The information provided below cannot replace legal or accounting advice on your particular case but is an invitation to consider the most tax-friendly opportunities for crypto investment. We recommend that you contact our specialists for professional advice in the current situation. Germany Crypto is not absolutely tax free in Germany, but investors can easily avoid crypto taxes on a legal basis if they know the rules.

In Germany, bitcoin and other crypto tokens are considered private money, and they are subject to individual income tax but not capital gains tax. It means that investors can hold their crypto for more than one year and pay no taxes on it — even if they later sell, swap or spend it. If you engage in short-term trading, mining, and staking, you are subject to tax on that activity — unless you have held your crypto assets for more than 10 years. If you get your wages in crypto, you will be taxed as well.

However, there is one little nuance: businesses that are tax residents of the country still need to pay taxes on the profits generated from crypto transactions through corporate income taxes. We should also mention a new crypto tax law that took effect in in the EU, Germany included, which stops the trading of all crypto derivatives. Tax residence for a crypto investor in Germany According to the provisions of the German Income Tax Act Einkommensteuergesetz , natural persons who continuously spend more than six months in the Federal Republic of Germany are generally considered to be residents of that country for tax purposes.

The decision of whether or not to grant the crypto investor the status of a German tax resident also depends on whether the individual concerned has a center of vital personal and economic interests in the country. But not every crypto investor can move to Germany without unnecessary bureaucracy.

If you are an EU citizen, you can move to Germany freely and live in that country for most of the year longer than 6 months for the purpose of subsequent registration of German tax residence. On the other hand, crypto investors from a non-European country will have to apply for a residence permit in Germany on some grounds an application for a residence permit can be made, for example, on the basis of employment.

Why should a crypto investor move to Germany? There is something beyond crypto tax reasons, of course. Besides, Berlin is the most affordable western capital! If you need help with a German visa, see how we can help. Singapore Singapore is home to many crypto exchanges, like KuCoin and Phemex, because it is a crypto tax haven for investors: There is no capital gains tax in the country, so selling or trading crypto in the country is a tax free activity. Buying goods or services using crypto is viewed as barter trade rather than a payment, which means that your crypto token is tax-exempt.

Still, you cannot be exempted from absolutely all taxes. Singapore-based companies that accept payments in crypto will still be subject to income tax — in the same way as the businesses whose main service is crypto trading.

Tax residence for a crypto investor in Singapore In Singapore, corporate tax residence is determined by the place of business operations, while individuals are considered to be Singapore tax residents if they spend more than days in the country during the reporting year. Singapore offers entry visas and permits for foreign entrepreneurs, which enable eligible crypto investors to obtain a residence permit in this crypto tax free country without much hassle.

Why should a crypto investor move to Singapore? Singapore is a vibrant and dynamic destination to live, work and do your crypto business, and also an excellent country to play! Contact our experts to consider relocation opportunities for a crypto investor to this crypto tax haven.

However, this comes with a caveat: your crypto transactions should not be frequent or regular to be tax free. That is, day traders are still subject to tax on their activity. Businesses operating in the country will have to pay income tax on any profits received from crypto, and it does not matter whether these profits are in fiat currency or crypto. Tax residence for a crypto investor in Malaysia A tax resident is a person who has been in the country for more than days.

A foreign crypto investor will need a residence permit, permanent residence, or citizenship of Malaysia to stay in the country for such a long time. This option is available, inter alia, to wealthy individuals with a minimum equity of 2 million US dollars who transfer funds to a bank account in Malaysia, as well as to experts and professionals of all kinds wishing to work in the country.

Why should a crypto investor move to Malaysia? Here is a list of things to enjoy: Modern and spacious skyscrapers to rent an apartment where you will also find grocery stores, security staff, private parking, a swimming pool, gym, etc. Relaxed leisurely environment where you can explore interesting sights throughout the year as the temperature is around 30 degrees all the time High standard of living at a relatively low cost Cutting-edge healthcare system that attracts medical tourists Well-planned, modern, and inexpensive public transportation system Kuala Lumpur is the gastronomic hub of Asia If that sounds exciting enough, you can contact our experts for information on relocation opportunities for a crypto investor.

Portugal If you want to combine a sandy beach with a European crypto tax free environment, Portugal should be the country of your choice. It is an EU leader in this regard as all income received from crypto sales has been tax free since Crypto trading is not viewed as investment income in the country, so investors can engage in it without VAT or income tax payment. But it should be borne in mind that businesses naturally need to pay taxes on any income received, so this also applies to transactions with crypto tokens.

Portugal looks like an ideal country for tax-concerned crypto nomads. However, in May , the Portuguese tax office seems to have made a U-turn and signaled that crypto paradise could face changes at some point in the future. Ask our experts for updates! Tax residence for a crypto investor in Portugal You are considered to be a Portuguese tax resident if you have a house or apartment which can be rented in the country which is the center of your vital interests, or if you have lived in this European country for more than days.

These rules are also relevant for beneficiaries of the profitable NHR Non-Habitual Resident tax scheme used by thousands of foreigners. Crypto investors with EU citizenship can move to Portugal, but they need a registration certificate to legally stay in the country for longer than three months. A crypto investor from an EU country moving to Portugal will also need tax numbers for fiscal residence purposes. Citizens of non-European Union countries moving to Portugal should apply for a valid visa , and then begin the process of applying for a residence permit in this crypto tax free community.

A residence permit will allow them to obtain permanent residence and citizenship in the country over time. You can speed up and simplify this process by obtaining Portuguese citizenship by making investments. Why should a crypto investor move to Portugal? Lisbon, the capital of Portugal, is a city that will not disappoint you. Climate, hospitality and the quality of life are all there for you to enjoy!

But there are a few more details that will show the real character of Lisbon: Ranks first by quality of life and feeling of hospitality Affordable costs of living Tasty and diverse gastronomy, many dishes, appetizers, and desserts to enjoy Beaches and landscapes to explore Monuments to visit Colonialist history, ornate architecture and tradition of Fado music Lisbon is the oldest city in Western Europe that has a unique vibe and a magical way of relaxing people.

Move to this lively and colorful place to roam its narrow, sloping cobblestone streets. Malta Malta is yet another crypto tax free country: bitcoin is recognized as a unit of account, means of exchange or store of value. It means that you are not subject to capital gains tax if you use crypto as a long-term investment. A crypto investor will need to live on the island for most of the year days to obtain tax residence. And if you need a visa to Malta, here are the details you may need.

Why should a crypto investor move to Malta? The city of Sliema in Malta has everything you need for a comfortable life, work, and relaxation: from good hospitals, sunny beaches on the Mediterranean coast, and a rich nightlife to fast internet connection, a developed transport system, and a high level of physical security. There is definitely a lot to see, taste, and experience here! Belarus In March , Belarus decided to take a very insightful approach to crypto tokens by adopting a law that legalized crypto transactions in the country and also exempted the individuals and businesses engaged in such transactions from the need to pay various taxes on proceeds from crypto.

According to these legislative innovations, crypto mining, day trading, staking and holding are considered personal investments and are exempt from income tax and capital gains tax until at least when the law may be reviewed. Tax residence for a crypto investor in Belarus Individuals are considered Belarusian residents for tax purposes if they stay in the country for more than days a year.

And, more importantly, such individuals should not have tax residence in any other country. Often these transactions can be spread across multiple wallets. The pooling therefore needs to be constructed from multiple sets of records. A high quantity of transactions can often be made every year.

Due to the various rules in calculating pooling the CGT calculations can often become time consuming and costly. Transaction records are sometimes only recorded or retained in wallets for a limited time. It is important that these are exported to a more permanent record to avoid key data being lost when relevant filing or potential HMRC enquiries arise. Much like shares, not all cryptocurrencies have values listed publicly. If these are exchanged or subject to income tax on acquisition eg mining then the value of the asset will need to be calculated.

Therefore, like other assets, it is possible for capital gains to arise when exchange rates move, even if the value of the asset expressed in a non-UK currency remains the same. This can add further complexity to the calculations. Employment tax It has become more common, particularly for companies operating within the crypto-space, for employees to be paid in cryptocurrencies as opposed to cash.

If the cryptocurrency is a readily convertible asset broadly relatively easily changed into cash it will be subject to PAYE — otherwise it will be taxable as a benefit in kind. This will also affect which type of National Insurance contributions are payable.

Situs The situs of a cryptocurrencies can be very important in determining the tax position for a non-domiciled individual, who may be taxable on the remittance basis or attempting to manage their exposure to UK inheritance tax. The HMRC manuals currently state that the taxation of cryptocurrencies will follow the residency of the owner, such that cryptocurrencies held by a UK tax resident individual would be UK situs. This position has been subject to debate as, while it is practically the most feasible, it does also create some inconsistencies — for example the same cryptocurrency, owned by two separate individuals living in different countries, would have a different situs.

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