Cryptocurrency has revolutionized finance and investment, and its influence is
set to grow. However, not all countries are equally welcoming to crypto. Some
have stringent regulations, while others are more lenient. Curious about which
jurisdictions offer the best conditions for crypto projects? Read on to
discover the top crypto-friendly countries and regions in 2022.
Bermuda
Bermuda boasts one of the first comprehensive regulatory regimes for
cryptocurrency. With no taxes on income, capital gains, or withholding taxes
on crypto transactions, Bermuda is a haven for crypto investors and blockchain
projects. Notably, Bermuda was the first country to accept cryptocurrencies
for tax payments.
Portugal
Portugal is another crypto-tax-friendly country. Individual investors don’t
pay taxes on income or capital gains from crypto. However, businesses
accepting crypto payments do have to pay income tax, making it less ideal for
companies.
El Salvador
El Salvador made headlines by declaring Bitcoin as legal tender. To attract
foreign investments and reduce dependency on the US dollar, the country
imposes no taxes on income and capital gains from Bitcoin. However, the
regulatory framework is still maturing, posing potential risks for investors.
Singapore
Singapore, a fintech hub, is pro-crypto. The Monetary Authority of Singapore
balances minimal regulation with preventive monitoring. There is no tax on
capital gains for both individuals and companies, although businesses must pay
income tax if they accept crypto payments.
Georgia
Georgia, with its affordable hydroelectric power, is a center for crypto
mining. Cryptocurrencies are considered properties, not legal tender.
Individual investors enjoy no capital gains tax, but companies face more
complex taxation.
Cyprus
Cyprus currently lacks a legal framework for cryptocurrencies, meaning
individual investors likely won’t pay taxes on crypto trading profits. Legal
entities, however, must pay a 12.5% tax on income generated.
Switzerland
Switzerland is a top destination for crypto investors, thanks to its
pioneering banks and "Crypto Valley." Tax regulations vary by canton, with
some offering zero-capital-gains tax on crypto trading.
Slovenia
Slovenia is one of Europe’s best jurisdictions for crypto. Individual capital
gains on crypto trading are not taxed, but businesses must pay corporate
income tax if they receive crypto payments.
Germany
Germany treats cryptocurrencies as private money for individuals. Residents
who hold crypto for over a year don’t pay taxes on it. However, businesses are
subject to capital gains tax.
Estonia
Estonia treats cryptocurrencies as digital assets, not legal tender.
Individual income from crypto is taxed, but there is no specific crypto-
related tax for companies. Estonia’s established legal framework makes its
crypto environment more trustworthy.
Malta
Malta offers a comprehensive regulatory package for the crypto ecosystem.
Foreign companies and individual investors don’t pay income and capital gains
tax for long-term crypto investments, although trading income is subject to a
35% tax.
Conclusion
Digital currencies are increasingly accepted as a store of value and have the
potential to expand into conventional investment. The crypto-friendly
countries covered here have a competitive edge. If you’re preparing your
business for Web 3.0, consider these jurisdictions. Do thorough research to
decide what matters most to you—low capital gains tax or an established
regulatory framework.
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