Beautiful Virgin Islands

Tuesday, Jul 15, 2025

Here Are 11 Countries That Don't Impose Tax For Crypto Gains

Here Are 11 Countries That Don't Impose Tax For Crypto Gains

Crypto tax policies vary country by country. While some have very strict rules, others have taken a more liberal approach for various reasons.

Managing tax has become a headache for anyone invested in Bitcoin and other digital assets. For many, especially early investors, it has really become a major problem.

Some countries are borderline harassing investors for taxes on income and capital gains from Bitcoin transactions. Others are approaching the topic differently by implementing more crypto friendly legislation — even promoting better adoption and innovation within the crypto industry. Some have gone as far as to give investors to buy, sell, or hold digital assets with zero tax liability.

Here’s a list of 11 countries that have the most crypto-friendly tax jurisdictions (as of September 2021).

1. Belarus

Belarus is taking a new, experimental approach to cryptocurrencies. In March 2018, a new law legalized cryptocurrency activities in the East European state, exempting individuals and businesses involved in them from taxes until 2023, when it will be reviewed.

Under the new law, mining and investing in cryptocurrencies are deemed personal investments, and so exempt from income tax and capital gains.

The liberal laws aim to boost the development of a digital economy, and technological innovation. The country was recently ranked third in Eastern Europe and 19th globally in levels of P2P crypto trading.

2. Germany

Germany has a very special tax regime for digital currencies such as Bitcoin. Unlike most other EU states, Germany regards Bitcoin as private money, as opposed to a currency, commodity, or stock.

For German residents, any cryptocurrency held for over a year is tax-exempt, regardless how much it is. If the assets are held for less than a year, capital gains tax doesn’t accrue on a sale, as long as the amount does not exceed 600 euros ($692).

For businesses it’s different; a startup incorporated in Germany still needs to pay corporate income taxes on cryptocurrency gains, just as it would with any other asset.

In 2021, a new controversial tax law came into force which effectively kills crypto derivatives trading in Germany, as losses can no longer be deducted. The legislation reflects moves across EU to regulate derivatives.

3. Hong Kong

A Special Administrative Region of China, Hong Kong has theoretical autonomy over its own affairs, including tax legislation on cryptocurrencies. While Hong Kong’s relationship with crypto is complicated, a new guidance was issued in 2020.

Essentially, whether cryptocurrencies are taxed or not depends on their use, says to Henri Arslanian, a crypto expert at PwC.

“If digital assets are bought for long-term investment purposes, any profits from disposal would not be chargeable to profits tax.”

Arslanian added that this doesn’t apply to corporations or more accurately: their Hong Kong-sourced profits from cryptocurrency business activities would be taxable.

PwC clarified in its guide to crypto tax treatment in various jurisdictions back in 2020 that Bitcoin is considered a virtual commodity for tax purposes.

4. El Salvador

After passing of a law to make Bitcoin legal tender in El Salvador, the country will exempt foreign investors from paying tax on their Bitcoin gains. That’s according to Javier Argueta, legal advisor to President Nayib Bukele:

“If a person has assets in Bitcoin and makes high profits, there will be no tax. This is done obviously to encourage foreign investment. There will be no taxes to pay on either the capital increase or the income.”

The legal framework is not yet in place around these tax exemptions, but it’s a clear indication of the country’s intention to attract foreign investors with crypto portfolios.

5. Malaysia

In Malaysia, crypto transactions are currently tax-free, and cryptocurrencies don’t qualify for capital gains tax, because digital currencies are not considered assets or legal tender by the local authorities.

But, profits from active crypto trading may be regarded as revenue, and thus considered taxable income.

Ranjeet Kaur, communications director at the Malaysian Inland Revenue Board (LHDN) said

“If the transaction is more of a capital gain, passive, or as done occasionally, unplanned or unsystematic, then the profit from such sale and purchase is a tax-free income. [in other case] the party is considered to have conducted a transaction or profession [and subject to tax].”

Businesses involved in crypto are subject to Malaysian income tax.

6. Malta

The government of the so-called “Blockchain Island” – Malta, recognizes Bitcoin “as a unit of account, medium of exchange, or a store of value.”

Malta doesn’t therefore apply capital gains tax to long-held digital currencies like Bitcoin, but crypto trades are considered similar to day trading in stocks or shares, and attract business income tax of 35%. But, this can be mitigated to between five percent and zero, through “structuring options” which are available under the Maltese system.

Malta’s fiscal guidelines, published in 2018, also discriminate between Bitcoin and so-called “financial tokens,” equivalent to dividends, interest or premiums. The latter are treated as income and taxed at the applicable rate.

Malta came second after Liechtenstein in PwC’s 2020 Crypto Tax Index, which ranks jurisdictions based on how comprehensive their guidance is.

Read the full article at Fintechs.fi

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
×