Buying and selling cryptocurrency without paying any taxes is undoubtedly the dream of every crypto trader. Crypto investors are required to pay thousands in taxes when they trade crypto in countries like Australia and US. However, there are many countries with zero tax policies for crypto traders who choose to relocate.
Let’s go through 4 tax-free countries for crypto investors in 2023.
Many countries require you to pay income tax and capital gains tax on the income you generate with crypto assets.
Strict regulations and tax laws on cryptocurrency make investors pay thousands in taxes every year.
Below mentioned countries allow investors to file their cryptocurrency taxes either at discounted rates or even free of cost in some cases.
Tax-Free Countries For Crypto Investors
Many investors enjoy tax-free crypto trading in Portugal. That’s because many Portuguese citizens are eligible for zero income and capital gains tax on crypto trading.
Keep in mind that professional crypto traders have to pay taxes for their crypto gains. The tax on crypto gains is calculated by combining your crypto transactions, total crypto income, and what percentage of your total income comes from cryptocurrency trading.
Many crypto companies are operating in Switzerland. That’s primarily because Switzerland is known for being cryptocurrency friendly.
There are no capital gains and income tax on the crypto income of individual crypto investors.
However, Switzerland laws do require professional crypto traders and miners to pay taxes regularly. There’s also a wealth tax on crypto assets which ranges from 0.5 to 0.8%. The percentage charged depends on the area you live in.
Singapore doesn’t currently have a capital gains tax. This means cryptocurrency investors can hold their assets and benefit from the price appreciation in the long run without caring about taxes.
When it comes to income tax, most crypto investors are exempt from it. However, businesses using crypto as a payment method might be required to pay income tax on their crypto assets.
Additionally, goods and services tax applies to goods and services you buy with cryptocurrency.
You might already know El Salvador as the first-ever country to embrace Bitcoin by accepting it as legal tender.
Since the country is trying to attract foreign investment, it doesn’t charge income and capital gains tax from foreign Bitcoin investors.
Another benefit for Bitcoin investors is that every business operating in El Salvador is legally required to accept Bitcoin as a payment method. These were 4 of the most popular and attractive countries with little to no taxes imposed on crypto investors. However, keep in mind that tax laws can change at any time, and investors must do the due diligence before relocating to one of these countries.
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