The rules and regulations of holding cryptocurrencies are different in different parts of the world. Most countries in the western hemisphere have legalized cryptocurrencies, whereas in many Asian and African countries, cryptocurrencies, especially Bitcoins, are illegal. If you have opened the link to this article, I am sure you know a thing or two about Bitcoins. If so, you can start trading at https://thebitcoincode.io.
But do you know that cryptocurrencies are also taxed differently in different countries? Suppose you are an American crypto investor like me. In that case, you must know that the Internal Revenue Service has recently announced that Bitcoins will be considered property.
Thus, an American holding bitcoins will have to pay property taxes on them. Yes, it does bother us a little, but one good thing that came out of it is that Bitcoins were legalized.
Top 5 Countries Where Cryptocurrency Investments Are Not Taxed
These five first world nations have tax free Bitcoins.
Cryptocurrencies have been illegal for a long time in Malaysia, but the new Government has legalized them. The best part about it is that it will not be considered your crypto holdings will not be taxed.
In the 2019 Budget of Malaysia, the Government made it very clear that cryptocurrencies will not be taxed for then, but anything can happen in the coming years.
Trust me when I tell you this but Germany is already on the verge of introducing Crypto ATMs. Not only are cryptocurrencies tax-free in Germany, but it is very much legal and very much in use. Bitcoins are openly used in Germany.
Bitcoin transactions are exempted from Value Added Services. Germany, being one of the most developed nations globally, can afford to not impose a tax on its citizens, and the good thing about them, this stance does not change when it comes to cryptocurrencies.
Probably the best place for crypto billionaires. Most of the crypto headquarters are located in Switzerland, like Libra Association, Ethereum Foundation. Cryptocurrencies are generally legal in Switzerland, but things get a little trickier when it comes to taxation.
Bitcoin mining in Switzerland is considered to be a source of self-employment. However, if you trade Bitcoins professionally, you will pay a little as business tax.
Belarus is one of the nations that have recently legalized cryptocurrencies. In 2018 the Government of Belarus made cryptocurrencies tax-free. Cryptocurrency mining and crypto investment are considered to be personal investments and will most certainly be tax-free until the end of 2023 under the law that had been passed by the Government of Belarus.
In Portugal, you do not need to pay taxes if you hold cryptocurrencies. Do note that if you have a business that accepts Bitcoins as a mode of payment in Portugal, then you are bound by law to pay taxes on it.
So as you have seen, cryptos and taxed differently in different parts of the world. As a crypto investor, I spend a lot of time researching and keeping myself updated about the important details of cryptocurrencies.