Bitcoin and other cryptocurrencies have become a real revolutionary movement in our technologically advanced world. More than ten years after it started operating, the cryptocurrency market is still expanding globally today.
Many nations have relaxed their previously strict stances on cryptocurrencies in an effort to profit from the evolving global dynamics and to adjust to it. While others are making every effort to rank among the nations with the best cryptocurrency policies.
Due to this unprecedented growth, some nations have developed crypto-friendly policies that favor traders, investors, and enterprises. If you fit one of those descriptions, you might consider booking cheap flights and hotels right now to experience one of these crypto havens.
Germany
Germany has over 2.6% cryptocurrency users and, as of March 2022, a startling 44% of the population is driven to invest in cryptocurrencies, despite the fact that the country is far from being a tax-free cryptocurrency nation. The increased interest in cryptocurrencies may lead some people to believe that the nation is particularly crypto-friendly, but that is not always the case. However, these are the cryptocurrency rules in Germany:
You are required to pay crypto tax in Germany, if:
- You generate money using cryptocurrency by mining it or staking it.
- Sell the cryptocurrency used for staking within a year.
- Sell cryptocurrencies within a year and make over €600 (capital gains tax)
You are not required to pay taxes on your bitcoin gains if you fall under one of the following circumstances:
- You’ve owned your cryptocurrency investments for almost a year.
- If, after selling your cryptocurrency within a year, you made less than €600
Major airlines fly to Germany multiple times a week from cities around the world. If you need to make connecting flights, smaller, budget airlines like Ryanair, Serene Air, flydubai all make stops at global transit hubs that will connect directly to Germany.
Switzerland
Given its past, it should come as no surprise that it is also the location of the “Crypto Valley,” a crypto hub located in Zug’s low-tax province. Many cryptocurrency companies chose to establish exchanges in Zug since it was among the first cities to genuinely embrace cryptocurrencies and recognize their potential.
Because there is no capital gains tax on the sale of wealth assets in Switzerland, as long as you meet the requirements to be a personal investor, purchasing a cryptocurrency and paying for it with another cryptocurrency is tax-free.
El Salvador
This little nation has approved successive pro-crypto laws in recent years to solidify its position as the leader among crypto-friendly nations. El Salvador is the first nation to use Bitcoin as legal currency as of September 2021, making it a sanctuary for cryptocurrency companies and investors alike.
Nayib Bukele, the president of El Salvador, also intends to construct “Bitcoin City” close to the Conchagua volcano. The sole cryptocurrency tax in El Salvador is a 10% VAT that goes toward financing city development and services.
The government of El Salvador has also exempted foreign cryptocurrency traders from paying income taxes and capital gains taxes on Bitcoin in order to promote international investment.
El Salvador also introduced the El Salvador Golden Visa initiative to further establish its reputation as one of the world’s most cryptocurrency-friendly nations. According to this, if cryptocurrency investors satisfy the minimum investment requirement made in cryptocurrency, they will be granted automatic permanent residency.
Portugal
Portugal is now one of the top nations that welcome cryptocurrency investment thanks to all these rules that have done a great job of luring foreigners seeking a tax-free lifestyle and international crypto investments there.
There is currently no Portugal cryptocurrency tax on cryptocurrency trading, income, or capital gains for the vast majority of investors. Businesses are still required to pay VAT and corporate income taxes.
All of these characteristics would typically make Portugal a nation exempt from cryptocurrency taxes, but there is an exception. The Portuguese Finance Minister had said, as of May 2022, that Portugal would soon impose taxes on cryptocurrencies. However, Portugal’s government has made the decision to avoid taxing cryptocurrency, so those who utilize it can still count Portugal as their tax haven.
Malta
Given how welcoming Malta’s crypto tax is, the European island nation has solidified its status as a haven for cryptocurrency investors ever since the country established law on blockchain technology and cryptocurrencies in 2018. This has earned Malta the moniker “Blockchain Island.”
Cryptocurrencies are categorized by the Maltese government as “units of account, mediums of exchange, or stores of value”. It means long-term capital gains will not be subject to cryptocurrency taxes in Malta and depending on your income level and tax bracket, crypto trading will be subject to a business income tax of 0–35%. Malta taxes cryptocurrency trading because the country sees the day trading of equities and cryptocurrencies as being similar.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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