Which countries have the highest crypto taxes?

[Abiky]

Crypto is getting more popular each day, with exchanges opening their doors to customers from around the world. I'm aware that there are a few places with zero capital gains tax on crypto (eg: El Salvador and Puerto Rico).

But I'm curious to know which countries have the highest taxes? And do you think there's a chance they will lower them in the future?

Your input would be greatly appreciated. Thank you very much.

[alegotardo]

Crypto is getting more popular each day, with exchanges opening their doors to customers from around the world. I'm aware that there are a few places with zero capital gains tax on crypto (eg: El Salvador and Puerto Rico).

But I'm curious to know which countries have the highest taxes? And do you think there's a chance they will lower them in the future?

Your input would be greatly appreciated. Thank you very much.

I never stopped to think about this, so I did some research and was very surprised for what I discovered.... Countries that I believed to be more "pro-bitcoin" charge very high taxes. Check it out, and correct me if I've made any mistake on my research:

Japan: They consider the tax on cryptocurrencies as an "miscellaneous income" and have a progressive rate that goes up to 55%;
Denmark: They consider a tax that can be compared to financial gains like stocks, with rates varying and reach up 56%;
Israel: The curious thing there is that they tax gains from bitcoin and other cryptocurrencies between individuals at up to 50%, but are studying proposals for exemptions for foreigners;
Australia: Cryptocurrency is treated as an asset, and gains are taxed as if they were personal income, reaching up to 45%, but this rate drops by half if you hold it for more than a year.

Here in Brazil, where I live... there is currently a tax exemption for transactions up to R$ 35,000 (Brazilian coin) by month... approximately $ 6k. But this will change next year when the government will start charging 15% tax on all transactions.

[Fivestar4everMVP]

Crypto is getting more popular each day, with exchanges opening their doors to customers from around the world. I'm aware that there are a few places with zero capital gains tax on crypto (eg: El Salvador and Puerto Rico).

But I'm curious to know which countries have the highest taxes? And do you think there's a chance they will lower them in the future?

Your input would be greatly appreciated. Thank you very much.

I honestly do not know, and I feel that questions like this can be easily asked on Google or Ai with deep resource of information, this is one way to easily find a well detailed answers to this type of questions.

But all the same, it's still not bad to ask here since this is a discussion forum and questions like this also help to create new things for the forum members to discuss about.

And to attempt to answer your question though I am not very sure it's correct, someone told me that the country with the most gains tax on both crypto and even gambling as well is Europe, like I said before, I am not so sure about this if it's true or not, but perhaps someone who lives in Europe will help us confirm this.

[shinratensei_]

But I'm curious to know which countries have the highest taxes? And do you think there's a chance they will lower them in the future?

All the countries with highest tax toward crypto already mentioned above but I see the pattern where country that considers gains from crypto as just personal income is the one imposing highest tax.
I bet it will only lower when the country recognize that crypto like bitcoin works like gold as an investment, only then they'd put gains from crypto on different bracket, specifically investment and lower the tax.

After all, income tax usually higher than capital gains tax.

[retreat]

Crypto is getting more popular each day, with exchanges opening their doors to customers from around the world. I'm aware that there are a few places with zero capital gains tax on crypto (eg: El Salvador and Puerto Rico).

But I'm curious to know which countries have the highest taxes? And do you think there's a chance they will lower them in the future?

Your input would be greatly appreciated. Thank you very much.

From what I find out from this list https://geekflare.com/crypto/highest-and-lowest-crypto-tax-countries, there are about 16 countries globally that have quite high crypto taxes, around 30% - 50%. Why is it so high because they consider crypto assets to be a form of capital gains or investment gains, which are legally subject to high taxes. Whether or not they will lower the tax in the future depends on their government's policies, and how they view cryptocurrencies. If they felt that it was necessary, they could have lowered the tax. But I doubt it, because most countries are so rare to lower their crypto taxes, on the contrary they are increasing it even more.

[aylabadia05]

If I am not wrong in remembering, that the topic that questioned the highest amount of tax or crypto tax in the countries already existed. But, it doesn't matter either.

Japan seems to be the country with the highest crypto tax based on the source I have met. Then Australia, Britain, Germany and France.
Japan 55%, Australia 45%, Britain 40%and Germany are the same as Australia. Source: Koinly.io
Well, from what I said, there is a difference with what has been mentioned by someone here that there is another Denmark that has a higher tax from Japan.

[avp2306]

Crypto is getting more popular each day, with exchanges opening their doors to customers from around the world. I'm aware that there are a few places with zero capital gains tax on crypto (eg: El Salvador and Puerto Rico).

But I'm curious to know which countries have the highest taxes? And do you think there's a chance they will lower them in the future?

Your input would be greatly appreciated. Thank you very much.

I think @retreat already give good articles about this since it show detailed information about countries that have high taxes on crypto.

But also this article of cointelegraph is somehow good additional source if you want to seek more information about this topic https://cointelegraph.com/magazine/best-worst-countries-crypto-taxes-crypto-tax-tips/

Seems that lots of country doesn't impose taxes on crypto yet and hopefully they remain like that or don't ask to much to their people if their mind change then want to impose crypto taxes to their people.

[crwth]

From what I have searched, it's Japan that has the highest tax of about 55% which is significantly high.

https://www.visualcapitalist.com/mapped-crypto-taxation-around-the-world/

This is just another reference and corroborates what the other members have said. It seems like a troubling type of thing if you were to be in the said countries because that's the least amount of take-home money compared to other countries that have lower taxes.

Perhaps this simply demonstrates that it's better to HODL and not convert it to fiat. I think this depends on the country.

[leonair]

Japan applies a progressive tax rate ranging from 15% to 55%, making it one of the highest-taxing nations for cryptocurrency gains. Similarly, Denmark taxes crypto profits at rates between 37% and 52%, depending on an individual’s income bracket.

https://www.visualcapitalist.com/mapped-crypto-taxation-around-the-world/#:~:text=Japan%20applies%20a%20progressive%20tax,on%20an%20individual's%20income%20bracket.

As far as I know from Google, the highest tax rate in Japan is 55% on crypto. I don't know how interested Japanese people are in crypto investment because 55% tax is more than half of the profit. I don't know if the Japanese government thinks that such high taxes can keep investors away from crypto. But I think it's unfair.

[passwordnow]

As far as I know from Google, the highest tax rate in Japan is 55% on crypto. I don't know how interested Japanese people are in crypto investment because 55% tax is more than half of the profit.

Just remember the biggest exchange a decade ago and that's Mt.Gox and that exchange was based in Japan. While it's possible that many Japanese were already into crypto but it also handled a lot of transactions globally. And I'm shocked if this is real that they are taxing 55% crypto profits, that's a lot.

I don't know if the Japanese government thinks that such high taxes can keep investors away from crypto. But I think it's unfair.

It's unfair but we can't complain with how they deal with such taxations from the crypto profits of their people. But if I'd go there and that's the tax percentage that I have to pay, I'll go somewhere else or in a country that's a tax haven like the UAE.

[WillyAp]

In order to tax you the respective government needs your cooperation.
You have to admit owning crypto and tell them where those are. 

[Despairo]

As far as I know from Google, the highest tax rate in Japan is 55% on crypto. I don't know how interested Japanese people are in crypto investment because 55% tax is more than half of the profit. I don't know if the Japanese government thinks that such high taxes can keep investors away from crypto. But I think it's unfair.

Japan have no specific tax for crypto, but they apply the capital gain tax in crypto as same as income tax. So the tax is progressive from 5% to 45% +10%. In order to hit the highest tax bracket, you need to earn more than ¥40,000,000 ($270,000) while the median annual salary in Japan is ¥4,000,000 ($27,000)

https://tokentax.co/blog/crypto-taxes-in-japan

But, they recently propose to change the tax from 15%-55% to flat 20% https://finance.yahoo.com/news/japan-proposes-crypto-tax-cut-010143229.html

This scheme is just making the rich get richer and poor get poorer.

[Just Say]

As far as I know Japan has the highest crypto tax rate, and it's even true that they classify cryptocurrency taxes as miscellaneous income, there are also other countries such as Denmark and Germany that also have to pay a lot of crypto taxes. Perhaps everyone knows that Japan is now leading the way in Bitcoin adoption and regulation, as one of the most notable companies in their country is MetaPlant, which now regularly buys Bitcoin and owns more Bitcoin.

It is even noteworthy that they are one of the largest companies in Asia in accepting Bitcoin. Currently we see that Japan will reform their crypto tax so if the existing tax system in their country is reformed, my idea it is almost certain that the amount of crypto tax in Japan could decrease in the future.

Japan’s crypto tax overhaul: What investors should know in 2025

[Die_empty]

Your input would be greatly appreciated. Thank you very much.

Japan and Denmark have the highest tax on crypto. It is on record that they collect as high as 15% to 55%, on crypto profits. I wonder the rationale behind these high taxes. I wonder if it is to discourage crypto use or to raise funds from taxes.  Such laws will discourage crypto investment and people will bypass laws by all means. But the good part of the Japanese tax law is that crypto losses could be deducted from gains in the future before taxes are calculated.

[coupable]

But I'm curious to know which countries have the highest taxes? And do you think there's a chance they will lower them in the future?

Your input would be greatly appreciated. Thank you very much.

I can mention all the countries who treat cryptocurrencies as assets subject to higher taxes compared to other financial assets. For example we have India, Japan, USA and also France and Germany. I can't find reliable sources for exact rates.
As for chances for those countries to lower the crypto taxes in the future, i think it will always depends on its political orientations towards crypto. And as crypto adoption increase, some countries maybe obligated to reduce taxes to attract investors. Others may increase taxes willing to regulate the sector or to stop with speculation. Change is always possible, but it is always related to the evolution of laws and economic policies in each country.

[lionheart78]

But I'm curious to know which countries have the highest taxes? And do you think there's a chance they will lower them in the future?

Your input would be greatly appreciated. Thank you very much.

The country that has the highest tax on cryptocurrency was stated in the earlier reply, so I would like to focus on the possibility of these countries lowering the taxes.  I believe if there is no special event that will happen, the tax will possibly stay as it is.  If there are programs or special events, like attracting crypto enthusiast investors in their country, they may lower the taxes to make it more appealing to these investors. 

We all know that the government often lowers taxes or even gives exemptions if it thinks it will benefit their country in the long run, so I believe the possibility of these high-taxing countries on crypto to lower their tax requirement is more likely dependent on the future crypto programs or plans.

[Bitcoin Smith]

But I'm curious to know which countries have the highest taxes? And do you think there's a chance they will lower them in the future?

Your input would be greatly appreciated. Thank you very much.

I can mention all the countries who treat cryptocurrencies as assets subject to higher taxes compared to other financial assets. For example we have India, Japan, USA and also France and Germany. I can't find reliable sources for exact rates.

I can't speak for other countries but let me give you the exact numbers for India.

In our country 30% capital gains tax whether for short or long term with no offset against loss, along with that 1% TDS which is also a huge sum. For example If I sell $1000 worth of bitcoin then $10 will be deducted instantly that's flat rate whether I made a profit in that $1000 trade or not.

Higher tax rates is reducing the potential revenue for the governments, and need policy makes who need to understand this if we want to see the changes but as long as these old folks continue as leaders and just do what their central bank suggest will not lead to anything positive.

[Coyster]

In order to tax you the respective government needs your cooperation.
You have to admit owning crypto and tell them where those are.  

If crypto is taxable in your country and you fail to report it in your tax return, then that is tax evasion and it is an offence you could be prosecuted for. I am sure not many people would want to take such risks which might come back to hurt in the long run.

It sucks to pay high taxes on our crypto gains, that's for those who live in countries like Japan and Denmark, but it is what it is. People who live over there would be dissuaded to use crypto or their hands will be forced to commit the crime of tax evasion.

[EarnOnVictor]

But I'm curious to know which countries have the highest taxes? And do you think there's a chance they will lower them in the future?

To begin with, cryptocurrency should be tax-free if the government were fair. But they want to tax everything because they are greedy and will not care if anyone loses their investment in that same cryptocurrency.

I see both Japan and Denmark to be the most cruel governments in this regard. Japan has been known to be harsh with online trading and investment earnings, so I am not surprised. It could charge as high as 55% in taxes, while Denmark could charge a close figure, or even a slightly higher one in rare cases.

[The Uncouth Indian]

In our country 30% capital gains tax whether for short or long term with no offset against loss, along with that 1% TDS which is also a huge sum. For example If I sell $1000 worth of bitcoin then $10 will be deducted instantly that's flat rate whether I made a profit in that $1000 trade or not.

It's 30% tax + 4% cess, irrespective of any other income in India (so, a 15Y old kid transacting in crypto would be liable too). 1% TDS is deductible at the time of transaction. i.e., one pays 1% tax even if there is a loss.

There is still confusion, if the tax + cess is on each transaction (individually) or the sum of all transactions during the FY. This is important as there is no offset against loss.

Trust the (Indian) government to keep everything messy, and unclear, and free to interpretation as they feel like. That, while they (govt. employees) freely take bribes via crypto.