Best and Worst Countries for Crypto Taxation

Crypto analytics company, Coincub, released their annual crypto tax ratings, ranking the best and worst companies for crypto taxation. Today, most countries view cryptocurrency as an asset rather than a currency. As a result, if you spend or swap your crypto, it is viewed by tax authorities as a disposal event where you would pay taxes. Global cryptocurrency taxation laws vary significantly among countries, some with favorable policies and others that are incredibly burdensome on cryptocurrency holders. Here are the best and worst countries for crypto taxation:

The Best

Germany

According to Coincub, Germany takes the top spot for most favorable cryptocurrency taxation. Germany has formalized much of its crypto regulation and taxation, offering a very generous no-tax on crypto held for over a year. A country with a long traditional for saving, this is an efficient incentive that rewards its own citizens well for investing long-term.

Italy

New taxation policies in Italy are targeted towards attracting high-net-worth individuals. The tax structure there is developing. Currently, gains sourced in Italy are taxable as income, with an exemption on income from crypto up to €51,000. Foreign income and gains can be sheltered from Italian tax. But navigating this country’s tax structure definitely requires an expert.

Switzerland

The land of financial secrets doesn’t stop when it comes to crypto. Taxation varies from region to region, but overall capital gains from crypto are tax exempt. The income allowance can be up to $18,000 before tax, but exact tax depends on where you live.

Singapore

Singapore topped the best crypto tax countries in 2021 for its well-rounded crypto economy. But just considering tax, it is a desirable place to trade. There is no capital gains on crypto earnings and as little as 22% for high earners.

Slovenia

Slovenia has a burgeoning crypto economy and a loosely regulated approach. There is no taxation for the sale of Bitcoin. But they also don’t consider crypto gains to be income. That makes their tax structure minimal on crypto.

The Worst

Belgium

Belgium tops the list for Coincub’s worst countries for crypto taxation. Speculative transactions on crypto assets are subject to capital gains tax of 33%. Crypto transactions regarded as income are worse, with progressive tax rates up to 50%.

Iceland

Iceland has a progressive tax rate that starts quite early. Crypto gains up to $7k are taxed just under 40%. Above $7k, and the tax rate increases to 46%.

Israel

Israel does not confer any of the benefits provided to currency trading to cryptocurrency. The sale of crypto assets are subject to a capital gains tax of 33%. If the investment activity is for a business, the income tax could increases to 50%.

The Philippines

In the Philippines, income under $4,500 is tax free. Up from that, there is an incremental tax structure that can go up to 35%. The Philippines are also discussing implementing a transaction tax along with the flat rate. If implemented, this will almost certainly make the Philippines one of the most heavily taxed areas for crypto holders.

Japan

Japan does not tax anything under $1,500 per year. After that, tax increases depending on income, from 5% to 45%.

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