These Countries Have Crypto-friendly Taxation Policies
Most governments are harsh on crypto investors, imposing limitations and high taxes for those who own or actively trade cryptocurrencies. However, there are still some that give their crypto community more freedom by loosening the taxation policies.
Jurisdictions around the world are still working on implementing stricter laws concerning crypto taxation. In the US, several states are focused on becoming more crypto-friendly. Georgia and Arizona might become among the first states to accept tax payments in Bitcoin.
The EU is pretty inconsistent when it comes to cryptocurrency policies. The crypto taxation is 0% in some countries, while in others it reaches as much as 50%. Belarus still exempts cryptocurrencies, while Lithuania is already on the move to impose new laws, while Russia collects 13% tax from the citizens’ crypto incomes. You don’t owe any taxes for trading in cryptocurrencies if you are an individual investor in Denmark. However, fintech companies aren’t exempted from taxation. Germany has approved some laws regarding the crypto taxation, since Bitcoin was confirmed as a currency by the Federal Ministry of Finance. Purchasing Bitcoin touches Germany’s VAT policy, but long-term investments are exempt from taxation.
South Korea has been a crypto investors’ paradise for several years now, but things might change in the near future. The country is not taxing crypto gains at the moment of press, but it is currently in the process of adopting new laws regarding cryptocurrency investments. It is still unclear whether these new laws will make it easier or harder to trade and own Bitcoin in South Korea.
Other crypto-friendly environments include Singapore, Canada, and Belarus.