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5 Truly Crypto Tax-Free Countries for Retail Investors

Ruchi Gupta - Author
By

May 20 2022, Published 11:25 a.m. ET

Most countries have a crypto tax that applies to capital gains or income. Japan and India make the list of countries with the highest crypto tax. A tax can be a big drain on investment returns, which is why many investors are attracted to crypto tax-free countries. You have many options if you’re looking for a place where you can keep all of your Bitcoin profit.

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The adoption of crypto investing continues to grow, and investors have a broad selection. In addition to blue-chips like Bitcoin and Ethereum, you can get started in crypto investing with only a few dollars buying penny crypto like Shiba Inu and Dogecoin.

Bitcoin's price prediction indicates that it could be worth as much as $1 million by 2030. The price prediction has become a major inspiration for people to get into crypto investing. However, taxes are the biggest concern for many crypto investors. In the U.S., a controversial crypto tax regime is set to go into effect in 2024.

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What are the crypto tax-free countries?

If you can lower your tax burden or even avoid it completely, your investment can be more profitable. The problem is that tax avoidance maneuvers can often get you in trouble. Below are five countries where you can legally avoid crypto taxes:

  • Germany

  • Portugal

  • El Salvador

  • Belarus

  • Singapore

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Germany doesn't tax crypto if you hold the investment for at least a year.

Germany is among the crypto tax-friendly countries in the world. You can keep all of your profit from Bitcoin or other crypto sales as long as you held the investment for at least one year. Even if you sell the investment after less than one year, you wouldn't owe any tax if the trade generated less than 600 euros.

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Portugal’s crypto tax haven attracted a Bitcoin family.

Portugal has been a popular destination for investors moving to crypto tax-free countries. A Bitcoin family decided to settle down in Portugal after traveling to 40 countries to find a suitable place to pitch a tent.

The family of five sold everything it owned to invest in Bitcoin. They liked Portugal because the country doesn’t levy a tax on crypto sales. However, Portugal could soon or later drop off the list of crypto tax havens. The country is exploring introducing a crypto capital gain tax. There may even be a VAT on crypto transactions.

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Bitcoin is at home in El Salvador.

El Salvador adopted Bitcoin as a legal tender and attached a citizenship pass to it. If you migrate to El Salvador, you can also keep all of your Bitcoin profits in the country without worrying about the tax. The government waived the tax on crypto as a measure to draw investors to the country.

Belarus's crypto tax-free status has an expiry date.

As a way to encourage investments in its digital economy, Belarus did away with crypto tax. However, the existing crypto tax break is set to expire in 2023. The country will review its crypto tax-free status and decide whether to continue it or end it.

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Singapore waived capital gain tax on Bitcoin.

If you’re looking for a crypto tax haven in Asia, head to Singapore. You can trade Bitcoin, Ethereum, Solana, or whatever crypto you like and keep all the profit because the country doesn’t levy crypto capital gain tax.

Finally, crypto tax regulations keep changing as authorities adjust to various developments in the sector. It means that current crypto tax-free countries might change their policies in the future. For example, crypto tax rules could change sooner or later in Portugal and Belarus. Therefore, it’s important to stay up-to-date with crypto tax regulations in the country before you make it your next home.

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