Which countries have the highest crypto taxes?

[m2017]

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).

Your topic title is a bit strange. Most bitcoiners would ask about countries with the lowest capital gains tax for bitcoin. In fact, it would be good to create a separate topic with taxes on bitcoin in different countries in the form of a spreadsheet and keep it up to date, which would be useful for the entire BTC-community.

I don't think you'll want to go to El Salvador and Puerto Rico just to reduce tax expenses. Or are you ready?

Also, if you don't withdraw bitcoin to fiat, then you don't need to pay any capital gains tax (they haven't introduced a tax on owning bitcoin yet), which means it's most profitable to use bitcoin as a means of payment.

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 don't think taxes will be lowered in the future, because such high taxes are introduced in order to "protect citizens from the harmful influence of bitcoin". Simply put, so that they don’t invest their money in this asset, but rather invest in the traditional way, which is beneficial to the state.

And in general, have you ever seen taxes tend to decrease? It seems to me that everything is happening just the opposite.

[kotajikikox]

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?

Honestly from what I have observed, the more countries see that more of their citizens are using crypto the higher the taxes they imply. Especially on tourists. They are seeing how many people are interested in crypto so they will try to take advantage of what they can. That is if they are to accept crypto. If they do not want to accept crypto, they will probably either ban it or impose higher taxes.

[Abiky]

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.

What about India? I've heard rumors that the crypto capital gains tax rate in the country is high. While this is nothing more than an attempt to discourage crypto investment like you've said, people will always find a way to trade "under the shadows".

There are many DEXs, "De-Fi" protocols, and privacy/anonymization techniques these days. But you'd have to be extremely careful if you want to avoid getting caught. I wonder if crypto donations are taxable too? At least, within the aforementioned countries.

[asriloni]

What about India? I've heard rumors that the crypto capital gains tax rate in the country is high. While this is nothing more than an attempt to discourage crypto investment like you've said, people will always find a way to trade "under the shadows".

India was also among the countries who charged very high tax to the crypto users. they charged like 31%, which is very high. Many indians were also complaining about how high tax in their country, but their gov didn't care.

[sana54210]

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.

I would say "profits" is the most important part. In crypto as long as you do not sell, you should not be taxed. If I bought bitcoin, then what I own is none of their business, as long as I do not sell then it's mine to decide what to do with them.

However, if we end up with profit by selling them then yeah it would make sense to be charged some tax because we are selling and that is the most obvious reason, we are dealing with making some money from them. It's clear that we are going to see how things will be quite different. Taxed 50% on your profit isn't really logical when you think about it, but getting taxed at least %20 would be a lot better, it would get great profits. We should definitely consider that as a good thing because we all need to pay taxes.

[BIT-BENDER]

What about India? I've heard rumors that the crypto capital gains tax rate in the country is high. While this is nothing more than an attempt to discourage crypto investment like you've said, people will always find a way to trade "under the shadows".

India was also among the countries who charged very high tax to the crypto users. they charged like 31%, which is very high. Many indians were also complaining about how high tax in their country, but their gov didn't care.

I never expected India's tax to be high, you can see that the standard of living is good in countries with high tax like the US, UK, Germany, France, Spain and others.
The standard of living is not that great there are many Indians who are living in poverty with such high taxes you would expect the impact would be felt in the Indian societies.

[Abiky]

India was also among the countries who charged very high tax to the crypto users. they charged like 31%, which is very high. Many indians were also complaining about how high tax in their country, but their gov didn't care.

Only crypto lobbyists will be able to convince government officials in India to change their mind about the crypto tax rate. If there's lots of money to be made, the Indian government will lower capital gains taxes on crypto without thinking it twice. Money talks, right? Even Pakistan who was against crypto, now decided to establish a Bitcoin reserve of its own.

Hopefully, Japan and others lower their taxes to help promote the healthy growth of the crypto industry. Otherwise, the crypto economy will go underground making it harder for governments to regulate it. Just my two sats. 

[Bitcoin Smith]

The standard of living is not that great there are many Indians who are living in poverty with such high taxes you would expect the impact would be felt in the Indian societies.

If you are not giving us money then we don't care that's what the attitude from our finance minister and also most government treat their citizens in that way.

India is having that high tax is to avoid people investing not to make more revenue and don't want to make any more money than they should and obviously not interested in their people getting better and achieve financial success with complete censorship resistance tool like bitcoin.

[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.

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.

Honestly speacking, this is insanly high tax which can encourage people not to declare their gains and look for hidden options. In other hand, for a country like India which is not among the most taxable countries like Israel or Japan, I think India apply those high taxes as a way of fighting crypto wide adoption as much as possible. Your country impose high tax rates for crypto services either and is ready to block their domains if not comply with taxation laws.

[sunsilk]

If you are not giving us money then we don't care that's what the attitude from our finance minister and also most government treat their citizens in that way.

India is having that high tax is to avoid people investing not to make more revenue and don't want to make any more money than they should and obviously not interested in their people getting better and achieve financial success with complete censorship resistance tool like bitcoin.

This is sad for Indians if this is the situation that most people are dealing with. But this isn't only happening in India but also in other developing nations.

The high taxation in general really is what makes people don't want to live a better life anymore. Because they're working hard, investing smartly and yet, the government will just take its high share with all of effort done by an individual.

And about the high taxation for crypto profits, they will not spare that. As long as there is money in it and they see people having better lives due to it, expect that they'll come to get you.

[Shifa111]

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've been digging into how different countries tax cryptocurrencies, and honestly, the results were pretty surprising. Some places I assumed to be "pro-Bitcoin" actually impose quite heavy taxes on crypto activity. Here's a summary of what I found — feel free to correct me if I missed anything:

JP Japan: Crypto earnings are treated as miscellaneous income, subject to a progressive tax scale that can climb as high as 55%, making it particularly costly for active investors. This places Japan among the countries with the for crypto investors.


 Denmark: Crypto gains are often treated similarly to financial investments like stocks. Tax rates vary, but can go as high as 56%, depending on the individual's income bracket and the nature of the transaction.

 Israel: Interestingly, Israel applies a capital gains tax of up to 50% on profits from crypto transactions between individuals. However, there are ongoing discussions about offering tax exemptions or benefits specifically for foreign investors.

Australia: Crypto is considered a taxable asset, and profits are taxed as personal income. Rates can reach up to 45%, although if the asset is held for more than a year, individuals may qualify for a 50% discount on the capital gains tax.

Brazil : Currently, there's a tax exemption for crypto transactions up to R$35,000 per month (roughly $6,000 USD). But starting next year, this is set to change — the government will begin imposing a 15% tax on all crypto gains, regardless of the amount.

It’s clear that while some countries publicly support blockchain and crypto innovation, their tax policies don’t always align with that stance. It’s a reminder that regulatory friendliness isn’t just about legal frameworks — it’s also about how much of your gains you’re allowed to keep.

Let me know if you'd like a similar breakdown of low-tax or tax-free crypto countries too.

[Cgrexp]

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.

Many countries are seeing crypto tax rates that are very high. For example, Japan has a 55% tax rate. Denmark has a 53% tax rate. High taxes are a big challenge for new investors. Some countries, such as Germany, Singapore, Portugal, and others, are offering tax-free holdings. Tax-free countries are not just about investing, they are also focusing on caution. And in tax-free countries, when you make big gains after holding for a long time, you don't have to pay taxes on them, which makes it more attractive to investors.

[yslyv]

[gunhell16]

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 have only noticed in my few years here in the crypto space that there is only caution when we are in a bull run time but when it is a bearish season, crypto or bitcoin is very deafening to others, and despite this, there are still those who create various FUD here.

So when it comes to taking taxes on the income of crypto enthusiasts, the only country I know of that has a high percentage taken from the crypto community is Japan
because the tax they take from crypto earners is also at 55%.

source: https://koinly.io/guides/crypto-tax-japan/

[Coyster]

I wonder if crypto donations are taxable too? At least, within the aforementioned countries.

I found this about Japan:

Gifting crypto is viewed exactly the same as selling it, so it's a taxable event and you'll need to pay Miscellaneous Income Tax. The proceeds would be the fair market value of the crypto in JPY on the date when the gift was given.

Gifting is synonymous to donation, so yes, if you donate or gift crypto in Japan, you are going to pay tax on the gains you have made holding those coins before you donated or gifted it, but it is tax-deductible if you are sending this donation to a registered charity. While it is tax free for the recipient of the gift:

If you’re a lucky recipient of a gift or donation made in crypto, your 'gain' is not immediately taxed, in fact, the event is tax free

[Muba20]

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?

Some governments are trying to better adopt crypto in their countries and some governments have not yet reached the final stage with it. That is why some are demanding high taxes and some are trying to keep it at a flexible level. However, based on my common sense, I understand that if governments support crypto well and make it easy, i.e. are flexible in determining taxes, then in the future, there will be great progress in the crypto platform in that country. In the future, the development of their country can increase further through cryptocurrency. At present, only El Salvador has played a very positive role in crypto. Although there is nothing positive yet in the case of other countries, I believe that if there is more adoption of cryptocurrency, those countries can also reduce their taxes.

Currently, Japan has made progressive taxes on crypto by 15-55%. On the other hand, in Denmark, its rate is 37-52%. There are now many countries in the world that have made free taxes on crypto.

[cryptomaniac_xxx]

What about India? I've heard rumors that the crypto capital gains tax rate in the country is high. While this is nothing more than an attempt to discourage crypto investment like you've said, people will always find a way to trade "under the shadows".

India was also among the countries who charged very high tax to the crypto users. they charged like 31%, which is very high. Many indians were also complaining about how high tax in their country, but their gov didn't care.

I think it's more of their government trying to discourage their population to not used crypto at all that's why the high tax. And then a couple of news about their local exchanges being hacked? The image of crypto is not good in India.

Japan is one of the highest if not the highest crypto taxes so far. Yes, they have adopted it many years ago, but at the same time, it also reflect how their government is very strict on it as compare to other countries wherein there are exemptions when you hold crypto for long term at least > one year.

[IIrik11]

What about India? I've heard rumors that the crypto capital gains tax rate in the country is high. While this is nothing more than an attempt to discourage crypto investment like you've said, people will always find a way to trade "under the shadows".

India was also among the countries who charged very high tax to the crypto users. they charged like 31%, which is very high. Many indians were also complaining about how high tax in their country, but their gov didn't care.

I think it's more of their government trying to discourage their population to not used crypto at all that's why the high tax. And then a couple of news about their local exchanges being hacked? The image of crypto is not good in India.

Japan is one of the highest if not the highest crypto taxes so far. Yes, they have adopted it many years ago, but at the same time, it also reflect how their government is very strict on it as compare to other countries wherein there are exemptions when you hold crypto for long term at least > one year.

taxation in india is a theft

apart from the income tax which has different slabs

crypto investments and gambling winnings are taxed at 30%

and even if u don't pay the income tax there is gst (goods & services tax) which is applied on all the products one purchases

and therefore, everyone in the country has to pay tax one way or another

which is really difficult for the middle class who are already struggling with unemployment and inflation

[EFS]

Japan and Denmark numbers are ridiculously high. Governments can't seriously believe they'll generate more revenue by imposing high taxes on crypto-currencies. This will only push people toward alternative methods. I think the real goal of governments that impose high taxes is to limit people's usage instead of a direct ban. But in today's global world, people have many different ways to avoid taxes. No one can stop this.

[ultrloa]

Japan and Denmark numbers are ridiculously high. Governments can't seriously believe they'll generate more revenue by imposing high taxes on crypto-currencies. This will only push people toward alternative methods. I think the real goal of governments that impose high taxes is to limit people's usage instead of a direct ban. But in today's global world, people have many different ways to avoid taxes. No one can stop this.

There's many option and I believe that many people out there engage on p2p rather than using those government regulated platforms since they would bare those consequences and pay huge taxes if they accept what government want to happen.

Those huge crypto tax they impose is so ridiculous since its like they are really discouraging people to use it because it has high tax and like they are saying their fiat is better since they offer less taxes with it.

People right now have many ways to cash out their earnings without being tracked by government.