It’s well knowledge that Portugal has some of the most accommodating regulations in the world when it comes to cryptocurrencies. The government has adopted a lenient posture on cryptocurrency holdings, making it one of the top crypto-friendly countries in the world.
Furthermore, those who make money via the acquisition and selling of cryptocurrency do not have to pay taxes on their capital gains. You also won’t have to pay any taxes if you decide to trade one cryptocurrency for another or for fiat cash.
Incubators for blockchain and cryptocurrencies may be found all across Portugal, with notable examples like The Block (Lisbon) and The Blockchain Center (Porto). Events like this provide crypto fans and blockchain engineers with a meeting place.
As El Salvador has previously done, the island nation of Tonga is mulling over the possibility of recognizing bitcoin as a legitimate form of currency.
A former member of the Kingdom of Tonga’s Parliament named Lord Fusitu’a put out a series of tweets in January 2022 discussing how and when Bitcoin will be recognized as a legitimate currency in the Kingdom of Tonga.
According to him, Bitcoin should be recognized as a legitimate form of payment no later than October 2022.
3. The United States
Among nations, the United States is perhaps one of the most crypto-friendly. Regulators there have shown a keen interest in the topic, and the country has the most Bitcoin and Ethereum nodes of any in the world. The Joe Biden administration issued several government studies in September discussing potential crypto regulation for the next year.
The White House has released a fact sheet detailing a regulatory framework for digital assets to safeguard the public through the issuance of guidance, the increase of enforcement resources, and the aggressive pursuit of fraudulent actors, all of which were developed in response to Vice President Biden’s Executive Order on Ensuring Responsible Development of Digital Assets.
Slovenia introduced a proposal to implement a uniform tax rate on virtual currencies in April of this year. According to the plan, a tax on profits generated by the purchase or exchange of cryptocurrencies would be levied at a rate that is lower than 5% of the sale or exchange value. As stated in the public statement that was issued to announce the idea, if the new legislation is passed into law, Slovenia would become one of the few nations, if not the only one in the world, with such a straightforward method of taxes for virtual currencies.
5. El Salvador
El Salvador, which recently made history by becoming the first nation in the world to recognize Bitcoin as a form of legal cash, is actively seeking to entice international investors and provides a tax break for those investors who qualify. Profits made from bitcoin are not subject to any kind of income or capital gains tax in this country.
The rest of the world is still expecting upon El Salvador’s legal framework to implement these official claims, but the cryptocurrency community is touting El Salvador as one of the greatest nations in which cryptocurrency transactions are not subject to taxation.
Germany is fantastic because it does not recognize virtual currencies as legal cash, instead classifying them as private money. Germany’s favorable legal climate may make the nation an ideal location for long-term investments. But if you’re trying to save money on taxes and cash out soon, you may want to rethink this strategy.
No matter how much money you have invested in cryptocurrency, if you keep it for more than a year and a half you won’t have to pay taxes on it. It is clear that the government is making an effort to stop high-volume traders from exploiting the legislation.
When it comes to doing business, Singapore is often mentioned as a top contender because of its reputation as a global economic powerhouse. The government is quite crypto-friendly and has passed much legislation in support of the technology. This is why crypto businesses and investors keep coming to Singapore.
The Monetary Authority of Singapore (MAS), the country’s central bank, is working to create a fair ecosystem for cryptocurrencies. The MAS is not interested in imposing heavy regulations on cryptocurrencies but is instead keeping a close eye on them to avoid money laundering and other criminal activity. Bitcoin is subject to goods and services tax since it is a physical commodity.
According to many, Switzerland is the most crypto-friendly country in the world. To this day, Swiss banks are still among the first worldwide to accept Bitcoins and provide cryptocurrency businesses bank accounts.
Hundreds of cryptocurrency-related businesses and initiatives, including Solana, Polkadot, and Cardano, are headquartered in the Swiss city of Zug. There are already 14 crypto-related “unicorns” based in Switzerland, earning the country the nickname “Crypto Valley” throughout Europe. The Ethereum project’s original creators also met there.
With the passage of the “Blockchain Law” last year, the government now has a legal framework for regulating digital currencies. Because of this, several crypto-related businesses and initiatives have set up shops in Switzerland.
Malta is a popular location for blockchain initiatives and cryptocurrency exchanges because of the country’s positive stance towards digital currencies. Investors have been eyeing this little island increasingly over the last several years. As a result of Hong Kong’s stricter laws, Binance was welcomed in Malta.
Over the last several years, it was speculated that over $70 billion in cryptocurrency had moved across Malta’s borders. Although the absence of a central authority in the nation has been criticized, it is difficult to find fault with the large number of dealers and miners operating there.
Due of its comparably liberal financial system compared to the rest of the globe, bitcoin holders often choose to relocate to Bermuda. The Digital Asset Business Act, which governs digital assets in Bermuda, was published in 2018.
Bitcoin and other cryptocurrencies may be bought and sold in Bermuda without worrying about being taxed, much like the country’s famed absence of income and capital gains taxes.
Due to its pioneering role in accepting cryptocurrencies as legal tender, the island nation of Bermuda has become a popular location for cryptocurrency investors. Since the month of October 2019 however, residents of Bermuda may pay for government services using US Coin (USDC).