The world of cryptocurrencies has not stopped growing since bitcoin was born in the 1990s.
In recent years, more and more sectors have begun to rely on cryptocurrencies as a method of payment. Travel sectors have started to get involved in this world to activate it as one of their payment methods. Expedia, one of the largest online travel companies, started to use these virtual currencies as a form of payment. Now users can book a trip and pay for it securely without any worries whatsoever.
Another sector that is using virtual currencies as a form of payment is the world of online gambling. Many online casinos, for example, offer to allow you to spin roulette or play a game against a dealer without going to a casino. Amongst the offers that can be found are free online casino games that have the same features as when you bet money, but without risking your cash or crypto funds. The more traditional games, however, can be played for real money if you are an expert. The portal contains a list of the best game providers where you can get information about their bonuses and available payment methods, such as those that accept cryptocurrency.
Nevertheless, seeing the progress that cryptocurrencies are making, investors in digital currencies are constantly on the lookout for new investment opportunities around the world. Next, we will list the countries that are best positioned to support technological innovation and avoid paying taxes on the capital generated.
El Salvador
Recognised as the first country in the world where a cryptocurrency such as Bitcoin is legal. The aim of El Salvador’s president, Nayib Bukele, is to attract investors from all over the world to the country so that their investments are exempt from taxes. The Central American country exempts all profits generated by virtual currency from income tax.
For many Salvadorians, an idea without much of a future. However, for those involved in the crypto world, this is great news, as the country becomes one of the best to invest in.
Switzerland
It has been proven that the Swiss country has a whole range of services that allow you to live a life with no issues. Nature, gastronomy, and entertainment are some of the points to be taken into account.
However, Switzerland is considered to be the centre of innovation in the old continent. As far as the world of cryptocurrencies is concerned, Switzerland is one of the countries that offer the most benefits to its investors. Thus, as far as taxes are concerned, the Swiss Federal Tax Administration declared that transactions with digital currencies and traditional transactions are exactly the same. Therefore, this exempts them from tax declaration.
Crypto investments are increasingly in demand in Switzerland, as there is no taxation on profits in the cryptocurrency market. Many major cryptocurrency platforms have decided to choose Switzerland as their home country.
However, taxes on crypto and trading profits must be paid on the tax return, which varies from one region of the country to another.
Germany
Another crypto-friendly country is Germany. Like those mentioned above, it is one of the countries that are tax-free when working with cryptocurrencies.
Compared to other EU countries, Germany has an innovative approach to cryptocurrency taxation and attracts the attention of individual investors.
If profits are exchanged for real money or other cryptocurrencies within an estimated time of one year, no tax is payable, as long as the profit is less than 600 euros. However, in order to make decisions such as switching from one currency to another, you must have a good knowledge of the current state of cryptocurrencies. Therefore, it is recommended that you seek the advice of professionals in the sector.
However, Gmbhs, known in Spain as Sociedades Limitadas, must declare and pay taxes on profits made through cryptocurrencies.
Singapore
Perhaps one of the most developed countries in terms of economy. For many the country of the future and where many of the world’s population will want to live.
The Asian country is one of the most active in terms of working with cryptocurrencies, so there are several laws to support them.
In Singapore, cryptocurrency investors are exempt from paying capital gains tax. Corporate and individual funds are not taxed. However, those companies based in the country are.
Belarus
Alexander Lukashenko, President of Belarus, signed a law in 2017 to legalise cryptocurrencies. This law exempts individuals and companies from paying taxes until 2023 when it will be subject to further review.
When investing in cryptocurrencies, investors should take into account certain characteristics of the location where they are going to relocate. For example, you need to be very familiar with the tax laws of tax havens if you decide to relocate to one of them.
Now that you know some of the most important countries to invest in cryptocurrencies, what are you waiting for?
