Countries that have a higher usage of cryptocurrencies have also implemented attractive mechanisms to encourage their adoption, with 0% taxes on capital gains and variable taxes on personal income taxes.
United Arab Emirates
The UAE does not impose personal income tax or capital gains tax on individuals who invest in cryptocurrencies. The country, being a major global crypto hub with high public adoption and the 5th most crypto-friendly jurisdiction globally, has attracted many foreign investors.
The strong regulatory infrastructure provided by the regulators, like Virtual Assets Regulatory Authority or VARA, and free zones in the region contributes to growing crypto adoption.
Singapore
Singapore is a crypto-friendly country for individuals, especially long-term investors. The country has no capital gains tax; that is, any profit you gain from selling or trading crypto is not taxed, as crypto is considered an intangible asset. When paid for goods and services in crypto, it is regarded as a barter deal rather than an asset sale.
Switzerland
Switzerland offers 0% capital tax to individual investors, although they must pay a small annual wealth tax on their total holdings. The country, home to “Crypto Valleys” and ranked 4th globally for crypto adoption, is renowned as a tax haven.
El Salvador
The El Salvador government attracts investments into the country’s economy by legally accepting crypto to pay for goods and services. They spearheaded the movement this by declaring Bitcoin as a legal ledger.
Foreigners moving to the country are exempt from paying capital gains on Bitcoin, and there is no crypto tax.
British Virgin Islands
The British Virgin Islands has no personal income tax and 0% capital gains tax on cryptocurrency earnings or profits. A leading offshore finance center for an agile and innovative approach to regulatory changes, makes the region a tax-neutral jurisdiction for crypto investors.
Puerto Rico
Puerto Rico is a US territory that has its own tax policy. Residents of this Caribbean island pay no tax on any profit earned from acquiring cryptocurrency within its jurisdiction. Currently, individuals working with cryptocurrencies in Puerto Rico are tax-exempt including owning and trading crypto.
Malaysia
Malaysia is a tax-friendly country for individual crypto investors with no capital gains tax on selling crypto. However, if you regularly trade crypto, showing it as your primary source of income, you are required to pay income tax.
