Which 8 countries have Crypto-friendly tax laws? (2024)

FAQs

What country has best crypto tax? ›

India: Over 100 million people in India own cryptocurrencies, making it the country with the most cryptocurrency owners, according to Triple-A. United States: China, Russia, Nigeria, and the EU are the next five countries with the most #BTC trading volume on exchanges.

Middle answer: Profits from cryptocurrencies are generally taxed in Germany. Crypto gains are tax-free if they are less than 600€ or the holding period is more than one year. Income from cryptocurrencies is also taxed. Crypto income is tax-free if it is below the exemption limit of 256€.

Which Countries are Considered the Most Crypto-friendly? Countries like Singapore, Switzerland, Malta, Estonia, and Portugal are often cited as crypto-friendly due to their favorable regulations, vibrant crypto communities, and supportive government policies.

Several countries have no crypto tax, allowing individuals to buy, mine, and trade crypto without tax implications. Some notable examples include Belarus, Bermuda, Cayman Islands, El Salvador, Georgia, Germany, Hong Kong, Malaysia, Malta, Puerto Rico, Singapore, Slovenia, Switzerland, and the United Arab Emirates.

Many 2021 surveys suggest at least 16% of Americans traded crypto. Plus, the U.S. was the only industrialized country in the top 10 of Chainalysis' 2022 Global Crypto Adoption Index. However, when analyzing the most crypto users by country per capita, Thailand appears to have the highest number of crypto holders.

The Cheapest Countries

Iran, Syria, Ethiopia, and Sudan round up the top 5 of the cheapest regions. There are countries where electricity costs are also low, but the local governments have imposed a ban on cryptocurrency operations. One example is Iraq, where it takes less than $4,000 to mine one BTC.

It's challenging to accurately determine which country owns the most Bitcoin due to the cryptocurrency's decentralized and anonymous nature. However, the United States dominates with 69,640 BTC, accounting for 90.3% of the world's government-held Bitcoin.

Who owns the most Bitcoin? ›

So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.

Countries such as Argentina, Colombia, Iran, and Taiwan have instituted partial bans, such as allowing individuals to hold or mine digital assets while prohibiting banks from accepting them as payment methods. But there are at least 19 countries where crypto is banned completely.

Bitcoin is a well-known example of a payment token. From a Swiss tax perspective, payment tokens are treated like foreign currencies: they qualify as movable capital assets and are subject to wealth tax at the cantonal level.

Do you pay cryptocurrency taxes in Italy? According to Agenzia Entrate, the tax on cryptocurrencies in Italy is 26% on all gains equal to or greater than €2,000. This is treated as "miscellaneous income".

You must report income, gain, or loss from all taxable transactions involving virtual currency on your Federal income tax return for the taxable year of the transaction, regardless of the amount or whether you receive a payee statement or information return.

Florida leads as the top state for crypto taxes, leveraging no state income tax and crypto-friendly policies, while New York ranks lowest with a 10.9% income tax and the BitLicense.

In Switzerland, cryptocurrencies are recognised as assets, which means that any income from their sale, exchange or use as payment is taxable. Depending on the canton in which the taxpayer resides, there may be some differences in the approach to taxation.

Unlike many countries, Dubai does not impose capital gains or personal income tax on crypto holdings. This means you pay no taxes on your crypto gains and income. Therefore, you can keep a larger portion of your crypto gains, if not all.