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Saturday, October 5, 2024

What Are The Best Countries For Cryptocurrency Taxes

Best Countries For Cryptocurrency Taxes

Cryptocurrencies are global. As people around the globe gradually accept them as a form of payment, it’s critical to understand how the tax laws work. Some countries are more welcoming of cryptocurrencies than others. Some have even put in place favorable tax laws for investors and businesses.

Let’s look at the best countries for cryptocurrency taxes. We will also discuss how the tax laws in these countries have changed over time, and what you need to do to stay compliant with the law.

Belarus

Belarus has been very friendly to cryptocurrencies and blockchain technology. In 2017, the country’s president decreed that all income from cryptocurrency transactions would be exempt from taxation. This decree applies to both individuals and businesses. Belarus is also home to a number of cryptocurrency exchanges and ICO projects.

Portugal

Portugal is another country that has been very supportive of cryptocurrencies. In 2016, the Portuguese Tax Authority released a statement saying that profits from cryptocurrency trading are not subject to taxation.

This is in line with the country’s general approach of tax neutrality towards new technologies. As of 2022, cryptocurrency gains are tax-free, unless you’re a professional trader. If you meet the criteria based on the number of cryptocurrency trades, the profit you make, and how long you hold the asset, you will have to file taxes and pay taxes on what you earned.

Malta

Malta has been dubbed “the blockchain island” due to its favorable regulations. The country also has a number of cryptocurrency exchanges and ICO projects.

In 2018, the Maltese parliament passed three bills that created a regulatory framework for cryptocurrencies and blockchain technology — making Malta the first country to lay out an official set of regulations for operators in the blockchain, cryptocurrency, and DLT space.

Germany

Germany is one of the leading countries in Europe for cryptocurrency adoption. The country has a number of bitcoin ATMs and a thriving meetup scene.

In Germany, cryptocurrencies are treated as short-term capital gains, so it pays to HODL. If you hold them for a year, there will be no income tax owed on your gains. This means that profits from cryptocurrency trading can be substantial if no taxes are paid.

El Salvador

El Salvador became the first country in the world to adopt Bitcoin as legal tender in June 2021. The country’s president believes that Bitcoin will boost economic activity and financial inclusion. Cryptocurrencies are exempt from taxation in El Salvador. The country even plans to build a “Bitcoin City.” The city will also have no income or property taxes. For many this is a win, win, win.

These are just some of the best countries for cryptocurrency taxes. Each country has its own approach to taxation, but overall, these countries have favorable regulations for investors and businesses.

If you are considering investing in cryptocurrencies, be sure to research your country’s tax laws to stay compliant with the law.

Do you know of other countries that have outstanding cryptocurrency tax laws? If so, let us know in the comments below!

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Author

  • Edel Genito

    Edel is an Editor with a decade of print and digital media experience - specializing in Science, Technology, Finance, Entertainment, and Advertising. He is also a stock and cryptocurrency investor. When Edel is not editing or analyzing charts, you can find him with his DIY lightbox taking timelapses of plants.

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