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Please include your IP address in your email. To bring you the best content on our sites and applications, Meredith partners with third party advertisers to serve digital ads, including personalized digital ads. Those advertisers use tracking technologies to collect information about your activity on our sites and applications and across the Internet and your other apps and devices. I have seen many millennials anxiously talking about tax-free crypto countries and taxation laws of their countries. So I think after the original Capital Gains Tax, there should be no taxation, otherwise, it will be like taxing the same money twice. Encouraged by this discussion, today I am doing this post to talk a little about tax-free crypto countries. And the answer to this is YES!
In Germany, Bitcoin and other cryptos are not considered as a commodity, a stock, or any kind of currency. Instead, these things are considered as private money in a way that’s similar to foreign currency. 23 EStG which has tax-free benefits. You bought 1 BTC on 1 August 2015 and bought another 1 BTC on 1 September 2017. On 2 September 2017, you sold your 1 BTC that you bought on 1 August 2015. In this scenario, you aren’t required to pay any capital tax gains after you cash out your 1st BTC in fiat. And because of these rules, I think it is a tax-free heaven for mid-term and long-term hodlers.
For more details see here and here. BTC are tax exempted under the light of this Danish rule. Such policies go in line with their goal of making Denmark the world’s first cashless economy. Singapore has historically been a friendly country in terms of capital regulations. That’s why in the scenario of digital currencies such as Bitcoin, it has taken a unique step. Here, Bitcoin is neither considered a currency nor a commodity.
Businesses that are involved in digital currency trading are taxed on the profits derived from their business, but for individuals, there is no specific rule. Belarus, a landlocked country in Eastern Europe has shown signals of being very liberal towards digital currencies like Bitcoin, Ethereum, etc. On 22nd December 2017, The president of Belarus, Alexander Lukashenko legalized cryptocurrencies including ICOs and smart contracts. I think it a very smart move and opens the floodgates for the legalization of cryptocurrencies on an international stage. Slovenia is another Bitcoin tax haven for individual investors where capital gains are not taxed and not considered as part of their income. But all these rules came a long time ago in 2013, and since then, there has been no further updates on this by Slovenia’s Corporate Income Tax Act. Bitcoin tax havens as they don’t have any Capital Gains taxes there.
Some of these countries are Hong Kong, New Zealand, Switzerland, Barbados, Malaysia, Mauritius, and others. So if you are living in one of the above-mentioned countries, enjoy the capital freedom. And if you are not from these countries, then you might want to move there! This list is the product of a lot of research. I am Sudhir Khatwani, an IT bank professional turned into a cryptocurrency and blockchain proponent from Pune, India.
Cryptocurrencies and blockchain will change human life in inconceivable ways and I am here to empower people to understand this new ecosystem so that they can use it for their benefit. You will find me reading about cryptonomics and eating if I am not doing anything else. I am glad to know you, and I am here because I am very curious about crypto money. I know that it will become much more common in the future. We must be ready for the future. We must continue to share information.