Crypto Currency and Taxation: Countries Without Crypto Currency Taxes in 2022

Looking for a crypto tax haven to avoid cryptocurrency taxation? fortunately, we have you covered. While most countries worldwide subject cryptocurrency to Capital Gains and/or Income Tax, there are still a few crypto tax havens and countries where you will pay less cryptocurrency tax. This article details the best nations to relocate to in 2022 to avoid paying any taxes on cryptocurrencies (or at the very least, pay extremely minimal taxes on cryptocurrencies).

To know how to avoid crypto taxes, you need to know how each country treats cryptocurrencies and how its Capital Gains Tax rules and/or laws work, as well as how cryptocurrencies are taxed in each country.

So, how exactly are cryptocurrencies taxed?

Crypto taxation is still a mystery to tax authorities worldwide. This means that crypto is regarded and taxed differently worldwide. Some countries, like the ones we will be discussing below, have zero or minimal crypto taxes, while others have numerous taxes on cryptocurrencies.

Most nations (apart from El Salvador) do not recognize cryptocurrencies as legal tender, such as the dollar or the pound. Instead, it is considered as a type of asset or commodity, comparable to a property or a stock. This opinion is significant because it determines how cryptocurrency is taxed. In many nations, cryptocurrencies are liable to either income tax or capital gains tax, or both.

  1. Income Tax: If you are earning crypto, it is taxed like an income. You are required to pay income tax if the government determines that you are “earning” cryptocurrency. Again, different nations have varying definitions of what constitutes earning cryptocurrency, but in general, you’ll need to pay income tax when the following apply:
  • receiving payment in a cryptocurrency.
  • Cryptocurrency mining.
  • Staking cryptocurrency.
  • obtaining interest from cryptocurrency holdings.

In fact, you may be required to pay income tax on hard forks and airdrops in certain nations.

2. Capital Gains Tax: If you are selling, swapping, or spending crypto, it is taxed as a capital gain. You may have to pay Capital Gains Tax after paying Income Tax on your crypto. Because cryptocurrencies are considered capital assets, they are liable to Capital Gains Tax in most jurisdictions. Any time you sell of a capital asset, you’ll generate a capital gain or loss (profit or loss). You must pay Capital Gains Tax on any capital gains you realize. Disposal of cryptographic materials includes:

  • The act of exchanging cryptocurrency for fiat currency.
  • Trading one coin for another.
  • Using crypto to purchase products or services.
  • Cryptocurrency gifting – in most nations.

In most jurisdictions, if you earn crypto by mining and subsequently sell your mined coins, you will be subject to both Income Tax and Capital Gains Tax. That’s a substantial tax!

The United Arab Emirates (Dubai) is now the greatest option among the crypto tax havens listed below if you are a crypto investor planning to relocate abroad.

1. The United Arab Emirates (UAE).

The United Arab Emirates, commonly known as Dubai, tops the list due to its tax-free policy. There is neither a personal income tax nor a business income tax in the UAE, despite recent legislation to implement a 9% corporate income tax on annual revenues. Even so, 9% is still quite low in comparison to other countries around the world.

Whether you actively trade or hold, there is absolutely np tax on capital gains, corporate income, and personal income. Zero percent taxation. Most tax authorities apply a capital gains tax to cryptocurrency gains, but the UAE has no tax at all on cryptocurrencies.

2. Germany.

Cryptocurrencies are private money in Germany, not capital assets. If you hold crypto for more than a year, you won’t pay taxes when you sell, swap, or spend it. Crypto held less than a year is taxed unless the profit is less than €600.

Regardless of how long you’ve had it, crypto staked to produce revenue is taxable. Staked crypto is tax-free at sale after 10 years. HOLDING crypto in Germany is tax-free. Germany taxes some crypto transactions, including:

  • Crypto payments.
  • Crypto mining.
  • Crypto staking.
  • Selling, trading, or spending bitcoin held for less than a year if the gain is over €600.
  • Selling staked crypto in 10 years.

In addition, in 2021, a contentious new crypto tax rule was implemented throughout the EU, including Germany. All derivatives trading in cryptocurrencies is halted by this law. Because of this, the European Union is not an ideal location for a business whose primary activity is trading prediction contracts.

3. Belarus.

Belarus is another tax-free crypto nation in Eastern Europe. Belarus approached cryptocurrency differently in 2018. In March 2018, the Eastern European state authorized crypto activity and exempted everyone from crypto tax until 2023.

All crypto activities, including mining and day trading, are considered personal investments and exempt from income and capital gains taxes. In 2023, Belarus will revisit this exceptional statute to boost its digital economy, and cryptocurrencies may no longer be tax-free.

4. El Salvador.

As the first nation to accept Bitcoin as a legal tender, El Salvador exempts foreign investors from Bitcoin taxes to encourage investors and attract more investments.

Even better, businesses must accept Bitcoin as it is legal tender. El Salvador allows Bitcoin payments for a wide range of goods and services.

5. Portugal.

Portugal is one of the finest areas to avoid crypto taxes. Crypto sales are tax-free since 2018. Even better, crypto trading isn’t investment income, so it’s tax-free. Portugal exempts VAT and income tax for non-business crypto.

The Portuguese Minister of Finance has stated that cryptocurrencies will be taxable soon; however, the specifics of this taxation have not been established.

6. Singapore.

Crypto exchanges like KuCoin and Phemex are in Singapore for a reason. Individuals and businesses can avoid crypto taxes in Singapore. Singapore does not have a Capital Gains Tax; thus, investors and enterprises are not taxed. Selling or trading crypto doesn’t incur Capital Gains Tax.

Cryptocurrencies are taxed as intangible property, thus using them on goods and services is considered a barter deal. However, the payment coin or token will not carry GST. Businesses who accept crypto as payment must pay income tax on it. Crypto trading companies are still subject to income tax.

7. Malaysia.

Malaysia is also a crypto tax-free jurisdiction. Crypto transactions are tax-free for private investors in Malaysia because cryptocurrencies are neither capital assets nor legal money.

However, crypto transactions are tax-exempt only if they are irregular, according to the Malaysian Inland Revenue Board. Thus, day traders must pay taxes on their coins. Businesses that make crypto profits must pay income tax regardless of currency.

8. Malta.

Blockchain island Malta is a crypto tax haven. Bitcoin and other cryptocurrencies are considered “units of account, medium of exchange, or stores of value” in the country. If crypto is a “store of value,” you won’t pay Capital Gains Tax on long-term gains.

Crypto trades are like stock day trading. They pay 35% Business Income Tax! However, depending on your residency and income, the Maltese tax system allows you to cut this tax rate to 0% to 5%.

9. Cayman Islands.

Crypto is no exception to the Cayman Islands’ liberal tax regulations, which have historically attracted firms and investors.

The Cayman Islands is a crypto tax haven for both businesses that deal with crypto and people who invest in it. The Cayman Islands Monetary Authority does not charge businesses a Corporate Tax. It also does not charge residents an Income Tax or a Capital Gains Tax. Instead, the Caribbean paradise makes money from tourism, work permits, and the Goods and Services Tax (GST).

10. Georgia.

Georgia is a top crypto tax-free nation for individuals and organizations. Georgians are exempt from income tax on bitcoin sales, according to the Ministry of Finance. Crypto is not subject to Capital Gains Tax in Georgia because it is not “Georgian sourced” (assets peculiar to a location).

Profits from cryptocurrency investments that are housed within a legal company, such as an LLC, are subject to a corporation income tax (CIT) that is 15% lower than the standard rate.

11. Switzerland.

When it comes to taxation, Switzerland has long been regarded as one of the best locations to live in the world. The country’s progressive policies have given it the nickname “crypto valley,” which translates to “valley of cryptocurrencies.”

This does not imply you won’t have to pay taxes on your crypto, but it does show that Switzerland’s crypto tax policies are unique.

Crypto mining and qualified day trading incur income tax. The Wealth Tax is levied annually on your whole net wealth. Wealth Tax Rates vary per canton. Cryptocurrency profits are excluded from Capital Gains Tax for private investors who are not engaged in trading on a professional basis. As a result, many cryptocurrency traders and sellers don’t have to worry about paying cryptocurrencies taxes in Switzerland.

12. Georgia.

Georgia is a top crypto tax-free nation for individuals and organizations. Georgians are exempt from income tax on bitcoin sales, according to the Ministry of Finance. Crypto is not subject to Capital Gains Tax in Georgia because it is not “Georgian sourced” (assets peculiar to a location). Profits from cryptocurrency investments that are housed within a legal company, such as an LLC, are subject to a corporate income tax (CIT) that is 15% lower than the standard rate.


It is evident that crypto tax is not as basic as one may expect. The preceding is a broad summary, but the taxation of cryptocurrencies varies by location. Certain nations remain crypto tax havens for investors seeking to avoid double taxes on their cryptocurrency holdings. The is just an overview of cryptocurrency taxation in 2022. In fact, however, some nations impose far higher tax rates and extra forms of taxation on cryptocurrencies than others.

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This article is for informational purposes only and does not constitute legal advice. It is essential to counsel a qualified attorney for specific legal advice tailored to your particular circumstances.

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