Ever wondered if there are countries with no crypto tax? It seems too good to be true, but there are regions where crypto traders and investors can live without worrying about capital gains or income taxes on their digital assets. This article gives you a look at the top tax free crypto countries and also points out a few places with stricter policies.

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17 best crypto tax free countries

Below are 17 locales that often come up in conversations about what countries do not have cryptocurrency taxes or only minimal ones. Laws can shift over time, so do your own checks or talk to a professional before booking a one-way flight.

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Belarus

Belarus has attracted attention by exempting cryptocurrency income and capital gains from tax until January 1, 2025. This policy applies to both individuals and businesses. Originally scheduled to end in 2023, the exemption was extended under President Alexander Lukashenko. Though the future is uncertain, current residents can mine or trade crypto without paying typical taxes in Belarus.

Bermuda

Bermuda does not impose income or capital gains taxes, making it a draw for high-net-worth individuals. The catch is that everyday expenses and real estate costs can be steep. Also, if you secure land or rent property beyond three years, you might face a land tax. Since 2019, Bermuda has even allowed local taxes to be paid in USD Coin.

British Virgin Islands

As one of the more famous offshore destinations, the British Virgin Islands does not levy capital gains, corporate, or income taxes. Digital assets follow the same pattern, so at the time of writing, crypto earnings are not taxed. Housing and other fees might be pricey, but for some crypto fans, the upside can be worth it.

Cayman Islands

The Cayman Islands are notable for zero income tax and no capital gains tax. This has turned the Caymans into a haven for US investors seeking to minimize liabilities. However, the cost of living is high. Imported goods often get hit with a 22 to 26 percent duty, so daily expenses can add up quickly.

El Salvador

El Salvador made global headlines as the first nation to recognize Bitcoin as legal tender. In 2023, it took another step by eliminating taxes on “technological innovation,” which includes cryptocurrency. This policy removes income tax, capital gains tax, and property tax on crypto for individuals and certain businesses.

However, details remain unclear regarding taxation on corporate transactions, foreign investments, and business-related crypto activities. While Bitcoin is widely accepted, regulatory adjustments could still impact long-term tax policies.

Georgia

Georgia offers a relaxed environment for crypto enthusiasts. Individuals can sell or trade crypto without paying either income tax or capital gains tax because the government does not treat digital assets as “Georgian sourced.” Corporations pay 15 percent if they hold crypto under an LLC or similar structure. It is an appealing option in Eastern Europe.

Germany

Germany is not entirely tax-free for crypto, but it offers one of the most favorable policies for long-term holders. If you hold digital assets for more than a year, you do not owe capital gains tax when selling. If you sell within 12 months, you may still qualify for an exemption if profits remain under €600. However, once you exceed that threshold, the full profit is subject to standard income tax rates—not just the amount over €600. This distinction is important for traders managing multiple transactions.

Learn more: Germany Crypto Tax.

Hong Kong

Hong Kong taxes residents on a territorial basis, and it does not impose capital gains tax. If your crypto transactions are considered long-term investments, you may not owe anything. On the other hand, running a crypto-related business or trading often will subject you to regular profit tax. Hong Kong’s approach may shift in future years, so stay informed.

Malaysia

Malaysia does not currently treat capital gains from crypto as taxable if you are an occasional investor. However, if you trade frequently, you could be categorized as a professional trader. In that scenario, your earnings might be classified as income, which is taxable. Crypto businesses also pay income tax on their profits.

Malta

Known by some as “Blockchain Island,” Malta has no capital gains tax on crypto used as a store of value. But frequent traders fall into a business income category that can go as high as 35 percent. Certain residency statuses and corporate formations can bring that rate down to between 0 and 5 percent, but eligibility requirements can get complicated.

Portugal

Portugal was once a prime location for zero crypto tax, but that changed on January 1, 2023. Crypto held for less than a year is now taxed at a flat 28% capital gains rate. If you hold for longer than 12 months, gains may still be tax-free. However, NFT transactions and professional trading activities are now taxable under specific regulations. Investors should carefully review the latest rules, as taxation can vary depending on residency status and transaction type.

Learn more about crypto tax in Portugal.

Puerto Rico

Puerto Rico’s unique tax laws make it a haven for American citizens looking to reduce capital gains tax. Bona fide residents can qualify for zero capital gains tax on crypto, and certain businesses pay only 4% corporate tax. However, any crypto acquired before moving to Puerto Rico remains subject to US federal taxes. Investors must also meet strict residency requirements, including spending at least 183 days per year on the island to maintain tax benefits.

Learn more: Puerto Rico Crypto Tax.

Singapore

Singapore has zero capital gains tax across the board, so crypto investors do not pay on gains if they sell or trade their coins. Still, if you receive crypto as payment or if you operate a professional trading business, you will incur income taxes. Overall, Singapore’s environment remains welcoming to crypto companies and individual traders.

Slovenia

Slovenia was historically considered a crypto-friendly country, but new crypto taxation rules have changed its status. As of 2023, Slovenia introduced a 10% tax on crypto withdrawals and payments, even for private individuals. This means if you convert crypto to fiat or use it to purchase goods and services, the tax applies. However, capital gains from occasional crypto trading are still not taxed. Frequent traders or businesses involved in crypto must comply with different rules, which can include income tax obligations.

South Korea

South Korea has repeatedly delayed imposing a 20% capital gains tax on crypto, with the latest postponement pushing it to 2028. However, this does not mean crypto is entirely tax-free. Certain transactions (such as staking rewards, mining, and income from crypto-related businesses) can still be taxed as general income. South Korean regulators continue to refine their approach, and further changes are possible before the 2028 deadline.

Switzerland

Switzerland’s reputation as a financial hub extends to cryptocurrency. For individual investors, capital gains tax on digital assets does not apply. However, if you mine or trade extensively, you could face a small wealth tax ranging between 0.5 and 0.8 percent. Switzerland’s stable legal framework and thriving crypto community attract many businesses and individuals interested in digital finance.

United Arab Emirates

The UAE, including Dubai, places no income or capital gains tax on individual crypto transactions. This is one reason it appears on so many “countries that don’t tax crypto” lists. The cost of living, however, can be very high, and goods are subject to a 5 percent VAT. Many expats enjoy the lifestyle if they can manage the overall expenses.

Learn more about Dubai crypto tax.

Beware of your crypto taxes

Living in crypto tax-free countries does not mean you can ignore tax responsibilities. Many nations adjust their laws as the digital asset market evolves. What was once zero tax for an investor might morph into partial taxes over time, especially if short-term trades rise. Americans or Eritreans (two nations with worldwide taxation) must also consider how their home government will see their earnings abroad.

It is wise to maintain thorough records of all crypto activity, including cost basis, selling prices, and transaction dates. If your local authority or home country investigates, you will be prepared to show that you followed the current rules.

What are the worst countries for crypto tax?

Now that we have covered places where crypto is taxed lightly or not at all, let’s look at a few jurisdictions known for heavier tax burdens on digital assets.

Denmark

Danish taxpayers can encounter taxes exceeding 40 percent on personal income, which may include gains from crypto. In addition, only 30 percent of certain losses are allowed to offset your gains. All these factors combine to make Denmark less attractive for crypto.

Learn more about crypto tax in Denmark.

The Netherlands

The Netherlands uses a “deemed yield” system. You pay a wealth tax based on what the government estimates your assets (including crypto) are earning each year, no matter if you actually realized a profit. The actual rates can be lower than in other European countries, but the approach to unrealized gains is distinct.

Learn more: Netherlands Crypto Tax.

India

India has implemented a flat 30 percent tax on all crypto gains and income, plus an additional 1 percent tax deducted at source (TDS) above a certain trading threshold. These measures can reduce traders’ liquidity. Anyone considering India should be aware of the strict environment.

Learn more: India Crypto Tax.

Spain

Spain’s top crypto tax bracket hovers around 47 percent for high earners, making it a tough climate for active traders. There is also a wealth tax for anyone worth more than €700,000, and only 25 percent of your net losses can be used to reduce capital gains. Anyone with significant holdings should plan carefully.

Learn more in our guide to crypto taxes in Spain.