This is a list of the 5 most forward thinking countries when it comes to Bitcoin. Most of these countries not only have low (or even zero) cryptocurrency taxes, but are also conducive to building blockchain technology. Countries that embrace new technologies like distributed ledgers, which go hand in hand with cryptocurrencies, are sure to open up new tech markets in the long term.

1. Belarus

Belarus is at the top of the list because its taxes for Bitcoin are 0% till the year 2023. According to the Belarusian government, cryptocurrencies are tax exempt till 2023 to help build its special economic zone, HTP Belarus, to compete with Silicon Valley. Aside from this, Belarus has also declared smart contracts as legal documents. If you’re thinking of setting up a blockchain tech company, Belarus should be very high on your list. You may view more on how you can do that, online.

2. Portugal

Personal income from cryptocurrency gains aren’t taxed in Portugal. This is different from business income or capital gains (asset appreciation), but if you hold your crypto assets under your own name and not a company’s, they are essentially one and the same. The Portugese government has further clarified that sale of cryptocurrencies does not come under capital income or capital gains. However, if individuals carry out professional or business activity related to cryptocurrencies, that’s a different matter, and is liable to taxation.

3. Hong Kong

While there is news of Hong Kong regulators cracking down on securities and exchange fraud, with some cryptocurrencies entering the limelight through association, Hong Kong is still a great place for investors. Hong Kong has zero VAT or capital gains tax, making tax regulation surrounding cryptoassets much easier. It’s also the Asia hub for blockchain and crypto companies, such as Binance and Kucoin, although the former is moving to Malta.

4. Netherlands

Netherlands is the first country in this list that has a non-zero tax rate for cryptocurrencies, but the advantage is it’s a very simple and low-tax regime. Bitcoin and other cryptoassets are declared along with other assets an individual owns on the 1st of January for that assessment year. With this in mind, the highest tax bracket for capital income is around 5%. (Note: we don’t have a good source on the exact number since it keeps changing every year, and well, none of us are Dutch).

5. Germany

Germany is the economic hub of the EU, and therefore is a great place to set up a crypto or blockchain tech company. Germany’s fintech industry has been booming over the last decade, and with it comes favourable cryptocurrency laws that allow it to remain at the centre of trade and commerce in Europe. Bitcoin and crypto-assets have a 0% tax when used for payments – this is because there is no VAT when paying with something like Bitcoin because there is no value added through cryptocurrency as a fiscal product. The other advantage is, Bitcoin and altcoins aren’t taxed at all if held for over one year.

Conclusion – Best Countries for Crypto Investors

Our investing cheat sheet will help you or your potential cryptocurrency investor friends who might be looking to buy and HODL some Bitcoin.

Disclaimer: This article does not constitute financial or investing advice. Cryptocurrency investments are highly risky and come with their own regulatory and legal risks. Also, this article isn’t telling you to avoid paying taxes – it’s simply a reflection of countries where crypto assets are regulated but non-taxable.

If you want to know more about countries with preferential treatment to cryptocurrencies, take a look at our article on countries that have Bitcoin as their official currency.