Most of thesis countries not only have low (or even zero) cryptocurrency taxes, but are also embracing blockchain technology at a rapid rate.
This is a list of the Five most forward thinking countries when it comes to Bitcoin. Most of thesis countries not only have low (or even zero) cryptocurrency taxes, but are also conducive to building blockchain technology. Countries that embrace fresh technologies like distributed ledgers, which go mitt te forearm with cryptocurrencies, are sure to open up fresh tech markets ter the long term.
Belarus is at the top of the list because its taxes for Bitcoin are 0% till the year 2023. According to the Belarusian government, cryptocurrencies are tax exempt till 2023 to help build its special economic zone, HTP Belarus, to contest with Silicon Valley. Aside from this, Belarus has also announced brainy contracts spil legal documents. If you’re thinking of setting up a blockchain tech company, Belarus should be very high on your list.
Private income from cryptocurrency gains aren’t taxed ter Portugal. This is different from business income or capital gains (asset appreciation), but if you hold your crypto assets under your own name and not a company’s, they are essentially one and the same. The Portugese government has further clarified that sale of cryptocurrencies does not come under capital income or capital gains. However, if individuals carry out professional or business activity related to cryptocurrencies, that’s a different matter, and is liable to taxation.
Trio. Hong Kong
While there is news of Hong Kong regulators cracking down on securities and exchange fraud, with some cryptocurrencies coming in the limelight through association, Hong Kong is still a excellent place for investors. Hong Kong has zero VAT or capital gains tax, making tax regulation surrounding cryptoassets much lighter. It’s also the Asia hub for blockchain and crypto companies, such spil Binance and Kucoin, albeit the former is moving to Malta.
Netherlands is the very first country ter this list that has a non-zero tax rate for cryptocurrencies, but the advantage is it’s a very elementary and low-tax staatsbestel. Bitcoin and other cryptoassets are announced along with other assets an individual wields on the 1st of January for that assessment year. With this ter mind, the highest tax bracket for capital income is around 5%. (Note: wij don’t have a good source on the precies number since it keeps switching every year, and well, none of us are Dutch).
Germany is the economic hub of the EU, and therefore is a fine place to set up a crypto or blockchain tech company. Germany’s fintech industry has bot flourishing overheen the last decade, and with it comes favourable cryptocurrency laws that permit it to remain at the centre of trade and commerce te Europe. Bitcoin and crypto-assets have a 0% tax when used for payments – this is because there is no VAT when paying with something like Bitcoin because there is no value added through cryptocurrency spil a fiscal product. The other advantage is, Bitcoin and altcoins aren’t taxed at all if held for overheen one year.
Conclusion – Best Countries for Crypto Investors
Our investing cheat sheet will help you or your potential cryptocurrency investor friends who might be looking to buy and HODL some Bitcoin.
Disclaimer: This article does not constitute financial or investing advice. Cryptocurrency investments are very risky and come with their own regulatory and legal risks. Also, this article isn’t telling you to avoid paying taxes – it’s simply a reflection of countries where crypto assets are regulated but non-taxable.
If you want to know more about countries with preferential treatment to cryptocurrencies, take a look at our article on countries that have Bitcoin spil their official currency.
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Written by Upamanyu Acharya
I founded Fynestuff. I play games, write tech articles and look towards putting Buzzfeed out of business someday. Let’s talk about crypto: [email protected]