Top 10 Global Havens to Avoid Paying Taxes on Cryptocurrency

As India starts levying a tax on digital currencies, here are some free options

In her 2022 Union Budget Speech, Finance Minister Nirmala Sitharaman announced that “any income derived from the transfer of any virtual digital asset will be taxed at the rate of 30%” | Image: Manikandan R

From April 1, 2022, India will levy a tax on cryptocurrency and other digital assets.

In her 2022 Union Budget Speech, Finance Minister Nirmala Sitharaman announced that “any income derived from the transfer of a virtual digital asset will be taxed at the rate of 30%”.

As investors and the founders of the crypto exchange wait to see how the proposal pans out, The Federal presents the Top 10 crypto tax-free countries in the world (yes, there are still havens where investors pay no or less tax on digital assets).



Crypto is not completely tax free in Germany, but they have quirky rules that allow investors to avoid taxes.

Germany views cryptocurrencies as private money, not capital. If you hold your crypto for more than a year, when you later sell it, trade it, or spend it, you won’t pay any tax.

Holding the crypto is essential, as crypto held for less than a year is taxed unless the profit is less than 600 euros.

Another quirk is the staking rule. If you staked your crypto to earn extra income, that crypto would be subject to taxes regardless of how long you held it. Only after 10 years of holding your crypto would the staked crypto be tax exempt at the point of sale.

Germany subjects certain cryptos to income tax, including: Getting paid in crypto and crypto mining.

On top of that, a new law that came into force in 2021 across the EU, including Germany, effectively shuts down all crypto derivatives trading. So if you mainly trade prediction contracts, the EU is not the best place to be.


In 2018, the Eastern European state legalized crypto activities and exempted all individuals and businesses from crypto tax for five years.

As such, all crypto activities, including mining and day trading, are considered personal investments, exempting them from both income and business tax. capital gains.

This law was created to strengthen the digital economy of Belarus, and it will be reviewed next year.

El Salvador

El Salvador was the first country in the world to make Bitcoin legal tender. By doing so, the country hoped to attract more investment. The country also now exempts foreign investors from paying any taxes on Bitcoin earnings or income.


Portugal is one of the best places in the world to live if you want to avoid paying crypto taxes. As of 2018, all income from the sale of crypto is tax-free. Crypto trading is also not considered investment income.

If you are not a business, your crypto is also exempt from VAT and income tax in Portugal. So, for the vast majority of investors, Portugal is tax-free on cryptos.


There’s a reason many crypto exchanges, like KuCoin and Phemex, are based in Singapore – the city-state is a crypto tax haven for individuals and businesses.

Singapore has no capital gains tax. So when you sell or trade crypto, you pay anything.

Cryptos are also considered intangible property from a tax perspective. When you spend them on goods and services, it is considered barter, not payment.

Of course, you cannot avoid all taxes. If you are acting as a business and accepting crypto as payment, you will pay income tax on it. Similarly, if a company’s main service is related to crypto trading, it would be subject to tax.


Singapore’s neighbor is also a crypto tax-free country. Since cryptocurrencies are not considered fixed assets or legal tender, crypto transactions are tax-free for individual investors.

This comes with a caveat, however. The Malaysian Inland Revenue Board claims that crypto transactions are tax-exempt only when they are not regular or repetitive. So, in other words, if you trade like a day trader, you will pay taxes.

Similarly for businesses involved in crypto, profits are subject to tax whether those profits are in crypto or fiat currency.


Known as the blockchain island, Malta is a crypto tax haven. The country recognizes Bitcoin and other cryptocurrencies as a “unit of account, medium of exchange, or store of value.”

This means that you will pay no capital gains tax on long-term gains from the sale of crypto provided it is considered a “store of value”.

That said, crypto trades are considered similar to day trading stocks or shares. As such, they are subject to a tax rate of 35%. However, there are structuring options that allow this tax rate to be reduced to between 0% and 5%.

Cayman Islands

The Cayman Islands, a British Overseas Territory, has long been a tax haven for businesses and investors, and crypto is no exception.

For businesses and individual investors, the Cayman Islands is a crypto tax haven. The authorities impose no corporate tax on businesses and no income or capital gains tax on residents.

Porto Rico

Although Puerto Rico is an unincorporated territory of the United States, it is considered a foreign country for federal income tax purposes. Thus, the country establishes its own tax laws.

Puerto Rican residents pay territorial income tax much lower than the US federal income tax rate. Digital assets acquired while you are a resident of Puerto Rico are fully exempt from capital gains tax.

If you are a US resident who acquired crypto before moving to Puerto Rico, you will still need to follow IRS crypto tax laws. However, if you acquire crypto after establishing residency in Puerto Rico, you are essentially in the clear.


Switzerland has long been considered one of the best places to live in the world when it comes to taxation, with policies that have earned the country the nickname “Crypto Valley”.

This does not mean that you will not pay any tax on your crypto, it just means that the crypto tax laws in Switzerland are very different from those of other countries.

You will pay income tax on crypto mining, as well as if you are a qualified day trader. You will also be subject to wealth tax, levied on your total net worth each year. The wealth tax rate depends on the canton in which you reside.

For individual investors, crypto profits are exempt from capital gains tax. Thus, selling and trading cryptos is tax-free for many investors.

Previous Where the January 6 Committee spends its money
Next Inside a mega houseboat in Miami at the center of a tax dispute