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Ready to explore the future of finance? I’m here to share 12 of the most crypto-friendly countries in 2024. Find out where the future of digital currency is headed!
If you’re into cryptocurrencies like I am, you’ve probably wondered which countries are the most welcoming. As someone who’s traveled extensively and kept a close eye on how different places are adapting to crypto, I’ve gained some firsthand insights that I’m excited to share.
This year, the scene is vibrant and varied, stretching from Europe to Asia. Having navigated these waters myself, I’ve seen up close which countries not only accept crypto but actively support its growth. We’ll look at what makes these countries stand out and how they’re shaping the future of digital finance.
Let’s kick things off and dive deeper into each country. Starting with El Salvador, I’ll walk you through what makes these spots the world’s most crypto-friendly countries in 2024.
What are crypto-friendly countries?
A crypto-friendly country is a place where the laws and regulations support the use of cryptocurrencies like Bitcoin.
These countries make it easier for people to buy, sell, and use crypto without running into heavy taxes or tough legal barriers. They often have clear rules that help people feel secure about their crypto investments and transactions.
This doesn’t just attract individuals who are into crypto, but also businesses that want to work with digital currencies.
Now that you know what makes a country welcoming to crypto, let’s dive into our first destination on the list: El Salvador.
1. El Salvador
El Salvador is leading the charge as one of the world’s most crypto-friendly countries. They went all in and made Bitcoin legal tender, the first country to do so. Here, you can pay for your coffee, your hotel, or even a beachside snack using Bitcoin. This bold move aims to shake up their reliance on the U.S. dollar and spark their economy.
The introduction of the Chivo Wallet was a game changer. It’s essentially like having a digital bank in your pocket, available to everyone, even if they’ve never had a bank account before. Over 70% of Salvadorans were outside the formal banking system, and now they can send and receive money, pay for services, and manage their finances just with their phones.
Since Bitcoin is legal tender here, there’s no capital gains tax on it. However, if you’re dabbling in other cryptos, remember, the tax rules aren’t as clear.
If you’re considering making a move or just investing, spending over 200 days a year in El Salvador or earning most of your income through a local business could qualify you as a tax resident.
2. Portugal
Portugal is quietly becoming a go-to spot for crypto enthusiasts, and here’s why. If you’re into cryptocurrencies and thinking about where to base yourself, Portugal’s tax rules are pretty hard to beat.
Hold onto your crypto for over a year, and any gains you make are tax-free. That’s right, zero capital gains tax on long-term investments. For someone planning to hold their assets, it doesn’t get much better than that.
Even if you’re trading more frequently, the rules are straightforward—a flat 28% tax on gains from holdings less than a year. Passive income from crypto, like staking or lending? That’s taxed at the same rate. It keeps things uncomplicated and predictable.
All transactions in Portugal made purely in crypto are tax-free. This not only boosts crypto usage but really cements Portugal’s place as a forward-thinking country in the digital currency space. Plus, you can buy property in the country entirely using crypto.
Whether you’re considering moving there or just investing, Portugal’s crypto tax rules are worth a look. In my opinion, it’s one of the most crypto-friendly countries in Europe.
3. Singapore
If you’re thinking about cryptocurrencies and where to get involved, Singapore might just catch your eye. One big perk? No capital gains tax on what you make from crypto. That means when you sell your crypto or trade it, you keep all the profits. This is pretty awesome for anyone from casual traders to serious investors.
Cryptos are treated like any other property you’d barter with, so buying things with crypto is straightforward. The actual crypto isn’t taxed, but what you buy might still have goods and service tax (GST) on it.
Now, if you’re in business here, accepting crypto does mean paying income tax, and the same goes if you’re trading full-time. Singapore’s income tax rate is around 17%—not the lowest, but still competitive.
Personally, I think Singapore is smart about how they handle crypto. They’re setting up a space that’s open to growth but still keeps things orderly. If you’re looking for crypto-friendly countries in Asia, this place has a balanced approach.
4. Germany
Germany offers a pretty cool deal when it comes to crypto taxes. There’s a €600 tax-free allowance. If your profits from selling crypto within a year don’t exceed this amount, you won’t owe any taxes on those gains. It’s straightforward and makes dabbling in smaller amounts of crypto pretty hassle-free.
Now, if you’re patient and hold onto your crypto for at least a year before selling, any profits you make after that period are completely tax-free. This applies no matter how much you profit, which makes Germany a great place for longer-term crypto investments.
However, if you do make more than €600 in a year from selling crypto (or any personal economic assets), that amount gets added to your total annual income and could bump you into a higher tax bracket. That means the more you make, the more attention you should pay to your tax situation.
I find Germany’s approach pretty smart. It encourages both small-scale trading and long-term investment without the immediate tax hit you might experience elsewhere. For anyone serious about crypto, Germany’s rules can really work to your advantage.
5. Switzerland
Switzerland is really making a name for itself in the crypto world. It’s home to over 1,000 crypto & blockchain companies, and a lot of people here—about 20%—are into crypto, which is more than most places. If you’re just investing on your own, you won’t pay any capital gains tax on what you earn from crypto. That’s a big deal because it lets you grow your investments without worrying about a tax hit every time you sell or trade.
If crypto trading is how you make your living, expect to pay up to 7.8% in taxes on those profits. Plus, you’ll contribute around 10% towards social insurance. Holding crypto can also bump up your wealth tax if your total assets go over the exemption limit at the end of the year.
There are a few rules to keep in mind to enjoy these tax benefits. For example, you need to hold onto your crypto for at least six months, and your trading turnover shouldn’t be too high. Also, avoid using loans to buy your crypto and keep derivatives just to protect your investments.
One of the most cryptocurrency-friendly countries, Switzerland strikes a nice balance. It’s great for both casual and serious crypto investors.
6. United Arab Emirates
The United Arab Emirates (UAE), especially Dubai, is quickly becoming a hotspot for crypto enthusiasts. If you’re into crypto, you’d be interested to know that Dubai is not just about luxury and business—it’s also advancing in digital currency. They’ve set up the VARA, which is the first dedicated regulator for virtual assets globally. This move really shows they’re serious about creating a safe and stable environment for crypto operations.
Dubai’s rules for crypto are clear and they make life easier for anyone looking to avoid the complex regulations you might find elsewhere. Plus, the tax benefits are pretty hard to ignore. If you’re a tax resident there, you get to enjoy zero capital gains and income tax on your crypto gains. You can even buy property or luxury cars with crypto, or convert it to cash without worrying about a tax hit.
In 2023, Ras Al Khaimah introduced a free zone specifically for digital and virtual asset companies. It offers 100% foreign ownership and no income or corporate taxes, which is perfect for international businesses.
Without a doubt, the UAE is one of the most crypto-friendly countries in the world. They’re leading the game in the industry.
7. Malta
Malta is seriously a great place for anyone into crypto. It’s often called “Blockchain Island” because of how friendly it is towards cryptocurrencies. Over there, using crypto is as normal as using cash. You can pay for your dinner, shop, or even book experiences all over the island using digital currencies.
The local laws are clear. If you hold onto your crypto, you won’t face any capital gains taxes, which is a huge plus. But if you’re trading actively, then your profits are taxed just like income. This can range from 0% to 35% based on how much you make.
This makes Malta not only one of the cool places to visit in Europe but also a smart place to live if you’re looking to make the most of your crypto investments. They even have special programs for people who want to become residents or citizens based on their investment.
Malta’s approach to crypto is proactive and welcoming. It’s a perfect example of a place that’s leveraging its regulatory environment to attract digital nomads and crypto traders. If you’re looking to enjoy some Mediterranean sun while keeping your crypto ventures thriving, Malta could be a spot worth considering.
8. Malaysia
I highly recommend Malaysia if you’re looking into crypto investing. It’s pretty relaxed about it, with no capital gains tax on what you earn from selling your crypto. This is a big deal because it means any profit you make from selling cryptocurrencies, considering they’re not seen as capital assets or legal tender, won’t get taxed for individual investors.
But, here’s a heads-up: this tax-free benefit applies as long as your crypto transactions aren’t regular or repetitive. If you start trading frequently, like a day trader, then you’ll need to pay taxes on your profits, just like any other income.
For businesses that deal in crypto, the approach is straightforward—profits are taxed, whether they’re in crypto or regular money. This clarity makes it easier for businesses to plan their finances without worrying about how to handle crypto earnings specifically.
I think Malaysia’s stance is pretty smart. It supports casual crypto investors and keeps things simple. But if you’re looking to trade more aggressively, you’ll have to factor in the taxes.
9. Georgia
Georgia is becoming famous for being super tax-friendly when it comes to cryptocurrencies. Here’s the lowdown: if you’re in Georgia, any profits you make from selling your crypto as an individual won’t be hit with income tax. That’s a huge perk.
Also, Georgia doesn’t see crypto as being “Georgian sourced.” This means no capital gains tax on your crypto profits either. Basically, you can buy and sell cryptocurrencies and not worry about those gains eating into your wallet through taxes.
If you’re operating through a legal entity like an LLC, the situation changes a bit. Profits from crypto are taxed, but only at a 15% corporation tax rate, which is still pretty manageable, especially compared to some other places.
Georgia’s approach to crypto taxes might just be what you’re looking for if you’re diving deep into cryptocurrency. They really cut down on the red tape, letting both individuals and businesses keep more of their crypto gains, unlike many other places. It’s pretty refreshing and makes Georgia stand out among countries that are crypto-friendly.
10. Estonia
Thinking about where to dive deeper into the crypto world? Well, let me tell you about a place that’s really on the ball with crypto: Estonia. It’s known for being one of Europe’s tech hubs and is super welcoming to crypto companies.
Estonia lets companies reinvest their profits without paying corporate income tax until they decide to distribute them. This is perfect if you’re looking to expand without getting bogged down by immediate taxes. For day-to-day dealings in crypto, you won’t pay VAT.
On a personal level, you’ll only deal with taxes if you’re cashing out your crypto into fiat, swapping for another cryptocurrency, or buying other items. The tax only applies to your gains—the difference between what you paid initially and what you earn at the end.
Plus, Estonia was pioneering in providing cryptocurrency business licenses, integrating crypto companies into the financial mainstream under strict, transparent regulations. This not only boosts trust but also ensures stability.
If you’re all about embracing technology and looking for a supportive environment, Estonia might just be your next move.
11. Vanuatu
Have you ever thought about Vanuatu? Not only is it a stunning island paradise, but it’s also unique in the world of cryptocurrency. It’s the only country that lets you buy citizenship with Bitcoin. If you’re looking into expanding your passport portfolio while investing in crypto, this might just catch your interest.
Vanuatu’s approach to taxes is also pretty incredible for anyone in the crypto space. There’s no income tax or corporate tax, which is a huge bonus. This makes it an ideal spot for crypto traders and digital nomads who want to keep more of their earnings while enjoying a tropical lifestyle.
Plus, with a Vanuatu passport, you get the added perk of easier travel for five years. It’s a smart strategy if you’re looking to expand your global access and financial flexibility.
If you’re all in on crypto and want to make a life where you maximize your earnings and see the world, Vanuatu could be a game-changer.
12. Bermuda
Last on our list of the top crypto-friendly countries is Bermuda. There’s no personal income tax, which includes your crypto activities. So, buying, selling, or holding crypto? No taxes on any of that.
Even cooler, you can use crypto to pay for things, and it’s completely legal and tax-free. Bermuda is actually leading the way here. They’re the first government to accept cryptocurrency for tax payments. That shows they’re really serious about supporting and integrating crypto into everyday life.
Bermuda is on a mission to become a key international hub for cryptocurrency. If you’re into crypto, this place offers a great environment along with financial perks that are hard to find elsewhere.
Frequently asked questions (FAQs) about the most crypto-friendly countries
Are you still wondering which countries are crypto-friendly? Explore our FAQs and get the answers you’re looking for!
Is the US a crypto-friendly country?
Yep, the US is pretty friendly towards crypto, with plenty of regulations in place. Just keep in mind, the rules can change a lot depending on which state you’re in.
Which country in Europe is the most crypto-friendly?
Portugal is considered one of the most crypto-friendly countries in Europe. They don’t tax your crypto gains if you’re not trading professionally, which is a huge plus.
Which country has the highest tax rate in crypto?
Japan is among the countries with the highest tax rates on cryptocurrency. Certain crypto transactions can be taxed at rates as high as 45%.
How is crypto taxed in the UK?
In the UK, if your crypto gains are over £6,000, you’ll need to pay a capital gains tax of either 10% or 20%. And if you’re making money beyond the personal allowance, the income tax on that could be anywhere from 20% to 45%.
