
- How is cryptocurrency taxed?
- The 12 best countries for crypto taxes
- Do American expatriates need to pay American taxes?
- How can I avoid crypto taxes in the United States?
- What are the most tax-friendly states in the United States?
- The 5 worst countries for crypto taxes
- How CoinLedger can help
- Frequently asked questions
Looking to relocate to a country that allows you to buy, sell, and trade crypto completely tax-free?
While investors in countries like the United States and Australia may pay thousands of dollars in crypto taxes, other countries offer friendlier policies.
In this guide, weāll go through 12 countries with low taxes for crypto investors. Weāll also answer a few commonly-asked questions from investors who are looking to relocate!
How is cryptocurrency taxed?
In most countries, youāre required to pay capital gains and income tax on crypto-assets.

As a result, successful investors may end up paying thousands or even tens of thousands in cryptocurrency taxes.
However, the countries listed below allow investors to realize crypto profits at discounted rates (or in some cases, no tax).
The 12 best countries for crypto taxes
Malta

Malta is known as one of the friendliest countries in the world toward cryptocurrency and has been dubbed as āBlockchain Islandā.
In Malta, there is no long-term capital gains tax for cryptocurrency. However, trading cryptocurrency may be considered income taxed at a maximum of 35%.
Itās important to remember that the Maltese government looks at multiple factors to determine how your income from trading crypto is taxed ā including how much you make from crypto and your residency. As a result, the taxes on your trading income may be as low as 0-5%.
In addition to its friendly crypto-tax policies, Malta has no wealth, inheritance, or gift taxes!
Switzerland

Switzerland is home to a hub of companies dubbed as the āCrypto Valleyā. In addition, the country does have friendly policies for cryptocurrency investors!
Switzerland does not have capital gains tax for individual investors. Income from activities such as staking and mining is subject to income tax between 0-13.2%.
In addition, Switzerland does charge wealth tax on your assets (including crypto-assets) that ranges from 0.5-0.8% depending on your canton of residence.
Germany

While cryptocurrency isnāt completely tax-free in Germany, the country does have relatively friendly cryptocurrency tax laws.
If you dispose of your cryptocurrency after more than 12 months of holding, you wonāt be subject to any tax.
In addition, short-term cryptocurrency gains of less than ā¬600 are not taxed.
However, if you earn crypto income or earn more than ā¬600 of profit from disposing of crypto after less than 12 months of holding, youāll pay normal income tax rates ā which range from 0-45%.
Belarus

In Belarus, cryptocurrencies are exempt from capital gains, income tax, and VAT for businesses and individuals until January 1, 2025.
Belarus originally passed a law exempting cryptocurrencies from taxation in 2018. While the law was originally set to expire in 2023, President Alexander Lukashenko extended tax benefits for crypto investors and businesses until 2025.
Portugal

Previously, cryptocurrency was not subject to capital gains and income tax in Portugal. However, the country introduced taxes for cryptocurrency starting in the 2023 tax year.
Gains from cryptocurrency disposed of after less than a year of holding are taxed at 28%. Ordinary income from cryptocurrency is taxed at 15%, while income from cryptocurrency mining is taxed as high as 95%!
However, Portugal still offers certain tax benefits for cryptocurrency. There is no capital gains tax on cryptocurrency held for 365 days or longer.
Singapore

At this time, Singapore does not have a capital gains tax. That means individual investors can dispose of their crypto completely tax-free.
In most cases, cryptocurrency is not subject to income tax. However, you may pay income tax on crypto if you earn it as a business or receive it in return for goods and services.
In addition, you may pay goods and services tax (GST) on goods that you buy with your cryptocurrency.
Malaysia

Like its neighbor Singapore, Malaysia does not tax capital gains and income from cryptocurrency for most investors.
However, the Malaysian government has said that you may be subject to income tax if youāre trading crypto on a short-term and frequent basis.
El Salvador

El Salvador is famously known for being the first country to accept Bitcoin as legal tender.
In 2023, El Salvador removed all taxes relating to ātechnological innovationā ā including income, capital gains tax, and property tax. As a result, income and capital gains made from cryptocurrencies are tax-exempt!
As a bonus for Bitcoin investors, businesses all over the country are required to accept Bitcoin as payment for goods and services.
Cayman Islands

For decades, the Cayman Islands have been considered a tax haven for individuals and businesses.
Currently, the Cayman Islands has no capital gains or income taxes.
However, itās important to remember that the cost of acquiring residency and living in the Cayman Islands is high. The Cayman Islands does charge import duties between 22-26% on most imported goods.
Bermuda

Like the Cayman Islands, Bermuda has no capital gains or income tax.
However, itās important to remember that Bermuda does have a high cost of living. In addition, if you own land or rent for more than 3 years, you may be subject to land tax.
United Arab Emirates

At this time, the United Arab Emirates doesnāt charge income or capital gains tax for individual investors.
However, itās important to note that goods and services are subject to a 5% VAT ā including goods and services purchased with cryptocurrencies. In addition, the United Arab Emirates has a high cost of living.
Puerto Rico

Puerto Rico is not a country ā itās a territory of the United States. As a result, Puerto Rico sets its own tax policy.
Many American citizens find that relocating to Puerto Rico is an easier process than relocating to a foreign nation.
Puerto Rico residents must pay territorial income tax rates, which range between 0-33%.
Currently, there is no capital gains tax for Puerto Rican residents, provided that they acquired and disposed of their property while residing in Puerto Rico.
If you acquired your cryptocurrency before residing in Puerto Rico, it will be subject to typical American capital gains tax rates.
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