What are the countries most favorable to cryptocurrencies?

Many countries have implemented specific tax regimes to attract investors to cryptocurrencies. Some countries have become global references in crypto, thanks to a low, even non -existent taxation, on capital gains or transactions linked to cryptocurrencies. Here is a list of the most favorable countries, classified by region.

Europe: Crypto Friendly countries to know

In Europe, several countries offer major tax advantages for individuals and businesses active in the cryptocurrency sector.

• Portugal
  long considered as a crypto friendly country, Portugal has experienced a major evolution of its taxation on cryptocurrencies since 2023. Now, capital gains made by individuals on the sale of cryptocurrencies held less than a year are imposed at progressive rates of 14.5 % to 48 % , according to the overall income of the taxpayer . The capital gains from the sale of cryptographic assets held more than a year remain exempt from tax for individuals, except for certain specific tokens such as the Security Tokens .
  The profits made as part of a professional activity ( trading , mining, etc.) are integrated into income tax, with progressive rates similar to those of professional income .

  Germany
  in Germany, taxation on cryptocurrencies remains advantageous for long -term investors. Capital gains from the sale of cryptos are exempt from tax if detention exceeds one year. For sales made before this period, capital gains are integrated into income tax and subject to a progressive rate of up to 45 % (without exceeding the annual exemption threshold of 600 euros for individuals). Revenues from staking or mining are considered to be investment or business income depending on the frequency and nature of the activity.

  Malta
  Malta is recognized as one of the first countries to have set up a clear legal framework for cryptocurrencies. For individuals, the gains made on the sale of cryptocurrencies are generally not imposed, as long as they are not considered a professional or commercial activity.
  Profits from a professional activity (intensive trading, mining, etc.) are subject to corporate tax or income tax, depending on the taxpayer's status.
  Malta remains a favorable country fiscally for holders of cryptos, with stable regulations and exemption from the capital gains of individuals.

  Slovenia
  in Slovenia, gains on cryptocurrencies made by individuals are exempt from tax, provided they are not considered a professional activity.
  If the activity is deemed professional (regular trading, mining, etc.), the profits are imposed according to the rules applicable to professional or commercial income.
  Slovenia therefore offers very favorable taxation for individual investors, with an absence of taxation on capital gains for individuals.

  Cyprus
  in Cyprus, capital gains made by individuals on the sale of cryptocurrencies are not imposed, unless transactions are considered a professional or commercial activity.
  In this case, profits are subject to corporate tax or income tax, depending on the nature of the activity.
  Cyprus therefore remains an attractive country for investors in cryptocurrencies, with advantageous taxation for individuals.

Middle East: Emirates

In the Middle East region, some countries offer particularly advantageous conditions for investors in cryptocurrencies. The United Arab Emirates (Water) are clearly distinguished, notably thanks to Dubai and Abu Dhabi, who are today world hubs for crypto and blockchain .

• The United Arab Emirates

Since November 15, 2024, the United Arab Emirates have set up a total exemption from the value added tax (VAT) for all transactions and conversions of cryptocurrencies, both for individuals and for businesses . This measure aims to remove the tax obstacles that weighed in the sector and to promote the country's attractiveness for international investors. Previously, a 5 % VAT was applied to crypto transactions, but the decentralized nature of these assets made taxation difficult to implement.

In addition to this VAT exemption, tax residents of the United Arab Emirates do not pay any income tax, or on capital gains generated by sale, trading, staking , farming, mining or the sale of NFT linked to cryptocurrencies .

Thus, the United Arab Emirates have become a country favorable to cryptocurrencies, attracting many investors and companies in the sector, thanks to a progressive regulatory framework and extremely competitive taxation. The tax exemption covers all types of operations linked to cryptos, which makes water one of the most attractive destinations in the world for the international crypto community.

Asia: Singapore, Hong Kong, Malaysia

Asia is a key region for cryptocurrency investors, with countries that offer great flexibility.

• Singapore

  • Individuals : Gains on the sale or exchange of cryptocurrencies are not taxed.

  • Professionals : If the activity is carried out via a company, the profits are subject to corporate tax (rate of 17 %).

• Hong Kong

  • Individuals : The gains on cryptocurrencies are not taxed, provided that the activity remains personal.

  • Professionals : If the activity is carried out via a company, the profits are subject to corporate tax (rate of 16.5 %).

• Malaysia

  • Individuals : The gains on cryptocurrencies are not currently taxed.

  • Professionals : Profits from a crypto activity carried out in a company are subject to corporate tax (rate of 24 %).

Islands and micro-states: tax haven for cryptos

Some micro-states and islands are also privileged destinations for investors in cryptocurrencies.

• Bermuda : No taxation on activities related to cryptocurrencies.
• Cayman islands : No capital gains tax or income generated by cryptos. The Cayman Islands are a popular choice for Crypto investment funds.
• Island of Man : a country favorable to cryptocurrencies, with zero taxation on the gains made by individuals.

Tax panorama: What are the countries that do not tax cryptocurrencies?

Here is a comparative table of the main Crypto Friendly countries according to their taxation.

Focus on tax conditions for individuals and businesses

Taxation on cryptocurrencies differs depending on whether you are an individual or a business.

What countries offer the best conditions for cryptocurrency investors?

For cryptocurrency investors, choosing a country favorable to cryptocurrencies can have a significant impact on the profitability of their investments. Countries that do not tax capital gains or transactions related to cryptos are particularly attractive. Here are some points to remember:

• European countries such as Portugal, Germany, Malta, Slovenia and Cyprus offer advantageous taxation for individuals.
• The Emirates , in particular Dubai and Abu Dhabi, are privileged destinations for international investors thanks to a zero taxation.
• Asia offers countries like Singapore, Hong Kong and Malaysia, which offer very favorable tax conditions for individuals.
• The islands and micro-states such as the Bermuda, the Cayman Islands and the island of Man are tax havens for cryptos.

How to optimize your international crypto taxation?

Here are some practical tips:

• Study local taxation : each country has its own tax rules on cryptos. It is important to find out about the specific conditions before expatriating.
• Respect the conditions of detention : in some countries, such as Germany, it is necessary to have its cryptos for more than a year to benefit from the exemption.
• Favoring countries without taxptomonnai taxes : countries that do not tax capital gains or transactions related to cryptos are the most advantageous.
• Consult a tax expert : before expatriating, it is recommended to consult an expert to avoid unpleasant surprises.

Summary of countries most favorable to cryptocurrencies

Here is a summary of countries offering the best tax conditions for cryptocurrencies, whether for individuals or businesses.

• Portugal : Exemption for individuals after more than a year of detention, unless professional activity.
• Germany : exemption after more than a year of detention.
• Malta, Slovenia, Cyprus : exemption for individuals, except professional activity.
• United Arab Emirates : no taxation on gains or income.
• Singapore, Hong Kong, Malaysia : exemption for individuals, except professional activity.
• Bermuda, Cayman Islands, Man Island : no taxation on the activities related to cryptocurrencies.

Conclusion

Taxation on cryptocurrencies varies strongly from country to country. For investors in cryptocurrencies. The countries most favorable to cryptocurrencies, such as Portugal, Germany, Malta, the Emirates, Singapore, Hong Kong, Malaysia, Bermuda, the Cayman Islands and the island of Man, offer very advantageous tax conditions for individuals and businesses.