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Top 5 Crypto-Tax Haven Countries for 2023

Guest Post | Nov 9, 2022

Trading screen - Top 5 Crypto-Tax Haven Countries for 2023

There is a steady rise in the use of cryptocurrency in trading, investment, and as a mode of payment. Currently, some online freelancers accept bitcoin and other cryptocurrencies as a form of payment in their business.

However, one chief reason investors of cryptocurrency and other digital assets worry about is tax liability.

Despite several nations applying levies on taxes on income and capital gains from bitcoin transactions and putting pressure on investors, some approach this differently, intending to innovate and adopt the crypto industry.

These nations have implemented laws allowing investors to engage with digital assets without tax liability. If you’re ready to join the surge of new crypto investors, Bitcoin Profit trading platform offers a reliable and user-friendly experience, especially for crypto beginners who are new to the industry.

Now let’s visit the countries with the most crypto-friendly laws.

Germany

Germany categorises cryptocurrency as neither a commodity nor a digital currency. Instead, German law calls this ‘Private money’, implying that VAT on sales and purchases will not be applied to them.

In addition, Bitcoin and other cryptocurrencies are also spared from the long-term capital gains tax. This means that if a cryptocurrency is held for more than a year before selling, the investment earnings from this sale will not be taxed regardless of the amount.

For short-term capital gains tax, which would be the sale of Bitcoin within a year or less, it would only be applicable if the amount is more significant than 600 euros.

Take note that these guidelines are suitable for resident individual investors only. Businesses that engage in cryptocurrency trading are not exempted from corporate income tax like other assets.

As a result, cryptocurrency investing would be an intelligent move for online freelancers and workers who live in Germany as they have better taxation requirements than other countries.

However, if the German business accepts bitcoins and other cryptos as payments, this will be subject to corporate income tax.

Singapore

Singapore is a crypto tax haven as there are no capital gains taxes. A cryptocurrency holder does not have to pay capital gains tax, whether an individual or an entity, as crypto, is intangible property.

However, businesses that engage in cryptocurrency trading will pay taxes for the revenues they generate. In addition, companies will pay income tax if they accept cryptocurrency as a form of payment for services and products.

Singapore is preferable for businesses independent from a location as tax residency is based on the site of business operations. Thus, companies would be attracted to Singapore to register their business there.

Portugal

Crypto trading graph - Top 5 Crypto-Tax Haven Countries for 2023

Portugal is acknowledged as one of the most crypto-friendly countries as its government declares crypto trading and all transactions to be nontaxable for individuals.

Individuals who exchange crypto for regular currency will not be taxed as there is no capital gains tax or income tax on revenues generated from crypto trading.

Furthermore, the sale and purchase of cryptocurrency will not be VATable, which means individuals who engage in these will be tax-free.

Portugal is also favourable for digital nomads as it has an easy tax residency process.

However, this privilege is given to individuals only as entities that accept digital currencies as payments have to pay income tax and VAT from these sales.

Belarus

Belarus has exempted crypto mining, buying, and selling from tax for both individuals and entities until 2023, as per the Presidential Decree on the development of the digital economy of 2018.

Special economic zones house high technology parks to mobilise innovation in digital financial technologies. No taxes will be applicable in any crypto-related activities in these zones, excluding the 1% turnover tax.

There is now ease in obtaining a residential status in Belarus, and places like Minsk are perfect for digital nomads.

Slovenia

Mobile trading - Top 5 Crypto-Tax Haven Countries for 2023

Another nation that does exempt individuals from capital gains tax in cryptocurrency transactions is Slovenia. However, businesses pay income or corporate tax if they accept payments in crypto.

See:  Canada: Release Of Draft Tax Legislation For Consultation including GST/HST for Crypto Mining

This article only informs the reader about cryptocurrency trading and does not serve as a financial guide.


NCFA Jan 2018 resize - Top 5 Crypto-Tax Haven Countries for 2023The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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