Five Countries that are Crypto Tax Havens

Investing and trading in digital currencies can prove to be costly affairs. Your transactions invite taxation. Many countries deem your virtual business deals as legitimate sources of income.

Therefore, they levy income tax or capital gains tax on them. Visit Immediate Edge for more information on bitcoin trading.

At the same time, there are nations that refuse to tax cryptocurrencies. They are the crypto tax havens of the world. Alternatively, they may levy nominal taxes on your dealings. Check out these five tax-havens.


Belarus is in eastern Europe. Back in March 2018, it decided to give a boost to its digital economy. Therefore, the Belarus Government took three major steps for the same.

First, it declared that all crypto activities were legal. These activities included day trading, mining, etc. Secondly, all crypto activities were to be viewed as personal investments. Thirdly, such activities would be exempt from taxation.

This happy situation for individuals and businesses is due to continue until 2023! In other words, they need not pay corporate tax, income tax, or capital gains tax. The situation will undergo a review in 2023.


Portugal emulated Belarus’s actions in 2018. As an individual, you may trade in cryptocurrencies. The Government does not consider it worthy of levying investment tax.

Similarly, you may sell digital currencies. Regardless of how much you earn, you do not have to pay crypto tax.

If you are not a business owner, you need not pay income tax or VAT either. Thus, you benefit in three ways – freedom from capital gains tax, income tax, and crypto investment tax.

The wonderful climate of Portugal is an additional bonus. Therefore, you may relocate to that country without hesitation!


This country is a tax haven for both businesses and individuals. It is why several digital currency exchanges have their headquarters here. Examples are Phemex, KuCoin, etc.

The Government deems digital currencies as intangible property. In turn, such property is not liable for taxation.

Similarly, should you purchase services or goods through cryptocurrencies, you have engaged in barter trade. The authorities refuse to award the term ‘payment’ to such deals. True, the owners of the services/goods impose Goods and Services Tax (GST). However, your tokens/coins are safe from GST/VAT

You are free from the capital gains tax, too. Therefore, you may trade-in/sell cryptocurrencies to your heart’s content!

The only tax that you pay is the income tax. However, this will only happen if you are a business owner, and accept payments in cryptocurrencies. Similarly, if your organization’s core service is trading in cryptos, you will have to pay income tax.

Cayman Islands

These Islands have been renowned as a crypto tax haven for quite some time. The benefit is for both individuals and business owners. It is only to be expected, for tax laws, in general, are lax on the Cayman Islands!

The Cayman Islands Monetary Authority is responsible for taking decisions on taxes. Resident traders need not pay capital gains tax or income tax. Businesses need not pay corporate tax.

The Government feels that sufficient revenue pours in through GST, tourism, and work permits.


People call it the Crypto Valley. They consider it to be one amongst the best countries in the world, concerning tax laws. In fact, all taxation policies are in alignment with modern trends, coming up for regular reviews.

Now, do not be under the impression that Switzerland does not impose any cryptocurrency taxes at all. It is just that its taxation behavior is vastly different from that of other nations.

Let us suppose that you are an individual dealer. Furthermore, you are not engaged in professional/business deals. You are merely engaged in trading as a hobby/side hustle/non-professional freelancer. You may purchase/sell cryptocurrencies freely, without fear of taxation. You need not pay capital gains tax.

The scenario is different, if you are a business owner, or engaged in professional deals. You could be a qualified day trader. You could be a crypto miner. You must pay income tax.

You must also pay wealth tax in alignment with your annual revenue. Income tax and wealth tax are levied every year. The rate of the wealth tax depends upon your residential location.

Apart from these five countries, other tax havens include Germany, El Salvador, Puerto Rico, Malta, and Malaysia.



Your email address will not be published. Required fields are marked *