Best Crypto Tax Havens
Portugal, a former tax haven, recently announced a 28% short-term tax on Cryptocurrency gains. Are you searching for new Crypto tax havens now that Portugal is out the window?
Portugal, a former tax haven, recently announced a 28% short-term tax on Cryptocurrency gains. Are you searching for new Crypto tax havens now that Portugal is out the window? Don't worry, keep reading for alternative Crypto tax havens.
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For a long time, Portugal has been the best destination for international #Crypto investors. Why? Portugal previously granted flexible visa options as well as Crypto tax benefits (0% tax on Crypto gains!).
However, Portugal recently proposed a tax policy that would go into effect in 2023: Gains made in cryptocurrency within a year will be subject to a 28% capital gains tax. Income generated from Crypto that is held for more than a year will be immune from the tax. Additionally, the Portuguese government plans to charge a 4% tax on cryptocurrency transfers between individuals.
Now that Portugal is no longer a tax haven, let's look at some alternative options:
Switzerland
Private investors will not have to pay Capital Gains Tax on their cryptocurrency gains. But, businesses and self-employed traders would have to pay Capital Gains Tax.
There are some conditions to be met:
One must hold the Crypto assets for at least 6 months
The trading turnover must be smaller than "5x your holding"
The net capital gain must be smaller than 50% of your total income
Singapore
Since capital gains are not taxed in Singapore, capital gains made from buying cryptocurrencies for long-term investment reasons are not subject to taxes. However, you will be taxed if you regularly trade cryptocurrencies.
United Arab Emirates
Dubai has a 0% personal income tax. There is no personal income tax if you are a tax resident in Dubai, regardless of how much you make! There is also no capital gains taxes, whether you trade actively or just hold Crypto assets.
Slovenia
Slovenia has a flat-rate tax proposal on Crypto redemptions. It has a flat rate of just under 5% for cryptocurrency transactions and also when they are sold or exchanged.
The Bahamas
Citizens and foreign citizens pay no taxes on personal income or capital gains. The Bahamas also allows individuals to pay other taxes using cryptocurrencies instead of traditional fiat payment methods.
Malta
Malta has a complicated Crypto tax system. The “Blockchain Island” doesn’t have capital gains tax on profits made from cryptocurrencies that are held for the long term. However, Crypto trading in Malta is liable to a business income tax of 35%!
Puerto Rico
Residents of Puerto Rico who buy and sell cryptocurrencies are not subject to capital gains tax. However, you must follow your home country's tax laws for any cryptocurrency that is purchased outside Puerto Rico.
Malaysia
Malaysia doesn’t consider cryptocurrencies as a capital asset. Buying and selling cryptocurrency is essentially tax-free in the country. But, it is only tax-free if it’s not a regular form of income. So, crypto day traders will have to pay taxes!
El Salvador
El Salvador was the first nation to accept $BTC as a legal tender. Foreigners are not required to pay taxes on any income they earn from their Crypto profits.
Taiwan
Taiwan does not levy taxes on capital gains. Crypto trades, on the other hand, are treated as income from property transactions and must be reported as individual income for tax purposes. Those are the best tax havens available for Crypto investors. Since Crypto is a new technology, countries frequently change their tax policy. Therefore, it is advisable to consult with a tax advisor before deciding on a new country to move to.
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