As cryptocurrencies continue in their path of establishment as one of the new preferred forms of money in the world, the jury is still out in many countries around the world about the proliferation and welcoming of crypto centered activities in their local economies. Just like when wagering on the scores and odds of your favorite sports teams, different countries around the world have been hesitant at first to dive into crypto based activities, but after seeing the results have taken the full jump right in.
Now, while some countries around the world have accepted cryptos with open arms and encourage people to explore the usage of said e-currencies, others, like China as of most recently have closed their doors on them completely. But for now, let’s focus on the countries that offer the best conditions and commodities for using cryptocurrencies.
Germany has stepped up at the helm of being one of the most crypto friendly countries in the world, given the facilities and commodities it offers individual crypto traders and investors to do their biddings peacefully without having to stress over taxation issues. The German government has found that offering personal crypto investors a one-year window, where if they hold on to their currencies for that amount of time and further, dealing and investing without cashing out, they are awarded an exemption from capital gains taxation payments. It is only if the funds managed through said cryptos get exchanged for an amount of over $700 that investors are obligated to report their income for taxation purposes.
Businesses and companies who deal and trade with cryptocurrencies are still expected to pay the required income taxes held for corporations in order to maintain a work order where taxation for said assets is managed in the same way as with other regular monetary assets.
Switzerland has become the preferred location for cryptocurrency management companies and foundations to set up shop and do their work from there. Companies such as Ethereum, the Diem Association and Tezos to name a few have all chosen the small central Europe country as their home, especially given the absence of taxation laws regarding managing, dealing and profiting from cryptocurrency trading.
When it comes to regular taxation for crypto investors, big and small, Switzerland handles crypto taxation issues in the same manner that it does regular flat transaction taxation, with crypto investors having the advantage of not having to report their transactions for taxing purposes. With this in mind though, profits that stem from crypto related economic ventures do have to go through income taxation regulations as well as investors having to pay an annual wealth tax depending on their earnings throughout the year.
Known as the “Europe’s blockchain island”, the small island of Malta has some of the best law packages that work towards favoring conditions for cryptocurrency investors, traders and entrepreneurs from all around the world. Some of the main advantages that international investors, both big and small, from individuals to multinational companies, get offered in Malta for investing and trading in cryptos is that they are exempt from paying income and capital gains taxes as long as their investments are long termed and structured properly.
Given that Malta has always been a tax shelter for international business companies, the country has doubled down in their economic policies to be able to offer crypto investors the best and most competitive working conditions around. The country sees cryptocurrencies as assets completely separate from regular currencies, meaning that regular income taxation fees are not upheld in the same manner, making this country one of the most crypto friendly places in the world both for locals and foreigners.
The small third-world country in Central America shocked everyone when they were the first country to officially accept Bitcoin, the world’s leading cryptocurrency as a legal form of currency to be used in businesses from all walks of life. With this move, the small country is betting on attracting as many foreign investment sources and opportunities by offering attractive tax exemption policies regarding crypto trading and investment activities, which at the end of the day is the spearhead in their plan for economic growth in the area and for gaining notoriety in the world economic scene.
While business ventures are still to pick up pace in El Salvador, the country has received its fair amount of praise, being considered one of the best countries in the world to deal with cryptos thanks to their tax-free regulations and policies.