Countries With 0% Tax On Bitcoin/Cryptos: Tax Free Life

Let’s talk about Bitcoin/crypto taxation today.

I have seen many millennials anxiously talking about tax-free crypto countries and the taxation laws of their countries. These millennials, just like you and me, are also Bitcoin/crypto investors and HODLers.

Today I am doing this post to talk a little about tax-free crypto countries.

Tax-free crypto countries!?!?

The first obvious question that might come to mind is:

  • Are there any countries in the world where Bitcoin/other cryptos are not taxed?

And the answer to this is YES! There are!

But some countries are really confused on whether to consider Bitcoin/cryptos as a commodity, currency, or an asset.

So until that confusion gets resolved, I’m going to talk about some tax haven countries for Bitcoin/cryptos that can benefit you.

Note: There are all sorts of Bitcoin taxes in different countries (like GST, VAT, Service Tax, CGT (Capital Gains Tax), etc.)… But in this article, we will talk only about CGT (Capital Gains Tax) because that’s the only one that matters to end users or investors like us.

2002 Crypto Tax free Countries:

As the rules and regulations regarding cryptos are being laid down in many countries, here I’m sharing an updated list of countries where taxes on cryptocurrencies is free or almost free.

  1. Thailand
  2. Portugal
  3. UAE
  4. El Salvador
  5. Singapore
  6. Malaysia
  7. Malta (Crypto Tax haven)
  8. Cayman Island
  9. Pureto Rico
  10. Switzerland

Tax Haven Bitcoin Countries

#1 Germany

In Germany, Bitcoin and other cryptos are not considered as a commodity, a stock, or any kind of currency. Instead, these things are considered as private money in a way that’s similar to foreign currency.

Trading bitcoins/altcoins are considered as a private sale under the rule 23 EStG which has tax-free benefits.

According to this rule, it means anyone trading bitcoins/altcoins is totally tax exempted if their capital gains are not more than 600 EUR. Also, if a trader is selling his/her Bitcoin/altcoins after a period of one year or more, then those capital gains are also totally tax exempt.

So let’s suppose you are in Germany… You bought 1 BTC on 1 August 2015 and bought another 1 BTC on 1 September 2017. On 2 September 2017, you sold your 1 BTC that you bought on 1 August 2015. In this scenario, you aren’t required to pay any capital tax gains after you cash out your 1st BTC in fiat.

And because of these rules, I think it is a tax-free heaven for mid-term and long-term hodlers.

For more details see here and here.

#2 Singapore

Singapore has historically been a friendly country in terms of capital regulations. That’s why in the scenario of digital currencies such as Bitcoin, it has taken a unique step.

Here, Bitcoin is neither considered a currency nor a commodity.

Businesses that are involved in digital currency trading are taxed on the profits derived from their business, but for individuals, there is no specific rule. So if you are in Singapore, you can bypass capital gains of Bitcoin/cryptos by bypassing these determining factors of trading.

On analyzing these factors, it appears that a long-term regular investor won’t be taxed when he/she cashes out.

Fine print of Crypto taxation in Singapore:

  • No GST/VAT on Crypto
  • No Capital gain TAX

#3 Belarus

Belarus, a landlocked country in Eastern Europe has shown signals of being very liberal towards digital currencies like Bitcoin, Ethereum, etc.

On 22nd December 2017, The president of Belarus, Alexander Lukashenko legalized cryptocurrencies including ICOs and smart contracts. And not only that but he declared cryptocurrency mining, trading and capital gains on cryptocurrencies & ICOs will also be tax-free for the next 5 years until January 1, 2023.

I think it a very smart move and opens the floodgates for the legalization of cryptocurrencies on an international stage.

#4 Slovenia

Slovenia is another Bitcoin tax haven for individual investors where capital gains are not taxed and not considered as part of their income.

But businesses of Bitcoin/cryptos are taxed, as well as individuals receiving their incomes in Bitcoin.

But all these rules came a long time ago in 2013, and since then, there has been no further updates on this by Slovenia’s Corporate Income Tax Act.

You can read here about Slovenia’s Corporate Income Tax Act on Bitcoin (archived by a Reddit user named “calyxxx” and also confirmed by Coindesk in their follow-up).

#5 Thailand

Thailand is another growing economy where there are no taxation on crypto. The trading is exempt from 7% VAT and 15% withholding tax. Also the new 2022 rules allow traders to offset losses against gains.

Thailand has always been an ideal choice for expats who wants tax residency of another country or want to live a better life. With this new crypto taxation law, Thailand is going to be one of top 10 choice for crypto investors and traders. Thailand offers many visa program, and the chpeast one costs about $18,000 which includes multi-entry visa permit for 5 years. If you are considering Thailand for its relaxed taxation norms for crypto, then do read about Thailand elite visa program.

Taxing Bitcoin

For now, there are only these countries that have explicitly and officially taken a stand on the tax exemption of capital gains on Bitcoin/cryptos.

That said, many countries are “unofficially” Bitcoin tax havens as they don’t have any Capital Gains taxes there. Some of these countries are Hong Kong, New Zealand, Switzerland, Barbados, MalaysiaMauritius, and others.

So if you are living in one of the above-mentioned countries, enjoy capital freedom. And if you are not from these countries, then you might want to move there!

Before you plan to move to any of these countries, make sure to check how easy or tough it is to get a bank account. For example, Dubai is another hot destination for crypto startups and investors, but getting a bank account for crypto businesses in UAE is a challenge, same issue is in Singapore.

Also, meanwhile make sure to use a tool like Koinly to manage your taxes. Even if you don’t have to pay taxes, but managing book of records would be helpful in the future.

Whatever scenario you are in, keep spreading the Bitcoin word with CoinSutra!

That’s all from my side.

Adios!

This list is the product of a lot of research. If you know of any other countries where Bitcoin/cryptos are tax exempt, share it with us in the comments below, and don’t forget to share the proof!

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57 thoughts on “Countries With 0% Tax On Bitcoin/Cryptos: Tax Free Life”

  1. B

    The part about Germany is wrong. You don‘t pay taxes if you use crypto to buy things. If you are trading, every trade is a taxable event and you pay taxes if you buy or sell more than 600€. The exception is long term investment, then the purchase is tax free if you hold it for at least a year.

  2. b

    Great post.
    Need your advice on the tax implication for below 2 scenarios.
    I sell coin via the coin exchanger (@ Bulgaria), then
    1) transfer the money back to local bank account in Malaysia on monthly basis (maybe <RM20k).
    2) transfer the money to offshore bank account, example HK or SG, and finally/occasionally remit back the money to local bank account in Malaysia.
    Appreciate your advice.

  3. b

    Great article.
    Appreciate your advice on the tax implication for the below scenario:
    I sell coin via coin exchanger (@Bulgaria) then
    1) FT to local bank account in Malaysia on monthly basis (maybe <RM20k per month)
    2)FT to offshore bank account outside Malaysia (HK, SG etc).

  4. K

    Article needs updating…

    In Denmark, ALL crypto gains are taxed as personal income (after the FIFO principle) in the tax-year your cash out,

    That usually means +40% or even +50% taxation…

    Although you’d be able to benefit from a potential loss as it can be exempt.

    Also, let’s say you have a large amount of crypto stored away and you decide to relocate away from Denmark, you would have to do an inventory status on the day you move and calculate a theoretical profit/loss on that day for every individual purchase you’ve made.

    If you have made a theoretical profit on the day you move, you will have to pay income-tax according to this profit… That is if they know you have crypto obviously.

  5. D

    Ok,I need an advice.I am a Bulgarian citizen.I live in Germany permanently with a German address and a bank account here.I want to buy now (Sept-Oct 2018)Digibytes and sell them in January 2019.My gain might be more than a million.So what is the best strategy you would recommend to me so I avoid completely paying tax on it here? Should I just transfer it here in my German bank account and withdraw it or should I open a bank account in Switzerland(its very close to me here across the border-I can even cross the border with walking without any border control!) or in Denmark ,send the euro amount there and go to physically withdraw it myself there?Thank you!

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