The Most Crypto-Friendly Countries in the World

Bittime - In this digital era, crypto has changed the way we invest and carry out financial transactions. Many countries are now embracing the world of crypto, creating a welcoming environment for blockchain investors and innovators. In this article, we will discuss the most crypto-friendly countries in the world and related tax policies that may influence investment or migration decisions.

1. El Salvador: Pioneer of Bitcoin as an Official Currency

El Salvador made crypto world history in 2021 by adopting Bitcoin as legal currency. With this policy, Bitcoin can be used for daily transactions, even for paying taxes. This country does not impose taxes on capital gains of crypto transactions, making it one of the most crypto-friendly countries.

Crypto Tax Policy in El Salvador
If you legally reside in El Salvador, you don't need to worry about taxes on profits from crypto transactions. However, income generated from crypto activities such as Bitcoin trading or services will be subject to ordinary income tax.

2. Portugal: Offers Favorable Taxes for Crypto Investors

Portugal is known as a paradise for crypto investors in Europe. Although the country imposes taxes on profits from crypto transactions sold for less than one year, profits from crypto held for more than one year tax free. This provides huge benefits for long-term investors.

How to Invest or Immigrate to Portugal
Program golden show Portugal allows you to obtain temporary residency with a minimum investment of €500,000. This makes it an attractive option for crypto investors looking to obtain residency rights in Europe.

3. Switzerland: Financial Center with Friendly Crypto Policies

Switzerland or Swiss, with famous regions Crypto Valley in Zug, has long been a center of innovation in the crypto world. The country has a friendly tax policy for private investors. If you are not a professional trader, profit from crypto trading not subject to tax.

Crypto Tax Policy in Switzerland
Although profits from crypto are tax-free, income from crypto is still subject to wealth tax in various cantons at rates varying between 0.5% to 1%.

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4. Singapore: A Treasure Trove for Crypto Investors

Singapore is one of the largest financial centers in the world that offers a very friendly tax policy for crypto. This country does not apply capital gains tax on crypto transactions and also recognize crypto as a legal form of currency. This makes it an ideal place for crypto investors looking to grow.

How to Invest or Immigrate to Singapore
Through the program EntrePass, investors who have businesses in Singapore can obtain temporary residency. However, getting citizenship in Singapore is quite difficult because this country does not allow it dual citizenship.

5. United Arab Emirates (UAE): Zero Taxes and Promising for Crypto Business

The UAE, especially Dubai, has become a hot spot for many crypto investors thanks to its almost non-existent tax policy. Dubai Free Zone offers a tax-free zone where crypto transactions, staking and trading are not subject to tax.

Crypto Tax Policy in the UAE
Until now, Dubai Free Zone does not impose income tax or taxes on crypto profits. However, in 2023, the UAE will begin imposing a corporate income tax of 9% in this zone. Even so, the UAE is still very attractive for crypto industry players.

6. Malta: Europe's Crypto Island

Malta is often referred to as Blockchain Island, and its reputation is getting stronger as the government implements pro-crypto policies. This country has regulations that support the existence of crypto and blockchain-based businesses.

Crypto Tax Policy in Malta
If you hold crypto for the long term, you will gain profits from transactions not subject to capital gains tax. However, for profits from crypto trading, the tax rate can be very low.

7. Antigua & Barbuda: Island Country with Minimal Taxes

Antigua & Barbuda offers a very favorable tax policy for the crypto industry. This country has citizenship through investment program which allows investors to pay with Bitcoin or other crypto.

How to Invest or Immigrate to Antigua & Barbuda
By paying a fee of approx US$230,000, you can obtain citizenship in a short time. The country also offers significant tax advantages, making it an attractive option for crypto investors.

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8. Estonia: Crypto Leader in Europe

Estonia is known as a country that pioneered the use of blockchain technology in Europe. With clear and open regulations, this country has attracted many crypto companies to develop.

Crypto Tax Policy in Estonia
Estonia imposes taxes 20% for corporate and individual income. However, with advanced digitalization policies, Estonia remains a friendly country for crypto industry players.

9. Liechtenstein: Small Country with Pro-Crypto Policies

Although small, Liechtenstein has made a big name in the world of crypto. The country does not tax profits capital gains for non-professional investors, which makes it attractive for crypto market players.

Crypto Tax Policy in Liechtenstein
Income from crypto is taxed as ordinary income, however capital gains from crypto transactions are not taxed, unless you engage in professional trading.

10. Hong Kong: Crypto-Friendly Financial Hub

Hong Kong remains one of the world's largest financial centers, with crypto-friendly policies. Although there is no tax on capital gains, Hong Kong provides various incentives for crypto industry players, including tax reductions for companies operating in the blockchain and crypto sectors.
Crypto Tax Policy in Hong Kong
There is no capital gains tax in Hong Kong, so crypto investors can enjoy profits without a high tax burden.

11. United States: Land of Crypto Opportunities with Tight Regulations

The United States is home to some of the largest crypto companies in the world, but its tax policies are quite strict. Profits derived from crypto are subject to capital gains tax and are treated as property for tax purposes.
Crypto Tax Policy in the US
If you make a profit from a crypto transaction, you will be taxed according to the holding period—long-term income is lower than short-term. However, it should be noted that tax policies in the US can differ between states.

12. Germany: Security and Clarity of Crypto Regulations

Germany has been recognized as a progressive country in crypto and blockchain adoption. The country has recognized Bitcoin as legal tender and introduced strict regulations to fight fraud and money laundering in the crypto world.
Crypto Tax Policy in Germany
Germany considers crypto as private money, not as a foreign currency or asset. The country provides tax clarity for individuals and companies involved in crypto transactions, making tax reporting and calculating capital gains or losses easier.

13. Thailand: Innovation Meets Tourism

Thailand, which ranks 16th globally, has integrated blockchain into its tourism and logistics sectors. The country received $50 billion worth of crypto transactions by 2024, with expats and tourists often using crypto for local transactions.
Crypto Tax Policy in Thailand
The Thai government has established clear regulations for ICOs and crypto exchanges, providing confidence for local and international investors. This policy positions Thailand as a leader in blockchain-based tourism innovation.

Conclusion

Choosing a crypto-friendly country is crucial to maximizing investment profits. Some countries offer very favorable tax policies for crypto investors, while others provide facilities for immigrating and doing business. By understanding the tax policies and regulations of each country, you can make smarter and more profitable investment decisions.

If you are interested in the world of crypto, countries like El Salvador, Singapore, and Switzerland could be ideal places to develop your crypto portfolio. Choose the country that best suits your investment goals and needs in order to achieve maximum profits.

FAQ

Are profits from crypto investments taxed in El Salvador?

No, El Salvador does not tax profits from crypto transactions, making it a very friendly country for crypto investors.

What makes Singapore attractive to crypto investors?

Singapore offers a friendly tax policy, namely not imposing any taxes capital gains tax on the benefits of crypto and becoming a fast-growing financial center.

How to immigrate to a crypto-friendly country?

Some countries like Portugal And Antigua & Barbuda offers a citizenship by investment program, which allows you to immigrate by paying with crypto or investing in certain sectors.

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Reference

Alpha Point, 14 Countries at the Forefront of Cryptocurrency Adoption, accessed 5 February 2025.

Coincub, Top 10 Crypto-Friendly Countries in 2024, accessed 5 February 2025.

Lincoln Global Partners, The World’s Top 10 Crypto-Friendly Countries & How to Get Residency or Citizenship There, accessed 5 February 2025.

Author: MF