First, he notes how Portugal, once considered the quintessential cryptocurrency tax haven in Europe for having zero taxation on cryptocurrencies, dropped the list after a short-term 28% tax on earnings was announced. investment in digital currencies. Additionally, the Portuguese government plans to impose a 4% tax on peer-to-peer cryptocurrency transfers.
So M6 Labs says itgiven that now that Portugal is no longer a tax haven, here are some alternatives for those looking for a country with little or no tax on cryptocurrencies:
Private investors will not have to pay tax on their cryptocurrency earnings, but businesses and sole proprietors will have to pay capital gains tax.
Some conditions must be met:
- You must hold crypto assets for at least 6 months.
- Turnover must be less than “5 times your participation“.
- The net capital gain must be less than 50% of your total income.
According to the M6Labs report, capital gains are not taxable in Singapore; therefore, capital gains made by purchasing cryptocurrency for long-term investment purposes are not taxable.
On the other hand, you will pay taxes if you regularly carry out cryptocurrency transactions.
3.- United Arab Emirates
In Dubai, the personal income tax is 0%, says the M6Labs group.
In particular, there is no personal income tax if you are a tax resident of Dubai, regardless of the amount of your income. Additionally, there is no capital gains tax whether you are actively trading or simply holding cryptocurrencies.
Slovenia has proposed a tax on cryptocurrency exchanges. Apply a flat fee of just under 5% for cryptocurrency transactions, as well as for the sale or exchange of cryptocurrencies.
5.- The Bahamas
Foreign citizens and residents do not pay personal income tax or capital gains tax. The Bahamas also allows individuals to pay other taxes using cryptocurrencies instead of traditional fiat currency payment methods. Additionally, this set of islands has its own central bank digital currency: the sand dollar.
The research team claims that Malta has a complicated tax system for cryptocurrencies. There is no capital gains tax on profits made from long-term held cryptocurrencies. However, cryptocurrency exchanges in Malta are subject to a 35% commercial income tax.
7.- Puerto Rico
Puerto Rico residents who buy and sell cryptocurrencies are not subject to capital gains tax. However, they must follow the tax laws of their home country for any cryptocurrency purchased outside of Puerto Rico.
Malaysia does not consider cryptocurrencies as fixed assets.
So buying and selling cryptocurrencies are essentially tax free in the country, but they are tax free only if they don’t constitute a normal form of income. Therefore, traders who buy and sell cryptocurrencies on a daily basis and live on it will have to pay taxes.
As has been said many times, El Salvador was the first nation to accept the bitcoin as legal tender, so they pushed a series of measures to make this country an ideal country for cryptocurrency investors and traders. The president himself, Nayib Bukele, has promised to grant citizenship to foreigners who declare they want to undertake this activity.
Foreigners are not required to pay income taxes that arise from their cryptocurrency profits.
Taiwan does not tax capital gains, says M6Labs. Cryptocurrency transactions are treated as real estate transaction income and must be reported as individual income for tax purposes.
However, this list is not definitive or set in stone. M6Labs acknowledges that this list needs to be updated frequently because, being a relatively new technology, countries often change their cryptocurrency tax policy.
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