Countries in which Bitcoins are tax-free

With tax season having finished, many people know that most tax agencies expect tax of some kind to be paid on cryptocurrencies — and that tax agencies are actively looking for those who are evading taxes. There are however, a few countries where cryptocurrencies are not taxed under some or all circumstances, notably for those who buy, hold, and sell cryptocurrencies — where it is completely legal and state-sanctioned not to pay taxes on cryptocurrency investment gains.

While some countries are developing legislation on digital assets and are trying to levy cryptocurrency taxes on the population, there are still a number of countries in the world where it is possible to conduct transactions with digital assets and not pay taxes for it. Here are some “shelters” for Bitcoins — Tax-free crypto countries:

Portugal
In August 2019, the Portuguese Tax and Customs Authority exempted both crypto trading and crypto payments from taxation. It should be noted that this exemption applies to individual investors only. Businesses still need to pay taxes on their crypto profits.

In this country, individuals do not need to pay capital gains tax or value-added tax (VAT) when acquiring or selling Bitcoin or other digital assets. Thus, in the country, the relevant authorities refused to levy these taxes, and the Portuguese Tax Administration (PTA) noted that “the exchange of cryptocurrencies for“ real ”currency is the provision of services on request and without VAT.” However, the PTA noted that if enterprises accept digital currencies as payment for goods or services provided, they will have to pay income tax and VAT. It turns out that the laws of Portugal regarding cryptocurrencies are one of the most favorable in the world because income tax is considered a huge expense in the accounts of most digital assets.

Germany
Bitcoin and other cryptocurrencies’ have enjoyed tax-free status in Germany since 2013. Cryptocurrencies are considered “intangible assets” and their trade or use as a means of payment is considered as a “speculative transaction.” Under current tax law, any transaction of 600 EUR or less is exempt from taxes and any gains from the sale of cryptocurrencies held for more than one year are also tax-free.

In this country, there is no need to pay taxes for the storage of bitcoin for a year or more. Regardless of the amount of money earned when selling BTC, you do not need to pay a capital gain while you save your coins for a period exceeding 12 months. In Germany, it is believed that BTC is private money, and this contradicts the widespread opinion in many developed countries that consider cryptocurrencies as goods, capital, and direct currency. In Germany, private sales not exceeding 600 euros are not taxed. However, enterprises are still required to pay taxes on profits that they receive from bitcoins through corporate income taxes.

Singapore
Previously, only profits from the sale of cryptocurrencies held over longer periods for investment purposes were tax-free in Singapore, however as of January 1, 2020, the “exchange of digital payment tokens for fiat currency or other digital payment tokens” are exempt from taxation.

Both individuals and corporations that choose Bitcoin or another digital asset as a long-term investment are not taxed in Singapore. It’s simple — in this city-state there is simply no such thing as a capital gains tax. However, those enterprises that are based in Singapore and cryptocurrency trading as their main activity pay income tax. In addition, companies pay tax on profits earned in Singapore, and those that are calculated by Bitcoins as payment for the services provided are subject to the usual income tax rules.

Malaysia
In Malaysia, as in the previous neighboring country, there is no capital gains tax. Cryptocurrency transactions that involve cash or other digital assets are not taxed in this country. However, the situation may soon change if Malaysia recognizes Bitcoin as the country’s official means of payment. Active rumors have been circulating about this in the local media in the past few months.

You can Book Hotels and Flights in any countries mentioned above using Bitcoin or other cryptocurrencies at XcelTrip and make unforgettable memories today. Try XcelTrip platform today!

https://www.xceltrip.com/