The taxation and surcharges are a burden for any person that has a source of income and is trying to save out of his penny. Being a powerful source of income, cryptocurrencies are also levied with a high rate of taxation and amounts. Every investor now or then keeps finding ways through which he can avoid the taxation on his earnings so that he can save a bit more. This is a case of not only short-term users but is equally applicable to long-term holders. Taxing an entity is always a bad thing from the customer’s point of view but from the point of view of authority, this practice is a must. But this is not true for every country. Cryptocurrencies boomed during the period of Covid and as a result, many countries started considering them as a powerful source of dividends and economy for them. If you are interested in Bitcoin trading then check online trading websites such as Bitcoin Storm App.
Where every economy fell flat during the pandemic, this field remained tall as a tree. In this article, we are going to discuss those countries which are completely tax-free in terms of crypto and other derivatives of the digital world. So, let us start the discussion!
- Belarus
The first name on the list of the crypto-tax-free country is Belarus. In the year 2018, a law was passed regarding cryptocurrencies that exempted digital assets to be taxed under the law. The law is valid till 2023 but its revision is also on the cards. The renewal is due and is for sure. Though the country has not cleared the air about how it is going to treat crypto in the future to date it is tax-free.
- Portugal
The investors in Portugal find themselves in a state of tax-free regime. They are happy that they do not have to pay for crypto and its derivatives in the boundaries of Portugal. But, if there comes the factor of professional trading, the concept is not tax-free. An individual has to pay tax if he is dealing in crypto professionally within the boundary of Portugal. Another factor governing, whether the tax will be levied or not is the frequency of transactions.
- Malta
One of the most friendly countries in the world is referred to as Malta. It is so famous that some investors call it Blockchain Island. There is no concept of capital tax in Malta for cryptocurrency. Just like Portugal, the government of Malta has some provisions that decide whether it will be taxed or not.
- Switzerland
Blessed with the natural beauty and the vantage of a crypto-tax-free country. The valleys of flowers and meadows in Switzerland have inspired investors to rightly call Switzerland a Crypto Valley. The policies of Switzerland are friendly for any crypto seeker. Though professional trading is taxed at some nominal rate, individual investment and trading are completely tax-free.
- Germany
One more country with friendly crypto laws makes it another country with no crypto tax. In Germany, long-term investment is supported and as a result, some laws make the disposal of crypto and its derivatives in Germany after one year completely tax-free.
- Singapore
Currently, Singapore has no provision for crypto tax for capital gains, thus any individual investor can go ahead with crypto and its derivatives completely tax-free at an individual level. If someone is getting the asset in the form of a business transaction or is receiving it in return for any good or service will be legally taxed.
- Malaysia
Influenced by its neighboring country, Singapore, it also has a no-tax charge policy in terms of crypto. The short-term crypto transactions are duly taxed but for long-term investments, the rate of taxation is Zero!
