax and wealth tax are levied every year. The property tax rate depends on your place of residence.

In addition to these five countries, other tax havens include Germany, El Salvador, Puerto Rico, Malta and Malaysia.


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