The best countries tax wise for Bitcoin

[boumalo]

Many countries have no capital gain taxes on financial assets nd they explicitly include Bitcoin.

The article lists 10 countries with favorable BTC tax rules :

Germany (!)

Belarus

El Salvador

Portugal

Singapore

Malaysia

Malta

Cayman Islands

Puerto Rico

Switzerland

January 4th 2022 article, unknown website https://koinly.io/blog/crypto-tax-free-countries/

Any other countries/states ? Dubaï don't tax gains, lot's of crypto investors/trader in Dubaï.

[NeuroticFish]

Any other countries/states ? Dubaï

Well, as European I would not choose a country from outside Europe because the laws may become (very) strange for actually living there.
This being said, according to newspapers, Portugal looks good.

I would add that:
1. Most probably one will have to give up the old citizenship in order to benefit of these countries.
2. There may be problems with those who bought BTC from KYC exchanges and then want to settle to "better" countries.
3. Although the tax rules in Belarus may be lax, I would not advise anyone move there, especially after what's happening there in the last 10+ months.
4. If Germany's crypto tax is lax, I expect this will be copied in some other European countries in the not-so-far future, hence it may not be a bad idea to have a bit more patience and keep the eyes open.

[PrivacyG]

1. Most probably one will have to give up the old citizenship in order to benefit of these countries.

Yes, the process is a little more complicated than just finding a rent over there and moving out.  Some of the countries also have their citizenship easier to obtain than others.  From what I have read so far, the process seems to get harder the more nationalist or culturally-oriented the country is.  On the other end, other countries offer citizenship for money and basic knowledge of the country's history, language and culture.

To me it seems that putting in the efforts to revoke your citizenship and obtain another one just for the taxes only makes sense when you have a big bag of money that is worth the time and effort.

Can confirm Portugal also seems to be a good choice tax-wise.

-
Regards,
PrivacyG

[Obito]

I think Philippines would be a great one too, I have a friend who makes a lot of money already and I don't think that he pays that much tax. I too don't even though I make an amount that's already taxable in a regular setting. I don't recommend going to the country though, cost of living is low but the quality of life isn't good.

[stompix]

I think Philippines would be a great one too, I have a friend who makes a lot of money already and I don't think that he pays that much tax.

If a person doesn't pay "that much' tax in most cases is because of tax evasion and not low taxes.

According to the laws, it seems that income in crypto is taxed the same way as normal income, so assuming you have made 1BTC in profits and you cash that out you're going to end in the near last threshold and pay around the equivalent of $11k in tax.
Comparing that to Germany where you just have to hold the crypto for one year and you're tax-exempt, legally!!!!

Well, as European I would not choose a country from outside Europe because the laws may become (very) strange for actually living there.

And most poeple think the same even if they live in way poorer countries.
That's why we didn't have even 100 000, that's 0.03% of the claimed number of crypto owners moving to Salvador.

[Obito]

~snip

If a person doesn't pay "that much' tax in most cases is because of tax evasion and not low taxes.

According to the laws, it seems that income in crypto is taxed the same way as normal income, so assuming you have made 1BTC in profits and you cash that out you're going to end in the near last threshold and pay around the equivalent of $11k in tax.
Comparing that to Germany where you just have to hold the crypto for one year and you're tax-exempt, legally!!!!

Not really my guy, if you live here then you know that the legislation or bills passed will only be implemented strictly for about 3 months and then the people are going to forget about it, that's why I was confident that you can avoid taxes here with your crypto, the only time that you're going to pay taxes is if it's in fiat. Also with the advent of Axie Infinity in the country, how come those that have made money in the early pump didn't get any visit from the tax bureau?

[stompix]

Not really my guy, if you live here then you know that the legislation or bills passed will only be implemented strictly for about 3 months and then the people are going to forget about it, that's why I was confident that you can avoid taxes here with your crypto, the only time that you're going to pay taxes is if it's in fiat.

So you're just avoiding taxes, which could land you in trouble unlike in the countries mentioned above where you can do this legally! And no country in that list taxes crypto gains in the same crypto, lol, how would that ever be possible?  If you follow the law once you sell any coin at a profit in the Philippines you must pay income tax since you have income, that's the law if you know differently please link the law that exempts you from this.

Again, this is not about getting away while breaking the law, this is how to live your life peacefully without surprise visits from the police while not paying a penny.

Just because the police don't give a damn about speeding and you haven't got a ticket in 10 years it doesn't mean there is no speed limit, unless, funny coincidence, you're in Germany again

[Obito]

~snip

So you're just avoiding taxes, which could land you in trouble unlike in the countries mentioned above where you can do this legally!

It's a yes and a no, in the eyes of the law, we are poor and minimum wage earners, they don't investigate you even if you buy stuff with crypto, they're too corrupt for their own good so us people that fade in the background get away with it. And the taxes for most Filipinos are already paid when we buy our products and we have a high income rate that considers you as tax exempted anyways.

[Gozie51]

~snip

So you're just avoiding taxes, which could land you in trouble unlike in the countries mentioned above where you can do this legally!

It's a yes and a no, in the eyes of the law, we are poor and minimum wage earners, they don't investigate you even if you buy stuff with crypto, they're too corrupt for their own good so us people that fade in the background get away with it. And the taxes for most Filipinos are already paid when we buy our products and we have a high income rate that considers you as tax exempted anyways.

@Obito don't you think that you have not bought certain product that is involving large number or fraction of bitcoin and that is why the government has not noticed it. I think so because you are spending very minimal amount of bitcoin and they may think you have that through faucet 

But the point is you have gone unnoticed because you spending just little , if you spend big amount you can see things can change and you don't evade again.

[LeGaulois]

It is not easy to move to another country. There is a difference in culture, lifestyle, and many other things to take into account. You find yourself away from your family, friends, and everything you knew before. You may even have to quit your job and maybe not even find another one later on. It's great not to pay taxes, but if you're going to be unemployed in a country where you don't speak the language well, it's not even worth it.

Moving to another country can be fun when you are in your twenties, but at a certain age, it is not an easy thing to do, especially when you have a family, children, a house, a job, responsibilities and all that

How many of us here have left our country to settle in another? All that to take advantage of a tax break? Not many, in my opinion. One hand would be enough to count them.

People thinking they can stay unnoticed until now will maybe cry later when more data is harvested and a lot of automation is done. With technology, governments are becoming more effective at detecting fraudsters. Nowadays, it is more and more difficult to cheat on taxes compared to 20 years ago.

I cheated once but I learned a good lesson. They never forget you

[SFR10]

Any other countries/states ?

Perhaps "some" of the missing names from "this article" from last year, are still relevant in 2022...

e.g. Antigua

• Antigua Announces No New Taxes for Upcoming Year
• Antigua and Barbuda Tax Guide
  
  

  • Personal income tax is extremely important when considering maintaining your wealth; and the government of Antigua and Barbuda understand this issue completely, which is why it does not impose any type of income tax on individuals whether it be from local or worldwide income.
    
    Individuals, be its tax residents (who spend 183 days per year in Antigua) or non-resident citizens, are exempt from any type of tax on their income no matter how much money they make, which makes Antigua and Barbuda an amazing place to reside if you have high income but worry about that bracketed tax that can reach colossal amounts.
    ~Snipped~
    There are other direct taxes that you would find in other nations that persons in Antigua and Barbuda are exempt from. For example, the inland revenue department and the government of Antigua and Barbuda do not impose any capital gains tax, wealth tax, inheritance, or withholding tax on individuals.

While I was searching for the above information, I stumbled upon the following interesting website: PlanBpassport

1. Most probably one will have to give up the old citizenship in order to benefit of these countries.

I'm fortunate enough to be a citizen of two countries with fair tax laws, so the above line doesn't apply to me ^{[normally, if I only had one]} but AFAIK, that's a big problem for US citizens ^{[unfortunately]}.
^{- Are you implying that most of the European countries also have such a thing in place?}

[NeuroticFish]

^{- Are you implying that most of the European countries also have such a thing in place?}

I don't know how it is, hence I didn't try to imply anything.
I would not be surprised though if the tax of the old country is bigger than the one from the new country, one would have to also pay the difference in the old country.
But again, this is speculation, I don't know for sure how it is.

[cheezcarls]

I think Philippines would be a great one too, I have a friend who makes a lot of money already and I don't think that he pays that much tax. I too don't even though I make an amount that's already taxable in a regular setting. I don't recommend going to the country though, cost of living is low but the quality of life isn't good.

It is because Philippines hasn’t introduced crypto taxes yet. For now, we are paying a normal tax rate base on our income range whether monthly, quarterly or annually. If our income is below 250,000 Philippine peso annually, we’re exempted from getting taxed.

However, if it’s above, of course we are required to report that to the Bureau of Internal Revenue. As self-employed, we are only taxed for realized income (for instance crypto to fiat to bank) and not on capital gains or unrealized income.

[goldkingcoiner]

I agree with Germany being the best country, tax wise for any cryptocurrency. But then again that only holds true if you can fulfill the expected conditions. If you hodl your crypto and do not sell/trade for one year, then you do not have to pay any taxes on the profits. You are allowed to shift your crypto from one wallet to the next, but as soon as you trade crypto for crypto, thats considered selling too.

We are seeing new laws for staking rewards that consider a 10 year rule, however, as far as I know, pure hodling is still 1 year.
 

[zasad@]

I like the politics of Dubai. You can register a company in the DIFC free zone, it will take 1-2 months and 10-15K dollars, if you use the services of intermediaries, you will get a work visa. If the company earns less than $200,000 per year, the tax is 0%.

[royalfestus]

Nigeria deserves to be on the list because its citizens benefit from minimal taxation through peer-to-peer (P2P) transactions, and an impressive 5.75% of the global cryptocurrency ownership belongs to Nigerians. (According recent word statistics)

[Poker Player]

4. If Germany's crypto tax is lax, I expect this will be copied in some other European countries in the not-so-far future, hence it may not be a bad idea to have a bit more patience and keep the eyes open.

I would find the statement more credible if you had used "I hope" instead of "I expect", which implies a more vain hope. Germany has had a more favorable legislation to cryptocurrencies for many years, and there has not been the copying effect you are talking about, so I do not expect it to happen, except in some specific case perhaps and for other reasons, not for copying what Germany does. In the same way, Germany is called the European locomotive because it has an economic policy different from the rest, which encourages productivity and mass competition, and France with its elephantine state or Italy with its peculiarities do not copy it.

[countryfree]

I've lived in Germany for a while, and I was happy to leave.
Doing business is quite awful there. It's only a nice place as a tourist, but you can have a second home there, spend there a few months per year, and yes, it will be enjoyable. Best places are near the Bodensee.

[zasad@]

In Europe there is always more control. It is easier to legalize in Asia or other offshore zones where taxes on cryptocurrencies are close to 0. I would like to see how the MICA law starts to work, but I am sure that this will entail very high costs for crypto companies in the KYC officers and lawyers.

[Zoomic]

Nigeria deserves to be on the list because its citizens benefit from minimal taxation through peer-to-peer (P2P) transactions, and an impressive 5.75% of the global cryptocurrency ownership belongs to Nigerians. (According recent word statistics)

I do not even think Nigerians are taxed at all. Nigerians have an easy ride. The country doesn't permit crypto trading with their local banks so there is no how the banks will work out the taxing. So the Nigerians find ways to trade among themselves and using exchanges p2p with paying any form of tax.