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?

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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

For a long time, Portugal has been the best destination for international #Cryptoinvestors

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

So, 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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