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Which crypto-friendly countries offer the most favorable tax regimes?
Taxation on gains, capital gains, or income related to cryptocurrencies varies considerably from country to country. Here is our summary overview of the countries offering the best tax conditions for cryptocurrency holders in 2025.
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Which countries are most favorable to cryptocurrencies?
Many countries have implemented specific tax regimes to attract cryptocurrency investors. Some countries have become global leaders in crypto, thanks to low or even non-existent taxes on capital gains or cryptocurrency-related transactions. Here is a list of the most favorable countries, categorized by region.
Europe: Crypto-friendly countries to know
In Europe, several countries offer major tax advantages for individuals and companies active in the cryptocurrency sector.
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Portugal,
long considered a crypto-friendly country, has undergone a major shift in its cryptocurrency taxation since 2023. Capital gains realized by individuals on the sale of cryptocurrencies held for less than a year are now taxed at progressive rates ranging from 14.5% to 48% , depending on the taxpayer's overall income . Capital gains from the sale of crypto assets held for more than a year remain tax-exempt for individuals, except for certain specific tokens such as security tokens .
Profits earned through professional activities ( trading , mining, etc.) are subject to income tax, with progressive rates similar to those applied to professional income .Germany
, cryptocurrency taxation remains advantageous for long-term . Capital gains from the sale of cryptocurrencies are tax-exempt if held for more than one year. For sales made before this period, capital gains are included in income tax and subject to a progressive rate of up to 45% (without exceeding the annual exemption threshold of €600 for individuals). Income from staking or mining is considered investment or business income depending on the frequency and nature of the activity.Malta
is recognized as one of the first countries to have established a clear legal framework for cryptocurrencies. For individuals, gains from the sale of cryptocurrencies are generally not taxed, as long as they are not considered a professional or commercial activity.
Profits from professional activities (intensive trading, mining, etc.) are subject to corporate tax or income tax, depending on the taxpayer's status.
Malta remains a tax-friendly country for crypto holders, with stable regulations and an exemption on capital gains for individuals.Slovenia
, cryptocurrency gains made by individuals are tax-exempt, provided they are not considered a professional activity.
If the activity is deemed professional (regular trading, mining, etc.), the profits are taxed according to the rules applicable to professional or commercial income.
Slovenia therefore offers a very favorable tax regime for individual investors, with no capital gains tax for individuals.Cyprus
, capital gains realized by individuals from the sale of cryptocurrencies are not taxed, unless the transactions are considered a professional or commercial activity.
In that case, the profits are subject to corporate tax or income tax, depending on the nature of the activity.
Cyprus therefore remains an attractive country for cryptocurrency investors, with favorable tax treatment for individuals.
Middle East: the Emirates
In the Middle East region, some countries offer particularly advantageous conditions for cryptocurrency investors. The United Arab Emirates (UAE) stands out, especially thanks to Dubai and Abu Dhabi, which are now global hubs for crypto and blockchain .
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The United Arab Emirates
Since November 15, 2024, the United Arab Emirates has implemented a full exemption from value-added tax (VAT) for all cryptocurrency transactions and conversions, for both individuals and businesses . This measure aims to remove tax barriers that weighed on the sector and promote the attractiveness of the country 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 pay no income tax, nor any tax on capital gains generated by the sale, trading, staking, farming, mining or transfer of cryptocurrency-related NFTs.
Thus, the United Arab Emirates has become a cryptocurrency-friendly country, attracting numerous investors and companies in the sector, thanks to a progressive regulatory framework and highly competitive taxation. Tax exemptions cover all types of crypto-related transactions, making the UAE 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 offering significant tax flexibility.
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Singapore
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Individuals : Gains from the sale or exchange of cryptocurrencies are not taxed.
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Professionals : If the activity is carried out via a company, the profits are subject to corporation tax (rate of 17%).
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Hong Kong
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Individuals : Gains on cryptocurrencies are not taxed, provided that the activity remains personal.
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Professionals : If the activity is carried out via a company, the profits are subject to corporation tax (rate of 16.5%).
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Malaysia
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Individuals : Gains on cryptocurrencies are not currently taxed.
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Professionals : Profits from crypto activity carried out in a company are subject to corporate tax (rate of 24%).
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Islands and microstates: tax havens for cryptocurrencies
Some microstates and islands are also preferred destinations for cryptocurrency investors.
- Bermuda : No taxes on cryptocurrency-related activities.
- Cayman Islands : No tax on capital gains or income generated from cryptocurrencies. The Cayman Islands are a popular choice for crypto investment funds.
- Isle of Man : A country favorable to cryptocurrencies, with zero taxation on gains made by individuals.
Tax overview: which countries do not tax cryptocurrencies?
Here is a comparative table of the main crypto-friendly countries according to their taxation.
| Country / Territory | Taxation of individuals (crypto capital gains) | Professional taxation (via company) | Conditions / Main Features |
|---|---|---|---|
| France | 30% (flat rate) or progressive scale (option) | BNC: progressive tax scale (up to 66.2%) | Non-professional status by default, progressive salary scale option available |
| Germany | 0% if held for more than 1 year, otherwise up to 50.5% | Progressive tax scale or corporation tax | Exemption if held for more than 1 year |
| Portugal | 0% if held for more than 1 year, otherwise 28% | 28% or IRS scale (up to 48%) | Exemption if long-term ownership, professional activity taxed |
| Belgium | 0% ("good family man"), otherwise 33% or 50% | 50% if proven professional | Distinction based on profile |
| Spain | 19% to 28% | Progressive tax scale or corporation tax | Progressive rate depending on amount |
| Italy | 26 % | Corporate tax | Fixed rate |
| Malta | 0 % | 35% (but 5% actual via refund) | Individual exemption, advantageous company |
| Cyprus | 0 % | 12,5 % | Individual exemptions, low corporate rates |
| Slovenia | 0 % | Progressive scale if professional activity | Exemption for individuals |
| Estonia | 0 % | 20% (deferred if reinvested) | Deferred taxation, exemption for individuals |
| Switzerland (non-EU) | 0 % | ~12% (depending on canton) | Individual exemptions, low corporate rates |
| United Arab Emirates | 0 % | 0 % | No taxation, modern regulatory framework |
| Singapore | 0 % | 17 % | Individual exemption, moderate corporate rate |
| Hong Kong | 0 % | 16,5 % | Individual exemption, moderate corporate rate |
| Malaysia | 0 % | 24 % | Individual exemption, high corporate rate |
| Bermuda | 0 % | 0 % | No taxes, tax haven |
| Cayman Islands | 0 % | 0 % | No taxes, tax haven, license required |
| Isle of Man | 0 % | 0% (or very low depending on the activity) | Individuals receive tax exemptions, while companies receive almost no taxation |
Focus on the tax conditions for individuals and businesses
Cryptocurrency taxation differs depending on whether you are an individual or a company.
Which countries offer the best conditions for cryptocurrency investors?
For cryptocurrency investors, choosing a cryptocurrency-friendly country can significantly impact the profitability of their investments. Countries that do not tax capital gains or crypto-related transactions are particularly attractive. Here are a few key points to remember:
- European countries such as Portugal, Germany, Malta, Slovenia and Cyprus offer favorable tax treatment for individuals.
- The Emirates , particularly Dubai and Abu Dhabi, are preferred destinations for international investors thanks to zero taxation.
- Asia offers countries like Singapore, Hong Kong and Malaysia, which offer very favorable tax conditions for individuals.
- Islands and microstates like Bermuda, the Cayman Islands and the Isle of Man are tax havens for cryptocurrencies.
How to optimize your crypto taxation internationally?
Here are some practical tips:
- Research local tax laws : each country has its own rules regarding cryptocurrency taxation. It is important to find out about the specific conditions before moving abroad.
- Respect the holding conditions : in some countries, such as Germany, you must hold your cryptos for more than a year to benefit from the exemption.
- Favor countries with no tax on cryptocurrencies : countries that do not tax capital gains or crypto-related transactions are the most advantageous.
- Consult a tax expert : before moving abroad, it is recommended to consult an expert to avoid unpleasant surprises.
Summary of the countries most favorable to cryptocurrencies
Here is a summary of the countries offering the best tax conditions for cryptocurrencies, whether for individuals or businesses.
- Portugal : exemption for individuals after more than one year of ownership, except for professional activity.
- Germany : exemption after more than one year of detention.
- Malta, Slovenia, Cyprus : exemption for individuals, except for professional activity.
- United Arab Emirates : no tax on gains or income.
- Singapore, Hong Kong, Malaysia : exemption for individuals, except for professional activity.
- Bermuda, Cayman Islands, Isle of Man : no taxes on cryptocurrency-related activities.
Conclusion
Cryptocurrency taxation varies significantly from country to country. For cryptocurrency investors, the most cryptocurrency-friendly countries, such as Portugal, Germany, Malta, the United Arab Emirates, Singapore, Hong Kong, Malaysia, Bermuda, the Cayman Islands, and the Isle of Man, offer very favorable tax conditions for individuals and businesses.
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Yoann
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
