Which Countries Have The Best Tax Laws For Cryptocurrencies?

When starting out in crypto, having prior knowledge about the countries with the best crypto regulations can go a long way in protecting your interests.

Every government decides on different regulations, policies and tax requirements for cryptocurrency. Which is why, having knowledge regarding the countries with the best and most lenient tax laws is important.

Taxes can usually break businesses, if they are super high. Which is why making an informed choice about where to start your business is very important.

The tax laws may not just vary amongst various countries, but it may also differ from state to state in big countries like the USA. Having prior information and understanding about a region’s tax regulations is a must, before one starts trading in crypto.

To help you decide which countries can be termed as the low-tax safe havens for crypto, let’s evaluate the top countries with the best crypto tax laws in the world.

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Top Countries With Best Crypto Tax Regulations

Germany

Germany is a great country for crypto startups because of its low tax policy. Bitcoin and other cryptos are considered private money in the country and not as a commodity, a stock, or any kind of currency.

Thus crypto trading is considered a private sale under the rule 23 EStG which has tax-free benefits. It states that anyone trading bitcoins/altcoins exempted from taxes completely if their capital gains are not more than 600 EUR.

Additionally, if a trader is selling crypto after a period of one year or more, then those capital gains are also completely tax free.

Malta

Undoubtedly, Malta is one of the countries that you think of when you think of a safe haven for crypto. Located in the Southern European island nation, it is part of the Eurozone and uses Euros (EUR) as their currency.

Malta has very conducive legal and political climate that encourages the growth of crypto. It also has convenient laws for seeking residency in the country, making it easier to start your crypto business there.

Although they do not have concrete taxation laws on crypto yet, their general taxation laws exempt foreign residents from paying Maltese income tax on income generated outside Malta, provided it’s not remitted to a Maltese bank account.

The government encourages crypto development in the country. Malta’s Prime Minister has invited Bitcoin and blockchain tech, and has remarked that Malta aims to become

“global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world class fintech companies.”

Switzerland

Another obvious name on the list is Switzerland. With the establishment of the “Crypto Valley” Zug, the country has opened its arms to top blockchain and crypto related companies.

The country boasts a low-tax environment for businesses which has enabled the growth of many crypto startups in Switzerland. Crypto is grouped under assets and is subject to wealth taxes to be declared in annual returns.

The country also produces plenty of talent to choose from, when setting up shop in the area. It has quickly become a popular spot for crypto and blockchain businesses to develop.

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